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Project Administration Memorandum
The project administration memorandum is an active document,
progressively updated and revised as necessary, particularly
following any changes in project or program costs, scope, or
implementation arrangements. This document, however, may not
reflect the latest project or program changes.
Project Number: 38492-01 Loan Number: 2152-IND January 2006
IND: Power Grid Transmission (Sector) Project
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ASIAN DEVELOPMENT BANK
PROJECT ADMINISTRATION MEMORANDUM
for the
POWER GRID TRANSMISSION (SECTOR) PROJECT
for
INDIA
LOAN 2152-IND
30 January 2006
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CURRENCY EQUIVALENTS (as of 24 January 2006)
Currency Unit – Indian rupee/s (Re/Rs)
Re1.00 = $ 0.0226
$1.00 = Rs 44.1825
ABBREVIATIONS ADB – Asian Development Bank AFS – annual
financial statements APA – Annual project accounts CERC – Central
Electricity Regulatory Commission EMP – environmental management
plan ESMD – Environmental and social Management Department ICB –
international competitive bidding IEE – initial environmental
examination IPDP – indigenous peoples development plan IPDF –
Indigenous peoples development framework LIBOR – London interbank
offered rate NTDP – National Transmission Development Plan PCB –
polychlorinated biphenyls PMU – project management unit POWERGRID –
Power Grid Corporation of India Limited RF – resettlement framework
RP – resettlement plan SEB – State Electricity Board T&D –
transmission and distribution WACC – weighted average cost of
capital
WEIGHTS AND MEASURES cct-km – circuit-kilometers KV (kilovolt) –
1,000 volts MVA (megavolt-ampere) – 1,000,000 volt-amperes MW
(megawatt) – 1,000,000 watts
NOTES
(i) The fiscal year (FY) of the Government ends on 31 March.
(ii) In this report, "$" refers to US dollars.
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CONTENTS
PAGE LOAN PROCESSING HISTORY i PROJECT FRAMEWORK ii
I. PROJECT DESCRIPTION 1 A. Project Area and Location B.
Objectives and Scope C. Project Components D. Special Features
II. COST ESTIMATES AND FINANCING PLAN 2
A. Detailed Cost Estimates B. Financing Plan C. Special
Financing Feature D. Allocation of Loan Proceeds
III. IMPLEMENTATION ARRANGEMENTS 4 A. Executing and Implementing
Agencies B. Project Management Organization
IV. IMPLEMENTATION SCHEDULE 4
V. COST ESTIMATES AND FINANCING PLAN DURING
IMPLEMENTATION 5
VI. PROCUREMENT 5
VII. DISBURSEMENT PROCEDURES 5
VIII. ACCOUNTING, AUDITING AND REPORTING 5
IX. PROGRESS REPORT, AND PROJECT PERFORMANCE MONITORING AND
EVALUATION 6
X. SAFEGUARDS 6
XI. MAJOR LOAN COVENANTS 6
XII. KEY PERSONS INVOLVED IN THE PROJECT 6
XIII. ANTICORRUPTION 7
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APPENDIXES PAGE 1. Organizational Chart of Power Grid
Corporation of India, Limited 8 2. Implementation Schedule 9 3.
Detailed Project Cost During Implementation 10 4. Detailed
Financing Plan - During Implementation 11 5. Quarterly and Yearly
Contract Awards and Disbursements Projection 12 6. List of Contract
Packages (Contract Monitoring Sheets) 13 7. Pro Forma of the
Executing Agency’s Project Progress Report 17 8. Major Loan
Covenants 19 9. Key Persons Responsible for the Project 23
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INDIA: POWER GRID TRANSMISSION (SECTOR) PROJECT
PROJECT ADMINISTRATION MEMORANDUM
LOAN PROCESSING HISTORY
MILESTONE EVENT DATES
a. Fact Finding/Appraisal - 29 July – 18 August 2004
b. Management review meeting (MRM) - 29 September 2004
c. Appraisal - 10 – 13 October 2004
d. Staff Review Committee (SRC) meeting - 28 October 2004
e. Loan negotiations - 24 – 25 November 2004
f. Board circulation - 29 November 2004
g. Board consideration and approval - 20 December 2004
h. Loan agreement signing - 3 November 2005
i. Loan effectiveness - 10 January 2006
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ii
PROJECT FRAMEWORK1
Design Summary Performance Indicators/Targets
Monitoring Mechanisms
Assumptions and Risks
Goal Adequate and reliable supply to meet demands for
electricity in India
100,000 MW of additional generation capacity by 2012
Electrification of rural households increased from 31% in 2004 to
100% in 2012
All India Electricity Statistics issued by Central Electricity
Authority
Purposes National transmission grid strengthened and expanded
with transmission bottlenecks removed and losses reduced
Availability of National Transmission Grid at 99% or greater
T&D losses reduced from about 30% in 2004 to 20% in 2012.
Annual reports of POWERGRID Regular statistics from National
Dispatch Center and Regional Control Centers Project review
missions
Assumptions • Government’s
continued support and commitment to power sector reform and
development of the national electricity market
• Timely and
transparent implementation of the Electricity Act 2003
• Load growth and
system expansion as forecast
Risk • Delays in
implementation of generation and distribution expansion
programs.
