India: MFF - Himachal Pradesh Clean Energy Development Investment Program (Tranche 1)

Sovereign Project | 41627-023

Summary

The main objective is to help fulfill local demand, as Himachal Pradesh experiences energy shortages, especially in the winter months of December to February when river flows are at their lowest, with some peak shortages experienced throughout the year. Surplus power, particularly due to strong river flows from the spring snow melt, will be exported to the northern grid, thus serving as an important source of revenue for the state. However, the program will benefit all Northern Grid-connected electricity consumers via the export of excess power and by eliminating the need to import power from the Northern Grid, thus assisting the Government in its efforts to increase its overall generating capacity and achieve universal electrification under the 11th Five Year Plan. The second main objective is to provide capacity development assistance in order to develop the state hydropower generating company, Himachal Pradesh Power Corporation Ltd., into an efficient, corporatized generation company.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name MFF - Himachal Pradesh Clean Energy Development Investment Program (Tranche 1)
Project Number 41627-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2461-IND: MFF - Himachal Pradesh Clean Energy Development Investment Program (Tranche 1)
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Large hydropower generation
Gender Equity and Mainstreaming No gender elements
Description

The main objective is to help fulfill local demand, as Himachal Pradesh experiences energy shortages, especially in the winter months of December to February when river flows are at their lowest, with some peak shortages experienced throughout the year. Surplus power, particularly due to strong river flows from the spring snow melt, will be exported to the northern grid, thus serving as an important source of revenue for the state. However, the program will benefit all Northern Grid-connected electricity consumers via the export of excess power and by eliminating the need to import power from the Northern Grid, thus assisting the Government in its efforts to increase its overall generating capacity and achieve universal electrification under the 11th Five Year Plan. The second main objective is to provide capacity development assistance in order to develop the state hydropower generating company, Himachal Pradesh Power Corporation Ltd., into an efficient, corporatized generation company.

The scope of this tranche includes construction of the Sawra Kuddu (111 MW) hydroelectric project and the civil works for the Kashang Hydroelectric project.

Project Rationale and Linkage to Country/Regional Strategy
Impact A sustainable state electricity sector and improved state finances.
Project Outcome
Description of Outcome Increased hydropower production, as well as improved planning, implementation, management and sector governance.
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

Capacity development component: (i) Project-oriented: Implemented capacity development of various departments of HPPCL, focusing on (a) project preparation, implementation and management (including procurement, disbursements, safeguards compliance, and reporting); (b) financial management and accountability; and (c) knowledge transfer for compliance with ADB policies and procedures (ii) Corporate development: (a) Implemented capacity development to improve governance, fiduciary oversight, and organizational structuring; and (b) Developing in-house expertise within HPPCL on private sector participation modalities and CDM procedures. (iii) Implement enterprise resource planning solution at HPSEB

Tranche 1 funds electro-mechanical contracts and some civil works of the 111 MW Sawra Kuddu Project and Stage 1 of the Kashang Project (65 MW)

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

Trainings in Project Management have been imparted.

HPPCL staff have under social safeguard training organized by ADB.

Enterprise resource planning (ERP) has been implemented at HPPCL.

All project related contracts have been awarded and works are under progress. The physical progress achieved is about 85%.

Geographical Location Both subprojects are located within the northwestern state of Himachal Pradesh.
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects HPPCL as implementing agency is responsible for undertaking both subprojects in accordance with the Environmental Impact Assessment (EIA) covering both projects, and for implementing the Environmental Management Plans (EMPs) in accordance with the ADB Environment Policy (2002) and reports on environmental compliance to ADB on a bi-annual basis. A Social and Environmental Management Unit has been set up within the PMU.
Involuntary Resettlement In the Sawra Kuddu subproject, land acquisition is significant, with 45.75 hectares and 165 households to be affected; in Kashang Stage I the land acquisition is less with 3.67 ha and 30 affected households. A Grievances Redress Committee addresses all complains raised by affected persons. HPPCL is responsible for implementation of the resettlement plans and for adherence to ADB's Policy on Involuntary Resettlement (1995) and reports to ADB on compliance on a bi-annual basis. The resettlement plans for these projects are being updated to reflect the final assessment of involuntary resettlement impacts.
Indigenous Peoples ADB's Policy on Indigenous Peoples (1998) applies. Based on the initial social assessment of the Tranche I subprojects, it is noted that tribal people living in the vicinity of the subproject areas are generally mainstreamed. Therefore, no specific indigenous peoples plan is prepared.
Stakeholder Communication, Participation, and Consultation
During Project Design HPPCL has been consulting with stakeholders, including affected communities and various government officials, during the design stage. Local communities were consulted as part of the social and resettlement impact assessment to gather their views on the proposed program. All the affected persons were also consulted on a one-to-one basis through questionnaire surveys and focus group discussions.
During Project Implementation Consultations will continue during the entire project cycle according to a stakeholder participation plan.
Business Opportunities
Consulting Services

Consulting services are required to provide support to HPPCL for project implementation work, including design, supervision of construction, management for the subprojects under the tranche 1 loan, and for feasibility studies of future loans. Consulting services will be provided for evaluation, monitoring, and reporting purposes. In addition, consultants will support the capacity building component under the tranche 1 loan. Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Consulting firms will be selected using the quality- and cost-based selection method and simplified technical proposal. Individual experts may also be recruited based on biodata submitted in response to

specific terms of reference for assignments.

