India: Capacity Building for Himachal Pradesh Power Sector Agencies

Sovereign Project | 41611-012

Summary

The TA will develop a comprehensive master plan, and help develop capacity development, including in the preparation of periodic financing requests for further MFF tranches.

Latest Project Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Capacity Building for Himachal Pradesh Power Sector Agencies
Project Number 41611-012
Country India
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7181-IND: Capacity Building for Himachal Pradesh Power Sector Agencies
Technical Assistance Special Fund US$ 900,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description The TA will develop a comprehensive master plan, and help develop capacity development, including in the preparation of periodic financing requests for further MFF tranches.
Project Rationale and Linkage to Country/Regional Strategy HP, a small mountainous state, is blessed with abundant water resources in the five major rivers glowing through the state that emanate from the western Himalayas. The power generation potential of HP is 20,415 MW, which is about 25% of the total hydropower potential of India, out of which around 6,150MW has been developed. Recognizing the state's comparative advantage in hydropower generation, the main strategy of the GOHP, outlined in its state Hydro Power Policy, 2006, is to become the "Hydro Power State" of the country, by providing affordable, reliable power to its residents, and selling excess power to the Northern Grid as a major source of revenue for HP. A new corporate entity has been established according to Hydro Power Policy, 2006 and it is mandated to develop and operate new hydropower plants in HP. As elucidated in the Hydropower Policy, 2006, GOHP has opted to target its comparative advantage in hydropower as the kew focal point of the HP power development. GOHP has outlined a policy agenda for hydropower development in the short to medium term coupled with a comprehensive roadmap in order to efficiently achieve these goals. HP's clean energy agenda is in line with ADB's Clean Energy and Environment Program which aims to foster clean energy development in Asia and the Pacific and to help address climate change and energy security.
Impact

The impact and outcome of the TA will include the following:

(i) Component 1: The outcome of this component will be a comprehensive power system master plan that will provide the blueprint for development of the power sector in Himachal Pradesh. The master plan will tie together generation, transmission, and distribution expansion to ensure that all proposed capital investments are part of a long-term, structured plan rather than ad hoc. It will also ensure that network expansion is economically efficient and will provide a realistic framework for loss reduction.

(ii) Component 2: The outcome will be specifications for an RMIS and a reporting framework for the power sector entities. Using these specifications, HPERC will acquire an RMIS using its own resources. Assessing information requirement of HPERC and reporting necessities of the power sector entities will facilitate purchasing or developing the correct RMIS, and ultimately facilitate implementation of the multiyear tariff structure. The RMIS will also support review of performance standards in the multiyear tariff framework. Developing a methodology to compute the cost of supply at various voltage levels will support (a) rationalization of tariff across different voltage levels, (b) rationalization of cross-subsidies, and (c) determination of open access surcharges.

(iii) Component 3: Preparation of periodic financing requests for further tranches of the MFF.

Project Outcome
Description of Outcome

Component 1: The outcome will be a comprehensive Power System Master Plan that will provide the blueprint for development of the power system in HP. The Master Plan will tie together generation, transmission and distribution expansion to ensure with confidence that all proposed capital investments are not ad hoc and are instead part of a long term, structured plan. It will also ensure that network expansion is economically efficient and will provide a realistic framework for loss reduction.

Component 2: The outcome will be specifications for a Regulatory Management Information System (RMIS) and reporting framework for the power sector entities. Using these specifications, HPERC will acquire a RMIS by using its own resources. Assessing information requirement of HPERC and reporting necessities of the power sector entities will facilitate purchasing or developing the correct RMIS and ultimately facilitate implementation of the multiyear tariff structure. RMIS will also support review of performance standards in the multiyear tariff framework. Developing a methodology to compute the cost of supply at various voltage levels will support (i) rationalization of tariff accross different voltage levels; (ii) rationalization of cross subsidies; and (iii) support determination of open access surcharges.

Component 3: Capacity developed in preparation of periodic financing requests for further tranches of MFF. (i) Specification for a RMIS; (ii) Reporting framework for the power sector entities; and (iii) cost of supply framework and model.

Progress Toward Outcome Component 1 is complete. Component 2 was revised as HPERC received Central Govt. assistance for RMIS system. Component 3 is complete.
Implementation Progress
Description of Project Outputs

Component 1

(i) a detailed long-term (10 year) demand forecast for HP at the power substation level, with demand disaggregated between main consumer group;

(ii) a series of realistic long-term generation capacity expansion scenarios, with consideration given to prospects for in-state generation development as well as generation sourced from outside of HP;

(iii) a series of least cost transmission expansion plans, matched to the generation expansion scenarios developed;

(iv) an assessment of the quantum and timing of generation and transmission investments for each system development scenario;

(v) an estimate of distribution investment costs to meet demand growth;

(vi) cost and benefit analysis for with and without clean development mechanism option;

(vii) identification of risk factors and a risk management plan for the power system of HP;

(viii) institutional reform recommendations for HPSEB to develop capacity to implement and revise as necessary the Master Plan;

(ix) a power system analysis software program and equipment (computers); and

(x) a detailed five-year program of capital works, and preparation of detailed project reports (DPRs) for projects to be covered in the first two years.

Component 2

(i) specification for a RMIS; (ii) reporting framework for the power sector entities; and (iii) cost of supply framework and model.

Component 3

Periodic financing requests for further tranches of MFF.

Status of Implementation Progress (Outputs, Activities, and Issues) Component 1 is complete. Component 2 was no longer required. Component 3 is complete.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

The TA will finance the services of international consultants for a total of 13 person-months and local consultants for a total of 25 person-months. Consultants will be engaged by ADB in accordance with its Guidelines on the Use of Consultants for each component of the TA.

For Component 1, a consulting firm or consortium of firms will be engaged under the quality and cost based selection process, and simplified technical proposals will be requested. International consultants will include: (i) power system planning expert, team leader (5 person-months), (ii) hydropower expert (1 person-month), (iii) distribution expert (3 person-months), and (iv) power economist (2 person-months). National consultants include: (i) transmission expert (2 person-months), distribution expert (3 person-months), and (iii) power economist (2 person-months).

For Component 2, national consultants will be recruited. These will include: (i) financial management expert (6 person-months), (ii) system specialist (4 person-months), and (iii) regulatory economist (6 person-months).

For Component 3, individual consultants will be recruited. International consultants will include: (i) economist/financial analyst with strong power sector knowledge (1 person-month), and (ii) hydropower engineer (1 person-month). National consultants will include: (i) social assessment expert (2 person-months), and (ii) environmental assessment expert (2 person-months).

Responsible ADB Officer Andrew Jeffries
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Multipurpose Projects & Power Dept of Govt of HPPrincipal Secretary (Power)HP Secretariat Shimla-171 002 Himachal Pradesh, India
Timetable
Concept Clearance 25 Apr 2008
Fact Finding 29 Mar 2008 to 04 Apr 2008
MRM -
Approval 26 Nov 2008
Last Review Mission -
PDS Creation Date 16 Apr 2009
Last PDS Update 29 Mar 2012

TA 7181-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2008 24 Feb 2009 24 Feb 2009 31 Jan 2010 31 Jul 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 400,000.00 0.00 0.00 0.00 1,300,000.00 26 Nov 2008 725,694.36

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.