52323-001: Developing an Electricity Market | Asian Development Bank

Pakistan: Developing an Electricity Market

Sovereign (Public) Project | 52323-001 Status: Approved

This knowledge and support technical assistance (TA) will support the introduction of market mechanisms of electricity sales and purchases in Pakistan based on the competitive trading bilateral contract model (CTBCM), developed by the predecessor TA, TA8772-PAK. The introduction of competition in the electricity subsector will be the foundation of the sector's financial sustainability in the long-run through mechanisms that remain effective even through political changes. This TA is included in the Country Operations Business Plan 2019-2021.

Project Details

Project Officer
Inoue, Yuki Central and West Asia Department Request for information
Country
  • Pakistan
Sector
  • Energy
 
Project Name Developing an Electricity Market
Project Number 52323-001
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9672-PAK: Developing an Electricity Market
Technical Assistance Special Fund US$ 700,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description This knowledge and support technical assistance (TA) will support the introduction of market mechanisms of electricity sales and purchases in Pakistan based on the competitive trading bilateral contract model (CTBCM), developed by the predecessor TA, TA8772-PAK. The introduction of competition in the electricity subsector will be the foundation of the sector's financial sustainability in the long-run through mechanisms that remain effective even through political changes. This TA is included in the Country Operations Business Plan 2019-2021.
Project Rationale and Linkage to Country/Regional Strategy

The predecessor of this TA project, TA8772 supported the government and CPPA-G to develop the concept of the market model to be adopted in Pakistan. The introduction of CTBCM will not initially create a fully competitive market. It will provide an environment for bilateral contracts between power producers and distribution companies. CPPA-G will develop a function of balancing mechanism, in which CPPA-G will determine the most efficient way to fill the gap between contracted supply and the demand. This concept went through extensive consultations with the government and the regulator, National Electric Power Regulatory Authority (NEPRA), and it is going through public consultation process led by NEPRA. The government, NEPRA and CPPA-G are working to meet the target set by the Economic Coordination Committee of the government to start the market operation from July 2021.

In the long-run, the market model will need to evolve and lead to competitive processes of electricity sales and purchases. Competitive trading will also create a transparent and fair mechanism of price settlement. Establishment of such a mechanism would also keep the enforcement of market principles regardless of political developments in the country.

Impact Efficient and liquid power market design
Project Outcome
Description of Outcome Competitive electricity market introduction started
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Key competitive market regulations developed

Human resource capacity for implementing the new market design strengthened

Coordination capacity of CPPA-G improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Inoue, Yuki
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Central Power Purchasing Agency (Guarantee) Limited
6th Floor, Shaheed-e-Millat, Secretariat, Jinnah Avenue, Blue Area, Islamabad, Pakistan
Timetable
Concept Clearance 13 Nov 2018
Fact Finding -
MRM -
Approval 10 Dec 2018
Last Review Mission -
Last PDS Update 10 Dec 2018

TA 9672-PAK

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 0.00 0.00 0.00 0.00 700,000.00 - 0.00

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.

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.

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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.