Pakistan: Power Distribution Enhancement Investment Program- Project 1

Sovereign Project | 38456-023

Summary

The project will address the capacity shortfalls that currectly result in regular system outages and supply interruptions to customers. This will include (i) addition of circuit and transformer capacity to enable the already overloaded systems to reliably deliver present demand and meet the expected load growth; (ii) loss reduction; and (iii) refurbishment of distribution networks.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Power Distribution Enhancement Investment Program- Project 1
Project Number 38456-023
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2438-PAK: Power Distribution Enhancement Investment Program- Project 1
Ordinary capital resources US$ 200.83 million
Loan 2439-PAK: Power Distribution Enhancement Investment Program- Project 1
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming
Description The project will address the capacity shortfalls that currectly result in regular system outages and supply interruptions to customers. This will include (i) addition of circuit and transformer capacity to enable the already overloaded systems to reliably deliver present demand and meet the expected load growth; (ii) loss reduction; and (iii) refurbishment of distribution networks.
Project Rationale and Linkage to Country/Regional Strategy The power sector is central to the current and future prosperity of Pakistan through the supply of low-cost electricity to domestic customers throughout the country and by virtue of its capacity to stimulate commercial and industrial development. The key challenges of the power sector asre (i) lack of generation capacity, (ii) increasing constraints in the transmission and distribution systems, (iii) weak financial management and sustainability of the sector entities, and (iv) inadequate corporate governance structures for the power companies.
Impact Improved power distribution infrastructure and management
Project Outcome
Description of Outcome Power distribution systems rehabilitated, augmented and expanded.
Progress Toward Outcome -- The loan was closed on 30 June 2012 as extended. The loan account closed on 3 January 2014. Over 180 sub-projects including rehabilitation, augmentation and expansion of distribution system were completed under the project.
Implementation Progress
Description of Project Outputs Subprojects Commissioned.
Status of Implementation Progress (Outputs, Activities, and Issues)

180 sub projects (including additional scope) have been commissioned.

More than 24.33 Km of Transmission Lines have been commissioned.

Actual progress to be validated during PCR.

Consultancy firm is hired and fielded since June 2012 and is working although frequent change of staff is noted.

Geographical Location The Project will be in Faisalabad, Gujranwala, Hyderabad, Islamabad, Lahore, Multan, Peshawar, and Quetta
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The Borrower shall, and cause the DISCO to, ensure that (a) the Project is carried out in accordance, with the Borrower's environmental laws and regulations, the ADB's Environment Policy (2002), the EARF, including updates thereto agreed with ADB, and respective IEEs, summary IEEs, and EMPs included in the IEEs; (b) all mitigation and monitoring measures identified in the respective EMP are incorporated into detailed design of the Subproject and implemented during the construction and operation of the Project facilities; (c) all contracts under the Subprojects contain provisions on compliance with these requirements; (d) the implementation of the EMPs is monitored and evaluated internally and externally; and (e) results of such monitoring and evaluation are reported to ADB.
Involuntary Resettlement The Borrower shall, and cause the DISCO to, ensure that (a) all land acquistion and resettlement activities under the Investment Project are implemented in accordance with applicable laws and regulations of the Borrower, the ADB's Policy on Involuntary Resettlement (1995), the LARF, and the respective LARPs, including any updates thereto agreed with ADB; (b) sufficient funds are made available, as necessary, for the efficient and timely implementation of activities specified in the respective LARP; (c) no notice to proceed is given to a contractor for commencement of construction works under the Subproject, until all compensations specifid in the respective LARP have been paid to the affected persons; (d) the implementation of the LARPs is monitored and evaluated internally and externally; and (e) results of such monitoring and evaluation are reported to ADB.
Indigenous Peoples The Borrower shall, and cause the DISCO to, ensure that (a) all Subprojects affecting indigenous people are constrcuted and operated in accordance with the requirements of the Borrower's applicable laws and regulations, ADB's Policy on Indigenous Peoples (1998) as specified in the IPDF, and detailed in the respective IPDPs (or LARPs), and (b) the implementation of the IPDPs is monitored and evaluated internally and externally; and (c) results of such external monitoring and evaluation are reported to ADB.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder analysis has been undertaken. All stakeholders have been actively involved in order to reduce the likelihood of grievances and to ensure that benefits are distributed fairly. For the selection of unskilled labor in the project area, the contractors will consult with local township labor officials, local village leaders, and tribal assembly of elders; and will ensure that labor is hired on a nondiscriminatory basis.
During Project Implementation All stakeholders have been actively involved in order to reduce the likelihood of grievances and to ensure that benefits are distributed fairly. For the selection of unskilled labor in the project area, DISCOs have discussions with the contractors and local township labor officials, local village leaders, and tribal assembly of elders; to ensure that labor is hired on a nondiscriminatory basis.
Business Opportunities
Consulting Services All consulting services shall be procured in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Firms carrying out consulting services will be selectedusing the quality- and cost-based selection method. Individual consultants will be recruited in accordance with government procedures acceptable to ADB. Because of the continuation of a number of tasks during implementation, it is envisioned that single source selection may be used for certain assignments with the prior approval of ADB.
Procurement

