||MFF - Himachal Pradesh Clean Energy Development Investment Program - Tranche 3
|Project Type / Modality of Assistance
|Source of Funding / Amount
|Loan 2687-IND: MFF - Himachal Pradesh Clean Energy Development Investment Program (Tranche 3)|
|Ordinary capital resources
||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change
||Governance and capacity development
|Sector / Subsector
- Large hydropower generation
|Gender Equity and Mainstreaming
|| No gender elements
||Himachal Pradesh is a mountainous state with abundant water resources in the five major rivers flowing through the state from the western Himalayas. The power generation potential of Himachal Pradesh is about 23,000 MW about one fourth of India's total hydropower potential out of which about 6,480 MW has been developed. Recognizing the state's comparative advantage in hydropower generation, the main strategy of the Government of Himachal Pradesh (GOHP) is the development of Himachal Pradesh as the hydropower state of India. Harnessing this hydropower is vital to meet all in-state demand by providing affordable, reliable power to its residents as the state currently meets only about 50% of its power demand through its own power generating capacity. Harnessing this hydropower will also enable the export of excess power to the rest of the country for the benefit of power deficient states. Himachal Pradesh's focus on clean energy development will provide jobs to state residents and will further the country's goal of meeting its energy needs through treading a low carbon path. Furthermore, the Program will meet capacity development needs to further improve the state's power sector.
|Project Rationale and Linkage to Country/Regional Strategy
||Tranche 3 investments will include (i) construction of the 100 MW Sainj Hydroelectric Project (certain civil works, underground powerhouse, river diversion, intake and desilting, and electrical works), and (ii) the works Stage II & III of the Kashang Hydroelectric Project (link tunnel, electrcial works and second intake). Harnessing this hydropower is vital to meet all in-state electrcity demand by providing affordable, reliable power to tis residents, as the state currently meets only about 50% of its power demand through its own power generating capacity. This will also enable the export of excess power to the rest of the country for the benefit of poorer and power deficient states. Himachal Pradesh's focus on clean energy development will provide jobs to state residents and will further the country's goal of meeting its energy needs through clean, indigenous sources.
||A sustainable state electricity sector and improved state finances.
|Description of Outcome
||Increased clean energy production
|Progress Toward Outcome
|Description of Project Outputs
Hydropower generation Infrastructure constructed
- Subprojects proposed for tranche 3: Construction of the 100 MW Sainj Hydroelectric project, and Stage II and III of the Integrated Kashang Hydroelectric Project
(subproject construction includes certain civil works, underground powerhouse, river diversion, intake and desilting, electrical & interconnection works)
|Status of Implementation Progress (Outputs, Activities, and Issues)
||About 74% progress have been achieved under Tranche 3.
||Himachal Pradesh, India
|Summary of Environmental and Social Aspects|
||HPPCL as implementing agency is responsible for undertaking subprojects in accordance with the Environmental Impact Assessment (EIA) covering the projects, and for implementing the Environmental Management Plans (EMPs) in accordance with the ADB Environment Policy (2002) and reports on the environmental compliance to ADB. A Social and Environmental Management Unit has been set up within the PMU.
||HPPCL is responsible for implementing of the resettlement plans and for adherence to ADB's Policy on Involuntary Resettlement (1995) and reports to ADB on compliance. A Grievances Redress Committee addresses all complains raised by affected persons. The resettlement plans for these projects are being updated to reflect the final assessment of involuntary resettlement impacts.
||ADB's Policy on Indigenous Peoples (1998) applies, if impacts on IPs should arise. The Indigenous Peoples category for all tranches is C.
|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 the stakeholder participation plan.
||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 ADBs 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.
||Equipment, materials, and civil works to be financed under each loan of the MFF will be procured in accordance with ADBs Procurement Guidelines (2007, as amended from time to time), mainly through international and/or national competitive bidding.