Project Data Sheet
Project 34339-023
Project Data Sheet
Project 34339-023
| Project Name | Renewable Energy Development Sector Investment Program - Project I | ||||||||
| Project Number | 34339-023 | ||||||||
| Country / Economy | Pakistan |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | |||||||||
| Sector / Subsector | Energy / Energy sector development and institutional reform - Large hydropower generation - Renewable energy generation - biomass and waste - Renewable energy generation - small hydro - Renewable energy generation - solar - Renewable energy generation - wind |
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| Gender | No gender elements | ||||||||
| Description | To develop indigenous, nonpolluting, and renewable sources of energy to help meet Pakistan's power shortage and diversify the power sources. It will also improve the quality of the power system, specially in rural areas. Scope: Under the first set of subprojects North-West Frontier Porvince (NWFP) will develop a cluster of small hydropower from perennial high-head rivers that are abundant in the province. Punjab province will also develop a cluster of low-head, high-volume small hydropower stations that can be installed in the existing irrigation canal system with perennial water flows. The scope may get expanded to cover other renewable sources as well as other provinces in the future. An effort will also be made for capacity development of renewable energy sector related agencies. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Pakistan's Medium Term Development Framework sets out a strategic vision and investment program for the sector for the period 2005-2010. The main objective of this program is to support a projected 6-8% growth in gross domestic product. Energy is essential to high and inclusive growth. The poverty reduction agenda depends on it. The vision for the sector has four main components: (i) increased private sector investment in the entire production chain; (ii) reduced technical, non-technical and financial losses; (iii) improved sustainability and reduced level of government subsidies; and (iv) improved service delivery, efficiency, and governance in the energy utilities. The strategy will deliver various key outcomes: (i) basic sector reforms to create an enabling environment for private sector participation; (ii) better sector analysis and stronger capacity among the relevant sector organizations, including in such areas as financial management, governance, operational efficiency, clean development mechanisms, and project management; and (iii) promotion of infrastructure development projects in generation, distribution, and transmission, while including renewable energy development. The latter will target industry, as well as urban and rural communities. Annual electricity demand growth is forecast to average 8.3% during 2005-2015. To cope with this demand growth, Pakistan needs annually an additional 2,000 megawatts (MW) of newly installed capacity. The estimated annual investment cost to deliver this capacity is about $6 billion. This additional generated power would need to be evacuated through the formal transmission network to consumers through the distribution system. The transmission system requires a major investment package. The National Transmission and Dispatch Company has developed a nationwide transmission development program for 2005-2012, out of which several priority schemes have already been approved by the Government. ADB will support this program. Pakistan has considerable potential for developing a broad range of renewable energy resources (RE), principally wind, solar, biomass and small to medium-sized hydropower plants. RE resources can contribute to energy supply and security while helping change the mix. It also can contribute to both off-grid and grid-connected power supply. RE supports rural development and economic activity in remote areas while yielding positive environmental and social impacts. Pakistan has a total identified hydropower potential of more than 45,000 MW. The total installed capacity of hydropower generation in the country is 6,595 MW. Hydropower resources are located mainly in the north, northwest, and central parts of the country. Wind and solar resource potential is highest in the southern provinces of Sind and Balochistan, respectively. |
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| Impact | Reduction in CO2 emission. | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Increased production and use of clean energy. |
| Progress Toward Outcome | Most of the indicators achieved. |
| Implementation Progress | |
| Description of Project Outputs | Part A. Clean Energy Development Small to medium-size hydropower stations are operational in KP and Punjab. Part B. Due Diligence Feasibility studies and other due diligence work on new RE schemes completed. Part C. Capacity Development Training needs assessment at the provincial and project levels conducted. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 40MW added to new generating capacity by 2017. Not met due to pending Power Purchase Agreement. All 8 Feasibility Studies are completed. Construction of PEDO (formerly SHYDO) building is complete.
