ADB is helping Nepal lay the groundwork for projects needed to reduce local power shortages and to provide surplus electricity for export to India. The project will support feasibility studies and other preparatory work for selected hydropower projects, including an export-oriented hydropower project under a public-private partnership, and a second Nepal-India 400-kilovolt transmission line.
|Project Name||Project Preparatory Facility for Energy|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Energy - Electricity transmission and distribution - Large hydropower generation
|Gender Equity and Mainstreaming||No gender elements|
|Description||The Project Preparatory Facility for Energy (the Facility) is intended to prepare a series of hydropower projects and related transmission infrastructure for development in Nepal, emphasizing private sector participation and regional integration. The Facility will support for project preparatory activities of selected candidate hydropower projects and Kohalpur- Surkhet-Upper Karnali 400kV Transmission Line, Kohalpur-New Butwal 400kV Transmission Line, and produce a set of bankable documents. The study includes feasibility study and environmental / social impact assessments (EIA/SIA) etc. The hydropower projects for such study will be selected from various candidate projects being considered for development through private or public / public-private sectors.|
|Project Rationale and Linkage to Country/Regional Strategy||The current inadequacy and unreliability of the power supply result from a low level of investments in the past. Ongoing weakness in strategic, operational, managerial, and financial policies aggravated the problem. An uneconomic tariff regime dents the financial standing of the Nepal Electricity Authority (NEA), the power sector's only utility, leaving it unable to cover its new capital investments as well as the current operation and maintenance costs. The government lacks the financial means and institutional capacity to resolve the energy crisis alone, and if the private sector is to play a bigger role, it needs more and better entry points for investment. In addition to building greater generation capacity, Nepal must also upgrade and expand its limited transmission and distribution networks. A major obstacle to exploiting Nepal's hydropower export potential is the shortage of adequate infrastructure to transmit electricity to neighboring India. Instead of exporting power, in fact, Nepal imports it from India. Developing Nepal''s hydropower generation, transmission, and export infrastructure would benefit both countries. ADB country partnership strategy emphasizes the development of hydropower generation, power transmission and distribution infrastructure.|
|Impact||Infrastructure for hydropower developed|
|Description of Outcome||High-quality due diligence provided to support investments to transform the power sector|
|Progress Toward Outcome||Ongoing.|
|Description of Project Outputs||
Feasibility and detailed engineering studies carried out
PPP project development services provided
|Status of Implementation Progress (Outputs, Activities, and Issues)||-- A study on the detail design of Dudh Koshi hydropower project is being undertaken.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||A series of consultations was conducted with relevant officers of the executing agency, persons who may potentially be impacted by projects related to the facility, and the general public who live in and around the proposed project sites. Community members and women's groups were consulted. Information on the preliminary facility and its anticipated benefits was shared in these consultations. Consultations also focused on eliciting the concerns, fears, and expectations of people to be affected by facility-related projects and subprojects, as well as the wider general public. Their suggestions and proposals for effective implementation were also sought. Opportunities for community participation in project planning and implementation were discussed and identified.
|During Project Implementation||Through email and ADB review mission.|
The project requires inputs of three consulting service packages for two candidate hydropower projects and one transmission line project. ADB will assist in the consultant selection process except for negotiation and contract signing. The EA (Nepal Electricity Authority) will be in charge of the recruitment, implementation and reporting process. All procurement activities will be carried out in accordance with ADB Procurement Guidelines (2015, as amended from time to time), and consultants will be recruited using quality and cost-based selection on 90:10 ratio, in line with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Consultant recruitment process for component A is ongoing.
The Facility will be used over a seven year period (2013-2020). The Government will ensure adequate budgetary allocation of counterpart funds for timely completion.
|Procurement||No procurement is envisaged under the project.|
|Responsible ADB Officer||Zhou, Aiming|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Energy Division, SARD|
Ministry of Energy
P. O. Box 2768, G. P. O. Kathmandu, Kathmandu, Nepal
|Concept Clearance||12 Jul 2013|
|Fact Finding||05 Jul 2013 to 21 Jul 2013|
|MRM||26 Jul 2013|
|Approval||24 Sep 2013|
|Last Review Mission||-|
|Last PDS Update||25 Jul 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|24 Sep 2013||29 Nov 2013||14 Mar 2014||30 Jun 2019||30 Jun 2020||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||26.25||Cumulative Contract Awards|
|ADB||21.00||24 Sep 2013||8.79||0.00||42%|
|Cofinancing||0.00||24 Sep 2013||4.72||0.00||22%|
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|
|Amended and Restated Grant Agreement (Special Operations) for Grant 0361-NEP: Project Preparatory Facility for Energy||Grant Agreement||Dec 2016|
|Project Preparatory Facility for Energy: Project Data Sheet (Nepali Translation)||Translated PDS||Apr 2014|
|Project Agreement for Project Preparatory Facility for Energy||Project/Program Agreements||Dec 2013|
|Grant Agreement (Special Operations) for Project Preparatory Facility for Energy||Grant Agreement||Nov 2013|
|Project Preparatory Facility for Energy||Reports and Recommendations of the President||Sep 2013|
|Project Preparatory Facility for Energy||Gender Action Plans||Aug 2013|
|Project Preparatory Facility for Energy||Project/Program Administration Manual||Aug 2013|
|Project Preparatory Facility for Energy||Initial Poverty and Social Analysis||Jul 2013|
|Project Preparatory Facility for Energy: Procurement Plan||Procurement Plans||Jun 2013|
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|
|Project Preparatory Facility for Energy||Resettlement Frameworks||Jul 2013|
|Project Preparatory Facility for Energy||Environmental Assessment and Review Framework||Jul 2013|
|Project Preparatory Facility for Energy||Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks||Jul 2013|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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.