Pakistan: Power Distribution Enhancement Investment Program - Tranche 4

Sovereign Project | 38456-037

Summary

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.

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Project Name Power Distribution Enhancement Investment Program - Tranche 4
Project Number 38456-037
Country Pakistan
Project Status Approved
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
Regional integration
Drivers of Change Governance and capacity development
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.
Impact Reliable and quality power supplied and service coverage expanded
Project Outcome
Description of Outcome Capacity of the power distribution systems increased
Progress Toward Outcome The project management units (PMUs) headed by the Chief Engineers (Development) have already been established. The procurement process for all (goods) packages have already commenced and are at different stages. Installation of equipment has not started yet.
Implementation Progress
Description of Project Outputs Subprojects commissioned
Status of Implementation Progress (Outputs, Activities, and Issues) Bidding for the procurement of goods for all DISCOs already in progress and at different stages. Physical implementation has not started yet.
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 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.) LimitedEDTPEPCO@HOTMAIL.COMRoom 726-WAPDA House
Shahra-i-Quaid-i-Azam
Lahore-54000, Pakistan
Timetable
Concept Clearance -
Fact Finding -
MRM 20 Nov 2013
Approval 13 Dec 2013
Last Review Mission -
Last PDS Update 26 Mar 2015

Loan 3096-PAK

Milestones
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 28.28 0.00 17%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2013 2.22 0.00 1%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - -

Evaluation Documents

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