India: Assam Power Sector Enhancement Investment Program

Sovereign Project | 41614-013

Summary

Assam Power Sector Enhancement Investment Program (APSEIP) will directly address energy sector issues by enhancing transmission and distribution infrastructure in Assam and improving institutional capacity of power utilities in Assam. The impact of the Investment Program will be a sustainable state power sector with increased T&D capacity to support inclusive economic growth. The outcome will be enhanced quality and expanded service delivery of electricity through improved technical, commercial, and financial performance and capability of power utilities. Investment Program's outputs are: (i) access to power; (ii) energy efficiency enhancement and T&D loss reduction; (iii) distribution franchising; (iv) renewable energy development and (v) capacity building.

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Project Name Assam Power Sector Enhancement Investment Program
Project Number 41614-013
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0038-IND: MFF - Assam Power Sector Enhancement Investment Program (Facility Concept)
Ordinary capital resources US$ 200.00 million
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
Description Assam Power Sector Enhancement Investment Program (APSEIP) will directly address energy sector issues by enhancing transmission and distribution infrastructure in Assam and improving institutional capacity of power utilities in Assam. The impact of the Investment Program will be a sustainable state power sector with increased T&D capacity to support inclusive economic growth. The outcome will be enhanced quality and expanded service delivery of electricity through improved technical, commercial, and financial performance and capability of power utilities. Investment Program's outputs are: (i) access to power; (ii) energy efficiency enhancement and T&D loss reduction; (iii) distribution franchising; (iv) renewable energy development and (v) capacity building.
Project Rationale and Linkage to Country/Regional Strategy

Assam Power Sector Enhancement Investment Program (APSEIP) will: (i) strengthen power transmission capacity to deliver reliable and affordable electricity; (ii) improve access to electricity in distribution through grid electricity and off-grid renewable and conventional energy-based electricity; (iii) enhance efficiency and quality of power supply; (iv) ensure financial health of the power sector through continued reform; and (v) promote private sector participation. The Investment Program includes a capacity development program component to meet the increasing management capacity requirements.

The MFF is particularly well suited for the APSEIP because: (i) its aim is to support GOA's long-term objectives, as stated in the T&D road map; (ii) the performance of ongoing projects under the MFF can guide the provision of subsequent loans, thereby offering proper incentives for implementation; and (iii) the MFF can offer the flexibility required for the APSEIP to support participation of the utilities at different stages of readiness.

Impact A sustainable state power sector with increased T & D capacity to support inclusive economic growth.
Project Outcome
Description of Outcome Enhanced quality and expanded service delivery of electricity through improved technical, commercial, and financial performance and capability of power utilities.
Progress Toward Outcome Ongoing
Implementation Progress
Description of Project Outputs

Access to power

Energy Efficiency enhancement

Distribution franchise investment

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

Tranche 1 of the MFF amounting to $60.3 million will finance a set of projects that includes (i) access to power (transmission) for capacity addition in transmission lines of 22kv (180 km) and 132kv (82 km), and capacity addition of transmission through construction of 1 new 220/132kv substation and 5 new 132/33kv substations; and (ii) energy efficiency enhancement (loss reduction) for extension and augmentation of 2 existing substations. Tranche 1 will also include a capacity development component.

Tranche 2 of the MFF, indicative amount of $89.7 million, is expected to finance a set of projects that includes (i) access to power (transmission) for capacity addition in transmission lines of 22kv (185 km) and 132kv (160 km), and capacity addtion of transformation through construction of 2 new 220/132 kv substations and 6 new 132/33kv substations; and (ii) energy efficiency enhancement (loss reduction) for extension and augmentation of 11 existing substations through 14 subprojects. Tranche 2 will also finance refurbishment of existing substations and installation of reactive power compensation equipment of 130 MVAR.

Tranche 3 of the MFF, indicative amount of $50.0 million, is expected to finance a set of projects comprising distribution components for (i) access to power (distribution), (ii) energy efficiency enhancement (loss reduction), and (iii) distribution franchising. This component includes construction of new distribution substations and lines.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects An environmental assessment and review framework (EARF) was prepared for the Investment Program, outlining the policy, procedures, and institutional requirements for the overall and for each tranche.
Involuntary Resettlement All tranches require a review of the resettlement framework and IPDF, as well as preparation of resettlement and indigenous people development plans, if needed, or the appropriate indigenous people plan and/or actions for all project with indigenous people issues. The projects under the MFF will minimize resettlement by adopting adequate engineering solutions in the design through proper invovlement of all stakeholders, ano relocation is anticipated.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design All relevant stakeholders were fully consulted during project preparation.
During Project Implementation Public consultation with all stakeholders will continue throughout implementation of the project.
Business Opportunities
Consulting Services Consulting services will be required to provide AEGCL and APDCL with support for project implementation, including design, supervision of construction, and management of projects under each loan of the MFF. Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time) in accordance with the related procurement plan.
Procurement Goods, equipment, and civil works to be financed under each loan of the MFF will be procured in accordance with ADB's Procurement Guidelines (2010, as amended from time to time) in accordance with the related procurement plan.
Responsible ADB Officer Aziz Yusupov
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Assam Electricity Grid Corporation Ltd.Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
Guwahati-781001
Assam Power Distribution Company Ltd.Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
Guwahati-781001
Timetable
Concept Clearance 30 Mar 2009
Fact Finding 28 Apr 2009 to 12 May 2009
MRM 22 May 2009
Approval 18 Nov 2009
Last Review Mission -
PDS Creation Date 20 Apr 2009
Last PDS Update 14 Mar 2013

MFF Facility Concept 0038-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 354.00 Cumulative Contract Awards
ADB 200.00 - 0.00 0.00 %
Counterpart 154.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Assam Power Sector Enhancement Investment Program Environmental Assessment and Review Framework May 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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