Project Name
Assam Power Sector Investment Program
Project Number
47101-001
Country / Economy
  • India
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
MFF Facility Concept: Assam Second Power Sector Investment Program
Source Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 2.00 million
MFF Facility Concept 0083-IND: Assam Second Power Sector Investment Program
Source Amount
Ordinary capital resources US$ 300.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Governance and capacity development
Sector / Subsector
  • Energy /

Gender
No gender elements
Description
ADB and the Government of India are working together to help India's northeastern Assam state continue its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment. The Assam Power Sector Investment Program is upgrading power generation and distribution systems, including the construction of a 120-megawatt hydropower plant. It is also financing new energy efficient power generation equipment at existing plants; new distribution lines and substations; and financial management training and other support for staff of state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. The project is bolstering the finances of the state power companies by helping them decrease their purchases of expensive electricity from independent power producers. In addition, the program is supporting the construction of the Lower Kopili run-of-the-river hydropower plant in central Assam that will help the state avoid over 530,000 tons per annum of carbon dioxide emissions that would otherwise be produced by fossil fuel-driven generation. By cutting power outages in the state, the program is benefiting over 2.7 million consumers. It is also promoting economic growth and creating employment opportunities by helping to supply reliable power to the state. This is helping Assam attract investment and more fully tap its economic potential while reducing poverty.
Project Rationale and Linkage to Country/Regional Strategy
In India's state of Assam, demand for electricity has grown far faster than supply. High transmission and distribution losses have exacerbated the situation. More than a third of households in Assam have traditionally faced daily electricity outages of 5 to 6 hours. Power shortages, low voltage power, and scheduled power outages have often undermined Assam's industrial competitiveness and agricultural potential. Many important industries, such as the state''s famous tea gardens, have not been connected to the power grid and during peak periods the state has to buy power from independent producers at high cost. The broader economic implications of the poorly performing power sector include curtailed competitiveness and productivity, fewer job opportunities, reduced investment, and inefficient use of resources. Supply deficits force consumers to use more expensive, less-efficient, and more polluting energy sources, such as smaller diesel generators.
Impact

increased availability of electricity in Assam.

Project Outcome

Description of Outcome

increased capacity and efficiency of energy generation and distribution systems in Assam.

Progress Toward Outcome
All project management activities under Tranche 1 and 2 are progressing satisfactorily.

Implementation Progress

Description of Project Outputs

Generation system upgraded and expanded

Distribution system upgraded and expanded

Institutional capacity of APGC & APDC strengthened

Project management system in place.

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

Contracts awarded for generation and distribution. Lakwa 70MW power plant was commissioned in April 2018. Lower Kopili Hydro Power Plant - Tranche 3 - was approved in Dec 2020. Output is expected to be achieved in 2024.

Distribution lines and sub-station 90% completed.

Training activities done.

Project to be implemented on time.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
B
Involuntary Resettlement
C
Indigenous Peoples
C

Stakeholder Communication, Participation, and Consultation

During Project Design
Stakeholders consultation and participation are being carried out and will continue during the project processing and design.
During Project Implementation
Stakeholders consultation and participation will be arranged during the project implementation.

Business Opportunities

Consulting Services
ADB will engage the following consultants (National and / or International) individually or through firm(s) or consortium of firms - the Project Specialist/Team Leader (International), Economic and Financial Analysis (International), Environmental Assessment and Management (International), Social Safeguard Specialist (International), Social Safeguard Specialist (National), Procurement Specialist (National), Community Development Specialist (National), Hydropower Construction Planning Expert (National), Climate Change Scientist (International), Generation Assets & Inventory Management Specialist (International), and Environmental Assessment and Management (National). The recruitment of consultants will be made in accordance with its Guidelines on the Use of Consultants by ADB and its Borrowers (2010, as amended from time to time). Consultants will be funded under TA-8351 subproject under the IND-CTA 0003: Advanced Project Preparedness for Poverty Reduction.
Procurement
Goods, equipment, and civil works to be financed under the Investment Program will be procured in accordance with ADB Procurement Guidelines (2010, as amended from time to time). International Competitive Bidding will be used for civil works and turnkey contracts. National Competitive Bidding will be used for contracts for goods and equipment estimated to cost less than $1 million. Advanced contracting and/or retroactive financing will be needed. Consultants will be engaged to help with project management. The Tranche 1 will have one major turnkey contract for gas plant replacement.

Contact

Responsible ADB Officer
Banerjee, Jyotirmoy
Responsible ADB Department
South Asia Department
Responsible ADB Division
India Resident Mission (INRM)

Timetable

Concept Clearance
30 May 2013
Fact Finding
03 Sep 2013 to 12 Sep 2013
MRM
18 Feb 2014
Approval
03 Jul 2014
Last Review Mission
-
Last PDS Update
16 Dec 2020

Funding

MFF Facility Concept 0083-IND

Financing Plan
  Total (Amount in US$ million)
Project Cost 430.00
ADB 300.00
Counterpart 130.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %
 
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Source URL: https://www.adb.org/projects/47101-001/main