Pakistan: Strengthening the Central Power Purchasing Agency

Sovereign Project | 48066-001

Summary

The objective of the TA project is to support and enable the establishment and initial operationalization of an autonomous CPPA in Pakistan. This will be achieved by embedding the required international and national consultants in the CPPA to provide management support, capacity building, access to expert resources and training for CPPA's management team and employees.

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Consulting Notices

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Procurement Documents

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Project Name Strengthening the Central Power Purchasing Agency
Project Number 48066-001
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8772-PAK: Strengthening the Central Power Purchasing Agency
Technical Assistance Special Fund US$ 1.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description The objective of the TA project is to support and enable the establishment and initial operationalization of an autonomous CPPA in Pakistan. This will be achieved by embedding the required international and national consultants in the CPPA to provide management support, capacity building, access to expert resources and training for CPPA's management team and employees.
Project Rationale and Linkage to Country/Regional Strategy

This TA project supports the new government's priorities of reforming the energy sector, as well as restoring sustainability in the power sector. Reforming the energy sector is a key objective of Pakistan's Country Partnership Strategy (CPS) 2009 to 2013 and is aligned with Strategy 2020 of the Asian Development Bank (ADB). This TA project is included in Pakistan's Country Operations Business Plan 2014 to 2016.

The power sector unbundling in late 1990s led to the formation of the National Transmission and Despatch Company (NTDC), licensed to undertake power transmission, system operation and despatch functions, and act as a single purchaser and a seller of power. A dedicated unit within NTDC currently completes all electricity market settlement and payment functions. This Technical Assistance (TA) project will assist the establishment and initial operationalization of the Central Power Purchasing Authority (CPPA) as an autonomous settlements company in Pakistan's power sector, with well-defined governance and financial structures.

Impact Improved financial management and governance in Pakistan''s power sector.
Project Outcome
Description of Outcome CPPA operates an autonomous and transparent electricity settlement system in Pakistan.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

CPPA roadmap for establishment and operationalization prepared.

CPPA Management and organizational structure established.

CPPA's initial information and technology system plan prepared.

Standard market agreements drafted.

Internal and external training manuals and activities completed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Pakistan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The scope, delivery timetable and implementation arrangements have been discussed with the Ministry of Water and Power.
During Project Implementation A communication and stakeholder management plan will be prepared by the consultants during the initial stages of the assistance to facilitate the participation of stakeholders and the dissemination of knowledge.
Business Opportunities
Consulting Services

An international consulting firm will provide a team of international and national consultants to deliver the TA project. The international consultants must have in-depth experience in power sector settlement systems and power trading regulations. The local experts must have substantial experience in the power sector, including the technical, commercial, legal and regulatory issues influencing the sector. 23 person-months of international consulting and 45 person-months of national consulting inputs are envisaged during the estimated 18 month duration of the TA project. In order for the TA project to be effective, the consultants will be an integral part of the CPPA, primarily based in Islamabad, during the establishment and commencement of operations.

Expressions of interest are expected to be requested in Q2 2015.

Procurement No procurement necessary.
Responsible ADB Officer Megan Wolf
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 20 Jun 2014
Fact Finding -
MRM -
Approval 03 Dec 2014
Last Review Mission -
Last PDS Update 25 Mar 2015

TA 8772-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2014 25 Dec 2014 25 Dec 2014 31 Jul 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 03 Dec 2014 0.00

Safeguard Documents

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