Pakistan: Second Power Transmission Enhancement Investment Program - Tranche 1

Sovereign Project | 48078-003

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
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1
Ordinary capital resources US$ 70.90 million
Loan 3420-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1
Asian Development Fund US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution

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.

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 18 Oct 2021 48.91 0.00 69%
Counterpart 46.00 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 42.90 0.00 61%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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 18 Oct 2021 8.55 0.00 84%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 2.99 0.00 29%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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.

Title Document Type Document Date
Second Power Transmission Enhancement Investment Program - Tranche 1: Social Monitoring Report (July-December 2020) Social Monitoring Reports Apr 2021
Second Power Transmission Enhancement Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Apr 2021
Second Power Transmission Enhancement Investment Program, Tranche 1: External Social Monitoring Report (July 2019-August 2020) Social Monitoring Reports Nov 2020
Second Power Transmission Enhancement Investment Program – Tranche 1: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jul 2020
Second Power Transmission Enhancement Investment Program - Tranche 1: Transmission Line Faisalabad-Gatti Land Acquisition and Resettlement Plan Resettlement Plans Jul 2020
Second Power Transmission Enhancement Investment Program – Tranche 1: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Mar 2020
Second Power Transmission Enhancement Investment Program, Tranche 1: Sahiwal Grid Station Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2020
Second Power Transmission Enhancement Investment Program, Tranche 1: Lahore South Substation Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2020
Second Power Transmission Enhancement Investment Program, Tranche 1: Rewat Grid Station Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2020
Second Power Transmission Enhancement Investment Program, Tranche 1: Social Safeguards Monitoring Report (1 July 2017 – 30 June 2018) Social Monitoring Reports Nov 2019
Second Power Transmission Enhancement Investment Program – Tranche 1: Semiannual Environmental Monitoring Report No. 3 Environmental Monitoring Reports Aug 2019
Second Power Transmission Enhancement Investment Program, Tranche 1: External Social Monitoring Report (January-June 2019) Social Monitoring Reports Jul 2019
Second Power Transmission Enhancement Investment Program - Tranche 1: Semiannual Environmental Monitoring Report No. 2 Environmental Monitoring Reports Mar 2019
Second Power Transmission Enhancement Investment Program - Tranche 1: Semiannual Environmental Monitoring Report No. 1 Environmental Monitoring Reports Oct 2018
Second Power Transmission Enhancement Investment Program - Tranche 1: Guddu-Muzaffargarh 500 kV Transmission Lines Project (Lot-2 54KM) Land Acquisition and Resettlement Plan - Corrective Action Plan Resettlement Plans Aug 2018
Second Power Transmission Enhancement Investment Program – Tranche 1: Social Monitoring Report Social Monitoring Reports Aug 2018
Second Power Transmission Enhancement Investment Program, Tranche 1: 500kV Guddu-Muzaffargarh Transmission Line Project - Special External Social Monitoring Report Social Monitoring Reports Jun 2018
Second Power Transmission Enhancement Investment Program, Tranche 1: 500kV Guddu-Muzaffargarh Transmission Line Project - Internal Monitoring Report on Implementation of Correct Action Plan Social Monitoring Reports May 2018
Second Power Transmission Enhancement Investment Program - Tranche 1: Guddu - Muzaffargarh 500 kV Transmission Lines Land Acquisition & Resettlement Plan - Corrective Action Plan Resettlement Plans Apr 2018
PTEIP II: Dispersal of Power from 747 MW Power Plant at Guddu to Muzaffargarh Initial Environmental Examination Initial Environmental Examination May 2016
PTEIP II: Sahiwal, Lahore South, and Rewat Initial Environmental Examination Initial Environmental Examination May 2016
PTEIP II: 500 kV Muzaffargarh Extension and Associated Transmission Lines Land Acquisition and Resettlement Plan Resettlement Plans May 2016
PTEIP II: Faisalabad West-Lalian Initial Environmental Examination Initial Environmental Examination May 2016
PTEIP II: Faisalabad West-Multan-Gatti and Faisalabad West Extension Initial Environmental Examination Initial Environmental Examination May 2016
PTEIP II: Rehabilitation of NTDC System in South Area Initial Environmental Examination Initial Environmental Examination May 2016
PTEIP II: 500 kV Faisalabad-Gatti Transmission Line Land Acquisition and Resettlement Plan Resettlement Plans May 2016
PTEIP II: 220 kV Faisalabad-Lalian Transmission Line Land Acquisition and Resettlement Plan Resettlement Plans May 2016

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

Tender Title Type Status Posting Date Deadline
ADB 3419-PAK: Second Power Transmission Enhancement Investment Program – Tranche 1 [ADB-111-2021] Invitation for Bids Closed 24 May 2021 08 Jul 2021
ADB 3419-PAK: Second Power Transmission Enhancement Investment Program – Tranche 1 [ADB-109-2021] Invitation for Bids Closed 24 May 2021 08 Jul 2021
ADB 3419-PAK: Second Power Transmission Enhancement Investment Program – Tranche 1 [ADB-110-2021] Invitation for Bids Closed 24 May 2021 08 Jul 2021
3419-PAK: MFF Second Power Transmission Enhancement Investment Program – Tranche 1 [ADB-105R(Lot-2)-2021] Invitation for Bids Closed 23 Apr 2021 10 Jun 2021
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-101A-2018] Invitation for Bids Closed 23 Nov 2018 17 Jan 2019
Transmission Electrical Engineer/Team leader Individual - Consulting Closed 22 Aug 2018 05 Sep 2018
Environment expert Individual - Consulting Closed 22 Aug 2018 05 Sep 2018
Power Economist/Financial Expert Individual - Consulting Closed 22 Aug 2018 05 Sep 2018
Resettlement Expert Individual - Consulting Closed 22 Aug 2018 05 Sep 2018
External Monitoring Expert on Social Safeguard Individual - Consulting Closed 09 Mar 2018 15 Mar 2018
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-103] CORRIGENDUM Invitation for Bids Closed 08 Jan 2018 06 Feb 2018
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-101] Invitation for Bids Closed 05 Dec 2017 01 Mar 2018
3419-PAK : Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-102-2017] Invitation for Bids Closed 27 Nov 2017 15 Jan 2018
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-103] Invitation for Bids Closed 10 Nov 2017 25 Jan 2018
Resettlement Expert Individual - Consulting Closed 08 Nov 2017 22 Nov 2017
Environment Expert Individual - Consulting Closed 08 Nov 2017 22 Nov 2017
Power Economist/Financial Expert Individual - Consulting Closed 08 Nov 2017 22 Nov 2017
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-100] Invitation for Bids Closed 30 Oct 2017 07 Feb 2018
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-105] Invitation for Bids Closed 05 Oct 2017 16 Nov 2017
Loan No. 3419-PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 [ADB-108-2017] Invitation for Bids Closed 13 Mar 2017 24 Apr 2017
PAK: Second Power Transmission Enhancement Investment Program - Tranche 1 Advance Notice Archived 15 Jul 2016

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency 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 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 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 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 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 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 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 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 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 6,683,285.76 6,683,285.76