47101-003: Assam Power Sector Investment Program - Tranche 2 | Asian Development Bank

India: Assam Power Sector Investment Program - Tranche 2

Sovereign (Public) Project | 47101-003 Status: Active

The Asian Development Bank is helping India tackle power sector problems in the northeastern state of Assam, including lengthy power outages. The program is upgrading and expanding power generation, transmission and distribution systems and building a 120-megawatt hydropower plant. Tranche 2 supports expansion of the distribution system and strengthening of the state power distribution company.

Project Details

Project Officer
Banerjee, Jyotirmoy South Asia Department Request for information
Country
  • India
Modality
  • Loan
Sector
  • Energy
 
Project Name Assam Power Sector Investment Program - Tranche 2
Project Number 47101-003
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3327-IND: Assam Power Sector Investment Program - Tranche 2
Ordinary capital resources US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender Equity and Mainstreaming No gender elements
Description Tranche 2 will finance the expansion and upgrading of power distribution system in the state of Assam, and strengthen institutional capacity of Assam Power Distribution Company Limited (APDCL). It covers part of the state's power sector road map for enhancing the sub-transmission and distribution capacities to improve operational efficiency and electricity service to end users. Output 1 includes: (i) one new 33 kV/11 kV substation and associated lines; (ii) 137 km of 33 kV lines; (iii) 33 kV railway line and river crossings; (iv) 7 km of 11 kV lines; (v) installation of seventeen 33 kV bays; (vi) re-conductoring and refurbishing of 955 km of 33 kV lines; (vii) 1,000 km of 11 kV lines; (viii) 1,555 km of low voltage lines; (ix) replacement of 204 distribution transformers; and (x) replacement of 14 km 11 kV overhead lines with underground cables. Output 2 includes: (i) establishing two area load dispatch centers; (ii) setting up of an independent meter testing laboratory; (iii) establishing one IT module to expand the centralized uniform revenue billing system for 1.2 million customers; and (iv) project management, supervision and implementation support.
Project Rationale and Linkage to Country/Regional Strategy

Despite governments efforts and ADB's support, Assam's power sector faces serious challenges including: (i) only about 37% of the households having access to grid-supplied electricity; (ii) power cuts of about 5 hours per day; (iii) peak demand-supply gap of about 22%; (iv) only about 30% of demand is currently met by in-state generation; (v) high distribution losses of about 25.% (FY2013); (vi) financial un-sustainability of power companies, particularly Assam Power Distribution Company Limited (APDCL); and (vi) limited capacity of the power sector agencies to use modern technology and management systems. Financial losses of the APDCL are mainly due to two reasons: inability to meet the targeted loss reductions prescribed by the Assam Electricity Regulatory Commission (AERC), and purchase of about 15% of power from the spot market at very high costs.

APDCL has had some success in reducing losses: distribution losses decreased from about 40% in FY2001 to 25.2% in FY2013. However, loss reduction has stagnated due to the provision of new power connections without system upgrades, inadequate investment, and poor management and metering practices. APDC's inability to meet the loss reduction targets approved by the AERC has resulted in revenue shortfalls. APDC petitioned for a distribution loss allowance of 23% for FY2014 and 22% for FY2016, while the allowed losses for this period were below 18.8% to 17.5% , respectively. Achieving these targets is a challenge for APDC, and it requires capital investment and improvements in distribution system management.

Impact Enhanced quality and expanded service delivery of electricity in Assam.
Project Outcome
Description of Outcome Increased efficiency and capacity of power distribution system in Assam.
Progress Toward Outcome Four turnkey contract packages awarded in November/December 2016. Supplies and works under these four packages have commenced. ADB fielded a Review Mission in July 2018 to review the progress of implementation. Based on this review, $8 million has been partially cancelled for transfer to next tranche.
Implementation Progress
Description of Project Outputs

Distribution system expanded and upgraded.

