India: Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 1

Sovereign Project | 43467-015

Summary

The multi-tranche financing facility (MFF) in the amount of $400 million was approved by ADB on 15 July 2011. Under this MFF, ADB has approved the loan of $400 million in two (2) tranches for an amount of $200 million each. The first tranche of the MFF, Loan 2764 IND (Project 1) was approved on 15 July 2011; and the second tranche of the MFF, Loan 2830 IND (Project 2) on 14 December 2011. The Loan and Project Agreements for Loan 2764 (Project 1) and Loan 2830 (Project 2) were signed on 17 August 2011 and 27 February 2012, respectively. Loan 2764 became effective on 19 October 2011, and the Loan 2830 on 9 May 2012. The closing date for both loans is 28 February 2015.

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Project Name Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 1
Project Number 43467-015
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2764-IND: MFF - Madhya Pradesh Energy Efficiency Project (Tranche 1)
Ordinary capital resources US$ 200.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The multi-tranche financing facility (MFF) in the amount of $400 million was approved by ADB on 15 July 2011. Under this MFF, ADB has approved the loan of $400 million in two (2) tranches for an amount of $200 million each. The first tranche of the MFF, Loan 2764 IND (Project 1) was approved on 15 July 2011; and the second tranche of the MFF, Loan 2830 IND (Project 2) on 14 December 2011. The Loan and Project Agreements for Loan 2764 (Project 1) and Loan 2830 (Project 2) were signed on 17 August 2011 and 27 February 2012, respectively. Loan 2764 became effective on 19 October 2011, and the Loan 2830 on 9 May 2012. The closing date for both loans is 28 February 2015.

The investment project under Loan 2764 and Loan 2830 includes three components which will be implemented by the following three executing agencies (EA): (a) DISCOM-C in Bhopal, (b) DISCOM E in Jabalpur and (c) DISCOM W in Indore. The components are as follows: (i) feeder separation that will separate power supply lines to irrigation pumps and households; (ii) installation of high voltage distribution system (HVDS); (iii) supply quality improvement and metering, and (iv) upstream 33 kV Network Strengthening.

Project Rationale and Linkage to Country/Regional Strategy This MFF funds power sector investments in distribution systems in rural Madhya Pradesh (MP) to ensure 24 hour power supply to households and financial sustainability of the power distribution companies (DISCOMs).
Impact Continuous and higher quality supply of electricity to rural households in Madhya Pradesh
Project Outcome
Description of Outcome Improved operational efficiency of electricity distribution in rural areas of Madhya Pradesh, benefiting 1.4 million households
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

1. Separate feeders for agricultural pumps and households and installed High Voltage Distribution Systems (HVDS)

2. Installed meters, new household connections.

3. Access to business development services improved for women-headed microenterprises

4. Built capacity of women self help groups

Status of Implementation Progress (Outputs, Activities, and Issues) All contracts have been awarded, implementation is ongoing.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Loan covenants relating to Environmental and Social Safeguards are being met by DISCOMs in implementing the project. The Environmental Monitoring reports submitted by DISCOMs have been uploaded in ADB website.
Involuntary Resettlement Tranche 1 components do not require private land acquisition. Construction of new distribution lines will be pole based, which will have minor temporary impacts on standing crops.
Indigenous Peoples According to social assessments, no indigenous peoples are expected to be impacted. However, an indigenous peoples planning framework has been prepared for the investment program. In the event of impacts on indigenous peoples, the project will apply the mitigation measures provided in the indigenous peoples planning framework and the resettlement framework, which include specific measures that provide entitlements to vulnerable groups, including indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design During Project preparation, consultations were held with the concerned Government officials. Additionally, consultations were also carried out with the affected persons in the project area and with the local community.
During Project Implementation Public consultation with all stakeholders will continue throughout implementation of the project.
Responsible ADB Officer Jyotirmoy Banerjee
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co LtdCMDEAST@HOTMAIL.COMBlock No. 7, Shakti Bhawan, Rampur
Jabalpur, Madhya Pradesh, India
M Pradesh Madhya Kshetra Vidyut Vitaran Co.Ltd.CMD@MPMKVVC.COMNishtha Parisar, Bijli Nagar Colony
Govindpura, Bophal, Madhya Pradesh
India
M Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd.CMDWZ.INDORE@GMAIL.COMGPH Campus, Pologround, Indore
Madhya Pradesh, India
Timetable
Concept Clearance -
Fact Finding -
MRM 28 Apr 2011
Approval 15 Jul 2011
Last Review Mission -
Last PDS Update 30 Mar 2015

Loan 2764-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jul 2011 17 Aug 2011 19 Oct 2011 28 Feb 2015 28 Feb 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 200.00 15 Jul 2011 139.92 0.00 70%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Jul 2011 80.58 0.00 40%

Evaluation Documents

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