48078-005: MFF Power Transmission Enhancement Investment Program II Tranche 3 | Asian Development Bank

Pakistan: MFF Power Transmission Enhancement Investment Program II Tranche 3

Sovereign (Public) Project | 48078-005 Status: Approved

Tranche 3 will support the National Transmission & Despatch Company Limited (NTDC) in meeting the electricity demand of 1,150 MW efficiently and reliably at loan centers in Punjab Province by deploying high-level technologies and climate-change-resilient transmission systems. Tranche 3 will support installation of 500 kV substation in Lahore North, 500 kV switching station near Maira, 220 kV substation near Jauharabad, and 194 km of associated new transmission lines in Punjab and reconductoring of 44 km of transmission lines with high-temperature, low-sag (HTLS) conductors near Lahore. Tranche 3 will support the first large-scale grid-connected battery energy storage system (BESS) pilot project in Pakistan, which will provide subsecond frequency regulation. This pilot project will use wind power to help the NTDC comply with frequency requirements in the existing Grid Code, and will supplement the functions of the supervisory-control and data-acquisition system being upgraded under Tranche 2.

 
Project Name MFF Power Transmission Enhancement Investment Program II Tranche 3
Project Number 48078-005
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0578-PAK: MFF Power Transmission Enhancement Investment Program II Tranche 3
High Level Technology Fund US$ 4.00 million
Loan 3677-PAK: MFF Power Transmission Enhancement Investment Program II Tranche 3
Ordinary capital resources US$ 280.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description Tranche 3 will support the National Transmission & Despatch Company Limited (NTDC) in meeting the electricity demand of 1,150 MW efficiently and reliably at loan centers in Punjab Province by deploying high-level technologies and climate-change-resilient transmission systems. Tranche 3 will support installation of 500 kV substation in Lahore North, 500 kV switching station near Maira, 220 kV substation near Jauharabad, and 194 km of associated new transmission lines in Punjab and reconductoring of 44 km of transmission lines with high-temperature, low-sag (HTLS) conductors near Lahore. Tranche 3 will support the first large-scale grid-connected battery energy storage system (BESS) pilot project in Pakistan, which will provide subsecond frequency regulation. This pilot project will use wind power to help the NTDC comply with frequency requirements in the existing Grid Code, and will supplement the functions of the supervisory-control and data-acquisition system being upgraded under Tranche 2. The BESS pilot project will recommend on the (i) revision of the Grid Code for better frequency compliance; and (ii) development of a commercial ancillary services market. Tranche 3 will promote the deployment of HTLS conductors, which can operate at higher ambient temperatures within the required vertical clearance. Tranche 3 will also support the replacement of porcelain insulators with a fog-resistant type, such as glass or composite insulators, which are expected to perform better in heavily polluted areas.
Project Rationale and Linkage to Country/Regional Strategy Tranche 3 is aligned with the following impacts: (i) improved transmission infrastructure, and (ii) improved energy market transparency and efficiency. Tranche 3 will have the following outcome: improved coverage, reliability, transparency, and quality of the power transmission service in Pakistan. The outputs are transmission system capacity augmented and expanded, and grid-connected large-scale battery energy storage system (BESS) installed.
Impact Energy market transparency and efficiency improved. Transmission infrastructure improved.
Project Outcome
Description of Outcome Coverage, reliability, transparency, and quality of the power transmission service in Pakistan improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Transmission system capacity augmented and expanded

Grid connected large scale battery energy storage system (BESS) installed

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental assessment and review framework of MFF II was reviewed and updated. NTDC has prepared IEEs for five subprojects in accordance with ADB's Safeguard Policy Statement (2009) and the environmental assessment and review framework. Among key anticipated negative environmental impacts of the project are soil erosion, noise and fugitive dust generation, tree cutting, and community and occupational health and safety hazards during construction, as well as electromagnetic field generation during operation. Adequate mitigation measures are incorporated in the project design and will be implemented through the environmental management plans. Those include capacity building for contractors before and during construction, and throughout operation. The project complies with public disclosure and consultation requirements. The NTDC conducted public consultations on the subprojects from July 2016 to April 2018. ADB disclosed draft IEEs and updated IEEs on the ADB website on 23 April 2018 and 18 May 2018. The IEEs will be disclosed locally during public hearings in accordance with national legislation. The NTDC will establish a project grievance redress mechanism before project implementation.
Involuntary Resettlement

The NTDC will acquire about 311 acres of private agriculture land owned by 107 families for the three new substations. Installation of 250 km transmission lines will temporarily impact at least 3,000 acres of cropped area and 3,000 wood trees, owned by 598 families. The farm land is cultivated by landowners without involving any tenants, farm workers, or leaseholders. Thus, only the owners of farm land are affected, and they will be compensated for the affected crops and trees. Transmission lines will be constructed in three phases: (i) excavation and concreting of tower foundations, (ii) erection of towers, and (iii) stringing of conductors. Owners will be compensated for crops that are temporarily affected during construction, in accordance with ADB's Safeguard Policy Statement. No physical displacement of affected persons will occur under any subproject of Tranche 3, although 50 of 63 affected families near Lahore North substation will lose 10% or more of their productive land.

