| TA Name |
Sustainable Power Sector Support II Project |
| Country |
Sri Lanka |
| TA Number |
7363 |
| Project Number |
39415-
01 |
| Fund Source/Amount[Approved] |
| Japan Special Fund |
US$800,000
|
|
| Thematic Classification |
Environmental Sustainability
|
| Linkage to Country/Regional Strategy |
The proposed TA and ensuing project are consistent with Sri Lanka's national and sector priorities. The 2006 10-Year Development Framework of Sri Lanka, focusing on infrastructure development to accelerate economic growth and narrow regional disparities, and the National Energy Policy and Strategies (NEPS), a ten year plan for the energy sector, envision sustainable development of energy resources, conversion facilities and delivery systems to enable access to and use of energy services by the entire population, and the safe, reliable delivery of such energy services at a competitive price. As such, the NEPS provides a comprehensive road map for the sector, includes a long-term investment program and specific policy and reform measures, and aims to (i) supply electricity to 86% of households by 2010 and 98% by 2016, and (ii) ensure electricity tariffs are competitive with those in other countries and sufficient for utilities to be viable. The Government's main goals are to improve the quantity, quality, and cost of service delivery, and to increase electricity connections in rural areas.
The proposed TA and ensuing project are also consistent with ADB's Sri Lanka Country Partnership Strategy (CPS). To help the Government achieve the above-mentioned main goals, CPS focuses, among others, on (i) mitigating climate change through financing individual clean energy projects, including small and medium-scale hydro, (ii) funding transmission projects to remove grid constraints on absorbing additional capacity from renewable energy sources and to achieve energy-efficiency improvements through strengthening of the transmission network, and (iii) improving connectivity for the poor.
The TA aims at preparing a feasibility study for the ensuing project that will further support sustainable development of the power sector of Sri Lanka in line with the national and sector priorities, and ADB's CPS (2009-2011).
|
| Impact |
The anticipated impact of the proposed TA (and outcome of the ensuing loan) is sustained inclusive economic growth, widening the access to electricity services from 80% (2008) to 98% of the national population by 2016. The TA will contribute to ensuring a sustainable, cleaner, affordable and reliable power supply in the country to meet a growing demand.
|
| Outcome |
The outcome of the PPTA is to develop a least-cost project design and comprehensive feasibility studies agreed between the Government of Sri Lanka and ADB for the project components.
|
| Outputs and Timeframe |
The output of the proposed PPTA will include a feasibility report for the following components to prepare the ensuing project: (i) transmission system strengthening to further improve its energy efficiency and enable rural electrification; (ii) rural distribution system improvement in the Eastern Province and possibly other lagging regions to expand access for the poor and rural household connection; and (iii) energy efficiency and renewable energy component. The Government specifically indicated the urgent need for investment in the transmission system that was neglected for a long time. The transmission component will include strengthening of the system in the Southern, Eastern, and Northern parts of the country. It will also enable to address post-conflict electricity needs and bring cheaper hydropower to the population in the Northern part of the country from the North Central and Central Provinces through a transmission line to be constructed under the ensuing project from Kilinochchi to Chunnakam, which will complement and extend a transmission line from Vavuniya to Kilinochchi to be financed by JICA. The rural distribution system component is expected to provide access to electricity in about 120 remote villages in the Eastern Province where, according to the available data, the electrification ratio of 58.6% is the lowest among all Sri Lanka provinces and is well below the average national electrification ratio of about 80%. The energy efficiency and renewable energy component will explore options for demand side and supply side management. The Government also indicated that it may request inclusion of a consulting services component for detailed engineering of hydropower plants in the ensuing project for possible financing under the subsequent loan. The key activities include preparation and refining of cost estimates, technical, financial, economic, and socioeconomic analyses, procurement capacity assessment of an implementing agency, and social and environmental assessments. The PPTA will be implemented over a 6-month period commencing January 2010 and finishing in June 2010.
|
| Geographical Location |
National |
| Summary of Environmental and Social Issues |
No major resettlement is anticipated under the proposed components. Sri Lanka's environmental conservation policies require all development projects to follow procedures for an environmental impact assessments, public consultations, and clearance from stakeholders. The proposed Sustainable Power Sector Support II Project may be categorized as category "B" because it is expected to minimize or mitigate any potential negative environmental impacts and because it has positive social impacts. The environmental sensitivity will be further verified in the field. Environmental and involuntary resettlement assessment work, indigenous peoples related assessment, and stakeholders consultation will be conducted during the PPTA.
|
| Stakeholder Participation and Consultation |
The Ministry of Power and Energy, Ceylon Electricity Board, other power sector agencies and stakeholders concerned, including key development partners in Sri Lanka, have been consulted during finalizing conceptualization of this assistance project. During PPTA implementation workshops will be held with various stakeholders concerned, including public and private sector, civil society and development partners, to brief on project components and obtain stakeholder's inputs and views.
|
| Procurement |
| Consulting Services |
The PPTA will require 41 person-months of consulting services (17 international and 24 national) in the areas of transmission engineering, rural electrification/distribution engineering, energy efficiency and renewable energy, financial and economic analysis, social safeguard development, and environmental assessment. The consultant team will include the following: Transmission Specialist/Team Leader (international, 5 person-months), Tranmission Specialist (national, 6 person-months), Rural Electrification/Distribution Specialist (international, 2 person-months; national, 3 person-months), Energy Efficiency and Renewable Energy Specialist (international, 2 person-months; national, 3 person-months), Power Economist (international, 2 person-months; national, 3 person-months), Financial Analyst (international, 2 person-months; national, 3 person-months), Environmental Specialist (international, 2 person-months; national, 3 person-months), Social Development Specialist (international, 2 person-months; national, 3 person-months). The consultants will be engaged by ADB through Quality and Cost Based Selection using a Simplified Technical Proposal in accordance with the ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
|
| Responsible ADB Officer |
Mukhtor Khamudkhanov
|
| Responsible ADB Department |
South Asia Department
|
| Responsible ADB Division |
Energy Division, SARD
|
| Executing Agencies |
Ministry of Power and Energy (MOPE)
|
| Concept Clearance |
04 Jun 2009 |
| Fact-finding |
08 Jun 2009
to 12 Jun 2009
|
| Approval |
13 Oct 2009 |
| ADB |
Others |
Gov |
Total |
Approved Amount |
Revised Amount |
|
$0.00
|
$0.00
|
$0.00
|
$0.00
|
$800,000.00
|
$0.00
|
| Total Commitment |
Uncommited Balance |
Total Disbursement |
Undisbursed Balance |
|
$0.00
|
$800,000.00
|
$0.00
|
$800,000.00
|
|
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