ADB is helping Sri Lanka strengthen its power transmission network, especially in former conflict areas in the Northern and Eastern provinces. The project will improve transmission infrastructure and distribution network efficiency. It will fund pilot solar rooftop power generation investments in the Eastern, North-Central, Central, Northern, Southern, and Western provinces of the country.
| Project Name | Clean Energy and Network Efficiency Improvement Project | ||||||||||||||||
| Project Number | 43576-013 | ||||||||||||||||
| Country | Sri Lanka |
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| Project Status | Closed | ||||||||||||||||
| Project Type / Modality of Assistance | Grant Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Partnerships Private sector development |
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| Sector / Subsector | Energy / Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform - Renewable energy generation - solar |
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| Gender Equity and Mainstreaming | No gender elements | ||||||||||||||||
| Description | The project includes three components: (i) transmission infrastructure; (ii) network efficiency improvements; and (iii) pilot solar rooftop power generation investments in the Eastern, North-Central, Central, Northern, Southern, and Western provinces of the country. | ||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Sri Lanka has achieved a substantial improvement in the energy sector, with a national electrification ratio of 91% in 2011 compared with 29% in 1990. The longer-term challenge for the country is to reduce its high dependence on expensive fossil fuel energy. The energy sector struggles to meet growing demand for electricity at sufficiently low cost and acceptable reliability levels. The share of thermal energy in the power generation mix has increased from 6% in 1995 to 54% in 2011. Demand growth has been generally met by expensive oil-fired thermal generation, which is not the solution to the country's energy security and environment protection in the long term. Diversification of the generation mix including from renewable energy sources, improvement of network efficiency, and supply and demand side management can help to address this issue. To enable future planned power supply increases, meet growing demand in the regions, and integrate renewable energy sources into the grid, it is necessary to strengthen the transmission network, especially in conflict-affected areas of the Northern and Eastern provinces. Another challenge is to improve system reliability and reduce technical losses. An enhanced 33 kilovolt (kV) medium voltage network is needed to expand power supply in rural areas, where many poor households remain unconnected or have poor quality of electricity supplies. The new infrastructure will also support development of clean energy. Improvement of transmission and distribution infrastructure will address electricity needs in the post-conflict areas and directly contribute to their development. The government intends to improve the energy sector performance and continue pursuing financial, managerial, and institutional reforms in line with the Sri Lanka Electricity Act, 2009. | ||||||||||||||||
| Impact | Reliable, adequate, and affordable power supply for sustainable economic growth and poverty reduction | ||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Improved clean power supply, efficiency, and reliability in the delivery of electricity |
| Progress Toward Outcome | Completed |
| Implementation Progress | |
| Description of Project Outputs | 1. Transmission infrastructure strengthened in the Northern province 2. Efficiency of transmission and medium voltage distribution networks improved 3. Solar rooftop power generation developed 4. Advisory and capacity building support provided for wind and solar power development on a PPP basis |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 1.Completed. 2. Majority Completed with some being completed with EA finances. 3.Completed. 4.Completed. |
| Geographical Location | Akkaraipattu, Ampara District, Anuradhapura, Anuradhapura District, Athurugiriya, Biyagama, Colombo Division, Galaha, Galle, Galmadu, Jaffna Division, Kahatagasdigiliya, Kandy District, Kebitigollewa, Kegalle, Kegalle District, Kiribatkumbura, Kolonnawa, Mannar District, Moratuwa, North Central Province, Pannipitiya, Polpitiya, Polpitiya, Pottuvil, Sapugaskanda, Thulhiriya, Vavuniya, Vavuniya District, Western Province |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | CEB and SEA have prepared initial environmental examinations for their components and held public consultations. Steps were taken to minimize environmental impacts during construction were ongoing . CEB had observed the route-selection criteria in the national regulations and had adopted best environmental practices. Adequate provisions had been made for the environmental mitigation measures, monitoring requirements, and their associated costs in the environmental management plans (EMPs) prepared for each subproject. CEB had sufficient capacity to implement the safeguard measures incorporated in the EMPs. Mitigation measures related to construction and specified in the EMPs were incorporated into civil works contracts. The contractors had primary responsibility for implementing the mitigation measures, but CEB is responsible for and periodically report to ADB on overall implementation of its site-specific EMPs. CEB and SEA adhere to ADB's Safeguard Policy Statement (2009) and local and government environmental regulations. The project was classified category B for environment. CEB has submitted the semi annual environment safeguards reports till end of Project completion. |