All good and services will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Procurement packages being developed for each of the eight power distribution companies, and related procurement activities will be undertaken by each distribution company. International competitive bidding will be used for the supply of goods and works being funded under the Investment Program. ICB will be used for goods contracts estimated to cost the equivalent of $1 million or more, and for works contracts estimated to cost the equivalent of $5 million or more.

Because of the urgent nature of the subprojects, the Government and the DISCOs have requested ADB approval to carry out advance contracting for procurement of works and goods for each tranche. The Government has also requested retroactive financing of up to 20% of the loan amount for each tranche under the Investment Program.

Responsible ADB Officer Adnan Tareen
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Pakistan Electric Power Company (Pvt.) LimitedKhalid Hussan RaiEDTPEPCO@HOTMAIL.COM407-WAPDA House, Shahrah-e-Quaid-e-Azam, Lahore 54000, Pakistan
Islamabad Electric Supply CompanyImplementing Agency
Islamabad, Pakistan
Lahore Electric Supply CompanyImplementing Agency
22-A, Queens Road
Lahore, Pakistan
Peshawar electric Supply CompanyImplementing Agency
WAPDA House, Sakhi Chesma, Shami Road
Peshawar, Pakistan
Multan Electric Power CompanyImplementing Agency
MEPCO Complex, Khanewal Road
Multan, Pakistan
Hyderabad Electric Supply CompanyImplementing Agency
Wapda Office complex, Hussainabad
Hyderabad, Pakistan
FAISALABAD ELECTRIC SUPPLY COMPANY LIMITEDImplementing Agency
West Canal Road, Abdullah Pur,
Faisalabad, Pakistan
Gujranwala Electric Power CompanyImplementing Agency
565-A, Model Town, GT Road
Gujranwala, Pakistan
Quetta Electric Supply CompanyImplementing Agency
Zarghoon Road
Quetta, Pakistan
Timetable
Concept Clearance 09 May 2007
Fact Finding 05 Jun 2007 to 21 Jun 2007
MRM 01 Aug 2007
Approval 12 Sep 2008
Last Review Mission -
PDS Creation Date 08 Jul 2009
Last PDS Update 25 Mar 2015

Loan 2438-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2008 29 Nov 2008 13 Jan 2009 30 Jun 2012 - 03 Jan 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 275.83 Cumulative Contract Awards
ADB 200.83 12 Sep 2008 171.89 0.00 100%
Counterpart 75.00 Cumulative Disbursements
Cofinancing 0.00 12 Sep 2008 171.89 0.00 100%

Loan 2439-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2008 29 Nov 2008 13 Jan 2009 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 12 Sep 2008 8.23 0.00 93%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 12 Sep 2008 4.43 0.00 50%

Safeguard Documents

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Evaluation Documents

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