ADB is helping India's Assam state expand its electricity transmission and distribution capacity, and increase access in remote communities. The second tranche of the multitranche facility will finance construction of 220 kV and 132 kV power transmission lines, two 220/132 kV substations, and six 132/33 kV substations. It also includes extension and augmentation of 11 substations.
|Project Name||MFF - Assam Power Sector Enhancement Investment Program - Tranche 2|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Electricity transmission and distribution
|Gender Equity and Mainstreaming|
The Transmission and Distribution Sector Investment Program (the Investment Program) includes the following components and costs: (i) access to power (transmission) and energy efficiency enhancement (transmission loss reduction), $561.6 million (73.5%); (ii) access to power (distribution) and energy efficiency enhancement (distribution loss reduction) and distribution franchising, $150 million (19.6%); (iii) distributed decentralized generation, $50 million (6.5%). The Investment Program includes $3.4 million for a capacity development program to meet the increasing management capacity requirements including technical assistance (TA). The physical investments will address current unserved energy demand and provide additional capacity to meet forecast demand growth.
The MFF is expected to be utilized in three tranches. Tranche 1 will finance a set of projects for (i) transmission of power for capacity addition in transmission lines of 220 kilovolts (kV) (180 kilometers [km]) and 132 kV (82 km), and capacity addition of transformation through construction of 1 new 220/132 kV substation and 5 new 132/33 kV substations; and (ii) extension and augmentation of 2 existing substations. The tranche will include capacity development.
Tranche 2 is expected to finance a set of projects for
(i) transmission of power for capacity addition in transmission lines of 220 kV (185 km) and 132 kV (160 km), and capacity addition of transformation through construction of 2 new 220/132 kV substations and 6 new 132/33 kV substations; and (ii) extension and augmentation of 11 substations.
Tranche 3 is expected to finance a set of projects for (i) access to power in distribution, (ii) energy efficiency enhancement: distribution loss reduction, and (iii) distribution franchising. This component includes construction of new distribution substations and lines to enable the rollout of relevant franchising models.
|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 sector with increased transmission and distribution capacity to support inclusive economic growth|
|Description of Outcome||Enhanced quality and expanded service delivery of electricity in Assam through improved technical, commercial, and financial performance and capability of the power sector utilities|
|Progress Toward Outcome||Loan 2677. All works under this loans are complete except: (i) Kamakhya and Sonapur substations, which are at an advanced stages of construction; and (ii) construction of 220 kV D/C LILO of Samaguri-Sarusajai line at Sonapur and 132 kV D/C LILO of Chandrapur-Kahilipara line at Sonapur. The project is delayed due to ROW problems, which are being monitoring closely for early resolution. ADB sought GoA intervention in resolving the ROW issues. EA and GoA assured the ADB that all out efforts are being made to resolve the ROW issues and expect the remaining works to be completed by the current loan closing date of 31 March 2018.|
|Description of Project Outputs||
Access to power: Constructed new transmission lines and substations, and other transmission system improvement activities
Energy efficiency enhancement : Extended and augmented transmission substations, refurbished existing substations, reactive compensation, introduction of new technologies to reduce loss
|Status of Implementation Progress (Outputs, Activities, and Issues)||Overall implementation of the Loan 2677 is satisfactory and is rated "on track. All procurement packages have been contracted and disbursement of funds is ongoing. The Loan closing date is 31 March 2018 and substantial Physical progress has been achieved, and the loan expected to close within the existing closing date, without any further extension.|
|Geographical Location||Barpeta, Cachar, Dhuburi, Dibrugarh, Goalpara, Golaghat, Hailakandi, Jorhat, Kamrup, Karimganj, Kokrajhar, Lakhimpur, Marigaon, Nagaon, Nalbari, Sibsagar, Sonitpur, Tinsukia|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Being Complied.|
|Involuntary Resettlement||Being Complied.|
|Indigenous Peoples||Being Complied.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Complied.|
|During Project Implementation||Consultations will continue during the entire project cycle according to a stakeholder participation plan.|
|Consulting Services||Consulting services will be required to provide ASEB and the implementing agencies with assistance for project implementation, including design, construction supervision, and management of the projects under each loan of the MFF; as well as ASEB's processing work and PFR preparation for future loans. Consulting services will be provided for evaluation, monitoring, and reporting purposes. 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 procurement plan.|
|Procurement||Goods, equipment, and civil works to be financed under the MFF will be procured in accordance with ADB Procurement Guidelines (2007, as amended from time to time) and the related procurement plan.|
|Responsible ADB Officer||Banerjee, Jyotirmoy|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Assam Electricity Grid Corporation Ltd
Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
|Approval||05 Oct 2010|
|Last Review Mission||-|
|PDS Creation Date||30 Jul 2010|
|Last PDS Update||27 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Oct 2010||17 Jan 2011||01 Apr 2011||30 Nov 2013||31 Mar 2018||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||66.90||Cumulative Contract Awards|
|ADB||66.90||05 Oct 2010||65.37||0.00||98%|
|Cofinancing||0.00||05 Oct 2010||60.52||0.00||90%|
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.
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|Title||Document Type||Document Date|
|Amendment to the Loan Agreement for 2592, 2677, 2800-IND: Assam Power Sector Enhancement Investment Program - Project 1, Project 2 and Project 3||Loan Agreement (Ordinary Resources)||Oct 2014|
|Loan Agreement for Assam power Sector Enhancement Investment Program - Project 2 between India and Asian Development Bank dated 17 January 2011||Loan Agreement (Ordinary Resources)||Jan 2011|
|Project Agreement for Assam Power Sector Enhancement Investment Program - Project 2 between Asian Development Bank and State of Assam and Assam State Electricty Board dated 17 January 2011||Loan Agreement (Ordinary Resources)||Jan 2011|
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