Pakistan : Access to Clean Energy Investment Program

Sovereign Project | 49056-002

The proposed Asian Development (ADB) assistance will contribute to Pakistan''s national goal of enhanced energy security. The program will be implemented over a period of 5-10 years and will support the provincial governments of Khyber PakhtunKhwa (KPK) and Punjab (GoKPK and GoPb) to achieve increased access to sustainable and more reliable electricity services for vulnerable communities. This outcome will be achieved through four components: (i) expanding access to renewable energy, notably micro-hydropower (MHP) plants in rural off-grid areas of KPK, and decentralized solar plants for education and primary health care facilities (PHFs) in KPK and Punjab; (ii) providing women and girls with increased opportunities to obtain energy services and benefits; (iii) enhancing institutional capacity to foster sustainability; and (iv) promoting public sector energy efficiency in Punjab.

Project Details

  • Project Officer
    Khattak, Ehtesham Zafar
    Central and West Asia Department
    Request for information
  • Country/Economy
    Pakistan
  • Modality
  • Sector
    • Energy

Related Projects

Project Name Access to Clean Energy Investment Program
Project Number 49056-002
Country / Economy Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3476-PAK: Access to Clean Energy Investment Program
Ordinary capital resources US$ 325.00 million
Loan: Access to Clean Energy Investment Program
Agence Francaise de Developpement US$ 78.60 million
TA 9247-PAK: Access to Clean Energy Investment Program
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy efficiency and conservation - Renewable energy generation - small hydro - Renewable energy generation - solar
Gender Effective gender mainstreaming
Description The proposed Asian Development (ADB) assistance will contribute to Pakistan''s national goal of enhanced energy security. The program will be implemented over a period of 5-10 years and will support the provincial governments of Khyber PakhtunKhwa (KPK) and Punjab (GoKPK and GoPb) to achieve increased access to sustainable and more reliable electricity services for vulnerable communities. This outcome will be achieved through four components: (i) expanding access to renewable energy, notably micro-hydropower (MHP) plants in rural off-grid areas of KPK, and decentralized solar plants for education and primary health care facilities (PHFs) in KPK and Punjab; (ii) providing women and girls with increased opportunities to obtain energy services and benefits; (iii) enhancing institutional capacity to foster sustainability; and (iv) promoting public sector energy efficiency in Punjab.
Project Rationale and Linkage to Country/Regional Strategy The proposed program is in line with ADB's midterm review of Strategy 2020, which emphasizes inclusive economic growth, infrastructure development, and engagement in middle-income countries. It is also aligned with ADB's Country Partnership Strategy 2015-2019 for Pakistan, where energy is defined as one of six sectors for ADB cooperation. The provision of energy to poorer and remote rural areas outside the national grid is a priority in ADB''s Energy Policy 2009.
Impact

Inclusive economic growth achieved through sustainable energy access
Project Outcome
Description of Outcome

Access to sustainable and more reliable electricity services increased, particularly for vulnerable communities in KPP and Punjab
Progress Toward Outcome Ongoing.
Implementation Progress
Description of Project Outputs

Renewable energy-based power plants installed.

Opportunity for women and girls to obtain energy services and benefits increased.

Institutional capacity to foster sustainability enhanced.

