ADB is helping Lao People's Democratic Republic build nearly 400 kilometers of 115-kilovolt transmission lines, substations, and distribution lines in the provinces of Xaignabouli and Phongsali, and in western Vientiane. The project will fund a no-interest credit facility to enable poor households to connect to the grid. It will also help enable electricity trading with Thailand.
|Project Name||Greater Mekong Subregion Northern Power Transmission Project|
|Country||Lao People's Democratic Republic|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
|Sector / Subsector||
Energy - Electricity transmission and distribution
|Gender Equity and Mainstreaming||Some gender elements|
The project will (i) construct 398 kilometers (km) of 115-kilovolt (kV) transmission lines with associated 115/22 kV substations, and erect about 1,100 km of new 22 kV medium- and low-voltage distribution lines to expand access to grid electricity to consumers in western Vientiane, Xaignabouli, and Phongsali provinces of the Lao PDR; (ii) provide nointerest credit to poor households in the project areas to help them connect to the distribution grid; and (iii) provide consulting services,including a project implementation consultant to Electricite du Laos (EDL) and advisory services to the Ministry of Energy and Mines (MEM).
The construction of the transmission and distribution facilities comprises three modules. The Asian Development Bank (ADB) will finance module 1, and Korea Eximbank will finance modules 2 and 3.
Module 1 consists of (i) approximately 98 kilometers single circuit on double circuit towers transmission line from Paklay to Nonhai; (ii) a 20 mega volt ampere (MVA) new substation in Paklay; (iii) the extension of an existing substation in Nonhai; and (iv) the extension of an existing substation in Xayabury;
Module 2 consists of (i) approximately 122.74 kilometers single circuit on double circuit towers transmission line from Paklay to Xayabury; (ii) approximately 74.6 kilometers single circuit on single circuit tower 115kV transmission line from Paklay to the Lao-Thai border near Kenthao for connection with the Thali substation located in the territory of Thailand; (iii) approximately 263 km 22 kV feeders from the Paklay substation, 156 km 22 kV feeders from the Nonhai substation, and 336 km 22 kV feeders from the Xayabury substation, all for related medium and low voltage distribution; and (iv) necessary connection from the Xayabury substation to 7,020 households, from the Nonhai substation to 7,553 households, and from the Xayabury substation to 1,541 households; and
Module 3 consists of (i) approximately 102.4 km single circuit on double circuit towers transmission line from Namo to Boun Neua; (ii) a 20 mega volt ampere new substation (transformer feeder) in Boun Neua; (iii) a new 115kV switching station in Namo; (iv) approximately 361 km 22 kV feeders from the Boun Neua substation for related medium and low voltage distribution; and (v) necessary connection from the Boun Neua substation to 2,645 households.
The consulting services will be financed by ADB.
|Project Rationale and Linkage to Country/Regional Strategy||
For the Lao PDR, poverty reduction and improvement of living standards are important development goals that are not achievable without the provision of basic essential services such as access to education, health care, clean water, and electricity. Of the total 960,000 households in the country, about 560,000 (58%) have access to electricity. In Xaignabouli province, only 50% of households are electrified, which is lower than the national average. Phongsali province has the lowest percentage of electrified households in the country - only 13%. Poverty is widespread where electricity is not made available to households. For example, in Phongsali province, 60% of households are considered poor, while in some districts of Xaignabouli province, the percentage of poor households is as high as 50%. Recognizing the importance of provision of electricity for poverty reduction and for raising living conditions, the government has set a target of electrifying 70% of total households by 2010, 80% by 2015, and 90% by 2020.
A strong transmission and distribution (T&D) network nationwide is necessary to ensure reliable electrical supply to the population and to achieve the electrification targets. Presently, the T&D network of EDL does not cover the entire country. For example, Phongsali province and parts of Xaignabouli are not covered by EDL's T&D system.
The ADB-financed Northern Area Rural Power Distribution Project is currently building the T&D system covering the area from Louangphrabang Phrabang to Oudomxai and onward to Louang-Namtha. At Louangphrabang it interconnects with the existing Nam Ngum 1 transmission system that covers Vientiane capital and central region of the Lao PDR. This project will construct the much needed T&D system in Xaignabouli and Phongsali provinces and in western Vientiane province. Together with previous ADB-financed projects, it will help gradually build up a nationwide T&D system to allow the government reach the rural electrification and poverty reduction goal.
Consumers in Phongsali province currently rely on limited electricity imports from the People's Republic of China or from individual privately owned diesel generation sets. Similarly, consumers in Xaignabouli province rely on electricity imports from Thailand. Electricity imports in these two provinces are supplied at 22 kV and are more expensive ($0.08 per kilowatt-hour [kWh]) than EDL's supply (about $0.05 per kWh). But more importantly, many households still do not have access to electricity. Currently, a 22 kV transmission line provides imported electricity from Thailand to southern Xaignabouli province. Once the project's 115 kV cross-border interconnection line is built, it will replace the current 22 kV transmission line used for power import. This 115 kV cross-border interconnection will have a much higher load-carrying capacity and lower voltage drop; hence, it will deliver a higher quality electricity supply. The 115 kV interconnection can be utilized for both import and export of electricity. Such a two-way power trade will be possible and beneficial to the Lao PDR and Thailand by making use of the seasonal variations of hydro energy.
