India: Assam Power Sector Enhancement Investment Program - Tranche 1

Sovereign Project | 41614-023

Summary

Tranche 1 of the Assam Power Sector Enhancement Investment Program amounting to $49.6 million aims to fund a transmission system infrastructure improvement project in the state of Assam, India. It covers part of the state's power sector road map for enhancing the transmission capacities to improve operational efficiency and electricity service to end users. Tranche 1 will finance: (i) construction of 220 kV and 132 kV power transmission lines; (ii) construction of one 220/132 kV substation and five 132/33 kV substations; and (iii) extension and augmentation of two existing substations.

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Project Name Assam Power Sector Enhancement Investment Program - Tranche 1
Project Number 41614-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
TA 7378-IND: Capacity Development of the Assam Power Sector Utilities
Technical Assistance Special Fund US$ 1.00 million
Loan 2592-IND: MFF - Assam Power Sector Enhancement Investment Program - Project 1
Ordinary capital resources US$ 49.60 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming
Description Tranche 1 of the Assam Power Sector Enhancement Investment Program amounting to $49.6 million aims to fund a transmission system infrastructure improvement project in the state of Assam, India. It covers part of the state's power sector road map for enhancing the transmission capacities to improve operational efficiency and electricity service to end users. Tranche 1 will finance: (i) construction of 220 kV and 132 kV power transmission lines; (ii) construction of one 220/132 kV substation and five 132/33 kV substations; and (iii) extension and augmentation of two existing substations.
Project Rationale and Linkage to Country/Regional Strategy

The Investment Program 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 Investment Program 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 Investment Program to support participation of the utilities at different stages of readiness.

Impact A sustainable state power transmission sector to support inclusive economic growth.
Project Outcome
Description of Outcome Enhanced transmission capacity and quality with physical and institutional capacity development.
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

Nonphysical Investments: Renewable Energy Development

Nonphysical Investments: Institutional and/or capacity development of ASEB, APGCL, AEGCL, and LAEDCL

Nonphysical Investments: Distribution franchising

Physical Investments: Access to power (transmission)

Constructed new transmission lines and substations, augmented existing substations, and miscellaneous transmission system improvement activities

Physical Investments: Energy efficiency enhancement (transmission loss reduction)

Extended and augmented existing substations

Nonphysical Investments: Project implementation support

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

Overall implementation of the Loan 2592 is satisfactory and is rated "on track" by the end of Q1 2015. All procurement packages have been contracted and disbursement of funds is ongoing. As of February 2015, contract award is 86% against the total loan amount and disbursement is 82%. Physical progress is 89%.

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Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The Environmental Management Plan is being implemented in accordance with applicable laws and regulation of GOI, GOA, and the ADB guidelines.
Involuntary Resettlement An assessment of land acquisition and resettlement has been carried out for Tranche 1 subprojects. The subprojects under Tranche 1 has minimal resettlement requirements through the adoption of appropriate engineering solutions in these subproject design together with the involvement of and consultation of all stakeholders. No relocation is anticipated as the subprojects include transmission components required minimum land acquisition. Similarly no relocation of any structure or family will be required due to land acquisition. Impact is such as they will be confined in general to open land or agriculture land.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design AEGCL consulted with stakeholders, including affected communities, during the design stage. During the preparatory stages of the tranche 1 project, consultations were carried out with various stakeholders and government officials concerned. Local communities were consulted as part of the social and resettlement study to gather their views on the proposed projects under tranche 1. All affected people were consulted on a one-to-one basis through questionnaire surveys. Additionally, focus group discussions were conducted within the project influence areas. Stakeholder participation and public consultation will continue during preparatory work for second and/or third tranche projects.
During Project Implementation Consultations will continue during the entire project cycle according to a stakeholder participation plan.
Business Opportunities
Consulting Services Consulting services will be required to provide AEGCL and LAEDCL 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 (2007, 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 (2007, as amended from time to time) in accordance with the related procurement plan
Responsible ADB Officer Jyotirmoy Banerjee
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Assam Electricity Grid Corporation Ltd.PMU_ASEB@REDIFFMAIL.COMAssam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
Guwahati-781001
Assam State Electricity BoardMr. D. Borgohain"D. Borgohain" Bijuli Bhwan, Paltan Bazaar, Guwahati 781001
Timetable
Concept Clearance 30 Mar 2009
Fact Finding 28 Apr 2009 to 12 May 2009
MRM 22 May 2009
Approval 27 Nov 2009
Last Review Mission -
PDS Creation Date 29 Jan 2010
Last PDS Update 26 Mar 2015

Loan 2592-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2009 15 Feb 2010 05 May 2010 28 Feb 2014 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 84.60 Cumulative Contract Awards
ADB 49.60 27 Nov 2009 43.01 0.00 87%
Counterpart 35.00 Cumulative Disbursements
Cofinancing 0.00 27 Nov 2009 37.92 0.00 76%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 7378-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2009 11 Jan 2010 11 Jan 2010 31 Dec 2011 31 Dec 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 18 Nov 2009 848,042.20
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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