Sri Lanka: Wind Power Generation Project

Sovereign (Public) Project | 49345-002

The Asian Development Bank is working with Sri Lanka to develop energy resources and increase access to low cost energy for the entire population. The project is helping to increase supply by raising the share of renewable energy, particularly wind power.

Project Details

  • Project Officer
    Kolantharaj, Jaimes
    South Asia Department
    Request for information
  • Country
    Sri Lanka
  • Modality
    • Loan
  • Sector
    • Energy
Project Name Wind Power Generation Project
Project Number 49345-002
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3585-SRI: Wind Power Generation Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Renewable energy generation - wind

Gender Equity and Mainstreaming No gender elements
Description

The impact of the investment project will be increased access to clean and reliable power supply enhanced by 2025. The outcome will be clean power generation increased. The outputs of the investment project are:

(i) Wind power generation increased. This output consists of three subcomponents: (i) 100 MW wind farm constructed in Mannar Island in the Northern Province; (ii) wind park infrastructure developed that involves construction of the wind park's internal medium voltage infrastructure, internal cabling, access roads, and other arrangements; and (iii) a renewable energy dispatch control center established to forecast, control, and manage intermittent 100 MW wind power generation.

(ii) System reactive power management improved. This includes installation of 100 megavolt-ampere reactive (MVAr) reactors at the 220 kilovolt (kV) level at the Anuradhapura grid substation in the North Central Province and a 50 MVAr reactor at the 220 kV level at the Mannar grid substation in the Northern Province to manage voltage levels within the planning limits and practical operational requirements, and ensure reliable operation of the wind park.

(iii) Capacity of CEB in project engineering design review and supervision strengthened. Expert consultancy services will be procured to strengthen CEB's capacity in project engineering design, review, and supervision. These advisory consultancy services will assist CEB in ensuring engineering oversight of wind turbine installation, commissioning and testing activities, and technical certification of contractor's activities throughout the construction period.

Project Rationale and Linkage to Country/Regional Strategy

Sri Lanka's energy sector performance has achieved a national electrification ratio of 99.3% (2016) up from 29% in 1990. However, the sector continues to struggle in meeting the growing demand for electricity at sufficiently low cost and acceptable reliability. The share of thermal power in the generation mix remains high at 67.2% in 2016 as the entire demand growth has been served by oil-fired thermal (31.5%) and coal (35.7%) generation. Although 32.7% of the total generated power provided to the grid in 2016 was from renewable sources, including 24.6% large hydropower, 5.2% small hydropower, 2.4% wind power, and 0.6% other sources, the high share of oil-fired thermal generation makes electricity expensive due to high fuel prices and poses a serious threat to the country's energy security and the environment. There is an urgent need to develop other clean energy sources in addition to hydropower, undertake loss reduction efforts, and address energy efficiency issues. Diversification to renewable energy sources, such as wind and solar energy, will improve the country's energy security and the environment. In particular, developing wind power generation by both the public and private sectors and through public private partnerships provides substantial opportunities to reach the country's goal of increasing the share of nonconventional renewable energy generation to 20% of the total generated power by 2020.

The Government of Sri Lanka aims to ensure the sustainable development of energy resources by improving the power supply systems to guarantee that the entire population has access to electricity services. Sri Lanka has a national sector investment program that is based on the National Energy Policy and Strategies of Sri Lanka. The policy and strategies include a sector road map, and policy and reform measures. To reduce the current high cost of thermal power generation and attain cost recovery, the government developed 900 MW of low cost coal-fired capacity that became fully operational in 2014. The government aims to increase supply capacity from renewable energy sources and potential future conversion of the oil-fired plants to gas-fired plants. The policies and incentives for developing renewable energy sources exist in the country. The increase to 20% of power generation from nonconventional renewable energy sources, including their current generation, will be in addition to 24.6% (2016) of conventional hydropower and will ensure that, in the future, a substantial portion of electricity is generated by domestic clean energy sources. This will address the critical issue of energy security.