During the wet season (August - October), hydropower is normally abundantly available in the Lao PDR, and EDL has excess capacity. With the project, excess power can be exported to Thailand, offsetting electricity generated from fossil fuel there. On the other hand, during the dry season (April - May) when EDL experiences power shortages, it can import electricity from Thailand through the 115 kV transmission line from the Thali substation to supply Xaignabouli province, thereby ensuring a reliable supply of electricity to consumers. In addition, the interconnection allows the two systems to back each other up during line maintenance and power outages.
The cross-border interconnection under the project has received strong support from both governments and from EDL and EGAT. On 13 May 2009, the governor of EGAT and the managing director general of EDL signed a memorandum of understanding in Bangkok officially announcing the agreement for the proposed interconnection. The interconnection line,
to be built under the project and the ongoing Northern Greater Mekong Subregion (GMS) Transport Network Improvement Project to improve the roads from the Lao PDR - Thailand border along Xaignabouli province and northward to Louangphrabang, will accelerate economic cooperation activities and cross-border trade between northeast Thailand and
Xaignabouli province. According to the National Economic Development Board of Thailand, this corridor is one of the priority areas for Thailand's official development assistance to the Lao PDR because of the strong interest of Thailand's private sector in commercial agriculture development. Availability of a reliable supply of electricity is essential for business in the project area.
Thus, the project supports the government's rural electrification program by building a nationwide unified T&D system for EDL, particularly in Phongsali and Xaignabouli provinces, with cross-border interconnection between the EDL and EGAT systems. Of the 18,800 new households in the two provinces to be provided access to electricity, more than 6,000
are poor households and will receive financial support for connections to the grid. Reliable supply of electricity will not only improve living conditions of the population but also boost economic activities in the project area. In the long term, as more hydropower capacity is added to EDL's system, and power demands on both side of the border grow, this
interconnection will bring further benefits to consumers in the Lao PDR and Thailand.
|Impact||Achieving the government goals of rural electrification in 2020|
|Description of Outcome||Increased access to electricity for households in the northern provinces of the Lao PDR.|
|Progress Toward Outcome||(i) Under ADB portion: the implementation is progressing well with completion rate of 82.40% including 85.26% of design and engineering works; 83.66% of procurement; and 79.25% of construction of 115 kV transmission lines; (ii) For KEXIM portion, FBER was approved on 24 September 2015 and the contract agreement was signed on 18 December 2015 and the signed contract agreement was approved 22 December 2015 by KEXIM;|
|Description of Project Outputs||
1. New 115 kV transmission lines constructed and operating
2. New substations constructed and existing substations expanded and operating
4. Provision of connections to poor households through no-interest credit of KN700,000 per household.
5. Draft strategy framework on energy efficiency and conservation program
6. Increased access to two-way power trade between EDL and EGAT
3. 22 kV feeder lines and low voltage distribution networks in Phongsali, Xaignabouli, and Vientiane rovinces built and ready for use.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. Under ADB portion: the implementation is progressing well with completion rate of 76.01% (269 out of 275 foundation completed, 230 towers erected, and 10.52 km of stringing works completed) while 115 kV transmission lines construction is not commemced yet.
2. Paklay substation construction and Nonhai and Xayabury substations extension are being progressed well as (i) 46% of construction work for Nonhai substation extension completed including equipment and gantry foundation works; (ii) 83% of construction works for Paklay substation completed including gantry erections; construction of guard house building, operator's control building, and operator's house buildings; and expected it will be energizing in May 2016; and (iii) 74% of construction works completed in Xayabury substation extension while is waiting for connecting of 115 kV transmission lines from Paklay to Xayabury that will be constructed under Module 2 financed by KEXIM;
3. 22 kV feeder lines and low voltage distribution networks in Phongsali, Xaignabouli, and Vientiane provinces are not built yet under the project and they were deleted from the scope of work financed by KEXIM because of cost overrun after procurement of civil work for 115 kV transmission lines and they will be built under ADB portion by utilizing grant proceeds savings;
4. the implementation of P2P activity is progressing well, and as of 30 November 2015, there were 7,379 HHs (2,164 HHs in Vientiane, 3,988 HHs in Xayabury, and 1,227 HHs in Phongsali provinces) connected with the wiring from the nearby electricity poles including 397 of female headed HHs (5.4% of total connected poor HHs) and 4,662 of ethnic HHs (63.2% of total connected poor HHs) and additional poor HHs will be connected based on the allocated budget;
5. draft strategy framework on energy efficiency and conservation program was approved on 25 October 2015 by the Government with providing some comments for further improvement; and
6. Access to two-way power trade between EdL and EGAT is not increased yet due to delay in construction of 115 kV transmission lines financed by KEXIM and anticipating it will be increased by the end of 2017 after completion of 115 kV transmission line from Paklay to Kenthao (Module 2).
