Pakistan: MFF - Renewable Energy Development Sector Investment Program (formerly Renewable Energy Development Facility)

Sovereign (Public) Project | 34339-013 Status: Archived
Project Name MFF - Renewable Energy Development Sector Investment Program (formerly Renewable Energy Development Facility)
Project Number 34339-013
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0005-PAK: MFF - Renewable Energy Development Sector Investment Program (formerly Renewable Energy Development Facility)
concessional ordinary capital resources lending / Asian Development Fund US$ 10.00 million
Ordinary capital resources US$ 500.00 million
TA 4881-PAK: Renewable Energy Policy Formulation and Capacity Development of the Alternate Energy Development Board
Technical Assistance Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Renewable energy generation

Gender Equity and Mainstreaming 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 subprojetcs North-West Frontier Province (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

The Government has delegated authority to the provinces to develop power generating capacity of up to 50 MW. RE programs are a means to deliver this mandate. In May 2005, the

Government announced a target calling for RE to reach 3.5% and 6.0% of the total energy supply mix by 2015 and 2030, respectively. RE development is compatible with the Government's twin goals of energy security and promoting indigenous resource utilization. RE development is also one of the key features of the Government's poverty reduction and

environmental agendas. RE supports electrification in remote and rural areas, including those not covered by the main grid. Employment generation and improvements in social well-being are two by-products of RE development.

Impact Reduction in carbon dioxide (CO2) emission
Project Outcome
Description of Outcome Increased production and use of clean energy
Progress Toward Outcome

Consultant firm for Part A (policy and project preparation for Tranche 2) recruited

Individual consultants for Part B (capacity building) recruited

Draft working papers for on-grid and off-grid renewable energy policy prepared

Legal review of proposed changes in tariff methodology completed

Draft position paper for AEDB submitted

National stakeholder consultative workshop date conducted

Implementation Progress
Description of Project Outputs

Part A: Clean Energy Development

Small to medium-size hydropower stations and other sources of RE generation units will be constructed during the program period.

Part B. Due Diligence Support

Feasibility studies and other due diligence work on new RE schemes

Part C: Capacity Development

Introduction of a capacity development program at federal, provincial, and project levels

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

Tranche 1:

Loan was signed on 5 October 2007, in Islamabad, Pakistan. Original signed copy of loan agreement was received on 19 November 2007 and loan became effective on 29 November 2007.

CDWP has approved revised PC-1 to reduce the number of HPPs from 8 to 7 in mid June 2011. ECNEC endorsed at the end of July 2011.

Part A: Clean Energy Development

1. Punjab

(a) Turnkey contract for Marala HPP (7.2MW): contract awarded

(b) Turnkey contract for Deg Outfall HPP (5.0MW): final stage of awarding

(c) Turnkey contract for Okara HPP (4.0MW): final stage of awarding

(d) Turnkey contract for Chianwali HPP (5.4MW): final stage of awarding

(e) Turnkey contract for Pakpattan HPP (3.2MW): contract awarded

(f) Land acquisition is on-going for all HPPs. Completed for Marala HPP. Funds are made available to Revenue Department for disbursement.

2. KP (formerly NWFP)

(a) Turnkey contract for Daral Khwar HPP (36.6MW): removed from ADB financing. It will be financed internally by KP.

(b) Turnkey contract for Ranolia HPP (11.5MW): contract awarded

(c) Turnkey contract for Machai (2.6MW): contract awarded

(d) Land Acquisition: the process is completed. Due diligence reports received.

Part B: Due Diligence Support

1. Punjab

- Feasibility studies of 5 new HPPs: consultancy contract signed on 12 November 2009. Final reports are under review.

Note: The project implementation in Punjab was suspended in June 2008. Recommenced March 2009.

2. KP (formerly NWFP)

Feasibility Study of 3 new HPPs: consultancy contract signed on 31 May 2008. Updated final reports are under review (taking into account 2010 Flood levels)

Part C: Capacity Development

Contract agreement for the consulting services for the architecture, design and construction supervision for SHYDO Office building was signed on 30 April 2008. Construction of SHYDO office building is completed. Punjab component, the design of the PPDCL building is completed. Contract for capacity development consultant in Punjab has been awarded.

