India: Madhya Pradesh Power Transmission and Distribution System Improvement Project

Sovereign Project | 47100-004

Summary

Madhya Pradesh power transmission and distribution system served a peak demand of 8,505 megawatt (MW) and delivered 41,392 gigawatt hours (GWh) in 2012. However, the estimated peak demand was 9,151 MW, resulting in an unmet energy demand of 8,393 GWh (20% of the requirement). There are 8.21 million electricity customers in the state, of which 6.1 million were household customers with a legal power connection, representing about 60% of all households. New power connections are provided to households under a number of programs, and consumption per customer is also expected to increase in the face of robust economic growth in the state. Therefore, the demand for electricity is expected to increase and meeting this growing demand requires upgrading and expansion of the transmission and distribution network in the state.

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Project Name Madhya Pradesh Power Transmission and Distribution System Improvement Project
Project Number 47100-004
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3066-IND: Madhya Pradesh Power Transmission and Distribution System Improvement Project
Ordinary capital resources US$ 350.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description

Madhya Pradesh power transmission and distribution system served a peak demand of 8,505 megawatt (MW) and delivered 41,392 gigawatt hours (GWh) in 2012. However, the estimated peak demand was 9,151 MW, resulting in an unmet energy demand of 8,393 GWh (20% of the requirement). There are 8.21 million electricity customers in the state, of which 6.1 million were household customers with a legal power connection, representing about 60% of all households. New power connections are provided to households under a number of programs, and consumption per customer is also expected to increase in the face of robust economic growth in the state. Therefore, the demand for electricity is expected to increase and meeting this growing demand requires upgrading and expansion of the transmission and distribution network in the state.

Quality of power supply and reliability of service in MP used to be substantially below the standards expected of a modern public electricity network. The Asian Development Bank (ADB), other development partners, and the government undertook a series of investments for expansion, upgrading and reconfiguration of the transmission and distribution networks since 2001. The ADB alone has approved about $1.37 billion worth of investment projects since 2001, mainly for transmission and distribution improvements. The government's own programs includes: (i) Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) program for rural electrification; (ii) the Restructured Accelerated Power Development Reforms Program (R-APDRP), to improve electricity distribution infrastructure in urban areas; and (iii) Feeder Separation Program to limit agricultural supply to 8 hours and to provide rural households with 24-hour power supply. While the RGGVY and R-APDRP programs are nearing their completion, the feeder separation program is half way through its implementation.

Project Rationale and Linkage to Country/Regional Strategy The proposed project undertakes transmission and distribution improvements, critical for meeting the growing demand for power in Madhya Pradesh (MP) in India. As a follow up to the previous investments in MP, the project will undertake selected transmission system improvement, distribution system improvement and capacity building. The main objectives of the project are to provide adequate transmission and distribution capacity to supply growing power demand; and reduce the system losses to ensure financial sustainability of the MP power distribution companies.
Impact Adequate and reliable power supply in Madhya Pradesh
Project Outcome
Description of Outcome Increased capacity and operational efficiency in the electricity transmission and distribution system in Madhya Pradesh
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

1. Transmission system upgraded and expanded

2. Distribution system upgraded and expanded

3. Built capacity of executing agency staff

4. Project management system in place

Status of Implementation Progress (Outputs, Activities, and Issues) Projects physical progress is 42% as on Jan 2015. 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 The initial environmental examination was disclosed on the ADB website. Consultants for preparing updated Social and Environmental Monitoring Report are being recruited by executing agencies.
Involuntary Resettlement The resettlement plan was disclosed on the ADB website.
Indigenous Peoples Social assessments conducted during project preparation found no indigenous peoples who would be impacted by project activities. If any project impact on indigenous peoples is found during implementation, project authorities will either formulate an indigenous peoples plan or revise the approved resettlement plan, incorporating additional entitlements to address them. The revised resettlement plan or the new indigenous peoples plan will be submitted to ADB for review and approval.
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.
Business Opportunities
Consulting Services Consultant requirements are covered under the PPTA for Madhya Pradesh Transmission and Distribution System Improvement Project with a total cost of $750,000. Total consultant requirement is 39 months of which 21 person-months are international.
Procurement All procurement of goods and works shall be undertaken in accordance with ADB's Procurement Guidelines. International competitive bidding procedures shall be followed for all the packages.
Responsible ADB Officer Jyotirmoy Banerjee
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Controller of Aid Accounts and AuditCAAA@NIC.IN.5th Floor, B Wing, Janpath Bhawan
Janpath, New Delhi 110 001
India
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
Madhya Pradesh Power Transmission Company LimitedMadhya Pradesh
M Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd.CMDWZ.INDORE@GMAIL.COMGPH Campus, Pologround, Indore
Madhya Pradesh, India
Timetable
Concept Clearance 29 May 2013
Fact Finding 05 Aug 2013 to 16 Aug 2013
MRM 05 Sep 2013
Approval 27 Nov 2013
Last Review Mission -
Last PDS Update 10 Mar 2015

Loan 3066-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2013 17 Feb 2014 21 Mar 2014 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 500.00 Cumulative Contract Awards
ADB 350.00 27 Nov 2013 247.16 0.00 71%
Counterpart 150.00 Cumulative Disbursements
Cofinancing 0.00 27 Nov 2013 39.83 0.00 11%

Evaluation Documents

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