|Geographical Location||Northern and Northeastern provinces|
Summary of Environmental and Social Aspects
|Environmental Aspects||The final draft IEE is being finalized by the EA including the draft project environmental management plan (PEMP) covering preconstruction, construction, and operation stages for Modules 1, 2 and 3. The specific CEMP were prepared and embedded to civil works contracts for implementation by the contractors and the final IEE report was disclosed on 1 April in ADB website. IEE monitoring reports was submitted to ADB in 10 February 2015 and ADB provided comments on 16 February 2015. The environmental impact was being monitored by the EdL Environmental Office and semi-annual environmental monitoring report was being prepared and submitted to ADB for review and approval.|
|Involuntary Resettlement||The project does not involve any relocation, and has very limited land acquisition since the transmission line route is designed to minimize land acquisition and eliminate the need for physical resettlement and relocation of dwellings and other assets. A resettlement framework was prepared and provides policies and entitlements for the substations and medium- (22 kV) and low-voltage (400 V) power distribution facilities and was used as a basis for the preparation of the resettlement plan. The draft resettlement plan has been finalized by EA which was discussed during a stakeholder workshop held in March 2007 and includes measures for stakeholder participation and full disclosure of all information relating to the project. In addition, a project information booklet prepared by EDL was distributed to affected people in July 2009 as part of the resettlement plan disclosure. The final resettlement action plan was disclosed in ADB website in July 2014. RAP monitoring reports was submitted to ADB in 10 February 2015 and ADB provided comments on 16 February 2015. The project resettlement was being monitored by the EdL Environmental Office and semi-annual resettlement monitoring report was being prepared and submitted to ADB for review and approval.|
|Indigenous Peoples||To ensure that ethnic minority households and those headed by women are not marginalized during the process of compensation, the ethnic minority and gender-specific actions are included in the final resettlement action plan.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||EA prepared and distributed to project affected people the project information booklet.|
|During Project Implementation||Consultation was carried out in selecting of poor households who received/will be receiving non-interest credit and connected to electricity. Upon finalization of the resettlement action plan updates they will be explained to villagers. EA has established provincial grievance redress committees.|
Project Implementation consultant - Project engineering design, preconstruction activities, construction supervision, performance monitoring and evaluation for transmission, substations and distribution - $3,847,053/ QCBS / FTP including contract variations of $629,188.
A group of individual consultants for energy efficiency and conservation program to Ministry of Energy and Mines - $600,000 /Individual consultants
Module 1 - Turnkey contract for engineering, procurement and construction of the 115 kV transmission lines and substation - $12,550,225/ ICB / without Prequalification
Module 2 and 3 - $32,900,000 including EdL's additional contribution of $2,161,000
|Responsible ADB Officer||Inthavong, Vanthong|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Lao Resident Mission|
Electricite du Laos
Samsenethai Road, P.O. Box 309
Lao People's Democratic Republic Ministry of Energy and Mines
P.O. Box 4708
Vientiane, Lao PDR
|Concept Clearance||24 Feb 2011|
|Fact Finding||20 Apr 2009 to 24 Feb 2011|
|MRM||24 Feb 2011|
|Approval||27 Apr 2009|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Jan 2010||24 Feb 2010||23 Nov 2010||30 Jun 2014||30 Dec 2017||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||20.00||Cumulative Contract Awards|
|ADB||20.00||26 Jan 2010||17.64||0.00||88%|
|Cofinancing||0.00||26 Jan 2010||16.52||0.00||83%|
|Status of Covenants|
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.
|Title||Document Type||Document Date|
|Greater Mekong Subregion Northern Power Transmission Project: Procurement Plan||Procurement Plans||Mar 2014|
|Amendment to the Grant Agreement for GMS Subregion Northern Power Transmission Project||Grant Agreement||May 2012|
|Project Agreement for Greater Mekong Subregion Northern Power Transmission Project between Asian Development Bank and Electricite du Laos dated 24 February 2010||Project/Program Agreements||Feb 2010|
|Grant Agreement for Greater Mekong Subregion Northern Power Transmission Project between Lao People's Decmocratic Republic and Asian Development Bank dated 24 February 2010||Grant Agreement||Feb 2010|
|Greater Mekong Subregion Northern Power Transmission Project||Reports and Recommendations of the President||Dec 2009|
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|
|Greater Mekong Subregion Northern Power Transmission Project: Internal Environment Monitoring Report Period (July-December 2014)||Environmental Monitoring Reports||Aug 2015|
|Greater Mekong Subregion Northern Power Transmission Project: Resettlement Plan||Resettlement Plans||Jul 2014|
|Greater Mekong Subregion Northern Power Transmission Project: Initial Environmental Examination||Initial Environmental Examination||Apr 2014|
Evaluation Documents See also: Independent Evaluation
None currently available.
|Title||Document Type||Document Date|
|Maximizing Access to Energy for the Poor in Developing Asia||Brochures and Flyers||Dec 2013|
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.
Requests for information may also be directed to the InfoUnit.