ADB and the Government of India are working together to help India's northeastern Assam state continue its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment. The Assam Power Sector Investment Program is upgrading power generation and distribution systems, including the construction of a 120-megawatt hydropower plant. It is also financing new energy efficient power generation equipment at existing plants; new distribution lines and substations; and financial management training and other support for staff of state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. The project is bolstering the finances of the state power companies by helping them decrease their purchases of expensive electricity from independent power producers.
|Project Name||Assam Power Sector 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 / Conventional energy generation
|Gender Equity and Mainstreaming||No gender elements|
|Description||ADB and the Government of India are working together to help India's northeastern Assam state continue its drive to eliminate power sector inefficiencies that are hurting its consumers, its world-famous tea industry, and its environment. The Assam Power Sector Investment Program is upgrading power generation and distribution systems, including the construction of a 120-megawatt hydropower plant. It is also financing new energy efficient power generation equipment at existing plants; new distribution lines and substations; and financial management training and other support for staff of state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. The project is bolstering the finances of the state power companies by helping them decrease their purchases of expensive electricity from independent power producers. In addition, the program is supporting the construction of the Lower Kopili run-of-the-river hydropower plant in central Assam that will help the state avoid over 530,000 tons per annum of carbon dioxide emissions that would otherwise be produced by fossil fuel-driven generation. By cutting power outages in the state, the program is benefiting over 2.7 million consumers. It is also promoting economic growth and creating employment opportunities by helping to supply reliable power to the state. This is helping Assam attract investment and more fully tap its economic potential while reducing poverty.|
|Project Rationale and Linkage to Country/Regional Strategy||In India''s state of Assam, demand for electricity has grown far faster than supply. High transmission and distribution losses have exacerbated the situation. More than a third of households in Assam have traditionally faced daily electricity outages of 5 to 6 hours. Power shortages, low voltage power, and scheduled power outages have often undermined Assam's industrial competitiveness and agricultural potential. Many important industries, such as the state's famous tea gardens, have not been connected to the power grid and during peak periods the state has to buy power from independent producers at high cost. The broader economic implications of the poorly performing power sector include curtailed competitiveness and productivity, fewer job opportunities, reduced investment, and inefficient use of resources. Supply deficits force consumers to use more expensive, less-efficient, and more polluting energy sources, such as smaller diesel generators.|
|Impact||increased capacity and efficiency of energy generation systems in Assam.|
|Description of Outcome||increased capacity and efficiency in Lakwa power plant.|
|Progress Toward Outcome||Physical investments to augment in-state generation capacity (7x10 MW) is under commercial operation effective 26 April 2018. Procurement for the remaining two packages relating to: (i) consultancy services for asset valuation and fixed asset reconciliation for APGCL, and (ii) supply, installation and related services for implementation of ERP systems for APGCL are ongoing.|
|Description of Project Outputs||
Generation system upgraded and expanded
Institutional capacity of APGC & APDC strengthened.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Being Complied|
|Involuntary Resettlement||Being Complied|
|Indigenous Peoples||Being Complied|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Stakeholders consultations were carried out during the project preparation.|
|During Project Implementation||Stakeholders consultation and participation are being practiced during the project implementation.|
|Consulting Services||There are five (5) consultancy firm packages for: (i) Accounting, Audit, Budget & Cost Accounting and Materials Management Manuals Preparation; (ii) Capacity Building and Human Resource Development for Power Sector Utilities; (iii) Project Preparation, Tender Development and Award Management Process for Lower Kopili Hydropower Project; (iv) Project Management and Construction Supervision for Lakwa Power Plant; and (v) Enterprise Resource Planning Implementation and Infrastructure Development for Assam Power Generation Company. Three individual consultants are being recruited for Enterprise Resource Planning and Environmental and Social Safeguards for Lower Kopili Hydropower Project and Lakwa Power Plant Project.|
|Procurement||Goods, equipment, and civil works to be financed under the Investment Program will be procured in accordance with ADB Procurement Guidelines (2015, as amended from time to time). International Competitive Bidding will be used for civil works and turnkey contracts. Advance contracting was approved on 26 August 2013. Consultants will be engaged to help with project management. Tranche 1 will have one major turnkey contract for gas fired power plant.|
|Responsible ADB Officer||Banerjee, Jyotirmoy|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Assam Power Generation Corporation Ltd.
Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
|MRM||18 Feb 2014|
|Approval||11 Jul 2014|
|Last Review Mission||-|
|Last PDS Update||27 Jun 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|11 Jul 2014||20 Feb 2015||12 May 2015||30 Jun 2019||-||20 Sep 2019|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||51.11||Cumulative Contract Awards|
|ADB||39.11||11 Jul 2014||39.11||0.00||100%|
|Cofinancing||0.00||11 Jul 2014||39.11||0.00||100%|
|Status of Covenants|
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|Tender Title||Type||Status||Posting Date||Deadline|
|Loan No. 3140-IND: Assam Power Sector Investment Program - Tranche 1 [ADB/APGCL/LOAN 3140/PACKAGE-2]||Invitation for Bids||Closed||13 Aug 2018||25 Oct 2018|
|ASSET VALUATION AND FIXED ASSETS RECONCILIATION FOR APGCL||Firm - Consulting||Closed||11 May 2018||09 Jun 2018|
|Loan 3140-IND: Assam Power Sector Investment Program - Tranche 1 [ADB/APGCL/LOAN 3140/PACKAGE-2]||Invitation for Bids||Closed||04 Dec 2017||15 Jan 2018|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|SUPPLY, CONFIGURATION, INTEGRATION, INSTALLATION IMPLEMENTATION AND SUPPORT OF ERP APPLICATION||Loan 3140||28 Aug 2019||ACCENTURE SOLUTIONS PRIVATE LIMITED||L.B.S. MARG, VIKROLI (WEST) MUMBAI - 400 079, MAHARASHTRA INDIA||Assam Power Generation Corporation Ltd.||SUPPLY OF GOODS||3,826,987.08||1,664,205.24|
|CONSULTING SERVICES FOR PROJECT MGMNT AND CONSTRUC TN SUPERVISION OF LOWER KOPILI HYDROPOWER PROJ PROJ UNDER ASSAM POWER SECTOR INVESTMT TRANCHE 3||Loan 3140||29 Nov 2017||AF-CONSULT SWITZERLAND LTD. SWITZERLAND||TAEFERNSTRASSE, 26 BADEN, AG5405 SWITZERLAND SWITZERLAND||Assam Power Generation Corporation Ltd.||134,984.00||134,984.00|