Public sector energy efficiency promoted in Punjab.
Status of Implementation Progress (Outputs, Activities, and Issues) Ongoing.Ongoing.Ongoing.Ongoing.
Geographical Location Khyber Pakhtunkhwa, Punjab
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects While there are identified potential environmental risks of micro-hydel programs, there are no significant environmental risk associated with solar program (only potentially minor environmental risks).
Involuntary Resettlement Micro-Hydel Program - Land is required for water channel, water tank, penstock, power house and transmission line. Total land required for one MHP is normally less than 500 square meter. The land is normally donated by the local communities , therefore involuntary resettlement is not involved. Any asset such as trees are also part of the donation. However, there is a risk that land owner may be forced to donate land. Solar Power Program - There is no involuntary resettlement involved in this component of program as all the solar plants will be installed on school and BHU roofs, and no private land is required for this purpose.
Indigenous Peoples As all districts of KP are targeted, some projects may be located in Chitral District where the Kalash people live in three isolated mountain valleys, Bumburet, Rukmu, and Birir. These valleys are opening towards the Kunar River, some 20 km south (downstream) of Chitral. Kalash people speak the Kalasha language, from the Dardic family of the Indo-Aryan branch. The Kalasha or Kalash, are considered indigenous people as they have unique language, customs, festivals, rituals, religion and they are confined to their area. They are also considered to be Pakistan's smallest religious community. Construction of MHP or the solar program is not likely to have any negative social impacts on the Kalash people. However, if indigenous people are involved in the projects ADB policy principles regarding indigenous people will be considered during planning of the projects.
Stakeholder Communication, Participation, and Consultation
During Project Design During the project preparatory process a social and gender specialist was hired to prepare a social, poverty and gender assessment (footnote g). Key informant interviews were held with the key officials of PEDO and EDP, and consultations were conducted with civil society organizations and communities in the selected areas.
During Project Implementation During program implementation, social mobilization and consultative processes will be undertaken to ensure vulnerable communities are included in program consultations.
Business Opportunities
Consulting Services Two international and seven national individual M&E-related and safeguards consultants will be engaged intermittently from January 2017 to December 2021. Their detailed terms of reference are in the program implementation document. ADB will recruit the consultants following the Guidelines on the Use of Consultants (2013, as amended from time to time). Output-based contracts will be considered when appropriate.
Procurement

Anticipated contracts under the program include works, goods and consulting services below currently applicable maximum thresholds for RBL eligibility.

The assessment at provincial level found that procurement procedures and practices are guided by sound procurement principles of economy and efficiency, transparency, fairness and equal opportunity. The rules incorporate adequate provisions for competition whereby open competitive bidding is the principal method of procurement (other methods of procurement allowed only under certain conditions). However, some discrepancies with international best practices were identified in the Program Action Plan and should be mitigated.
Responsible ADB Officer Khattak, Ehtesham Zafar
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Energy and Power Department, Government of Khyber Paktunkhwa
Energy Department, Government of Punjab
Timetable
Concept Clearance 15 Dec 2015
Fact Finding 08 Sep 2016 to 23 Sep 2016
MRM 07 Oct 2016
Approval 25 Nov 2016
Last Review Mission -
Last PDS Update 30 Mar 2020

Loan 3476-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2016 07 Feb 2017 02 Mar 2017 31 Dec 2021 31 Dec 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 334.90 Cumulative Contract Awards
ADB 325.00 26 Apr 2023 225.42 0.00 79%
Counterpart 9.90 Cumulative Disbursements
Cofinancing 0.00 26 Apr 2023 216.30 0.00 76%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

TA 9247-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2016 23 Dec 2016 23 Dec 2016 31 Dec 2021 - 11 Feb 2022
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 26 Apr 2023 19,785.66
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - 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.

Title Document Type Document Date
Amendments to the Loan Agreement (Ordinary Operations) for Loan 3476-PAK: Access to Clean Energy Investment Program Loan Agreement (Ordinary Resources) Feb 2023
Access to Clean Energy Investment Program: Khyber Pakhtunkhwa Audited Project Financial Statements (July 2021-June 2022) Audited Project Financial Statements Dec 2022
Access to Clean Energy Investment Program: Punjab Audited Project Financial Statements (July 2021-June 2022) Audited Project Financial Statements Dec 2022
Access to Clean Energy Investment Program: Punjab Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Dec 2021
Access to Clean Energy Investment Program: Khyber Pakhtunkhwa Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Dec 2021
Access to Clean Energy Investment Program: Punjab Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Access to Clean Energy Investment Program: Khyber Pakhtunkhwa Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Access to Clean Energy Investment Program: Punjab Audited Project Financial Statements (July 2017-June 2019) Audited Project Financial Statements Dec 2019
Access to Clean Energy Investment Program: Khyber Pakhtunkhwa Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
Access to Clean Energy Investment Program: Energy and Power Department, Government of Khyber Pakhtunkhwa Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
صاف توانائی کاسرمایہ کاری پروگرام Translated PDS Mar 2017
Loan Agreement (Ordinary Operations) for Loan 3476-PAK: Access to Clean Energy Investment Program Loan Agreement (Ordinary Resources) Feb 2017
Access to Clean Energy Investment Program: Report and Recommendation of the President Reports and Recommendations of the President Nov 2016
Access to Clean Energy Investment Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Aug 2016

