Pakistan: MFF Second Power Distribution Enhancement Investment Program Tranche 1

Sovereign Project | 47190-003

Summary

The proposed investment program's objective is to introduce advanced metering infrastructure (AMI) in Pakistan's different distribution companies (DISCOs). An MFF is proposed for this investment. There are nine DISCOs in Pakistan and the AMI roll-out to these DISCOs will be in phases. In the first phase (tranche 1), two of LESCO's circles and IESCO's Rawalpindi region have been selected for AMI roll-out. Once developed, the same will be replicated and implemented in the remaining technically and commercially feasible regions or circles of the nine DISCOs.

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Project Name MFF Second Power Distribution Enhancement Investment Program Tranche 1
Project Number 47190-003
Country Pakistan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: MFF Power Distribution Enhancement Investment Program 2 Tranche 1
Ordinary capital resources US$ 380.00 million
Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The proposed investment program's objective is to introduce advanced metering infrastructure (AMI) in Pakistan's different distribution companies (DISCOs). An MFF is proposed for this investment. There are nine DISCOs in Pakistan and the AMI roll-out to these DISCOs will be in phases. In the first phase (tranche 1), two of LESCO's circles and IESCO's Rawalpindi region have been selected for AMI roll-out. Once developed, the same will be replicated and implemented in the remaining technically and commercially feasible regions or circles of the nine DISCOs.
Project Rationale and Linkage to Country/Regional Strategy AMI aims at: (i) reducing distribution losses and improving revenue collection, (ii) enhancing load control and load management, (iii) providing automated consumption data collection of all customers, and (iv) modernizing the electricity metering and billing system. The investment program will provide funds for metering, communication and billing systems including installation and supporting infrastructure.
Impact Financial viability of the power distribution system improved
Outcome Electricity revenues increased in the targeted regions of IESCO and LESCO
Outputs

1. Smart Meters and communication equipment installed, and functional.

2. Data management system implemented and operational.

4. Operation manuals updated and monitoring procedure improved.

3. New billing and CIS systems implemented and operational.

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Expected to be categorized as "C". Expects no environmental impacts.
Involuntary Resettlement Expected to be categorized as "C". Expects no resettlement.
Indigenous Peoples Expected to be categorized as "C". Expects no land acquisition.
Stakeholder Communication, Participation, and Consultation
During Project Design During PPTA, consultations with the poor and low-income groups will be conducted to include them in the planning process. Risks and vulnerabilities for low income, women, poor and excluded groups will be documented in consultation and participation of these groups.
During Project Implementation To be updated.
Business Opportunities
Consulting Services Consulting firms will be recruited for project monitoring and supervision, capacity development, and he communication strategy. The quality- and cost-based selection method (80:20) for firms will be used, following ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement The indicative procurement method for the turnkey contract will be international competitive bidding, following ADB's Procurement Guidelines (2010, as amended from time to time). The project envisages advance contracting for the turnkey contract and the consulting services. Retroactive financing of up to 20% of total financing will be considered subject to preparedness of the project and availability of counterpart funds.
Responsible ADB Officer Adnan Tareen
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Water and Power(OLD dont use.No loans)Block A Secretariat Bldg.
Islamabad,
Pakistan
Timetable
Concept Clearance -
Fact Finding -
MRM 23 Jan 2015
Approval 01 Dec 2015
Last Review Mission -
Last PDS Update 30 Mar 2015

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