Energy / Electricity transmission and distribution

Government of Assam and Assam Electricity Grid Corporation Limited (AEGCL) informed ADB that number of subprojects from 13th Development Plan have been shortlisted and included in the proposed Assam Power Transmission Improvement Project (APTIP) with an estimated total project cost at around $670 million. The project plans to add significant transmission capacity in Assam as well as improve overall network efficiency and reliability. AEGCL through Government of Assam and Government of India is planning to request ADB for a loan up to $500 million to fund the project.

Detailed project report (DPR) for APTIP was submitted to ADB. The following subprojects are identified for investments:

(i) Construction of new grid substations (220/132 kV; 220/132/33 kV; 220/33 kV; 132/33 kV; and 132/11 kV);

(ii) Augmentation of existing 220/132 kV substations by increasing transformers capacity;

(iii) Conversion of existing substations with air insulated switchgear to gas insulated switchgear (220/132/33kV and 132/33 kV)

(iv) Construction of 220 kV and 132 kV transmission lines; and

(v) Augmentation and reconductoring of the existing 220 kV and 132 kV transmission lines

ADB is going to provide a project preparatory technical assistance (TA) to support the due diligence and preparatory work for the ensuing Assam Power Transmission Improvement Project. The TA will require total of 15 person-months of consulting services to help with project preparation. Individual consultants will be recruited to support the executing agency and ADB in conducting due diligence on financial management, financial and economic analysis, and safeguards (environment, involuntary resettlement, and indigenous peoples) as well as assisting the executing agency with contracting strategy and bid documents preparation. ADB intends to hire consultants as soon as possible, and conduct another mission to finalize the project concept, followed by further due diligence. Four international and two national consultants will be recruited. ADB will engage the consultants on an individual basis in accordance with its Guidelines on the Use of Consultants by ADB and its Borrowers, and other arrangements satisfactory to ADB for engaging individual consultants.

Assam's power sector faces serious challenges: about 37% of households have access to electricity with about 5 6 hours of power cuts per day. In fiscal year (FY) 2015, peak demand for power was 1,457 megawatt (MW) against available supply of 1,250 MW, indicating a shortfall of 13.3%. Only about 35% of the state's 700 tea gardens one of the mainstays of the Assam economy are supplied with grid electricity. On the supply side, Assam is heavily dependent on power imports from other states, with only about 25% of demand currently met by in-state generation. During peak periods, Assam is forced to purchase as much as 15% of its power requirement from independent power producers at very high cost. Demand for power is projected to increase to 2,417 MW by FY2019. Substantial investments in power generation, transmission and distribution value chain are required to meet the growing demand and ensure energy security.

In addition to inadequate generation capacity, the power availability in Assam has also been severely constrained by network limitations. While generation capacity is expected to soon catch up with anticipated demand, limited capacity of the Assam state transmission and distribution system can continue to constrain delivery of power to consumers. The current physical constraints in the transmission system mean that Assam residents are unable to fully access clean power, missing the opportunity to reduce greenhouse gas emissions. The system study indicates an imminent need for significant investment in transmission to ensure that capacity addition in generation results in power that is available for input into the distribution system.

The TA will require a total of 15 person-months of consulting services to help with project preparation. Individual consultants will be recruited to support the executing agency and ADB in conducting due diligence on financial management, financial and economic analysis, and safeguards (environment, involuntary resettlement, and indigenous peoples), as well as assisting AEGCL, the executing agency of the ensuing project, with contracting strategy and bid documents preparation. ADB intends to hire consultants at the earliest, and conduct another mission to finalize the project concept, followed by further due diligence.

Four international and two national consultants will be recruited. ADB will engage the consultants on an individual basis in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time). The TA proceeds will be disbursed following ADB's Technical Assistance Disbursement Handbook (2010 as amended from time to time). The consultants will prepare inception, draft final, and final reports. Outline terms of reference are given in Attachment 2. Lump-sum contracts may be considered for consulting services under the TA. The consultants will be housed in AEGCL's office.