India: Assam Power Sector Investment Program

Sovereign Project | 47101-001

Summary

ADB and the Government of India are working together to help India's northeastern Assam state continue its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment. The Assam Power Sector Investment Program is upgrading power generation and distribution systems, including the construction of a 120-megawatt hydropower plant. It is also financing new energy efficient power generation equipment at existing plants; new distribution lines and substations; and financial management training and other support for staff of state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. The project is bolstering the finances of the state power companies by helping them decrease their purchases of expensive electricity from independent power producers.

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Project Name Assam Power Sector Investment Program
Project Number 47101-001
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0083-IND: Assam Second Power Sector Investment Program
Ordinary capital resources US$ 300.00 million
Strategic Agendas 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 ADB and the Government of India are working together to help India's northeastern Assam state continue its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment. The Assam Power Sector Investment Program is upgrading power generation and distribution systems, including the construction of a 120-megawatt hydropower plant. It is also financing new energy efficient power generation equipment at existing plants; new distribution lines and substations; and financial management training and other support for staff of state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. The project is bolstering the finances of the state power companies by helping them decrease their purchases of expensive electricity from independent power producers. In addition, the program is supporting the construction of the Lower Kopili run-of-the-river hydropower plant in central Assam that will help the state avoid over 530,000 tons per annum of carbon dioxide emissions that would otherwise be produced by fossil fuel-driven generation. By cutting power outages in the state, the program is benefiting over 2.7 million consumers. It is also promoting economic growth and creating employment opportunities by helping to supply reliable power to the state. This is helping Assam attract investment and more fully tap its economic potential while reducing poverty.
Project Rationale and Linkage to Country/Regional Strategy In India's state of Assam, demand for electricity has grown far faster than supply. High transmission and distribution losses have exacerbated the situation. More than a third of households in Assam have traditionally faced daily electricity outages of 5 to 6 hours. Power shortages, low voltage power, and scheduled power outages have often undermined Assam's industrial competitiveness and agricultural potential. Many important industries, such as the state''s famous tea gardens, have not been connected to the power grid and during peak periods the state has to buy power from independent producers at high cost. The broader economic implications of the poorly performing power sector include curtailed competitiveness and productivity, fewer job opportunities, reduced investment, and inefficient use of resources. Supply deficits force consumers to use more expensive, less-efficient, and more polluting energy sources, such as smaller diesel generators.
Impact increased availability of electricity in Assam.
Project Outcome
Description of Outcome increased capacity and efficiency of energy generation and distribution systems in Assam.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Generation system upgraded and expanded

Distribution system upgraded and expanded

Institutional capacity of APGC & APDC strengthened

Project management system in place.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects B
Involuntary Resettlement C
Indigenous Peoples C
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders consultation and participation are being carried out and will continue during the project processing and design.
During Project Implementation Stakeholders consultation and participation will be arranged during the project implementation.
Business Opportunities
Consulting Services ADB will engage the following consultants (National and / or International) individually or through firm(s) or consortium of firms - the Project Specialist/Team Leader (International), Economic and Financial Analysis (International), Environmental Assessment and Management (International), Social Safeguard Specialist (International), Social Safeguard Specialist (National), Procurement Specialist (National), Community Development Specialist (National), Hydropower Construction Planning Expert (National), Climate Change Scientist (International), Generation Assets & Inventory Management Specialist (International), and Environmental Assessment and Management (National). The recruitment of consultants will be made in accordance with its Guidelines on the Use of Consultants by ADB and its Borrowers (2010, as amended from time to time). Consultants will be funded under TA-8351 subproject under the IND-CTA 0003: Advanced Project Preparedness for Poverty Reduction.
Procurement Goods, equipment, and civil works to be financed under the Investment Program will be procured in accordance with ADB Procurement Guidelines (2010, as amended from time to time). International Competitive Bidding will be used for civil works and turnkey contracts. National Competitive Bidding will be used for contracts for goods and equipment estimated to cost less than $1 million. Advanced contracting and/or retroactive financing will be needed. Consultants will be engaged to help with project management. The Tranche 1 will have one major turnkey contract for gas plant replacement.
Responsible ADB Officer Aziz Yusupov
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
State of AssamGovernment of Assam, India
Assam Power Generation Corporation Ltd.Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
Guwahati-781001
Assam Power Distribution Company Ltd.Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
Guwahati-781001
Timetable
Concept Clearance 30 May 2013
Fact Finding 03 Sep 2013 to 12 Sep 2013
MRM 18 Feb 2014
Approval 03 Jul 2014
Last Review Mission -
Last PDS Update 30 Sep 2014

MFF Facility Concept 0083-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 430.00 Cumulative Contract Awards
ADB 300.00 - 0.00 0.00 %
Counterpart 130.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %
Title Document Type Document Date
Assam Power Sector Investment Program: Project Data Sheet (हिन्दी) Translated PDS Jul 2014
Assam Power Sector Investment Program Reports and Recommendations of the President Jun 2014
Assam Power Sector Investment Program Facility Administration Manual Jun 2014
Framework Financing Agreement for Assam Power Sector Investment Program Framework Financing Agreement May 2014
Assam Power Sector Investment Program Initial Poverty and Social Analysis May 2013

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Assam Power Sector Investment Program Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Sep 2013
Assam Power Sector Investment Program Resettlement Frameworks Sep 2013
Assam Power Sector Investment Program: Social Due Diligence Report - Tranche 1 (Lakwa Replacement Power Plant - 70MW) Safeguards Due Diligence Reports Sep 2013
Assam Power Sector Investment Program Environmental Assessment and Review Framework Sep 2013

Evaluation Documents

See also: Independent Evaluation

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