Project Name Assam Power Sector Investment Program - Tranche 2
Project Number 47101-003
Country / Economy India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3327-IND: Assam Power Sector Investment Program - Tranche 2
Ordinary capital resources US$ 29.56 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender No gender elements
Description Tranche 2 will finance the expansion and upgrading of power distribution system in the state of Assam, and strengthen institutional capacity of Assam Power Distribution Company Limited (APDCL). It covers part of the state's power sector road map for enhancing the sub-transmission and distribution capacities to improve operational efficiency and electricity service to end users. Output 1 includes: (i) one new 33 kV/11 kV substation and associated lines; (ii) 137 km of 33 kV lines; (iii) 33 kV railway line and river crossings; (iv) 7 km of 11 kV lines; (v) installation of seventeen 33 kV bays; (vi) re-conductoring and refurbishing of 955 km of 33 kV lines; (vii) 1,000 km of 11 kV lines; (viii) 1,555 km of low voltage lines; (ix) replacement of 204 distribution transformers; and (x) replacement of 14 km 11 kV overhead lines with underground cables. Output 2 includes: (i) establishing two area load dispatch centers; (ii) setting up of an independent meter testing laboratory; (iii) establishing one IT module to expand the centralized uniform revenue billing system for 1.2 million customers; and (iv) project management, supervision and implementation support.
Project Rationale and Linkage to Country/Regional Strategy

Despite governments efforts and ADB's support, Assam's power sector faces serious challenges including: (i) only about 37% of the households having access to grid-supplied electricity; (ii) power cuts of about 5 hours per day; (iii) peak demand-supply gap of about 22%; (iv) only about 30% of demand is currently met by in-state generation; (v) high distribution losses of about 25.% (FY2013); (vi) financial un-sustainability of power companies, particularly Assam Power Distribution Company Limited (APDCL); and (vi) limited capacity of the power sector agencies to use modern technology and management systems. Financial losses of the APDCL are mainly due to two reasons: inability to meet the targeted loss reductions prescribed by the Assam Electricity Regulatory Commission (AERC), and purchase of about 15% of power from the spot market at very high costs.

APDCL has had some success in reducing losses: distribution losses decreased from about 40% in FY2001 to 25.2% in FY2013. However, loss reduction has stagnated due to the provision of new power connections without system upgrades, inadequate investment, and poor management and metering practices. APDC's inability to meet the loss reduction targets approved by the AERC has resulted in revenue shortfalls. APDC petitioned for a distribution loss allowance of 23% for FY2014 and 22% for FY2016, while the allowed losses for this period were below 18.8% to 17.5% , respectively. Achieving these targets is a challenge for APDC, and it requires capital investment and improvements in distribution system management.

Impact

Enhanced quality and expanded service delivery of electricity in Assam.

Project Outcome
Description of Outcome

Increased efficiency and capacity of power distribution system in Assam.

Progress Toward Outcome Physical progress Complete.
Implementation Progress
Description of Project Outputs

Distribution system expanded and upgraded.

Institutional capacity of APDCL strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues)

All packages under this loan complete by December 2019. The physical verification will measure actual achievement against target.

All packages under this loan complete by December 2019. The physical verification will measure actual achievement against target.

All packages under this loan complete by December 2019. The physical verification will measure actual achievement against target.

All packages under this loan complete by December 2019. The physical verification will measure actual achievement against target.

All packages under this loan are expected to be complete by December 2019. The physical verification will measure actual achievement against target.

All packages under this loan complete by December 2019. The physical verification will measure actual achievement against target.

Physical progress advance stage of completion.

Physical progress advance stage of completion.

Physical progress advance stage of completion.

Geographical Location Barpeta, Bongaigaon, Cachar, Dibrugarh district, Golaghat, Jorhat, Kamrup Metropolitan, Kokrajhar, Mangaldai, Marigaon, Nagaon, Nalbari, North Lakhimpur, Sibsagar, Sonitpur, Tinsukia
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Being Complied
Involuntary Resettlement Being Complied
Indigenous Peoples Being Complied
Stakeholder Communication, Participation, and Consultation
During Project Design The executing agency and the project management unit consulted with stakeholders, including affected communities, during the design stage. During the preparatory stages, consultations were carried out with various stakeholders and government officials concerned. Local communities were consulted as part of the social and resettlement study to gather their views on the proposed projects.
During Project Implementation

Being complied.

Responsible ADB Officer Horiguchi, Kazuhiro
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Assam Power Distribution Company Ltd.
Timetable
Concept Clearance -
Fact Finding -
MRM 25 May 2015
Approval 23 Nov 2015
Last Review Mission -
Last PDS Update 02 Mar 2020

LoanĀ 3327-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2015 07 Nov 2016 21 Dec 2016 31 Dec 2019 - 07 Aug 2020
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 41.56 Cumulative Contract Awards
ADB 29.56 12 Jan 2023 24.97 0.00 100%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 12 Jan 2023 24.97 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Partly satisfactory - Unsatisfactory
 
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