ADB is helping India construct several run-of-river hydropower plants in Himachal Pradesh. The first tranche of the multitranche financing facility includes the construction of the 111-megawatt Sawra Kuddu hydropower plant and the civil works for the Kashang plant. It will also provide capacity development assistance to state-owned Himachal Pradesh Power Corporation Ltd.
|Project Name||MFF - Himachal Pradesh Clean Energy Development Investment Program (Tranche 1)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Energy - Large hydropower generation
|Gender Equity and Mainstreaming||No gender elements|
The main objective is to help fulfill local demand, as Himachal Pradesh experiences energy shortages, especially in the winter months of December to February when river flows are at their lowest, with some peak shortages experienced throughout the year. Surplus power, particularly due to strong river flows from the spring snow melt, will be exported to the northern grid, thus serving as an important source of revenue for the state. However, the program will benefit all Northern Grid-connected electricity consumers via the export of excess power and by eliminating the need to import power from the Northern Grid, thus assisting the Government in its efforts to increase its overall generating capacity and achieve universal electrification under the 11th Five Year Plan. The second main objective is to provide capacity development assistance in order to develop the state hydropower generating company, Himachal Pradesh Power Corporation Ltd., into an efficient, corporatized generation company.
The scope of this tranche includes construction of the Sawra Kuddu (111 MW) hydroelectric project and the civil works for the Kashang Hydroelectric project.
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||A sustainable state electricity sector and improved state finances.|
|Description of Outcome||Increased hydropower production, as well as improved planning, implementation, management and sector governance.|
|Progress Toward Outcome||--|
|Description of Project Outputs||
Capacity development component: (i) Project-oriented: Implemented capacity development of various departments of HPPCL, focusing on (a) project preparation, implementation and management (including procurement, disbursements, safeguards compliance, and reporting); (b) financial management and accountability; and (c) knowledge transfer for compliance with ADB policies and procedures (ii) Corporate development: (a) Implemented capacity development to improve governance, fiduciary oversight, and organizational structuring; and (b) Developing in-house expertise within HPPCL on private sector participation modalities and CDM procedures. (iii) Implement enterprise resource planning solution at HPSEB
Tranche 1 funds electro-mechanical contracts and some civil works of the 111 MW Sawra Kuddu Project and Stage 1 of the Kashang Project (65 MW)
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Trainings in Project Management have been imparted.
HPPCL staff have under social safeguard training organized by ADB.
Enterprise resource planning (ERP) has been implemented at HPPCL.
All project related contracts have been awarded and works are under progress. The physical progress achieved is about 99%.
|Geographical Location||Both subprojects are located within the northwestern state of Himachal Pradesh.|
Summary of Environmental and Social Aspects
|Environmental Aspects||HPPCL as implementing agency is responsible for undertaking both subprojects in accordance with the Environmental Impact Assessment (EIA) covering both projects, and for implementing the Environmental Management Plans (EMPs) in accordance with the ADB Environment Policy (2002) and reports on environmental compliance to ADB on a bi-annual basis. A Social and Environmental Management Unit has been set up within the PMU.|
|Involuntary Resettlement||In the Sawra Kuddu subproject, land acquisition is significant, with 45.75 hectares and 165 households to be affected; in Kashang Stage I the land acquisition is less with 3.67 ha and 30 affected households. A Grievances Redress Committee addresses all complains raised by affected persons. HPPCL is responsible for implementation of the resettlement plans and for adherence to ADB's Policy on Involuntary Resettlement (1995) and reports to ADB on compliance on a bi-annual basis. The resettlement plans for these projects are being updated to reflect the final assessment of involuntary resettlement impacts.|
|Indigenous Peoples||ADB's Policy on Indigenous Peoples (1998) applies. Based on the initial social assessment of the Tranche I subprojects, it is noted that tribal people living in the vicinity of the subproject areas are generally mainstreamed. Therefore, no specific indigenous peoples plan is prepared.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||HPPCL has been consulting with stakeholders, including affected communities and various government officials, during the design stage. Local communities were consulted as part of the social and resettlement impact assessment to gather their views on the proposed program. All the affected persons were also consulted on a one-to-one basis through questionnaire surveys and focus group discussions.|
|During Project Implementation||Consultations will continue during the entire project cycle according to a stakeholder participation plan.|
Consulting services are required to provide support to HPPCL for project implementation work, including design, supervision of construction, management for the subprojects under the tranche 1 loan, and for feasibility studies of future loans. Consulting services will be provided for evaluation, monitoring, and reporting purposes. In addition, consultants will support the capacity building component under the tranche 1 loan. Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Consulting firms will be selected using the quality- and cost-based selection method and simplified technical proposal. Individual experts may also be recruited based on biodata submitted in response to
specific terms of reference for assignments.
|Procurement||Equipment, materials, and civil works to be financed under each loan of the MFF will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time), mainly through international and/or national competitive bidding. Advance procurement will be allowed to facilitate timely implementation of investments.|
|Responsible ADB Officer||Bhatt, Jigar Arvindbhai|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Multipurpose Projects & Power Dept of Govt of HP
Mr. Ajay Mittal
Himachal Pradesh, India
|Concept Clearance||15 Nov 2007|
|MRM||06 Mar 2007|
|Approval||27 Oct 2008|
|Last Review Mission||-|
|PDS Creation Date||14 Jan 2008|
|Last PDS Update||14 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Oct 2008||10 Nov 2008||15 Dec 2008||31 Mar 2014||30 Jun 2017||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||224.80||Cumulative Contract Awards|
|ADB||150.00||27 Oct 2008||146.05||0.00||97%|
|Cofinancing||0.00||27 Oct 2008||142.97||0.00||95%|
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