Tranche 2

Approved in December 2010. Seven preliminary applications have been received. Upon receipt of final guarantee applications from project lenders due diligence will be conducted and guarantees may be issued.

Tranche 3

CDWP approved revised PC-1 for Shagarthang HPP on 11/11/11 and for Chilas HPP on 16 August 2012.

Under processing. Advance action undertaken by the EA to engage management and supervision consultant for 26.6MW Shargarthang HPP, while for 4.0 MW Chilas HPP the technical proposals for consultants are under review. Due diligence mission was fielded in August 2011. The bidding documents for both HPPs are under preparation.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects

Only category B subprojects will be eligible for the Project. The independent power producers are responsible for the conduct of environmental assessments for the subprojects in compliance with the following documents:(i) ADB's Safeguard Policy Statement (2009); (ii) the REDSIP environmental assessment and reporting framework, and (iii) national environmental regulations and guidelines. For each subproject an initial environmental examination report and environmental management plan with a corresponding implementation budget will be prepared.

For the sample subproject sites, the perceptible negative environmental impacts such as noise and visual intrusion are negligible, mainly because of the considerable distance between the turbines and the nearest settlements. Subprojects will not endanger migratory birds or bats, as there are few in the wind farm area, which is not located in the main habitat or along the main migration routes of migratory birds. In fact, extensie wind power development will help reduce wind speeds by extracting energy from air flows. Disturbances associated with construction such as land disturbance, construction noise, traffic congestion, and waste generation are normally temporary and limited in scope. implementing a carefully designed social and environmental management plan, which inlcudes monitoring arrangements, will further mitigate these negative impacts.

Involuntary Resettlement Only subprojects classified as category C, projects that do not have land acquisition or through private negotiated sales without incurring right of eminent domain, under ADB's Safeguard Policy Statement (2009) will be selected. The sample subprojects are located on barren unoccupied land and very little impact is expected, if any at all.
Indigenous Peoples

In case of any significant or related impacts on tribal people under any subproject, these will follow the requirements as set forth in the indigenous peoples development framework (IPDF) as agreed by ADB, including special provisions for all TP households to ensure that their living standards are not adversely affected as a result of land donation or in the event of any loss of non-land asset and impacts on their livelihoods. As also laid down in the IPDF, for any impact on land involving traditional and burial rights of the TPs, the legal provision laid down by the Government and the provinces pertaining to transfer of land will be duly followed.

The provinces will ensure acceptance of subprojects through effective community participation in selecting and implementing subprojects in accordance with ADB's safeguard policies and the renewable energy policy, as supplemented by the resettlement framework and Environmental Assessment Framework.

Stakeholder Communication, Participation, and Consultation
During Project Design .
During Project Implementation Not applicable since the Project is not being implemented yet.
Business Opportunities
Consulting Services Requirement for consulting services is yet to be determined.
Procurement To be determined.
Responsible ADB Officer Khattak, Ehtesham Zafar
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Alternative Energy Development Board
Mujahid Sadiq, Head, Int'l Assistance Mgt. Office
[email protected]
344-B, Prime Minister's Secretariat nister's Secretariat" Pakistan
Government of Khyber Pakhtunkhwa (KP)
Engr. Zahid Akhtar Sabri, Director Commercial / PM Machai HPP
[email protected]
Sarhad Hydel Development Organization, 372-WAPDA House, Shami Road, Peshawar, NWFP, PAKISTAN
Government of Punjab
Liaqat Ali Iqbal, Project Director
[email protected]
Lahore Pakistan
Concept Clearance 08 Sep 2005
Fact Finding 20 Mar 2006 to 04 Apr 2006
MRM 16 May 2006
Approval 01 Dec 2006
Last Review Mission -
PDS Creation Date 08 Jan 2009
Last PDS Update 28 Sep 2012

MFF Facility Concept 0005-PAK

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 510.00 Cumulative Contract Awards
ADB 510.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 4881-PAK

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 0.00 0.00 0.00 0.00 800,000.00 - 0.00

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 Public Communications Policy (PCP) 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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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
Renewable Energy Development Sector Investment Program Indigenous Peoples Plans/Indigenous Peoples Development Plans Oct 2008

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) 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.

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