India: Rajasthan Renewable Energy Transmission Investment Program - Tranche 1

Sovereign Project | 45224-003 Status: Approved

Summary

ADB is helping build a power transmission system that will deliver electricity from wind and solar power projects in Rajasthan in Northwest India to the state and national grids. The investment program will include about 1,850 kilometers of transmission lines, mostly in western Rajasthan, three new 400 kilovolt substations and nine new 220 kilovolt grid substations.

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Procurement Documents


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Project Name Rajasthan Renewable Energy Transmission Investment Program - Tranche 1
Project Number 45224-003
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3052-IND: Rajasthan Renewable Energy Transmission Investment Program - Tranche 1
Ordinary capital resources US$ 62.00 million
Loan 8275-IND: Rajasthan Renewable Energy Transmission Investment Program - Tranche 1
Clean Technology Fund US$ 88.00 million
TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support
Clean Technology Fund US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Rajasthan completed the installation of about 1767 MW of wind and 45 MW of solar generation at the end of 2011 using surplus transmission capacity in the grid. The state's investment plan for renewable energy targets installation of about 8,000 MW of solar and wind projects by 2018. These include private solar and wind power projects to be set up primarily in the renewable energy rich resource areas of Western Rajasthan (in Jodhpur, Bikaner, Barmer and Jaisalmer) including in the solar park being developed in Bhadla by the Rajasthan Renewable Energy Corporation. The Program would support transmission facilities for evacuation of renewable energy to the state and national grid.
Project Rationale and Linkage to Country/Regional Strategy India has an annual electricity deficit of 8% and nearly 350 million people without access to electricity. The country is heavily dependent on fossil fuel imports (coal, gas, oil) to meet its electricity requirements. The Government in its Integrated Energy Policy (IEP) 2006 estimated that the country would need to increase its electricity generation by at least 5 times, and change the sources mix, to meet the increase in demand expected by 2032. India's tropical position bestows it with solar irradiation ranging from 4-7 kWh/square meter/day across the country and certain regions, particularly the western region (including Rajasthan), have even higher solar incidence. Given this background, India has decided to invest in renewable energy (RE).
Impact Accelerated development of renewable energy sources in Rajasthan/India.

Project Outcome

Description of Outcome Cleaner electricity mix with more efficient and effective generation and transmission system
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

1. Bulk power transmission system in Rajasthan expanded.

2. Institutional capacity for renewable energy parks and transmission system developed.

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 Project investments are classified as category B for environment. Major components include supply and installation of transmission substations and transmission lines. The construction work is limited to building foundations for the transmission towers and substations. Based on the environmental assessment and surveys conducted by RRVPNL, potential adverse environmental impacts of this work are minimal and can be mitigated through implementation of the EMP. Budgetary provisions have been made to cover the environmental mitigation and monitoring requirements, and the EMP is part of the bidding documents. RRVPNL will supervise the construction contracts and EMP implementation. The initial environmental examination for Project was disclosed on ADB website.
Involuntary Resettlement

The resettlement impact is insignificant and the Project has been Categorized as B for Involuntary Resettlement (IR) as per the ADB' Safeguard Policy Statement, 2009 (SPS). The project will not entail any private land acquisition. There will be no permanent impact on physical displacement, economic displacement and loss of livelihood. The grid substations under the project are proposed to be constructed on the government land which is waste land and free from any use. The transmission lines are passing mostly through the desert and barren land and the area are sparsely populated. The construction of transmission lines will not entail any land acquisition and resettlement, however, will have a temporary impact on private agriculture land during the construction phase. Displaced persons, if any, will be compensated at replacement cost and entitlement for different categories of loss and additional assistance for vulnerable group are detailed in the framework. Payment of compensation and assistance to DPs for temporary impacts caused on crops will be completed in a phased manner before the start of civil work in that specific section. The RRVPNL will be the Executing Agency (EA) as well as the Implementing Agency (lA) for the project. RRVPNL will constitute a Project Management Unit (PMU) for implementing the ADB loan. One Environment and Social Cell (ESC) shall be designated and headed by one Executive Engineer who shall be responsible for monitoring Social safeguards in the project.

The EA will establish a Grievance Redress Mechanism (GRM) to receive and facilitate the resolution of affected persons' concerns and grievances, paying particular attention to the impacts on vulnerable groups. Grievances of APs will first be brought to the attention of the Project head of the Project Implementing Unit. Grievances not redressed by the field office of RRVPNL will be brought to the Grievance Redress Committee. The GRC will determine the merit of each grievance, and resolve grievances within three months of receiving the complaint. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the semiannual monitoring report to ADB.

Indigenous Peoples The sub-projects were evaluated and found that the Investment Program will not have any potential impacts on IPs. The proposed transmission system which includes construction and augmentation of substations and construction of transmission lines will mostly be situated in the barren desert land and are away from the human habitat. Also, the Tranche-1 subproject covers areas which do not have any major tribal population and primarily a desert area with a very less density of population. According to the ADB's Safeguard Policy Statement (2009), the Tranche is categorized as C' for impacts on the indigenous peoples. However, to ensure that impacts on IPs are addressed consistent with ADB's SPS, 2009, an Indigenous Peoples Planning Framework (IPPF) has been prepared that include specific measures that provide entitlements to indigenous people. The grievance redress mechanism will be the same as mentioned in the Resettlement Framework.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Procurement Goods, equipment, and civil works financed by ADB will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). RRVPNL has undertaken advance procurement actions, including the placement of bidding documents in the market and requested that ADB authorize these actions and allow retroactive financing. RRVPNL will follow competitive bidding procedures acceptable to ADB for public sector transmission investments. Private sector renewable energy developers selling power to utilities will be selected through a competitive process and will enter into supply contracts with their clients. The construction of their facilities will most likely follow turnkey contracts selected through a competitive process. RREC will coordinate with RRVPNL on the choice and sequencing of the development of transmission lines to evacuate the renewable energy produced in the region, including that from wind and solar parks. Retroactive financing will be allowed for up to 20% of the individual loan amount for expenditures incurred 12 months prior to loan signing.

Responsible Staff

Responsible ADB Officer Vallabha Karbar
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Rajasthan Rajya Vidyut Prasaran Nigam Limited
CMD_RVPN@RVPN.CO.IN
Vidyut Bhawan, Janpath, Jaipur 302 005
Rajasthan, India
Energy Department, Government of Rajasthan
SEC_ENERGY_GOR@RVPN.CO.IN
Vidyut Bhawan, Janpath, Jaipur - 302 005 Rajasthan, India

Timetable

Concept Clearance -
Fact Finding -
MRM 29 Jun 2012
Approval 22 Oct 2013
Last Review Mission -
Last PDS Update 17 Mar 2016

Loan 3052-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Oct 2013 12 Sep 2014 06 Nov 2014 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 189.00 Cumulative Contract Awards
ADB 62.00 22 Oct 2013 50.61 0.00 82%
Counterpart 127.00 Cumulative Disbursements
Cofinancing 0.00 22 Oct 2013 12.07 0.00 19%

Loan 8275-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Oct 2013 12 Sep 2014 06 Nov 2014 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 88.00 Cumulative Contract Awards
ADB 0.00 22 Oct 2013 0.00 72.20 82%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 88.00 22 Oct 2013 0.00 17.17 20%

TA 8486-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Oct 2013 07 Mar 2014 07 Mar 2014 31 Mar 2016 31 Dec 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 22 Oct 2013 1,141,861.75

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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