fbpx 51122-002: Power System Reliability Strengthening Project | Asian Development Bank

Sri Lanka: Power System Reliability Strengthening Project

Sovereign (Public) Project | 51122-002 Status: Proposed

The project will focus on system reliability, optimization of existing fault clearance system of the CEB and LECO network and the settings of the main protection systems. The project will ascertain the performance of existing protection system associated with transmission lines, transformers and generators connected to 220 kV and 132 kV networks and improve efficiency and reliability of the medium-voltage network in the distribution.

Project Details

Project Officer
Aiming Zhou South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Energy
 
Project Name Power System Reliability Strengthening Project
Project Number 51122-002
Country Sri Lanka
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Power System Reliability Strengthening Project
Ordinary capital resources US$ 275.00 million
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 project will focus on system reliability, optimization of existing fault clearance system of the CEB and LECO network and the settings of the main protection systems. The project will ascertain the performance of existing protection system associated with transmission lines, transformers and generators connected to 220 kV and 132 kV networks and improve efficiency and reliability of the medium-voltage network in the distribution.
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 Access to clean, reliable and affordable power supply in Sri Lanka increased by 2030 (Sri Lanka Energy Sector Development Plan for a Knowledge Based Economy 2015-2025)
Outcome Power system efficiency and reliability improved
Outputs

1. Transmission infrastructure expanded nationwide (CEB)

2. Efficiency and reliability of medium voltage network improved (LECO)

3. Protection systems upgraded

(CEB)

Geographical Location Nation-wide, Anuradhapura, Chunnakam, Hambantota, Homagama, Kalawana, Kandy, Kerawalapitiya, Rajagiriya, Tissamaharama, Vavuniya, Victoria Randenigala and Rantambe Sanctuary
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
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 13. Advance contracting will be used for procurement in transmission and distribution subprojects to achieve high level of project readiness. Retroactive financing will be considered to expedite project implementation at government's request. Retroactive financing may be allowed for up to 20% of each loan amount for expenditures incurred prior to loan effectiveness, but no earlier than 12 months before the signing of the loan agreement. The government and the EAs were advised that ADB's approval of retroactive financing in principle does not commit ADB to finance any part of the project.
Responsible ADB Officer Aiming Zhou
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
Lanka Electricity Company (Private) Ltd.
411 Galle Road
Colombo 3
Sri Lanka
Timetable
Concept Clearance 11 Dec 2017
Fact Finding 15 Nov 2018 to 30 Nov 2018
MRM 15 Jan 2019
Approval -
Last Review Mission -
Last PDS Update 25 Sep 2018

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.

None currently available.

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
Loan No. 51122-SRI: Power System Reliability Strengthening Project [CEB/AGM/PRO/2018/IFB/PSRSP-P1] Invitation for Bids Closed 06 Aug 2018 03 Oct 2018
51122- Power System Reliability Strengthening Project Advance Notice Active 27 Jun 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.