| Involuntary Resettlement | None of the project components had any significant social safeguard impacts as there were no physical displacement involved. The transmission and distribution lines primarily cross public and unused lands. Where croplands were affected, adequate compensation were paid. Project construction was primarily planned during the crop off-seasons. Where new grid substations were built on commercial and private lands, adequate compensation is paid to their owners. The project was classified category B for involuntary resettlement impacts. CEB prepared a resettlement plan for the transmission infrastructure and transmission and distribution efficiency improvement components and updated for changes in the right of way alignment. |
| Indigenous Peoples | No impact on Indigenous Peoples and the project is classified category C for impacts on indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Consultations with stakeholders and communities in project areas were conducted during project design. |
| During Project Implementation | Consultations with stakeholders and communities in project areas were an ongoing process. |
| Business Opportunities | |
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| Consulting Services | It is envisioned to engage a national consultant for 24 person-months to support implementation and monitoring of the solar rooftop power generation pilot. Recruitment of consultants will be in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). |
| Procurement | All procurement under the project will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). For International competitive bidding (ICB), there are 9 contracts amounting to $125.92 million. For National competitive bidding (NCB), there is 1 contract amounting to $0.58 million. |
| Responsible ADB Officer | Haputhanthri, Dinuk P. |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Sri Lanka Resident Mission |
| Executing Agencies |
Ministry of Power and Renewable Energy [email protected] 72 Ananada Kumaraswamy Mawatha Colombo 07, Sri Lanka |
| Timetable | |
|---|---|
| Concept Clearance | 20 Jul 2011 |
| Fact Finding | 09 May 2011 to 13 May 2011 |
| MRM | 22 Jun 2012 |
| Approval | 18 Sep 2012 |
| Last Review Mission | - |
| Last PDS Update | 15 Mar 2020 |
Grant 0303-SRI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Sep 2012 | 08 May 2013 | 30 Sep 2013 | 30 Jun 2017 | 30 Jun 2019 | 24 Mar 2020 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 1.50 | Cumulative Contract Awards | |||
| ADB | 0.00 | 18 Sep 2012 | 0.00 | 0.98 | 65% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 1.50 | 18 Sep 2012 | 0.00 | 0.98 | 65% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | - | - | Satisfactory |
Loan 2892-SRI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Sep 2012 | 08 May 2013 | 30 Sep 2013 | 30 Jun 2017 | 30 Jun 2019 | 24 Mar 2020 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 168.50 | Cumulative Contract Awards | |||
| ADB | 100.00 | 18 Sep 2012 | 88.38 | 0.00 | 98% |
| Counterpart | 68.50 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 Sep 2012 | 90.50 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | - | - | Satisfactory |
Loan 2893-SRI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Sep 2012 | 08 May 2013 | 30 Sep 2013 | 30 Jun 2017 | 30 Jun 2019 | 24 Mar 2020 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 30.00 | Cumulative Contract Awards | |||
| ADB | 30.00 | 18 Sep 2012 | 23.69 | 0.00 | 98% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 Sep 2012 | 24.09 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | - | - | Satisfactory |
TA 8167-SRI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Sep 2012 | 24 Oct 2012 | 24 Oct 2012 | 31 Dec 2014 | 31 Jul 2015 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 900,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 900,000.00 | 18 Sep 2012 | 825,426.62 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | - | - | Satisfactory |
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 Access to Information Policy (AIP) 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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) 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.
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ADB, Sri Lanka Target Power Supply Upgrades to Aid Post-Conflict Regions
The Asian Development Bank (ADB) is lending $130 million to help Sri Lanka expand the reach and quality of its electricity supply, with a focus on former conflict areas in the north and east of the country.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Loan/Grant No. L2892/L2893/G0303-SRI: Clean Energy and Network Efficiency Improvement Project [SEA/RE/05/05-R&D] | Invitation for Bids | Closed | 17 Oct 2018 | 28 Nov 2018 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| PACKAGE 1 LOT A - AUGMENTATION OF VAUNIYA 132/33 K V GRID SUBSTATION AND CONSTRUCTION OF MANNAR 132/3 3KV GRID SUBSTATION ON A TURNKEY BASIS | Loan 2892 | 22 Nov 2017 | M/S LSIS CO LTD | LS TOWER 127 LS-RO, DONG-AN-GU,ANYANG- SI, GYEONGGI-DO,REPUBLIC OF KOREA KOREA, REPUBLIC OF | Ministry of Power and Renewable Energy (MPRE) | TURNKEY | 5,480,793.00 | 2,618,886.00 |
Procurement Plan
Title |
Document Type | Document Date |
|---|---|---|
| Clean Energy and Network Efficiency Improvement Project: Procurement Plan | Procurement Plans | Feb 2020 |