51122-001: Power System Reliability Strengthening Project | Asian Development Bank

Sri Lanka: Power System Reliability Strengthening Project

Sovereign (Public) Project | 51122-001 Status: Active

The objectives of the transaction technical assistance (TRTA) are (i) to undertake study on power supply reliability and protection development; and (ii) to conduct technical, economic, financial, safeguards and governance due diligence, prepare project cost estimates, procurement plan and implementation schedule. The TRTA is included in the 2017 program and listed in the country operations business plan for Sri Lanka 2018 2020.

Project Details

Project Officer
Zhou, Aiming South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Energy
 
Project Name Power System Reliability Strengthening Project
Project Number 51122-001
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9460-SRI: Power System Reliability Strengthening Poject
Technical Assistance Special Fund US$ 1.50 million
TA 9460-SRI: Power System Reliability Strengthening Project (Supplementary)
Technical Assistance Special Fund US$ 250,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description The objectives of the transaction technical assistance (TRTA) are (i) to undertake study on power supply reliability and protection development; and (ii) to conduct technical, economic, financial, safeguards and governance due diligence, prepare project cost estimates, procurement plan and implementation schedule. The TRTA is included in the 2017 program and listed in the country operations business plan for Sri Lanka 2018 2020.
Project Rationale and Linkage to Country/Regional Strategy

Sri Lanka''s energy sector performance has achieved a national electrification ratio of 99.3% (2016) of the households up from 29% in 1990. However, the demand for electricity continues to grow with increasing economic growth and improving living standards of the population. While trying to meet this increasing demand the sector continues to struggle because of the high cost of electricity emanating from poor generation mix and inadequate level of reliability. This is partly due to underinvestment in the transmission network, medium voltage network, and protection system resulting from high government debt-to-GDP ratio over the years and the poor financial status of Ceylon Electricity Board (CEB) the state-owned public utility whose operations have been constrained by non-implementation of full cost recovery tariff and receivables.

In 2015 2016, Sri Lanka suffered three country-wide blackouts within the span of 7 months. All these blackouts were attributed to poor operation of the protection system, lack of operational flexibility and bottlenecks in the transmission system. Economic loss from the three blackouts was estimated at monetarized value at the unit of $/kWh un-served activity. Indirect social impacts, such as increase in crime rates, were also reported.

Strengthening the transmission system, improving the 33/11 kilovolt (kV) medium voltage network, and upgrading the protection system are needed to ensure reliable operation of the power system. These interventions will also help increase absorption of intermittent wind and solar power which in turn will contribute to achieving government targets for clean energy development. Similarly, these will improve the quality of power supply in rural areas, where currently the quality is low.

The project is consistent with the national sector investment program that is based on the National Energy Policy and Strategies of Sri Lanka and Vision 2025. The project is also in line with Asian Development Bank's (ADB's) country partnership strategy for Sri Lanka where the energy sector is expected to focus on, among others, expanding nontraditional renewable energy using wind and solar, and improving reliability of power supply. The project is also strongly linked to recently approved ADB programs supporting investments in removing bottlenecks in power transmission and strengthening distribution system, and expanding access to clean electricity and promote renewable energy development.

Lessons from previous projects will be considered and incorporated into the project design and implementation arrangements. Specifically, the project will integrate renewable energy, and improve implementation arrangements by strengthening CEB and Lanka Electricity Company (Private) Ltd. (LECO) capacity in complex project supervision and safeguard monitoring.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Anuradhapura, Chunnakam, Hambantota, Homagama, Kalawana, Kandy, Kerawalapitiya, Rajagiriya, Tissamaharama, Vavuniya, Victoria Randenigala and Rantambe Sanctuary
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Two separate consulting firms will be selected for (i) undertaking study on power supply reliability and protection development (Part A), and (ii) conducting project preparatory due diligence (Part B). The TRTA will require total of 58 person-months of consulting services (34 international and 24 national) in the areas of (i) Part A: power system modeling and analysis, power system protection, and power system operation with intermittent renewable (wind and solar) integration, transmission and generation planning and operation, and (ii) Part B: power system engineering, transmission and distribution, economics, financial analysis, environmental and social safeguards, procurement and others.
Procurement Procurement (including consulting services) to be financed by ADB will follow ADB's Procurement Policy and Regulations (2017, as amended from time to time). The two consulting firms and consultants will be engaged by ADB through quality and cost-based selection (with quality to cost ratio of 90:10), using a simplified technical proposal. The TRTA financed equipment will be procured by the consultants. The disbursements under the TRTA will be made under ADB's Technical Assistance Disbursement Handbook (May 2010, as amended from time to time).
Responsible ADB Officer Zhou, Aiming
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ceylon Electricity Board
3rd Floor, G.O.B.A. Bldg.
#50,Sir Chittampalam A. Gardiner Mawatha
Colombo 02, Sri Lanka
Lanka Electricity Company (Private) Ltd.
411 Galle Road
Colombo 3
Sri Lanka
Ministry of Power and Renewable Energy
72 Ananada Kumaraswamy Mawatha
Colombo 07, Sri Lanka
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 11 Dec 2017
Last Review Mission -
Last PDS Update 25 Sep 2018

TA 9460-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2017 08 Jan 2018 08 Jan 2018 28 Feb 2019 30 Sep 2019 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,750,000.00 0.00 0.00 0.00 0.00 0.00 1,750,000.00 11 Dec 2017 73,124.00

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 Public Communications Policy (PCP) 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.

None currently available.

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
National Environment Specialist Individual - Consulting Closed 15 Sep 2018 28 Sep 2018
National Social Safeguard Specialist Individual - Consulting Closed 15 Sep 2018 28 Sep 2018
National Social Safeguard Specialist Individual - Consulting Closed 15 Sep 2018 28 Sep 2018
National Social Safeguard Specialist Individual - Consulting Closed 15 Sep 2018 28 Sep 2018
International Social Safeguards Specialist Individual - Consulting Closed 16 Aug 2018 22 Aug 2018
Part A - Study on Power Supply Reliability and Protection Development Firm - Consulting Closed 29 Jan 2018 27 Feb 2018
Part B - Project Preparatory Due Diligence Firm - Consulting Closed 29 Jan 2018 27 Feb 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 9460 26 Jul 2018 RESOURCE MANAGEMENT ASSOCIATES (PVT.) LTD.(SRI LANKA) 3 CHARLES TERRACE COLOMBO 3 / 27, Palmyr Colombo 3, Sri Lanka, Asian Development Bank 712,580.00

Procurement Plan

None currently available.