Impact Access to clean and reliable power supply in Sri Lanka enhanced by 2025 (Sri Lanka Energy Sector Development Plan for a Knowledge Based Economy, 2015 2025)
Project Outcome
Description of Outcome Clean power generation increased
Progress Toward Outcome Some implementation delays due to COVID-19 related issues. ADB recently approved reallocation for additional wind turbines, capacity expansion of transmission infrastructure, and feasibility study for renewable park amounting to about $50 million. CEB is working on the revised implementation schedule.
Implementation Progress
Description of Project Outputs

1. Wind power generation capacity increased

2. System reactive power management improved

3. Capacity of CEB in project engineering design review and supervision strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) Physical installation of 30 wind turbines is completed, associated works in progress. Design review and site preparation in progress.Design review of wind power generation completed and supervisory support in progress.
Geographical Location Mannar District
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations with the government and stakeholders, including local communities, local authorities, focal groups, civil society groups, will be undertaken to ensure participatory approach. The stakeholders will be consulted throughout the design stage during the project preparatory technical assistance and the ensuing project implementation on the relevant issues, including environmental, social and other issues that may affect communities and poor people.
During Project Implementation The consultation process with the stakeholders will continue during project implementation as per Sri Lankan regulations.
Business Opportunities
Consulting Services Consultants will be recruited following Guidelines on the Use of Consultants by ADB and Its Borrowers, March 2013.
Procurement Procurement will follow international and national competitive bidding depending on an estimated value of procurement packages. Advance contracting will be used for procurement. Retroactive financing may be considered to expedite project implementation at government's request.
Responsible ADB Officer Kolantharaj, Jaimes
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ceylon Electricity Board
3rd Floor, G.O.B.A. Bldg.
#50,Sir Chittampalam A. Gardiner Mawatha
Colombo 02, Sri Lanka
Timetable
Concept Clearance 23 Mar 2016
Fact Finding 14 Feb 2017 to 24 Feb 2017
MRM 09 Jun 2017
Approval 24 Oct 2017
Last Review Mission -
Last PDS Update 03 Dec 2020