Contract for consulting services for capacity building/development of PEDO and related entities is completed. The project completion report was already prepared. 23 trainings (international/national) were conducted; 8 courses were implemented; and 57 officials attended the national and international trainings. The procurement of goods for PEDO building (capacity building) is complete. In Punjab, the contract between PPDCL and the Clean Energy Development Mechanism (CDM) individual consultant has been signed and under implementation. PPDCL staff are envisaged to receive hands-on training with regards to registration and validation procedure related to CDM. |
| Geographical Location | Chianwali, Kohistan, Kohistan, Machai, Mardan, Pakpattan, Ranolia, Sheikhupura, Shekhupura Bedad, Sialkot |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | The subprojects will have very little adverse environmental impacts. The adverse impacts will be adequately mitigated as described in the environmental management plan (EMP) where the implementing agencies (IAs) are committed to implement. However, IAs will obtain maximum benefits from the capacity development component of the investment program. The IAs will improve their capacities to implement and monitor the measures in the EMP. Based on the review, ADB environment category B is appropriate and a full environmental impact assessment is not necessary. |
| Involuntary Resettlement | Land acquistion and resettlement impacts of proposed subprojects under the first tranche have been examined. Part A: Clean Energy Development will require permanent acquisition of 11.78 hectares (ha) in KP, and temporary acquisition of 0.85 ha of 0.45 in KP, and 3.2 in Punjab. Part B: Feasibility Studies and Part C: Capacity Development will not require any acquisition of land or other property and therefore will not have any resettlement impacts. Land acquisition for Part A subprojects will affect 61 households, and 2 residential structures. |
| Indigenous Peoples | Indigenous peoples (IP) are defined as those having a distinct social, cultural, economic, and political traditions and institutions compared with the mainstream or dominant society. In KP, all the affected people, apart for the Machai subproject, belong to sub-tribes. In fact, the great majority of KP population falls under ADB's definition of IP. Traditional decision making mechanisms were taken into account during consultation. In Punjab, none of the affected people (AP) fall under ADB's IP policy. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Stakeholder analysis has been undertaken. All stakeholders have been actively involved to reduce the likelihood of grievances and to ensure that benefits are distributed fairly. In addition, for the selection of unskilled labor in the project area, the contracts will consult with local township labor officials, local village leaders and jirgas and will also ensure that labor is hired on a nondiscriminatory basis. Resource persons in different Government departments and representatives of the local communities were interviewed. |
| During Project Implementation | Consultation with relevant Government departments and representatives of the local communities are conducted during implementation. |
| Business Opportunities | |
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| Consulting Services | QCBS (80/20) |
| Procurement | International competitive bidding (ICB) will be used for turnkey contracts targeting the construction of hydropower plants and supply contracts estimated to cost $1 million or more. Limited international bidding will be used for supply contracts estimated at $100,000 to $1 million. National competitive bidding (NCB) will be used for contracts estimated to cost less than $100,000. Civil works contracts estimated at less than $1.5 million also will be procured following NCB procedures. |
| Responsible ADB Officer | Khattak, Ehtesham Zafar |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Pakistan Resident Mission |
| Executing Agencies |
Alternative Energy Development Board Arif Alauddin [email protected] House 3, Street 8, F-8/3, Islamabad, Pakistan Alternative Energy Development Board Mujahid Sadiq [email protected] House 3, Street 8, F-8/3, Islamabad, Pakistan Government of Khyber Pakhtunkhwa (KP) Mr. Bahadur Shah [email protected] 374-WAPDA House, Shami Road Government of NWFP, Peshawar Government of Khyber Pakhtunkhwa (KP) S. Ishtiaq Shah [email protected] 374-WAPDA House, Shami Road Government of NWFP, Peshawar Government of Punjab Mr. Liaqat Ali Iqbal [email protected]/[email protected] 209-C, TECH Society, Canal Bank, Lahore, Pakistan Government of Punjab Mr. Mohammad Yaqub [email protected] 209-C, TECH Society, Canal Bank, Lahore, Pakistan |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 16 May 2006 |
| Approval | 13 Dec 2006 |
| Last Review Mission | - |
| PDS Creation Date | 03 Aug 2008 |
| Last PDS Update | 28 Mar 2018 |
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 13 Dec 2006 | 05 Oct 2007 | 29 Nov 2007 | 30 Jun 2012 | 31 Dec 2017 | 07 Jun 2018 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 135.00 | Cumulative Contract Awards | |||
| ADB | 105.00 | 17 Jun 2022 | 99.53 | 0.00 | 100% |
| Counterpart | 30.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 99.53 | 0.00 | 100% |
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 13 Dec 2006 | 05 Oct 2007 | 29 Nov 2007 | 30 Jun 2012 | 31 Dec 2017 | 07 Jun 2018 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.00 | Cumulative Contract Awards | |||
| ADB | 10.00 | 17 Jun 2022 | 3.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 3.00 | 0.00 | 100% |