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
Access to Clean Energy Investment Project: Draft Program Safeguard Systems Assessment Program Safeguard Systems Assessments Sep 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
Monitoring and Evaluation (M&E) System Expert Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
WA#ED-004 FOR ACHIEVEMENT OF DLIS 1,2,3,5&7 FROM E PEDO. Loan 3476 03 Dec 2020 PEDO, KPK | KPK PAKISTAN Energy Department, Government of Punjab 10,106,584.00 10,106,583.55
WA # PE-007 - PUNJAB FOR ACHIEVEMENT OF DLIS 1,2,3 4,7 & 8. Loan 3476 08 Oct 2020 PUNJAB | PUNJAB PAKISTAN PAKISTAN PAKISTAN Energy Department, Government of Punjab 5,027,070.27 5,027,070.27
WITHDRAWAL APPLICATION # ED-003 FOR ACHIEVEMENT OF DLI 1,2,3,5,6&7 Loan 3476 09 Dec 2019 PEDO,KPK | KPK PAKISTAN Energy Department, Government of Punjab 34,069,875.00 34,069,875.00
WITHDRAWAL APPLICATION NUMBER ED-001 FOR KPK Loan 3476 16 Dec 2019 PEDO, KPK | KPK PAKISTAN Energy Department, Government of Punjab 35,596,500.00 35,596,500.00
ACHIEVEMENT OF 2017 DLI6 BY PUNJAB Loan 3476 04 Dec 2018 VARIOUS | VARIOUS PAKISTAN Energy Department, Government of Punjab 5,020,000.00 5,020,000.00
ACHIEVEMENT OF 2017 DLI7 BY PUNJAB Loan 3476 04 Dec 2018 VARIOUS | VARIOUS PAKISTAN Energy Department, Government of Punjab 4,180,000.00 4,180,000.00
ACHIEVEMENT OF DLI 1, 2, 3, 4 & 6 Loan 3476 28 Jun 2019 VARIOUS | PUNJAB, PAKISTAN PAKISTAN Energy Department, Government of Punjab 6,581,040.00 6,581,040.00
WA#PE-003 FOR ACHIEVEMENT OF DLI 1,2,3,4,7&8. Loan 3476 25 Jun 2019 VARIOUS | PUNJAB, PAKISTAN PAKISTAN Energy Department, Government of Punjab 6,039,235.34 6,039,235.34
ACHIEVEMENT OF DLI 1,2,3&4 FOR PUNJAB Loan 3476 13 Nov 2019 ENERGY DEPARTMENT, GOVERNMENT OF THE PUNJAB | PUNJAB PAKISTAN Energy Department, Government of Punjab 7,772,135.63 7,772,135.63
ACHIEVEMENT OF 2017 DLI6 BY PEDO Loan 3476 29 Nov 2018 VARIOUS | VARIOUS PAKISTAN Energy Department, Government of Punjab 13,400,000.00 13,400,000.00
ACHIEVEMENT OF 2017 DLI7 BY PEDO Loan 3476 29 Nov 2018 VARIOUS | VARIOUS PAKISTAN Energy Department, Government of Punjab 11,160,000.00 11,160,000.00
RBL 15% ADVANCE ALLOCATED FOR KHYBER PAKHTUNKHWA, AS REQUESTED BY PEDO (WITH REF TO LA SCHED 3 PARA 7) Loan 3476 04 Dec 2017 PAKHTUNKHWA ENERGY DEVELOPMENT ORGANIZATION | KHYBER PAKHTUNKHWA PAKISTAN Energy Department, Government of Punjab 35,596,500.00 35,596,500.00

Procurement Plan

None currently available.