The land acquisition and resettlement framework of the MFF prepared under Tranche 1 was reviewed and confirmed to remain valid for Tranche 3. The NTDC prepared and endorsed three draft LARPs for new grid stations, which are consistent with ADB's Safeguard Policy Statement and approved land acquisition and resettlement framework. ADB disclosed the draft LARPs and revised LARPs on 23 April 2018, 24 and 251 May 2018. For the grid station component, the NTDC will update the LARPs following the notification of Section 6 of the Land Acquisition Act, and this will be a condition for contract award. For the transmission line components, the NTDC will update the LARPs based on the approved route after the contractors conduct the check survey. ADB will approve and redisclose all updated or final LARPs. The NTDC will monitor the LARPs internally, while an independent monitoring consultant will prepare the third-party monitoring reports and validate implementation and payment to affected persons. Construction works for the new grid stations will start only after ADB's approval of the third-party independent monitoring report validating disbursement of compensation to affected persons in accordance with approved LARPs and the NTDC's written confirmation of the completion of the compensation process. For transmission lines where compensation payments follow the phased and section-by-section implementation of the works, progress will be reflected in section-wise LARP addendums, internal monitoring reports and confirmed through third-party validation for each section. The NTDC will provide section-by-section written notification to ADB confirming adequate, fair, and timely completion of the compensation, and will ensure that land is restored to its original condition after completion of works. Similar arrangements will apply to all transmission lines in other tranches. ADB and NTDC will disclose all monitoring reports after approval by ADB. An environment and social impacts cell has been established within the PMU and its safeguards management capacity is being strengthened through the FMC

Indigenous Peoples None of the subprojects will impact communities of indigenous peoples, groups, or ethnic minorities, or interfere with their territories, livelihoods, customary properties, or natural or cultural resources.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultation was conducted during project design especially during the IEE preparation.
During Project Implementation Stakeholder consultation and participation will be promoted throughout project implementation.
Business Opportunities
Consulting Services Individual consultants will be recruited in building NTDC and NEPRA capacities, preparation of energy storage system roadmap, recommendation on grid code on frequency compliance, and advice on ancillary market. The selection and recruitment of consultants will follow ADB Guidelines on the Use of Consultants.
Procurement Eleven (11) packages comprising of turnkey and supply contracts will be procured under the project. Procurement will be done through international competitive bidding and will include domestic preference following ADB s Procurement Guidelines.
Responsible ADB Officer Zhang, Lei
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
National Transmission & Despatch Company Limited
WAPDA House
Shahrah-e-Quaid-e-Azam
Lahore, Pakistan
Timetable
Concept Clearance -
Fact Finding -
MRM 26 Apr 2018
Approval 28 Jun 2018
Last Review Mission -
Last PDS Update 28 Sep 2018

Grant 0578-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jun 2018 - - 31 Dec 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.00 Cumulative Contract Awards
ADB 0.00 28 Jun 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.00 28 Jun 2018 0.00 0.00 0%

Loan 3677-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jun 2018 - - 31 Dec 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 424.00 Cumulative Contract Awards
ADB 280.00 28 Jun 2018 0.00 0.00 0%
Counterpart 144.00 Cumulative Disbursements
Cofinancing 0.00 28 Jun 2018 0.00 0.00 0%

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.

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None currently available.

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 3: 500 kV Lahore North Grid Station with Allied Transmission Lines Land Acquisition and Resettlement Plan Resettlement Plans May 2018
Second Power Transmission Enhancement Investment Program - Tranche 3: 220 kV Jauharabad Substation Land Acquisition and Resettlement Plan Resettlement Plans May 2018
Second Power Transmission Enhancement Investment Program - Tranche 3: 500 kV Maira Grid Station Land Acquisition and Resettlement Plan Resettlement Plans May 2018
Power Transmission Enhancement Investment Program II, Tranche 3: Grid Connected Battery Energy Storage System Pilot Project Resettlement Plan Resettlement Plans May 2018
MFF Power Transmission Enhancement Investment Program II Tranche 3: 220 kV Jauharabad Sub-station with associated Transmission Line Initial Environmental Examination Initial Environmental Examination May 2018
MFF Power Transmission Enhancement Investment Program II Tranche 3: 500 kV Maira Switching Station Initial Environmental Examination Initial Environmental Examination May 2018
Second Power Transmission Enhancement Investment Program - Tranche 3: 500 kV Lahore North Grid Station Land Acquisition and Resettlement Plan Resettlement Plans Apr 2018
MFF Power Transmission Enhancement Investment Program II Tranche 3: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Apr 2018
Second Power Transmission Enhancement Investment Program - Tranche 3: 500 kV Maira Grid Station Land Acquisition and Resettlement Plan Resettlement Plans Apr 2018
Second Power Transmission Enhancement Investment Program - Tranche 3: 220 kV Jauharabad Substation Land Acquisition and Resettlement Plan Resettlement Plans Apr 2018
MFF Power Transmission Enhancement Investment Program II Tranche 3: 500 kV Lahore North Sub-station with Associated Transmission Line Initial Environmental Examination Initial Environmental Examination Apr 2018
MFF Power Transmission Enhancement Investment Program II Tranche 3: Grid Connected Battery Energy Storage System Initial Environmental Examination Environmental Assessment and Measures Apr 2018

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.

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Tenders

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.