Pakistan: Power Distribution Enhancement Investment Program - Tranche 4

Sovereign Project | 38456-037 Status: Active


ADB is supporting efforts of Pakistan to improve the reliability of electricity supply in the country. The project covers investment in the secondary transmission grid, energy loss reduction and distribution of power, spare power transformers for emergencies. It will add 5,021 megavolt-amperes of transformer capacity and improve distribution efficiency.  

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Procurement Documents

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Project Name Power Distribution Enhancement Investment Program - Tranche 4
Project Number 38456-037
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3096-PAK: Power Distribution Enhancement Investment Program - Tranche 4
Ordinary capital resources US$ 167.20 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Conventional energy generation

Gender Equity and Mainstreaming No gender elements
Description The project comprises physical investments in subprojects covering (i) secondary transmission grid (STG): augmentation and extension of 132-kV power transformers at existing substations; (ii) energy loss reduction and distribution of power: replacement of overloaded distribution transformers with higher capacity and adding additional distribution transformer capacity on the 11-kV feeders; and (iii) strategic spares: spare power transformers for emergencies. The project will add 5,021 megavolt-amperes (MVA) of transformer capacity and will improve the distribution system''s efficiency and delivery.
Project Rationale and Linkage to Country/Regional Strategy The project is urgently needed to further alleviate the power distribution system bottlenecks and to reduce prolonged outages and load shedding. The project will help the DISCOs improve reliability and quality of power supply to customers. The outcome will be removal of power system bottlenecks by reducing the overloading of the system and increasing the transmission capacity of the substations through distribution system augmentation and expansion.

Project Outcome

Description of Outcome Capacity of the power distribution systems increased
Progress Toward Outcome A midterm review mission was fielded in December 2015. An action plan was agreed with the implementing agencies and PRM is closely monitoring the progress of the agreed actions. Based on the MTR findings the contract award and disbursement projections were revised. The remaining three DISCOs proposed utilization of savings. The DISCOs were advised to send their requests through the Executing Agency, MOWP and the Borrower. IESCO's request through the Borrower was received and LESCO and HESCO is awaited.
Implementation Progress
Description of Project Outputs Subprojects commissioned
Status of Implementation Progress (Outputs, Activities, and Issues)

All contracts have been signed for GEPCO and MEPCO packages and for several lots under FESCO, HESCO, IESCO, PESCO and QESCO. Other lots are in various stages of the procurement process (awaiting NOA or contract signing, ongoing bid evaluation, for rebidding). MEPCO civil works package has already been approved. Other DISCOs have been advised to expedite submission of draft bidding documents/bid evaluation reports (civil works) for ADB's review.

Contracts $64.87 million for 38 contracts have already been submitted to ADB. Six more contract of $21.175 million have been approved and contracts are expected to be signed in second quarter of 2016. Procurements for remaining lots/packages including the savings will be completed within 2016. Nine subprojects has already been completed and commissioned.

Geographical Location KPK,Sindh,Balochistan,Punjab

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Due diligence was undertaken to assess the environmental implications of the project activities. The project is limited to up gradation of grid stations, which involves transformer replacement, or transformer addition and no civil works are anticipated and all replacement activities will take place within the boundaries of the existing grid stations. Accordingly, the project has been classified as C for environmental safeguards requiring no further environmental assessment. An environmental assessment review framework was prepared for the MFF in 2009, which was updated in 2012 to fulfill the requirements of ADB's SPS 2009. All subprojects are required to comply with ADB's Prohibited Investment Activities' list. Each DISCO has established an environment and social impact cell and, in compliance with the loan agreement, hired one environment specialist to implement the environmental mitigation measures detailed in the environment management plans of ongoing previous tranches.
Involuntary Resettlement The project is classifed as "C" for resettlement. All works are proposed to be carried out entirely within existing grid stations and no land acquisition resettlement impacts are anticipated. As a result, there is no need to update the approved and disclosed Land Acquisition and Resettlement Framework for tranche 4 processing.
Indigenous Peoples The project is classifed as "C" for indigenous peoples. The project will have no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design No direct consultation will be undertaken.
During Project Implementation No direct consultation will be undertaken.

Business Opportunities

Consulting Services There will be no recruitment of consulting services.
Procurement There are eight international competitive bidding (ICB) packages covering activities such as procurement of transformers, panels, cables and allied equipment, etc. If applicable (based on the thresholds indicated in the procurement plan), individual lots under the ICB packages that did not lead to contract awards will be procured under national competitive bidding (NCB). There will be two civil works contracts under NCB.

Responsible Staff

Responsible ADB Officer Lei Zhang
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Pakistan Electric Power Company (Pvt.) Limited
403-WAPDA House
Lahore-54000, Pakistan


Concept Clearance -
Fact Finding -
MRM 20 Nov 2013
Approval 13 Dec 2013
Last Review Mission -
Last PDS Update 29 Mar 2016

Loan 3096-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2013 30 Apr 2014 18 Jul 2014 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 167.20 Cumulative Contract Awards
ADB 167.20 13 Dec 2013 92.38 0.00 55%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2013 47.06 0.00 28%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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