Pakistan : Power Distribution Enhancement Investment Program - Tranche 3

Project Name

Power Distribution Enhancement Investment Program - Tranche 3

Project Number

38456-034

Country / Economy

• Pakistan

Project Status

Closed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 2972-PAK: Power Distribution Enhancement Investment Program - Tranche 3

Source	Amount
Ordinary capital resources	US$ 245.00 million

Strategic Agendas

• Inclusive economic growth

Drivers of Change

Sector / Subsector

• Energy / Electricity transmission and distribution

Gender

No gender elements

Description

The project proposed for financing under the requested PFR are:

1. Secondary Transmission Grid (STG)

a. Augmentation replacement of power transformers with higher capacity transformer;

b. Extension addition of power transformers;

c. Conversion of existing 66-kV substations to 132-kV substations with enhanced transformation and current carrying capacity; and

d. Addition of new 132-kV grid station.

2. STG transmission lines:

a. Conversion of existing 66-kV transmission lines to 132-kV transmission lines;

b. Replacement of existing transmission lines to increase load carrying capacity; and

c. Extension addition of transmission lines.

Project Rationale and Linkage to Country/Regional Strategy

The project is urgently needed to further alleviate the power distribution system bottlenecks and to reduce prolonged outages and load shedding.

Impact

Reliable and quality power supplied and service coverage expanded.

Project Outcome

Description of Outcome

Power distribution systems rehabilitated, augmented and expanded.

Progress Toward Outcome

Construction works for rehabilitation, conversion, augmentation, and extensions including addition of new transmission lines and grid station is on going and will be completed by 30 June 2018.

Implementation Progress

Description of Project Outputs

Subprojects commissioned.

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

41 subprojects completed by 2017 and remaining would be done before loan closing of 30 June 2018.

1303 km added to the system by 2017 and more km additions expected by 30 June 2018.

Works still ongoing for completion of grid stations and would be completed by 30 June 2018.

Geographical Location

Attock, Badin, Bahawalnagar, Bahawalpur, Bhakkar, Charsadda, D. G. Khan, D. I. Khan, Faisalabad, Gujrat, Hyderabad, Islamabad, Islamabad, Jhang, Kalat, Karak, Kasur, Khanewal, Khuzdar, Killa Saifullah, Kohat, Lahore, Loralai, Lower Dir, Mandi Bahauddin, Mansehra, Mardan, Mastung, Mianwali, Mirpur Khas, Nowshera, Okara, Pishin, Quetta, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Swabi, Tank, Toba Tek Singh, Vehari

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

The project is classified as "B" for environmental safeguards. The Government will cause each DISCO to ensure that (i) the subprojects are designed, constructed, operated, and maintained in accordance with all applicable laws and regulations of Pakistan and ADB's Environment Policy (ADB's Safeguard Policy Statement for subprojects initiated after June 2009); (ii) all subprojects will strictly follow the mitigation measures identified in the IEE, including the EMPs and the EARF; (iii) mitigation measures identified in the EMPs will be incorporated in bidding documents and civil work contracts and implemented under supervision of the DISCOs; and (iv) environmental monitoring reports will be submitted to ADB twice annually during the construction and operation period, including progress made on the mitigation measures, monitoring data, problems encountered, enforcement plan, complaints, violation, or modifications to mitigation measures to take account of unexpected environmental impacts and the acceptability of the residual impact.

Involuntary Resettlement

The project is classified as "B" for resettlement. Land Acquisition and Resettlement. Medium/low voltage lines up to 11 kV causing LAR or income impacts will not be eligible for financing under the MFF. However, lines at voltages of 33 kV and above and substation subprojects causing LAR or income impacts will be fully eligible for financing under the MFF. In the case of these subprojects, the Government will cause each DISCO to ensure that (i) all land and rights-of-way required by the subprojects are made available in a timely manner; (ii) the provisions of the relevant LARP are implemented promptly and efficiently according to its terms, applicable laws and regulations of Pakistan, ADB's Policy on Involuntary Resettlement (ADB's Safeguard Policy Statement for subprojects initiated after June 2009); ADB's Operations Manual F2 on Involuntary Resettlement (2003), and the LARP; (iii) the relevant LARP is updated based on the detailed design, prepared in full consultation with the affected persons and disclosed to them prior to submitting the LARP to ADB; (iv) the contractors' activities are in compliance with requirements of the relevant LARP and the LARF, and (v) an independent monitor acceptable to ADB is engaged to carry out monitoring and evaluation and report to ADB in accordance with the requirements of the LARPs. The signing of civl work contracts or a similar milestone will be subject to ADB review and approval of implementation of the relevant LARPs, including the provision of full compensation to the affected people.

Indigenous Peoples

The project is classified as "C" for indigenous people. The government will cause each DISCO to ensure that all subprojects affecting trial peoples are constructed and operated in accordance with the requirements of ADB's Policy on Indigenous Peoples (ADB's Safeguard Policy Statement for subprojects initiated after June 2009) as specified in the IPDPs agreed with ADB. Each DISCO will ensure that IPDPs are monitored and evaluated by an independent agency.

Stakeholder Communication, Participation, and Consultation

During Project Design

At the design stage of MFF, stakeholder analysis has been undertaken. All stakeholders were involved in order to reduce the likelihood of grievances and to ensure that benefits are distributed fairly. Since there were no major changes in project design, no separate consultations were undertaken for Tranche 3. However, information on social safeguards and LARPs have been shared through public meetings.

During Project Implementation

None.

Business Opportunities

Consulting Services

The DISCOs and PEPCO will be supported by the facility management consultant, already hired under the MFF Support Component, in monitoring the project and providing guidance and technical support to the executing agency and implementing agencies.

Procurement

The procurement plan for the Tranche has been prepared for the first 18 months. There will be 23 ICB packages. Procurement experts working in the PMUs have reasonable expertise and have been provided with extensive training by ADB in the past three years. These staff have been actively involved in procurement of goods and turnkey contracts during the previous two tranches. Being familiar with ADB's standard bidding documents and to amplify project readiness, the DISCOs have prepared the first draft bidding documents for ICB contracts. It is expected that a few of the ICB packages will be advertised within Q4 of 2012, and the remaining during Q1 of 2013.

Advance contracting and retroactive financing of expenditures for the first and subsequent tranches (up to 20% of the proceeds from individual loans under the MFF) were approved by ADB, provided that those expenditures are incurred in accordance with agreed procedures and during the 12 months before the signing of the corresponding individual loan agreement and loan effectiveness under the MFF. Because of the urgent nature of the project, retroactive financing will cover eligible expenditures including works carried out under the categires of turnkey and equipment. Such financing will be subject to compliance with involuntary resettlement requirements stated in the LARPs. The government and the DISCOs were informed that approval of advanced contracting and retroactive financing does not commit ADB to finance any of the proposed subprojects. The DISCOs were also advised that they must comply with all ADB procurement procedures in order to qualify for retroactive financing.

Contact

Responsible ADB Officer

Khattak, Ehtesham Zafar

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Pakistan Resident Mission (PRM)

Executing Agencies

Pakistan Electric Power Company (Pvt.) Limited

Timetable

Concept Clearance

-

Fact Finding

-

MRM

08 Nov 2012

Approval

14 Dec 2012

Last Review Mission

-

Last PDS Update

20 Sep 2018

Funding

Loan 2972-PAK