Lao People's Democratic Republic: Greater Mekong Subregion Northern Power Transmission Project

Sovereign Project | 38628-022 Status: Active

Summary

ADB is helping Lao People's Democratic Republic build nearly 400 kilometers of 115-kilovolt transmission lines, substations, and distribution lines in the provinces of Xaignabouli and Phongsali, and in western Vientiane. The project will fund a no-interest credit facility to enable poor households to connect to the grid. It will also help enable electricity trading with Thailand.

Latest Project Documents

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Procurement Documents


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Project Name Greater Mekong Subregion Northern Power Transmission Project
Project Number 38628-022
Country Lao People's Democratic Republic
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0195-LAO: Greater Mekong Subregion Northern Power Transmission Project
Asian Development Fund US$ 20.00 million
Loan: Greater Mekong Subregion Northern Power Transmission Project
Export-Import Bank of Korea US$ 37.88 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome (i) Under ADB portion: the implementation is progressing well with completion rate of 82.40% including 85.26% of design and engineering works; 83.66% of procurement; and 79.25% of construction of 115 kV transmission lines; (ii) For KEXIM portion, FBER was approved on 24 September 2015 and the contract agreement was signed on 18 December 2015 and the signed contract agreement was approved 22 December 2015 by KEXIM;
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. Under ADB portion: the implementation is progressing well with completion rate of 76.01% (269 out of 275 foundation completed, 230 towers erected, and 10.52 km of stringing works completed) while 115 kV transmission lines construction is not commemced yet.

2. Paklay substation construction and Nonhai and Xayabury substations extension are being progressed well as (i) 46% of construction work for Nonhai substation extension completed including equipment and gantry foundation works; (ii) 83% of construction works for Paklay substation completed including gantry erections; construction of guard house building, operator's control building, and operator's house buildings; and expected it will be energizing in May 2016; and (iii) 74% of construction works completed in Xayabury substation extension while is waiting for connecting of 115 kV transmission lines from Paklay to Xayabury that will be constructed under Module 2 financed by KEXIM;

3. 22 kV feeder lines and low voltage distribution networks in Phongsali, Xaignabouli, and Vientiane provinces are not built yet under the project and they were deleted from the scope of work financed by KEXIM because of cost overrun after procurement of civil work for 115 kV transmission lines and they will be built under ADB portion by utilizing grant proceeds savings;

4. the implementation of P2P activity is progressing well, and as of 30 November 2015, there were 7,379 HHs (2,164 HHs in Vientiane, 3,988 HHs in Xayabury, and 1,227 HHs in Phongsali provinces) connected with the wiring from the nearby electricity poles including 397 of female headed HHs (5.4% of total connected poor HHs) and 4,662 of ethnic HHs (63.2% of total connected poor HHs) and additional poor HHs will be connected based on the allocated budget;

5. draft strategy framework on energy efficiency and conservation program was approved on 25 October 2015 by the Government with providing some comments for further improvement; and

6. Access to two-way power trade between EdL and EGAT is not increased yet due to delay in construction of 115 kV transmission lines financed by KEXIM and anticipating it will be increased by the end of 2017 after completion of 115 kV transmission line from Paklay to Kenthao (Module 2).

Geographical Location Northern and Northeastern provinces

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects The final draft IEE is being finalized by the EA including the draft project environmental management plan (PEMP) covering preconstruction, construction, and operation stages for Modules 1, 2 and 3. The specific CEMP were prepared and embedded to civil works contracts for implementation by the contractors and the final IEE report was disclosed on 1 April in ADB website. IEE monitoring reports was submitted to ADB in 10 February 2015 and ADB provided comments on 16 February 2015. The environmental impact was being monitored by the EdL Environmental Office and semi-annual environmental monitoring report was being prepared and submitted to ADB for review and approval.
Involuntary Resettlement The project does not involve any relocation, and has very limited land acquisition since the transmission line route is designed to minimize land acquisition and eliminate the need for physical resettlement and relocation of dwellings and other assets. A resettlement framework was prepared and provides policies and entitlements for the substations and medium- (22 kV) and low-voltage (400 V) power distribution facilities and was used as a basis for the preparation of the resettlement plan. The draft resettlement plan has been finalized by EA which was discussed during a stakeholder workshop held in March 2007 and includes measures for stakeholder participation and full disclosure of all information relating to the project. In addition, a project information booklet prepared by EDL was distributed to affected people in July 2009 as part of the resettlement plan disclosure. The final resettlement action plan was disclosed in ADB website in July 2014. RAP monitoring reports was submitted to ADB in 10 February 2015 and ADB provided comments on 16 February 2015. The project resettlement was being monitored by the EdL Environmental Office and semi-annual resettlement monitoring report was being prepared and submitted to ADB for review and approval.
Indigenous Peoples To ensure that ethnic minority households and those headed by women are not marginalized during the process of compensation, the ethnic minority and gender-specific actions are included in the final resettlement action plan.
Stakeholder Communication, Participation, and Consultation
During Project Design EA prepared and distributed to project affected people the project information booklet.
During Project Implementation Consultation was carried out in selecting of poor households who received/will be receiving non-interest credit and connected to electricity. Upon finalization of the resettlement action plan updates they will be explained to villagers. EA has established provincial grievance redress committees.

Business Opportunities

Consulting Services

Project Implementation consultant - Project engineering design, preconstruction activities, construction supervision, performance monitoring and evaluation for transmission, substations and distribution - $3,847,053/ QCBS / FTP including contract variations of $629,188.

A group of individual consultants for energy efficiency and conservation program to Ministry of Energy and Mines - $600,000 /Individual consultants

Procurement

Module 1 - Turnkey contract for engineering, procurement and construction of the 115 kV transmission lines and substation - $12,550,225/ ICB / without Prequalification

Module 2 and 3 - $32,900,000 including EdL's additional contribution of $2,161,000

Responsible Staff

Responsible ADB Officer Phomma Chanthirath
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Electricite du Laos
Samsenethai Road, P.O. Box 309
Vientiane
Lao People's Democratic Republic
Ministry of Energy and Mines
Nongbone Road
P.O. Box 4708
Vientiane, Lao PDR

Timetable

Concept Clearance 24 Feb 2011
Fact Finding 20 Apr 2009 to 24 Feb 2011
MRM 24 Feb 2011
Approval -
Last Review Mission -
Last PDS Update 30 Mar 2016

Grant 0195-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jan 2010 24 Feb 2010 23 Nov 2010 30 Jun 2014 30 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 26 Jan 2010 17.17 0.00 86%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Jan 2010 13.57 0.00 68%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory - - 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

None currently available.

Related Publications


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