Procurement Equipment, materials, 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), mainly through international and/or national competitive bidding. Advance procurement will be allowed to facilitate timely implementation of investments.
Responsible ADB Officer K. Vallabha Rao
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Multipurpose Projects & Power Dept of Govt of HPMr. Ajay MittalHimachal Pradesh, India
Timetable
Concept Clearance 15 Nov 2007
Fact Finding -
MRM 06 Mar 2007
Approval 27 Oct 2008
Last Review Mission -
PDS Creation Date 14 Jan 2008
Last PDS Update 20 Mar 2015

Loan 2461-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2008 10 Nov 2008 15 Dec 2008 31 Mar 2014 31 Mar 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 224.80 Cumulative Contract Awards
ADB 150.00 27 Oct 2008 133.84 0.00 89%
Counterpart 74.80 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2008 138.40 0.00 92%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
HPCEDIP Tranches 1 and 3 - Integrated Kashang Hydroelectric Project (243 MW): Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jul 2015
HPCEDIP Tranches 1 and 3 - Integrated Kashang Hydroelectric Project (243 MW): Environmental Monitoring Report (January-March 2015) Environmental Monitoring Reports Jul 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 2: Sawra-Kuddu Hydroelectric Project Environmental Monitoring Report (October-December 2014) Environmental Monitoring Reports Apr 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 2: Environmental Monitoring Report (January-March 2014) Environmental Monitoring Reports Apr 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 2: Sawra-Kuddu Hydroelectric Project Environmental Monitoring Report (April-June 2014) Environmental Monitoring Reports Apr 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 2: Sawra-Kuddu Hydroelectric Project Environmental Monitoring Report (July-September 2014) Environmental Monitoring Reports Apr 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 2: Environmental Monitoring Report (July-September 2013) Environmental Monitoring Reports Feb 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 2: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Feb 2015
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 3: Environmental Monitoring Report (July-September 2014) Environmental Monitoring Reports Dec 2014
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 3: Environmental Monitoring Report (January-March 2014) Environmental Monitoring Reports Nov 2014
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1 and Tranche 3: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Nov 2014
Himachal Pradesh Clean Energy Development Investment Program: Integrated Kashang Hydroelectric Project (243 MW): Environmental Monitoring Report (July-September 2013) Environmental Monitoring Reports Jun 2014
Himachal Pradesh Clean Energy Development Investment Program: Integrated Kashang Hydroelectric Project (243 MW): Environmental Monitoring Report (January-March 2013) Environmental Monitoring Reports Jun 2013
Himachal Pradesh Clean Energy Development Investment Program: Sawra Kuddu Hydroelectric Project (111 MW): Environmental Monitoring Report (January - March 2013) Environmental Monitoring Reports Jun 2013
Himachal Pradesh Clean Energy Development Investment Program: Integrated Kashang Hydroelectric Project (243 MW): Social and Environmental Monitoring Report (July - December 2012) Environmental and Social Monitoring Reports Apr 2013
Himachal Pradesh Clean Energy Development Investment Program: Sawra Kuddu Hydroelectric Project (111 MW): Social and Environmental Monitoring Report (July - December 2012) Environmental and Social Monitoring Reports Apr 2013
Himachal Pradesh Clean Energy Development Investment Program: Sawra-Kuddu Hydroelectric Project (111 MW) Environmental and Social Monitoring Reports Apr 2012
Himachal Pradesh Clean Energy Development Investment Program: Integrated Kashang Hydroelectric Project - Stage 1 (65 MW) Environmental and Social Monitoring Reports Jan 2012
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Integrated Kashang (243 MW) Hydro-electric Project - Stage 1 (65 MW) (Report No. 6) Social Monitoring Reports Dec 2011
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Sawra-Kuddu (111 MW) Hydro-electric Project (Report No. 6) Social Monitoring Reports Dec 2011
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Sawra-Kuddu (111 MW) Hydro-electric Project (Report No. 5) Social Monitoring Reports Jun 2011
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Integrated Kashang (243 MW) Hydro-electric Project - Stage 1 (65 MW) (Report No. 5) Social Monitoring Reports Jun 2011
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Integrated Kashang (243 MW) Hydro-electric Project - Stage 1 (65 MW) (Report No. 4) Social Monitoring Reports Dec 2010
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Sawra-Kuddu (111 MW) Hydro-electric Project (Report No. 4) Social Monitoring Reports Dec 2010
Himachal Pradesh Clean Energy Development Investment Program: Integrated Kashang Hydroelectric Project: Compliance Status Report of Environment and Social Safeguards for Stage 1 (65 MW) Social Monitoring Reports Nov 2010
Himachal Pradesh Clean Energy Development Investment Program - Tranche 1: Sawra-Kuddu (111 MW) Hydro-electric Project (Report No. 3) Social Monitoring Reports Jun 2010
Himachal Pradesh Clean Energy Development Investment Program: Sawra-Kuddu Hydroelectric Project: Compliance Status Report of Environment and Social Safeguards Social Monitoring Reports May 2010
Himachal Pradesh Clean Energy Development Investment Program: Integrated Kashang Hydroelectric Project: Compliance Status Report of Environment and Social Safeguards for Stage 1 (65 MW) Social Monitoring Reports Mar 2010
Himachal Pradesh Clean Energy Development Investment Program: Sawra-Kuddu Hydroelectric Project: Compliance Status Report of Environment and Social Safeguards Social Monitoring Reports Aug 2009
Himachal Pradesh Clean Energy Development Investment Program Summary Environmental Impact Assessments Apr 2008

Evaluation Documents

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