47037-005: Green Power Development and Energy Efficiency Improvement Investment Program - Tranche 2 | Asian Development Bank

Sri Lanka: Green Power Development and Energy Efficiency Improvement Investment Program - Tranche 2

Sovereign (Public) Project | 47037-005 Status: Active

Tranche 2 will finance investments in (i) transmission infrastructure enhancement; (ii) efficiency improvement of medium voltage network; and (iii) demand-side management improvement for energy efficiency including development of an innovative smart grid and metering pilot subproject.

 
Project Name Green Power Development and Energy Efficiency Improvement Investment Program - Tranche 2
Project Number 47037-005
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3483-SRI: Green Power Development and Energy Efficiency Improvement Investment Program-Tranche 2
Ordinary capital resources US$ 95.00 million
Loan 3484-SRI: Green Power Development and Energy Efficiency Improvement Investment Program-Tranche 2
concessional ordinary capital resources lending / Asian Development Fund US$ 55.00 million
Loan 8313-SRI: Green Power Development and Energy Efficiency Improvement Investment Program - Tranche 2
Agence Francaise de Developpement US$ 30.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender Equity and Mainstreaming No gender elements
Description Tranche 2 will finance investments in (i) transmission infrastructure enhancement; (ii) efficiency improvement of medium voltage network; and (iii) demand-side management improvement for energy efficiency including development of an innovative smart grid and metering pilot subproject.
Project Rationale and Linkage to Country/Regional Strategy Sri Lanka has improved its energy sector performance and achieved a national electrification ratio of 98% in 2014 compared with 29% in 1990. However, high dependence on expensive fossil fuel energy continues. Sector challenges include meeting growing demand for electricity at a low cost and acceptable reliability, and attaining long-term sustainability. The increase in the share of thermal oil-fired energy in power generation, from 6% in 1995 to 35% in 2014, creates a high cost base and is not a viable and sustainable solution for energy security and environment protection in the long term. Diversification of the generation mix primarily to renewable energy sources, improved network efficiency, reduced technical losses, and supply- and demand-side management are required. The transmission network needs to be expanded and modernized. Improvement of the 33-kilovolt (kV) network is required to improve system reliability and expand power supply into the rural areas to serve poor households.
Impact The impact will be increased access to clean and reliable power supply.
Project Outcome
Description of Outcome The outcome will be enhanced system efficiency and reliability.
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

Transmission infrastructure enhanced

efficiency of medium-voltage network improved

demand-side management for energy efficiency improved.

Status of Implementation Progress (Outputs, Activities, and Issues) Procurement of 6 ICB procurement packages for transmission and medium voltage distribution projects is ongoing.
Geographical Location Nation-wide, Beligaha Junction, Biyagama, China Bay, Colombo District, Ethgala South, Hambantota, Katunayaka, Kolonnawa Grid Substation, Mannar District, Mannar Island, Padukka, Rattanapitiya, Valaichchenai
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Tranche 2 is classified as environmental category A. Following the environmental assessment and review framework of the investment program, a full EIA for the 220 kV Mannar Nadukuda transmission line, including an environmental management plan (EMP), was prepared and disclosed on ADB's website on 7 July 2016. The IEE reports for other transmission and distribution lines and substations were prepared. Any update in the EIA and IEE reports resulting from a change in project scope will be disclosed. Mitigation measures are proposed in the EIA and EMP to minimize habitat and species disturbance as a result of construction, and potential bird collision with the overhead transmission line during operation. Implementation of a biodiversity management plan will ensure no net loss of biodiversity. Potential environmental impacts of other subprojects are site-specific; mostly temporary during construction; and readily mitigated by adherence to national and international environmental standards, design criteria, and management practices as set out in the EMP.
Involuntary Resettlement The project is classified as category B for involuntary resettlement. No physical displacement is envisaged. Private land acquisition is required only for one substation and several gantries, involves 2.87 hectares with three affected people, and will be procured through negotiated settlement. Transmission and distribution lines will mostly have temporary impacts in terms of loss of crops and trees. No significant resettlement impact is expected due to the land acquisition and tower erection along the right-of-way. Construction will be carried out avoiding intensive cropping seasons. The project's social impacts have been adequately assessed, and compensation will be paid to the affected people commensurate to the impacts.
Indigenous Peoples Since no indigenous peoples will be affected by the project, it is classified as category C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted with local communities, government authorities and nongovernment organizations, including ornithological societies, and their feedback was taken into account during project design. Public concerns were identified in the EIA, and mitigation measures were incorporated into the EMP. Social surveys and consultations were undertaken in accordance with the SPS and the resettlement framework.
During Project Implementation Public consultations with stakeholders including government authorities and local communities will continue during project implementation.
Business Opportunities
Consulting Services Recruitment of consultants will follow ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All procurement will be carried out in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Zhou, Aiming
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ceylon Electricity Board
3rd Floor, G.O.B.A. Bldg.
#50,Sir Chittampalam A. Gardiner Mawatha
Colombo 02, Sri Lanka
Timetable
Concept Clearance -
Fact Finding -
MRM 30 Aug 2016
Approval 05 Dec 2016
Last Review Mission -
Last PDS Update 26 Sep 2017

Loan 3483-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Dec 2016 27 Dec 2016 10 Jul 2017 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 175.00 Cumulative Contract Awards
ADB 95.00 05 Dec 2016 0.93 0.00 1%
Counterpart 80.00 Cumulative Disbursements
Cofinancing 0.00 05 Dec 2016 0.93 0.00 1%

Loan 3484-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Dec 2016 27 Dec 2016 10 Jul 2017 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 55.00 Cumulative Contract Awards
ADB 55.00 05 Dec 2016 8.32 0.00 15%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 05 Dec 2016 0.00 0.00 0%

Loan 8313-SRI

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 - 0.00 0.00 %

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.

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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 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.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSTRUCTION OF MANNAR-NADUKUDA 220KV TRANSMISSION LINE Loan 3483 26 Jul 2017 KEC INTERNATIONAL LIMITED 8TH FLOOR BUILDING 9A, DLF CYBER CITY PHASE - IIIM GURGAON-122002, HARYANA INDIA Ceylon Electricity Board Turnkey 9251748 925917
CONSTRUCTION OF MANNAR-NADUKUDA 220KV TRANSMISSION LINE Loan 3484 26 Jul 2017 KEC INTERNATIONAL LIMITED 8TH FLOOR, BUILDING 9A, DLF CYBER CITY PHASE III, GURGAON-122002, HARYANA INDIA Ceylon Electricity Board Turnkey 9251748 8333254

Procurement Plan

None currently available.