Institutional capacity of APDCL strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues) Four turnkey contract packages awarded in November/December 2016. Supplies and works under these four packages have commenced.
Geographical Location Barpeta, Bongaigaon, Cachar, Dibrugarh district, Golaghat, Jorhat, Kamrup Metropolitan, Kokrajhar, Mangaldai, Marigaon, Nagaon, Nalbari, North Lakhimpur, Sibsagar, Sonitpur, Tinsukia
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
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 The executing agency and the project management unit consulted with stakeholders, including affected communities, during the design stage. During the preparatory stages, consultations were carried out with various stakeholders and government officials concerned. Local communities were consulted as part of the social and resettlement study to gather their views on the proposed projects. All affected people were consulted on a one-to-one basis through questionnaire surveys. Additionally, focus group discussions were conducted within the project influence areas.
During Project Implementation Consultations will continue during the entire project cycle according to a stakeholder participation plan.
Responsible ADB Officer Banerjee, Jyotirmoy
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Assam Power Distribution Company Ltd.
[email protected]
Assam State Electricity Board ,
4th Floor Bijuleen Bhawan Paltan Bazar,
Guwahati-781001
Timetable
Concept Clearance -
Fact Finding -
MRM 25 May 2015
Approval 23 Nov 2015
Last Review Mission -
Last PDS Update 28 Sep 2018

Loan 3327-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2015 07 Nov 2016 21 Dec 2016 31 Dec 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.00 Cumulative Contract Awards
ADB 40.00 23 Nov 2015 31.17 0.00 78%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2015 10.83 0.00 27%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - 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 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.

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.

Tenders

Tender Title Type Status Posting Date Deadline
IND: Assam Power Sector Investment Program – Tranche 2 Advance Notice Archived 28 Mar 2015

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Consultancy for Supplemental Environmental Assessment for Lower Kopili Hydropower Plant Loan 3327 19 Jan 2017 ES Safeguards Compliance Services Pvt. Ltd. Plot No. Gh 17, Sector 56 Gurgaon - 122 011 India Assam Power Distribution Company Ltd. Consultancy 685,940.52
Project Management, Supervision and Implementation Consultant Loan 3327 19 Jan 2017 Smec International Pty. Ltd. in association with Smec India Pvt. Ltd. 387 Udyog Vihar, Phase 2 Gurgaon - 122 016, Haryana India Assam Power Distribution Company Ltd. Consultancy 1,017,771.64
Design, Supply and Installation for Replacement of Existing Overhead 33 KV, 11 KV and LT Lines by Underground Cables (Package 3) Loan 3327 06 Jan 2017 JV Neccon Power and Inf Ltd. and Scope and Survalent Jurhat Assam - 785001 India Assam Power Distribution Company Ltd. Turnkey 1,480,496.50 1,506,616.67
Design, Supply and Installation for RandM Reconductoring O of 33 KV, 11 KV LVL (Central Assam) Loan 3327 06 Jan 2017 Neccon Power and Infra. Ltd. Jorhat Assam - 785 001 India Assam Power Distribution Company Ltd. Turnkey 4,817,502.55 4,902,497.03
Design, Supply Construction and Installation of 33/11 KV Substations, 33KV Terminal Bays, Crossing for Railways (Package 1) Loan 3327 06 Jan 2017 JV Nk Power and Infra Pvt. Ltd. and T&T Projects Guwahati - 785 006 Assam India Assam Power Distribution Company Ltd. Turnkey 4,827,724.91 4,593,640.39
Design, Supply and Installation for RandM Reconductoring of 33 KV, 11 KV LVL (Upper Assam) Loan 3327 06 Jan 2017 Neccon Power and Infra Ltd. Jorhat - 785 001 Assam India Assam Power Distribution Company Ltd. Turnkey 4,837,818.12 4,644,500.97
Design, Supply and Installation for RandM and Reconductoring/Refurbishment 33 KV Lines (Lower Assam) Loan 3327 06 Jan 2017 JV Nk Power and Infra Pvt. Ltd. and T&T Projects Plaza Building, Ganeshguri Dispur, Assam, India India Assam Power Distribution Company Ltd. Turnkey 5,871,894.31 5,587,749.09
W3-RR1 Rehabilitation for Tian'Eshan and Guangqiao Rivers Loan 3327 06 Jan 2017 JV Hemen Dekha and T&T Projects Ltd. Assam India Assam Power Distribution Company Ltd. Turnkey 12,920,841.42 9,603,396.92

Procurement Plan