The TA will develop a comprehensive master plan, and help develop capacity development, including in the preparation of periodic financing requests for further MFF tranches.
|Project Name||Capacity Building for Himachal Pradesh Power Sector Agencies|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Energy sector development and institutional reform
|Gender Equity and Mainstreaming||No gender elements|
|Description||The TA will develop a comprehensive master plan, and help develop capacity development, including in the preparation of periodic financing requests for further MFF tranches.|
|Project Rationale and Linkage to Country/Regional Strategy||HP, a small mountainous state, is blessed with abundant water resources in the five major rivers glowing through the state that emanate from the western Himalayas. The power generation potential of HP is 20,415 MW, which is about 25% of the total hydropower potential of India, out of which around 6,150MW has been developed. Recognizing the state's comparative advantage in hydropower generation, the main strategy of the GOHP, outlined in its state Hydro Power Policy, 2006, is to become the "Hydro Power State" of the country, by providing affordable, reliable power to its residents, and selling excess power to the Northern Grid as a major source of revenue for HP. A new corporate entity has been established according to Hydro Power Policy, 2006 and it is mandated to develop and operate new hydropower plants in HP. As elucidated in the Hydropower Policy, 2006, GOHP has opted to target its comparative advantage in hydropower as the kew focal point of the HP power development. GOHP has outlined a policy agenda for hydropower development in the short to medium term coupled with a comprehensive roadmap in order to efficiently achieve these goals. HP's clean energy agenda is in line with ADB's Clean Energy and Environment Program which aims to foster clean energy development in Asia and the Pacific and to help address climate change and energy security.|
The impact and outcome of the TA will include the following:
(i) Component 1: The outcome of this component will be a comprehensive power system master plan that will provide the blueprint for development of the power sector in Himachal Pradesh. The master plan will tie together generation, transmission, and distribution expansion to ensure that all proposed capital investments are part of a long-term, structured plan rather than ad hoc. It will also ensure that network expansion is economically efficient and will provide a realistic framework for loss reduction.
(ii) Component 2: The outcome will be specifications for an RMIS and a reporting framework for the power sector entities. Using these specifications, HPERC will acquire an RMIS using its own resources. Assessing information requirement of HPERC and reporting necessities of the power sector entities will facilitate purchasing or developing the correct RMIS, and ultimately facilitate implementation of the multiyear tariff structure. The RMIS will also support review of performance standards in the multiyear tariff framework. Developing a methodology to compute the cost of supply at various voltage levels will support (a) rationalization of tariff across different voltage levels, (b) rationalization of cross-subsidies, and (c) determination of open access surcharges.
(iii) Component 3: Preparation of periodic financing requests for further tranches of the MFF.
|Description of Outcome||
Component 1: The outcome will be a comprehensive Power System Master Plan that will provide the blueprint for development of the power system in HP. The Master Plan will tie together generation, transmission and distribution expansion to ensure with confidence that all proposed capital investments are not ad hoc and are instead part of a long term, structured plan. It will also ensure that network expansion is economically efficient and will provide a realistic framework for loss reduction.
Component 2: The outcome will be specifications for a Regulatory Management Information System (RMIS) and reporting framework for the power sector entities. Using these specifications, HPERC will acquire a RMIS by using its own resources. Assessing information requirement of HPERC and reporting necessities of the power sector entities will facilitate purchasing or developing the correct RMIS and ultimately facilitate implementation of the multiyear tariff structure. RMIS will also support review of performance standards in the multiyear tariff framework. Developing a methodology to compute the cost of supply at various voltage levels will support (i) rationalization of tariff accross different voltage levels; (ii) rationalization of cross subsidies; and (iii) support determination of open access surcharges.
Component 3: Capacity developed in preparation of periodic financing requests for further tranches of MFF. (i) Specification for a RMIS; (ii) Reporting framework for the power sector entities; and (iii) cost of supply framework and model.
|Progress Toward Outcome||Component 1 is complete. Component 2 was revised as HPERC received Central Govt. assistance for RMIS system. Component 3 is complete.|
|Description of Project Outputs||
(i) a detailed long-term (10 year) demand forecast for HP at the power substation level, with demand disaggregated between main consumer group;
(ii) a series of realistic long-term generation capacity expansion scenarios, with consideration given to prospects for in-state generation development as well as generation sourced from outside of HP;
(iii) a series of least cost transmission expansion plans, matched to the generation expansion scenarios developed;
(iv) an assessment of the quantum and timing of generation and transmission investments for each system development scenario;
(v) an estimate of distribution investment costs to meet demand growth;
(vi) cost and benefit analysis for with and without clean development mechanism option;
(vii) identification of risk factors and a risk management plan for the power system of HP;
(viii) institutional reform recommendations for HPSEB to develop capacity to implement and revise as necessary the Master Plan;
(ix) a power system analysis software program and equipment (computers); and
(x) a detailed five-year program of capital works, and preparation of detailed project reports (DPRs) for projects to be covered in the first two years.
(i) specification for a RMIS; (ii) reporting framework for the power sector entities; and (iii) cost of supply framework and model.
Periodic financing requests for further tranches of MFF.
|Status of Implementation Progress (Outputs, Activities, and Issues)||Component 1 is complete. Component 2 was no longer required. Component 3 is complete.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
The TA will finance the services of international consultants for a total of 13 person-months and local consultants for a total of 25 person-months. Consultants will be engaged by ADB in accordance with its Guidelines on the Use of Consultants for each component of the TA.
For Component 1, a consulting firm or consortium of firms will be engaged under the quality and cost based selection process, and simplified technical proposals will be requested. International consultants will include: (i) power system planning expert, team leader (5 person-months), (ii) hydropower expert (1 person-month), (iii) distribution expert (3 person-months), and (iv) power economist (2 person-months). National consultants include: (i) transmission expert (2 person-months), distribution expert (3 person-months), and (iii) power economist (2 person-months).
For Component 2, national consultants will be recruited. These will include: (i) financial management expert (6 person-months), (ii) system specialist (4 person-months), and (iii) regulatory economist (6 person-months).
For Component 3, individual consultants will be recruited. International consultants will include: (i) economist/financial analyst with strong power sector knowledge (1 person-month), and (ii) hydropower engineer (1 person-month). National consultants will include: (i) social assessment expert (2 person-months), and (ii) environmental assessment expert (2 person-months).
|Responsible ADB Officer||Jeffries, Andrew|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Energy Division, SARD|
Multipurpose Projects & Power Dept of Govt of HP
Principal Secretary (Power)
HP Secretariat Shimla-171 002 Himachal Pradesh, India
|Concept Clearance||25 Apr 2008|
|Fact Finding||29 Mar 2008 to 04 Apr 2008|
|Approval||26 Nov 2008|
|Last Review Mission||-|
|PDS Creation Date||16 Apr 2009|
|Last PDS Update||29 Mar 2012|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Nov 2008||24 Feb 2009||24 Feb 2009||31 Jan 2010||31 Jul 2011||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|900,000.00||0.00||400,000.00||0.00||0.00||0.00||1,300,000.00||26 Nov 2008||725,694.36|
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.
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|Title||Document Type||Document Date|
|Capacity Building for Himachal Pradesh Power Sector Agencies||TA Completion Reports||May 2012|
|Capacity Building for Himachal Pradesh Power Sector Agencies||Technical Assistance Reports||Nov 2008|
Safeguard Documents See also: Safeguards
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