Pakistan: Second Power Distribution Enhancement Investment Program - Tranche 1

Sovereign Project | 47190-003

The Asian Development Bank is helping Pakistan improve the reliability and financial viability of the country’s power distribution sector. The program is installing advanced electricity smart meters and supporting new data management and billing systems for power companies to reduce power losses and improve revenue collection. Tranche 1 supports companies in coverage areas of Lahore and Rawalpindi.

Project Details

  • Project Officer
    Tareen, Adnan
    Central and West Asia Department
    Request for information
  • Country/Economy
    Pakistan
  • Modality
    • Loan
  • Sector
    • Energy
Project Name Second Power Distribution Enhancement Investment Program - Tranche 1
Project Number 47190-003
Country / Economy Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3328-PAK: Second Power Distribution Enhancement Investment Program " Tranche 1
Ordinary capital resources US$ 380.00 million
Loan 3329-PAK: Second Power Distribution Enhancement Investment Program " Tranche 1
Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The investment program's objective is to introduce advanced metering infrastructure (AMI) in Pakistan's different distribution companies (DISCOs) using MFF. There are nine DISCOs in Pakistan and the AMI roll-out to these DISCOs will be in phases. In the first phase (tranche 1), two of LESCO's circles and IESCO's Rawalpindi region have been selected for AMI roll-out. Once developed, the same will be replicated and implemented in the remaining technically and commercially feasible regions or circles of the nine DISCOs.
Project Rationale and Linkage to Country/Regional Strategy AMI aims at: (i) reducing distribution losses and improving revenue collection, (ii) enhancing load control and load management, (iii) providing automated consumption data collection of all customers, and (iv) modernizing the electricity metering and billing system. The investment program will provide funds for metering, communication and billing systems including installation and supporting infrastructure.
Impact

Financial viability of the power distribution system improved (project-defined).

Project Outcome
Description of Outcome

Electricity revenues increased in the targeted regions of IESCO and LESCO.

Progress Toward Outcome Procurement ongoing
Implementation Progress
Description of Project Outputs

Smart meters and communication equipment installed and functional.

Data management systems implemented and operational.

Operation manuals updated and monitoring procedure improved.

New billing and CIS systems implemented and operational.

Status of Implementation Progress (Outputs, Activities, and Issues)

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Target deferred from 2017 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible . After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible. After suspending project implementation in Jan 2018, govt decided to proceed with the project in Nov 2018. Procurement ongoing. Target deferred from 2019 to 2024 after L3328 was extended.

Target still feasible -- manual update in TOR of PICs for IESCO and LESCO. After suspending project implementation in Jan 2018, govt decided to proceed with the project, including consultant recruitment, in Nov 2018. Target deferred from 2017 to 2021.

Target still feasible -- manual update in TOR of PIC for IESCO. After suspending project implementation in Jan 2018, govt decided to proceed with the project, including consultant recruitment, in Nov 2018. Target deferred from 2019 to 2024.

Target still feasible -- manual update in TOR of PIC for LESCO. After suspending project implementation in Jan 2018, govt decided to proceed with the project, including consultant recruitment, in Nov 2018. Target deferred from 2019 to 2024.

Geographical Location Nation-wide, Islamabad, Lahore
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Categorized as "C". Expects no environmental impacts.
Involuntary Resettlement Categorized as "C". Expects no resettlement.
Indigenous Peoples Categorized as "C". Expects no land acquisition.
Stakeholder Communication, Participation, and Consultation
During Project Design During PPTA, consultations with the poor and low-income groups will be conducted to include them in the planning process. Risks and vulnerabilities for low income, women, poor and excluded groups will be documented in consultation and participation of these groups.
During Project Implementation To be updated.
Business Opportunities
Consulting Services Consulting firms were recruited for project monitoring and supervision, capacity development, and communication strategy. The quality- and cost-based selection method (90:10) was used, following ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement The procurement method for the turnkey contract will be international competitive bidding, following ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Tareen, Adnan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Water & Power
Timetable
Concept Clearance -
Fact Finding -
MRM 23 Jan 2015
Approval 25 Nov 2015
Last Review Mission -
Last PDS Update 30 Sep 2020

Loan 3328-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2015 19 Nov 2016 17 May 2017 30 Jun 2019 30 Jun 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 490.50 Cumulative Contract Awards
ADB 380.00 11 Jan 2023 102.77 0.00 70%
Counterpart 110.50 Cumulative Disbursements
Cofinancing 0.00 11 Jan 2023 22.15 0.00 15%

Loan 3329-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2015 19 Nov 2016 17 May 2017 30 Jun 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 11 Jan 2023 3.45 0.00 23%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 11 Jan 2023 0.58 0.00 4%

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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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.

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Tenders


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Design, supply, installation, commissioning of advanced metering infrastructure project in Rawalpindi circle, customer information system, and new billing system for Islamabad Electric Supply Company Loan 3328 01 Sep 2022 KT Corporation | 90 Buljeong-ro, Bundang-gu, Seongnam City, Gyeonggido, 13606 Ministry of Water & Power 113,199,767.40 102,674,879.00
PROJECT IMPLEMENTATION CONSULTANT FOR LESCO Loan 3329 18 Mar 2020 CESI S.P.A. | VIA RAFFAELE RUBATTINO, 54 MILANO ITALY Ministry of Water & Power 4,058,610.77 3,932,174.53
PROJECT IMPLEMENTATION CONSULTANT FOR IESCO Loan 3329 31 Dec 2019 CESI S.P.A. IN JV WITH CAPITAL STRATEGIES GRO | VIA RAFFAELE RUBATTINO, 54 MILANO ITALY Ministry of Water & Power 3,558,061.54 3,558,061.54