The objective of the proposed multitranche financing facility (MFF) is to improve Pakistan's power transmission infrastructure and management. Tranche 1 outputs (subprojects) are for construction of new transmission lines, extension and augmentation of existing substations, and installation of shunt reactor and replacement of protection equipment at 11 grid stations. Tranche 1 includes assistance on the preparation of a safety manual, professional third party project management and information system, capacity development program tailored for the investment program requirements, and an action plan to meet the government's quota for the employment of 10% women.
| Project Name | Second Power Transmission Enhancement Investment Program - Tranche 1 | ||||||||
| Project Number | 48078-003 | ||||||||
| Country | Pakistan |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||
| Description | The objective of the proposed multitranche financing facility (MFF) is to improve Pakistan's power transmission infrastructure and management. Tranche 1 outputs (subprojects) are for construction of new transmission lines, extension and augmentation of existing substations, and installation of shunt reactor and replacement of protection equipment at 11 grid stations. Tranche 1 includes assistance on the preparation of a safety manual, professional third party project management and information system, capacity development program tailored for the investment program requirements, and an action plan to meet the government's quota for the employment of 10% women. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | A reliable and sustainable energy sector is essential to the economic growth and wellbeing of Pakistan. Load shedding has become common and severe, leading to civil strife and factory closures. Over one-third of the population does not have access to grid electricity which lessens opportunities for inclusive growth. Chronic power shortages are estimated to have reduced gross domestic product (GDP) growth by at least 2% in 2012 and 2013, and are considered the major cause of the slowdown in large-scale manufacturing, which grew at only 1.1% in fiscal year (FY) 2012 and 4.1% in FY2013. | ||||||||
| Impact | (i) Transmission infrastructure and management improved, and (ii) Energy market transparency and efficiency improved. |
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| Project Outcome | |
|---|---|
| Description of Outcome | Coverage reliability and coverage of the power transmission service in Pakistan improved. |
| Progress Toward Outcome | The project was approved on 31 August 2016 and took effect on 24 February 2017. The project aims to improve (i) transmission infrastructure and management, and (ii) energy market transparency and efficiency. Under the project, new transmission lines will be constructed, existing substations will be extended and augmented, shunt reactor will be installed and protection equipment in 11 grid stations will be replaced. In addition, the operations and management of NTDC will be strengthened. As of 31 March 2020, the total contract award and disbursements stands at $48.997 million and $36.663 million, the project is rated as _on-track_. |
| Implementation Progress | |
| Description of Project Outputs | Rehabilitation, augmentation, and expansion of the high voltage transmission network. Operations and management of NTDC strengthened. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Facility Management Consultant (FMC) was recruited and mobilized in Q1 2018. Capacity development plan is to be prepared and in process. ADB-102 (shunt reactors) contract awarded in Q2 2019 and ADB-103 (protection equipment) contract awarded in Q3 2019. 141 km transmission line (ADB 106-Lot 1, and ADB 108) completed in Dec 2018. ADB-105-Lot-1 (75 km transmission lines) awarded in Sept 2018 and is under construction. ADB-105-Lot-2 (60 km transmission lines) is in rebidding and award expected in Q1 2021. Two package, ADB-100 and ADB-101A are for additional 1600 MVA at existing substations. ADB 100 awarded in Q4 2018 and ADB-101A is annulled in Sept 2019. Saving utilization from annulment of ADB-101A to be identified by EA. |
| Geographical Location | Faisalabad District, Guddu, Lahore, Rawat, Sahiwal |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | According to ADB's Safeguard Policy Statement (2009), tranche 1 has been categorized B for environment. Civil works in tranche 1 will be limited to the substations and the final alignment of the transmission lines. Environmental impacts will be limited to the construction phase of these projects. The proposed alignments do not traverse any environmentally sensitive areas. Separate initial environmental examination studies have been performed for the components and disclosed on the ADB website. The project has been rated a medium risk to climate change. A climate change assessment will be undertaken for each tranche to ensure that appropriate risk mitigating measures are incorporated into the project design. |
| Involuntary Resettlement | No physical displacement of persons from housing or loss of more than 10% of income generating resources will occur. Environment, land acquisition, and resettlement impacts are assessed as insignificant. An environment and social impacts cell staffed with environment, social, and resettlement officials has been established in the PMU. Capacity will be strengthened through the facility management consultant until the environment and social impacts cell has sufficient resources. |
| Indigenous Peoples | Project areas have no indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Stakeholder consultation was conducted during project design. |
| During Project Implementation | Stakeholder consultation and participation will be promoted throughout project implementation. |
| Business Opportunities | |
|---|---|
| Consulting Services | The recruitment of consultants will follow ADB Guidelines on the Use of Consultants (2013, as amended from time to time), using quality- and cost-based selection method with 90:10 quality/cost weighting. |
| Procurement | Projects will be procured through international competitive bidding following ADB s Procurement Guidelines (2015, as amended from time to time). |
| Responsible ADB Officer | Khattak, Ehtesham Zafar |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Pakistan Resident Mission |
| Executing Agencies |
National Transmission & Despatch Company Limited Mr. Mussadiq Ahmed Khan WAPDA House Shahrah-e-Quaid-e-Azam Lahore, Pakistan |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 03 Jun 2016 |
| Approval | 31 Aug 2016 |
| Last Review Mission | - |
| Last PDS Update | 01 Apr 2020 |
Loan 3419-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 31 Aug 2016 | 29 Nov 2016 | 24 Feb 2017 | 31 Dec 2020 | 30 Jun 2022 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 116.90 | Cumulative Contract Awards | |||
| ADB | 70.90 | 31 Aug 2016 | 49.27 | 0.00 | 69% |
| Counterpart | 46.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 31 Aug 2016 | 42.82 | 0.00 | 60% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3420-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 31 Aug 2016 | 29 Nov 2016 | 24 Feb 2017 | 26 Aug 2026 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.00 | Cumulative Contract Awards | |||
| ADB | 10.00 | 31 Aug 2016 | 8.55 | 0.00 | 84% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 31 Aug 2016 | 2.99 | 0.00 | 29% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | 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 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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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.
