Sri Lanka : Supporting Electricity Supply Reliability Improvement

Sovereign Project | 49216-001

The Sri Lanka Government's sector development framework envisions sustainable development of energy resources, enabling access to and use of energy services by the entire population, and reliable delivery of such services at a competitive price. To increase access to electricity and achieve the goal of meeting the growing demand for electricity at sufficiently low cost and acceptable reliability to widen access to growth opportunities and attain sustainability in the long term, the government plans to increase supply capacity of the system including through raising share of renewable energy sources (e.g., hydro, wind, solar, etc.), reducing total technical and commercial losses of the transmission and distribution networks, and undertaking energy efficiency and conservation measures. To address investment needs in support of these plans, a project preparatory technical assistance (TA) is needed to prepare a relevant investment project for consideration by the Asian Development Bank (ADB).

Project Details

  • Project Officer
    Khamudkhanov, Mukhtor
    South Asia Department
    Request for information
  • Country/Economy
    Sri Lanka
  • Modality
  • Sector
    • Energy
Project Name Supporting Electricity Supply Reliability Improvement
Project Number 49216-001
Country / Economy Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8952-SRI: Supporting Electricity Supply Reliability Improvement
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - solar - Renewable energy generation - wind

Gender Some gender elements
Description The Sri Lanka Government's sector development framework envisions sustainable development of energy resources, enabling access to and use of energy services by the entire population, and reliable delivery of such services at a competitive price. To increase access to electricity and achieve the goal of meeting the growing demand for electricity at sufficiently low cost and acceptable reliability to widen access to growth opportunities and attain sustainability in the long term, the government plans to increase supply capacity of the system including through raising share of renewable energy sources (e.g., hydro, wind, solar, etc.), reducing total technical and commercial losses of the transmission and distribution networks, and undertaking energy efficiency and conservation measures. To address investment needs in support of these plans, a project preparatory technical assistance (TA) is needed to prepare a relevant investment project for consideration by the Asian Development Bank (ADB).
Project Rationale and Linkage to Country/Regional Strategy

In recent years, Sri Lanka has improved its energy sector and achieved a national electrification ratio of 98% (2015) compared with 29% in 1990. The remaining 2% of electrification is the most difficult to accomplish and is mainly in underdeveloped areas and small isolated islands around the country. Although some of the provinces have achieved 100% electrification, the conflict affected Northern and Eastern provinces have only 92% and 94% electrification, and Uva and North Central provinces achieved 95% with several districts falling well behind this level. Further improvement of 33 kilovolt (kV) medium voltage network is needed to ensure system reliability and expand power supply into rural areas, where many of the poor households remain unconnected or have poor quality of electricity supply. There are several small isolated islands with population ranging from 1,250 to 4,540 people that cannot be provided with electricity through extension of the grid. These are currently supplied by expensive electricity generated by inefficient, old diesel generation sets that provide electricity for limited hours during the day with electrification ratio ranging from 0% (on one island) to 74%.

The Government of Sri Lanka aims to ensure sustainable development of energy resources by improving the power supply systems to guarantee that the entire population has access to electricity services. Sri Lanka has a national investment program including sector investments that are based on a National Energy Policy and Strategies (NEPS). The NEPS includes a sector roadmap, a long-term investment program, and appropriate policy and reform measures. The country's current installed generation capacity is 3,932 megawatt (MW) that produces 12,357 gigawatt-hours (GWh) of electricity (2014). The maximum demand is 2,152 MW (2014). There is sufficient generation capacity to expand electricity supply further. The government intends to provide electricity to the population through the grid in the main island and mini-grid systems on small isolated islands. The project will contribute to the government's goal of expanding access to electricity and developing clean energy.

The project will directly benefit the development of lagging areas. The project will cover 116 rural electrification schemes and 2,150 kilometers (km) of low voltage line extensions. Innovative hybrid mini-grids, consisting of wind-solar and efficient diesel generation systems coupled with energy storage (lithium-ion batteries), will be implemented on the small isolated islands. As a result, the project will help to ensure inclusiveness and access to electricity by all population. In total, it is expected that the project will provide electricity to about 17,500 rural households, including the conflict affected Northern and Eastern provinces as well as Uva and North Central provinces where the current electrification level is lower than in other parts of the country. The project is consistent with the Asian Development Bank (ADB) interim country partnership strategy for Sri Lanka. It has strong grounds on previous ADB interventions focused on supporting transmission and distribution investments to expand access to clean and reliable electricity, and renewable energy development.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The stakeholders will be consulted throughout the design stage during PPTA and the ensuing program implementation on the relevant issues, including environmental, social and other issues that may affect communities and poor people.
During Project Implementation Affected people and local communities, local authorities, focal groups, civil society groups, and local associations. All relevant stakeholders will be identified and consulted throughout the implementation of the PPTA and the ensuing project.
Business Opportunities
Consulting Services It is envisioned to engage 2 international ndividual consultants for a total of 4-person months and 6 national individual consultants for a total of 15 person-months. Consultants will be recruited following Guidelines on the Use of Consultants by ADB and Its Borrowers (2013, as amended from time to time)
Procurement All procurement under the project will be carried out in accordance with ADB''s Procurement Guidelines (2015, as amended from time to time)
Responsible ADB Officer Khamudkhanov, Mukhtor
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Power and Energy
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 14 Sep 2015
Last Review Mission -
Last PDS Update 21 Mar 2016

TA 8952-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Sep 2015 - 14 Sep 2015 31 May 2016 15 Nov 2016 10 Feb 2017
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 17 Jun 2022 218,777.86

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


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.

Title Document Type Document Date
Supporting Electricity Supply Reliability Improvement: Resettlement Plan Resettlement Plans Apr 2016
Supporting Electricity Supply Reliability Improvement: Initial Environmental Examination Initial Environmental Examination Mar 2016

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.