Loan 3585-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Oct 2017 22 Nov 2017 22 Feb 2018 30 Jun 2022 30 Jun 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 256.70 Cumulative Contract Awards
ADB 200.00 07 Sep 2021 135.22 0.00 68%
Counterpart 56.70 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 121.47 0.00 61%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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
Wind Power Generation Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
Amendment to the Loan Agreement for Loan 3585-SRI: Wind Power Generation Project Loan Agreement (Ordinary Resources) Jan 2021
Wind Power Generation Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Sep 2020
Wind Power Generation Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jul 2019
Loan Agreement for Loan 3585-SRI: Wind Power Generation Project Loan Agreement (Ordinary Resources) Nov 2017
Guarantee Agreement for Loan 3585-SRI: Wind Power Generation Project Agreements Nov 2017
Wind Power Generation Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2017
Wind Power Generation Project: Project Administration Manual Project/Program Administration Manual Sep 2017
Wind Power Generation Project: Procurement Plan Procurement Plans Aug 2017
Wind Power Generation Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Mar 2016
Wind Power Generation Project: Project Data Sheet (Sinhala Translation) Translated PDS Mar 2016
Wind Power Generation Project: Project Data Sheet (Tamil Translation) Translated PDS Mar 2016
Wind Power Generation Project: Project Preparatory Technical Assistance Report Project Preparatory Technical Assistance Reports Mar 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
Wind Power Generation Project: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Clone of Wind Power Generation Project: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Wind Power Generation Project: Environmental Safeguard Monitoring Report (January-March 2021) Environmental Monitoring Reports Apr 2021
Wind Power Generation Project Prepared: Social Safeguard Monitoring Report (July-December 2020) Social Monitoring Reports Feb 2021
Wind Power Generation Project: Environmental Safeguard Monitoring Report (October-December 2020) Environmental Monitoring Reports Jan 2021
Wind Power Generation Project: Environmental Safeguard Monitoring Report (July-September 2020) Environmental Monitoring Reports Oct 2020
Wind Power Generation Project: External Environmental Monitoring Report (April-June 2020) Environmental Monitoring Reports Jul 2020
Wind Power Generation Project: Environmental Safeguard Monitoring Report (April-June 2020) Environmental Monitoring Reports Jul 2020
Wind Power Generation Project: External Environmental Monitoring Report (January-March 2020) Environmental Monitoring Reports Jul 2020
Wind Power Generation Project: Environmental Safeguard Monitoring Report (January-March 2020) Environmental Monitoring Reports Jun 2020
Wind Power Generation Project: External Environmental Monitoring Report (October-December 2019) Environmental Monitoring Reports May 2020
Wind Power Generation Project: Environmental Safeguard Monitoring Report (October-December 2019) Environmental Monitoring Reports May 2020
Wind Power Generation Project: Social Safeguard Monitoring Report (July-December 2019) Social Monitoring Reports Mar 2020
Wind Power Generation Project: External Environmental Monitoring Report (July-September 2019) Environmental Monitoring Reports Nov 2019
Wind Power Generation Project: Environmental Safeguard Monitoring Report (July-September 2019) Environmental Monitoring Reports Nov 2019
Wind Power Generation Project: External Environmental Monitoring Report (April-June 2019) Environmental Monitoring Reports Aug 2019
Wind Power Generation Project: Environmental Safeguard Monitoring Report (April-June 2019) Environmental Monitoring Reports Aug 2019
Wind Power Generation Project: Social Safeguard Monitoring Report (January-June 2019) Social Monitoring Reports Jun 2019
Wind Power Generation Project: Environmental Safeguard Monitoring Report (January-March 2019) Environmental Monitoring Reports May 2019
Wind Power Generation Project: Environmental Safeguard Monitoring Report (October-December 2018) Environmental Monitoring Reports Jan 2019
Wind Power Generation Project: Social Safeguard Monitoring Report (July-December 2018) Social Monitoring Reports Jan 2019
Wind Power Generation Project: Environmental Monitoring Report (July-September 2018) Environmental Monitoring Reports Oct 2018
Wind Power Generation Project: Environmental Safeguard Monitoring Report (April-June 2018) Environmental Monitoring Reports Jul 2018
Wind Power Generation Project: Social Safeguard Monitoring Report (January-June 2018) Social Monitoring Reports Jul 2018
Wind Power Generation Project: Environment Impact Assessment Environmental Impact Assessments Sep 2017
Wind Power Generation Project: Draft Resettlement Plan Resettlement Plans Jun 2017
Wind Power Generation Project: Draft Environmental Impact Assessment Environmental Impact Assessments May 2017

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$) Contract Amount Financed by ADB (US$)
VARIABLE SHUNT REACTORS Loan 3585 14 May 2019 CONSORTIUM - SIEMENS LTD (IND) & DIMO (SRI) PLOT 6A, SECTOR 18, MARUTI INDUSTRIAL AREA, HUDA, GURUGAM-122015 HARYANA INDIA INDIA Ceylon Electricity Board SUPPLY OF GOODS 8060076.34 8060076.34
CONSULTANCY SERVICES: PROJECT ENGINEERING DESIGN REVIEW AND SUPERVISION SUPPORT TO CEB Loan 3585 25 Feb 2019 COWI A/S PARALLELVEJ 2, DK-2800 KONGENS LYNGBY DENMARK DENMARK Ceylon Electricity Board CONSULTANCY 878996.86 876748.50
PACKAGE 1: CONSTRUCTION OF 100MW SEMI DISPATCHABLE WIND PARK IN MANNAR ISLAND Loan 3585 29 Nov 2018 VESTAS ASIA PACIFIC A/S HEDEAGER 42, 8200 AARHUS N, DENMARK DENMARK Ceylon Electricity Board TURNKEY 127794933 127794933

Procurement Plan

Title Document Type Document Date
Wind Power Generation Project: Procurement Plan Procurement Plans Aug 2017