Requests for information may also be directed to the InfoUnit.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| EXTERNAL MONITORING CONSULTANT (EMC) | Loan 3420 | 18 Mar 2019 | ABDUL HAMEED | LAHORE PAKISTAN PAKISTAN | National Transmission & Despatch Company Limited | CONSULTANCY | 113,060.00 | 113,060.00 |
| PROCUREMENT OF PLANT-DESIGN, SUPPLY,INSTALLATION,T ESTIN AND COMMISSIONING OF EXTENSION AT 500KV SAHI WAL SUBSTATION | Loan 3419 | 12 Dec 2018 | SIEMENS(PAKISTAN) ENGINEERING COMPANY LTD | B-72,ESTATE AVENUE,S.IT.E KARACHI PAKISTAN PAKISTAN | National Transmission & Despatch Company Limited | TURNKEY | 11,327,832.48 | 11,327,832.48 |
| PROCUREMENT OF PLANT,DESING,SUPPLY,INSTALLATION,TE STING&COMM,OF 500KV DC Q/B TL FOR LOOPIN I/O OF ED ISTING 500KV MULTAN GATTI SC TL AT 500KV FAISALA | Loan 3419 | 20 Sep 2018 | NETRACON TECHNOLOGIES-SEPCC/CWTWC(JV) | OFFICE NO.1-B,2ND FLOOR,CENTRE 77-D/1,MA IN GULBER-3, LAHORE PAKISTAN | National Transmission & Despatch Company Limited | TURNKEY | 17,316,484.00 | 17,017,829.00 |
| PROCUREMENT OF PLANT,DESIGN,MANUFACTURING,SUPPLY&I NSTALLATION,TESTIN&COMMM OF PROTECTION RELAYS,FAUL T&EVENT RECORDER,FAULT LOCATORS IN SOUTH AREA | Loan 3419 | 20 Sep 2018 | NR-NETRACON (JV) | OFFICE NO.1-B,2ND FLOOR, CENTRE 77-D/1, MAIN BOULEVARD GULBERG-3, LAHORE PAKISTAN | National Transmission & Despatch Company Limited | TURNKEY | 4,361,720.00 | 4,262,947.00 |
| PROCUREMENT OF 500KV, 22MVAR SHUNT REACTOR BANK AL ONG WITH ALLIED EQUIPMENT AND ACCESSORIES FOR 500K V GRID STATION DADU | Loan 3419 | 02 Jul 2018 | TBEA SHENYANG TRANSFORMER GROUP CO., LTD | CHINA CHINA,PEOPLE'SREP.OF | National Transmission & Despatch Company Limited | SUPPLY OF GOODS | 2,296,799.00 | 2,296,799.00 |
| 500 KV S/C T/L GUDDU-MUZAFFARGARH FROM LOCATION NO . 597 TO LOCATION NO. 664 | Loan 3419 | 15 Dec 2017 | M/S NATIONAL POWER CONSTRUCTION PVT. LTD. | LAHORE PAKISTAN | National Transmission & Despatch Company Limited | CONSTRUCTION | 8,413,800.00 | 8,413,800.00 |
| 500 KV S/C T/L GUDDU-MUZAFFARGARH FROM LOCATION NO . 664 TO LOCATION NO. 725 | Loan 3419 | 15 Dec 2017 | NATIONAL POWER CONSTRUCTION PVT. LTD | LAHORE PAKISTAN | National Transmission & Despatch Company Limited | CONSTRUCTION | 4,833,866.00 | 4,833,866.00 |
| FACILITY MANAGEMENT CONSULTANT | Loan 3420 | 13 Dec 2017 | AF MERCADOS ENERGY MARKETS INTL SA | PASEO DE LA CASTELLANA130 3RD FLOOR 28046 MADRID SPAIN | National Transmission & Despatch Company Limited | 7,962,007.00 | 7,962,007.00 | |
| Electrical Engineer/Team Leader | Loan 3420 | 07 Apr 2017 | Chrisantha Ratnayake | 35 Hill Street Dehiwala Sri Lanka | National Transmission & Despatch Company Limited | Consultancy | 110,000.00 | — |
| Improvement of Prey Var Cross Border | Loan 3419 | 15 Mar 2017 | M/S Neie-Al-Hussain Traders (JV) | 166-B1, Johar Town Lahore Pakistan | National Transmission & Despatch Company Limited | Construction | 6,683,285.76 | 6,683,285.76 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Second Power Transmission Enhancement Investment Program - Tranche 1: Procurement Plan | Procurement Plans | Aug 2016 |