Sri Lanka: Clean Energy and Network Efficiency Improvement Project

Sovereign Project | 43576-013

Summary

The project includes three components: (i) transmission infrastructure; (ii) network efficiency improvements; and (iii) pilot solar rooftop power generation investments in the Eastern, North-Central, Central, Northern, Southern, and Western provinces of the country.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Clean Energy and Network Efficiency Improvement Project
Project Number 43576-013
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Grant 0303-SRI: Clean Energy and Network Efficiency Improvement Project
Clean Energy Fund - Multi-Donor US$ 1.50 million
Loan 2892-SRI: Clean Energy and Network Efficiency Improvement Project
Ordinary capital resources US$ 100.00 million
Loan 2893-SRI: Clean Energy and Network Efficiency Improvement Project
Asian Development Fund US$ 30.00 million
TA 8167-SRI: Capacity Building for Clean Power Development
Technical Assistance Special Fund US$ 900,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Energy - Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform - Renewable energy generation - solar
Gender Equity and Mainstreaming No gender elements
Description The project includes three components: (i) transmission infrastructure; (ii) network efficiency improvements; and (iii) pilot solar rooftop power generation investments in the Eastern, North-Central, Central, Northern, Southern, and Western provinces of the country.
Project Rationale and Linkage to Country/Regional Strategy Sri Lanka has achieved a substantial improvement in the energy sector, with a national electrification ratio of 91% in 2011 compared with 29% in 1990. The longer-term challenge for the country is to reduce its high dependence on expensive fossil fuel energy. The energy sector struggles to meet growing demand for electricity at sufficiently low cost and acceptable reliability levels. The share of thermal energy in the power generation mix has increased from 6% in 1995 to 54% in 2011. Demand growth has been generally met by expensive oil-fired thermal generation, which is not the solution to the country's energy security and environment protection in the long term. Diversification of the generation mix including from renewable energy sources, improvement of network efficiency, and supply and demand side management can help to address this issue. To enable future planned power supply increases, meet growing demand in the regions, and integrate renewable energy sources into the grid, it is necessary to strengthen the transmission network, especially in conflict-affected areas of the Northern and Eastern provinces. Another challenge is to improve system reliability and reduce technical losses. An enhanced 33 kilovolt (kV) medium voltage network is needed to expand power supply in rural areas, where many poor households remain unconnected or have poor quality of electricity supplies. The new infrastructure will also support development of clean energy. Improvement of transmission and distribution infrastructure will address electricity needs in the post-conflict areas and directly contribute to their development. The government intends to improve the energy sector performance and continue pursuing financial, managerial, and institutional reforms in line with the Sri Lanka Electricity Act, 2009.
Impact Reliable, adequate, and affordable power supply for sustainable economic growth and poverty reduction
Project Outcome
Description of Outcome Improved clean power supply, efficiency, and reliability in the delivery of electricity
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

1. Transmission infrastructure strengthened in the Northern province

2. Efficiency of transmission and medium voltage distribution networks improved

3. Solar rooftop power generation developed

4. Advisory and capacity building support provided for wind and solar power development on a PPP basis

Status of Implementation Progress (Outputs, Activities, and Issues) Contract awards have been approved for all 9 major International Competitive Bidding (ICB) procurement lots. An individual consultant under the grant had been engaged and fielded, and provides support to the Sustainable Energy Authority in preparing solar rooftop pilot sub-projects. The bidding process for the National Competitive Bidding procurement for rooftop solar pilots in 4 universities is ongoing. Consultants under the TA had also been fielded and are currently finalizing their reports and capacity building work.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects CEB and SEA have prepared initial environmental examinations for their components and held public consultations. During construction and operation, steps will be taken to minimize environmental impacts. CEB has observed the route-selection criteria in the national regulations and has adopted best environmental practices. Adequate provisions have been made for the environmental mitigation measures, monitoring requirements, and their associated costs in the environmental management plans (EMPs) prepared for each subproject. CEB has sufficient capacity to implement the safeguard measures incorporated in the EMPs. Mitigation measures related to construction and specified in the EMPs will be incorporated into civil works contracts. The contractors will have primary responsibility for implementing the mitigation measures during construction, but CEB will be responsible for and periodically report to ADB on overall implementation of its site-specific EMPs. CEB and SEA will adhere to ADB's Safeguard Policy Statement (2009) and local and government environmental regulations. The project is classified category B for environment.
Involuntary Resettlement None of the project components will have any significant social safeguard impacts. The transmission and distribution lines primarily cross public and unused lands. Where croplands are affected, adequate compensation will be paid. Project construction will be carried out during the crop off-seasons. Where new grid substations are built on commercial and private lands, adequate compensation will be paid to their owners. The project is classified category B for involuntary resettlement impacts. CEB prepared a resettlement plan for the transmission infrastructure and transmission and distribution efficiency improvement components.
Indigenous Peoples No impact on Indigenous Peoples and the project is classified category C for impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with stakeholders and communities in project areas were conducted during project design.
During Project Implementation Consultations will be conducted with stakeholders and communities in project areas during project implementation.
Business Opportunities
Consulting Services It is envisioned to engage a national consultant for 24 person-months to support implementation and monitoring of the solar rooftop power generation pilot. Recruitment of consultants will be in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement All procurement under the project will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). For International competitive bidding (ICB), there are 9 contracts amounting to $125.92 million. For National competitive bidding (NCB), there is 1 contract amounting to $0.58 million.
Responsible ADB Officer Mukhtor Khamudkhanov
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Power and Energy (MOPE)SECREPEN@SLTNET.LK72, Ananada Kumaraswamy Mawatha
Colombo 07, Sri Lanka
Timetable
Concept Clearance 20 Jul 2011
Fact Finding 09 May 2011 to 13 May 2011
MRM 22 Jun 2012
Approval 18 Sep 2012
Last Review Mission -
Last PDS Update 23 Mar 2015

Grant 0303-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2012 08 May 2013 30 Sep 2013 30 Jun 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.50 Cumulative Contract Awards
ADB 0.00 18 Sep 2012 0.00 0.10 7%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.50 18 Sep 2012 0.00 0.06 4%

Loan 2892-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2012 08 May 2013 30 Sep 2013 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 168.50 Cumulative Contract Awards
ADB 100.00 18 Sep 2012 90.74 0.00 91%
Counterpart 68.50 Cumulative Disbursements
Cofinancing 0.00 18 Sep 2012 9.78 0.00 10%

Loan 2893-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2012 08 May 2013 30 Sep 2013 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 30.00 18 Sep 2012 27.46 0.00 98%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Sep 2012 2.87 0.00 10%

TA 8167-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2012 24 Oct 2012 24 Oct 2012 31 Dec 2014 31 Jul 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 0.00 0.00 0.00 0.00 900,000.00 18 Sep 2012 825,426.62

Evaluation Documents

See also: Independent Evaluation

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