Sri Lanka: Sustainable Power Sector Support

Sovereign Project | 39415-013

Summary

The project will include the following components: (i) transmission system strengthening to further improve its energy efficiency and reliability and enable rural electrification in the Eastern, North Central, Southern and Uva provinces of Sri Lanka; (ii) rural electrification and distribution system improvement in the Eastern and Uva provinces of the country to expand access for the poor and rural households; and (iii) energy efficiency and renewable energy.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Sustainable Power Sector Support Project Dec 2013

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Project Name Sustainable Power Sector Support
Project Number 39415-013
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2733-SRI: Sustainable Power Sector Support
Ordinary capital resources US$ 110.00 million
Loan 2734-SRI: Sustainable Power Sector Support
Asian Development Fund US$ 10.00 million
TA 7778-SRI: Implementation of Energy Efficiency Policy Initiatives
Clean Energy Facility - Asian Clean Energy Fund US$ 1.85 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Energy - Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - small hydro
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will include the following components: (i) transmission system strengthening to further improve its energy efficiency and reliability and enable rural electrification in the Eastern, North Central, Southern and Uva provinces of Sri Lanka; (ii) rural electrification and distribution system improvement in the Eastern and Uva provinces of the country to expand access for the poor and rural households; and (iii) energy efficiency and renewable energy.
Project Rationale and Linkage to Country/Regional Strategy Sri Lanka's power sector struggles to meet the growing demand for electricity at sufficiently low cost and acceptable reliability. The share of thermal energy in the power generation mix has increased dramatically from 6% in 1995 to 61% in 2010 as the entire demand growth has been generally served by oil-fired thermal generation that makes electricity expensive due to high fuel prices, poses a serious threat to the country's energy security and the environment. The transmission system is currently too weak to meet the growing demand in the regions. Substantial investments are required to strengthen the transmission network and to improve its reliability. Currently about 16% of households, primarily in the rural areas, do not have access to electricity. Despite the government's intensive investment program to expand the rural distribution network, many poor households still remain unconnected. In particular, according to the available data, the electrification ratio of about 67% in the Eastern province is the lowest among all Sri Lanka provinces and is well below the average national electrification ratio of 84% in 2009. The Uva province is another lagging region with low electrification ratio of 70% (2009). There is an urgent need to develop clean energy and indigenous renewable energy sources, undertake loss reduction efforts, and address energy efficiency issues.
Impact Reliable, adequate, and affordable power supply for sustainable economic growth and poverty reduction
Project Outcome
Description of Outcome Improved coverage, efficiency and reliablility in service delivery
Progress Toward Outcome Project implementation is ongoing.
Implementation Progress
Description of Project Outputs

Strengthened transmission network

Expanded and improved distribution network in rural areas of Eastern and Uva provinces

Energy efficiency improved and additional renewable energy developed

Improved livelihood of local communities in Ampara district of Eastern Province

Status of Implementation Progress (Outputs, Activities, and Issues)

Under implementation.

Under implementation.

Under implementation

JFPR activities were initiated and ongoing.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects During the construction and operation phases, measures are being taken to minimize environmental impacts. Some potential environmental impacts, in particular associated with the construction of transmission lines, are experienced. To minimize these, CEB had observed the route selection criteria set out in the national regulations and has adopted best environmental practices. Adequate provisions have been made for the environmental mitigation measures, monitoring requirements and their associated costs in the environmental management plans (EMPs) prepared for each subproject. CEB has sufficient capacity to implement safeguard measures based on the EMPs. SEA is supported by safeguard consultants.
Involuntary Resettlement None of the project components have a significant social impact. The transmission and distribution lines primarily cross public and unused lands. Where crop fields slightly affected, households are fairly compensated for the loss. Construction are carried out during the off-season for crops. New grid substations are built on public land, and the project may mount the distribution transformers on poles to minimize their footprint. The project is classified category B for involuntary resettlement issues. CEB prepared a resettlement plan for the transmission strengthening and rural electrification and distribution improvement components.
Indigenous Peoples No indigenous people are directly affected by the project
Stakeholder Communication, Participation, and Consultation
During Project Design Project stakeholders, including civil society groups, were consulted during project preparation. As integral parts of safeguard planning, affected communities and affected people were involved during the project design and feasibility stage. Questionnaires were designed for the project and distributed to households in the project area to gain a better understanding of the socioeconomic profile of project stakeholders, including affected people. The consultations aimed to ensure that people were adequately informed about the impacts of the project and had an opportunity to participate in the design and minimization of environmentally and socially adverse impacts during project development. Different consultation techniques were used with stakeholders during project preparation, including in-depth, one-to-one, and group interviews; public consultation meetings; and focus group discussions. Vulnerable groups, including women, were also consulted. Ongoing and continual consultation was maintained with government officials and the executing and implementing agencies. These consultations played a vital role in raising awareness, gaining local support, and enabling affected people to voice their opinions and suggestions on project design and implementation.
During Project Implementation The level of consultation are through information sharing, collaborative decision-making and empowerment.
Business Opportunities
Consulting Services The consultants, to be financed under the loan, will be recruited in accordance with ADB's Guidelines on the Use of Consultants using a quality and cost-based selection method and other arrangements satisfactory to ADB for the engagement of domestic consultants.
Procurement Procurement will be subject to ADB's Procurement Guidelines (2010, as amended from time to time).
Responsible ADB Officer Ranishka Yasanga Wimalasena
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Sustainable Energy AuthorityImplementing Agency
3G-17, BMICH, Bauddhaloka Mawatha
Colombo 07, Sri Lanka
Ministry of Power and Energy (MOPE)SECREPEN@SLTNET.LK72, Ananada Kumaraswamy Mawatha
Colombo 07, Sri Lanka
Ceylon Electricity BoardImplementing Agency
3rd Flr. GOBA Bldg.,#50,Sir Chittampalam
A.Gardiner Mawatha,Colombo 02,Sri Lanka
Timetable
Concept Clearance 15 Apr 2010
Fact Finding 13 May 2010 to 26 May 2010
MRM -
Approval 27 Jan 2011
Last Review Mission -
PDS Creation Date 08 Sep 2010
Last PDS Update 25 Aug 2015

Loan 2733-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jan 2011 20 Jun 2011 17 Nov 2011 30 Oct 2014 30 Oct 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 152.03 Cumulative Contract Awards
ADB 110.00 27 Jan 2011 83.66 0.00 76%
Counterpart 42.03 Cumulative Disbursements
Cofinancing 0.00 27 Jan 2011 66.47 0.00 60%

Loan 2734-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jan 2011 20 Jun 2011 17 Nov 2011 30 Oct 2014 30 Oct 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 27 Jan 2011 7.59 0.00 80%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Jan 2011 7.39 0.00 78%

TA 7778-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jan 2011 03 Mar 2011 03 Mar 2011 30 Apr 2013 30 Oct 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,850,000.00 390,000.00 0.00 0.00 0.00 2,240,000.00 27 Jan 2011 1,490,923.82

Evaluation Documents

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