Outputs • Tamil Nadu I Grid
Strengthened
820 circuit-kilometer (cct-km) of 400kV transmission lines, and
1,260 megavolt-ampere (MVA) of 400/220kV substation capacity
added
Quarterly progress reports Project review missions Project
completion report
Assumption • Funds for
operation and maintenance of project
1 As agreed upon during project appraisal.
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Design Summary Performance Indicators/Targets
Monitoring Mechanisms
Assumptions and Risks
• Tamil Nadu II Grid
Strengthened • Tamil Nadu, Andhra
Pradesh, and Union Territory of Pondicherry Grid
Strengthened
436 cct-km of 400kV transmission lines and 630 MVA of 400/220kV
substation capacity added 98 cct-km of 400kV transmission lines and
1,260 MVA of 400/220kV substation capacity added
components made available
• Candidate
subprojects to be selected based on agreed eligibility
criteria
Activities Procure supply and construction contracts for
implementation of the project packages Carry out initial
environmental examination (IEE) including public consultations
Prepare resettlement plan (RP) in consultation with stakeholders
concerned Prepare indigenous peoples development plan (IPDP) if
needed, in consultation with stakeholders concerned
Contract awards amounting to about $400 million by 31 December
2006 Summary IEE for final candidate subprojects by December 2005.
Last RP by 31 December 2005 Last IPDP by 31 December 2005
Quarterly progress reports Project accounts Review missions
Appraisal reports including Summary IEE, RP, and IPDP, if needed,
for each candidate subproject.
Assumption • No delay in
project implementation
Risk • Increase of steel
and aluminum prices
Inputs ADB Loan POWERGRID internal resources
$400 million $168 million
Quarterly progress reports ADB review missions
Assumption • Adequate funds
from POWERGRID's internal resources.
ADB: Asian Development Bank, cct-km = circuit kilometer,
GWh=gigawatt hours, IEE = initial environmental examination, IPDP =
indigenous peoples development plan, kV=kilovolt, MVA =
megavolt-amperes, MW=megawatts, POWERGRID = Power Grid Corporation
of India Limited, RP = resettlement plan.
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I. PROJECT DESCRIPTION
A. Project Area and Location 1. The Power Grid Transmission
(Sector) Project (the Project) will benefit India's power sector.
The Project focuses on strengthening and expansion of the national
transmission grid including the states of Andhra Pradesh, Kerala
and Tamil Nadu, the Union Territory of Pondicherry, and also the
northern part of the country. B. Objectives and Scope 2. The
objective of the Project is to strengthen and develop India’s
national transmission grid to improve system reliability,
facilitate interstate and interregional power transfers by removing
transmission bottlenecks, reduce transmission losses, facilitate
efficient utilization of existing and planned power plants, and
facilitate development of a national power trading market through
open access to the national transmission grid. C. Selection and
Eligibility Criteria of Subprojects 3. The criteria for selecting
each subproject to be considered for Asian Development Bank (ADB)
financing are as follows:
(i) The subproject should be technically feasible; (ii) The
subproject will be part of Power Grid Corporation of India
Limited’s
(POWERGRID's) National Transmission Development Plan (NTDP);
(iii) Any subproject classified as category A in accordance with
ADB’s Environment
Policy 2002 will not be eligible; (iv) The subproject will not
include transmission lines emanating from power
generating stations; and (v) The State Electricity Board (SEB)
or the region that is the beneficiary of the
subproject has a satisfactory payment record with POWERGRID,
i.e., has an accounts receivable owing to POWERGRID of 3 months or
less.
D. Project Components 4. Based on the data available and the
above eligibility criteria, ADB and POWERGRID have jointly
appraised the following three core subprojects during project
processing covering the states of Andhra Pradesh and Tamil Nadu,
and the Union Territory of Pondicherry:
(i) Grid Strengthening for Tamil Nadu I that comprises
construction of 600 circuit-kilometers (cct-km) of new 400
kilo-volt (kV) transmission lines from Tirunelveli to Udumalpet,
and 220 cct-km of new loop-in-loop-out 400 kV transmission lines
from Madurai to Trivandrum; construction of a new 400/220 kV
substation with 2x315 megavolt-ampere (MVA) transformation capacity
at Tirunelveli, and augmentation of existing 400/220 kV substations
at Udumalpet and Trivandum with a 315 MVA transformer each; 2
2 220 cct-km of new loop-in-loop-out 400 kV transmission lines
from Madurai to Trivandrum; and construction of a
new 400/220 kV substation with 2x315 megavolt-ampere (MVA)
transformation capacity at Tirunelveli are being implemented from
POWERGRID’s own fund due to its urgency.
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(ii) Grid Strengthening for Tamil Nadu II that comprises
construction of 280 cct-km of new 400 kV transmission lines from
Pugalur to Madurai, and 156 cct-km of new 400 kV transmission lines
from Udumalpet to Arasur; construction of a new 400/220 kV
substation with 2x315 MVA transformation capacity each at Pugalur
and Arasur, and augmentation of 400/220 kV substation bays at
Madurai and Udumalpet; and
(iii) Grid Strengthening for Tamil Nadu, Andhra Pradesh, and
Union Territory of
Pondicherry that includes the establishment of a new 2x315 MVA
substation at Pondicherry and Warangal by 60 cct-km
line-in-line-out of one of the circuit of Neyveli-Sriperumbudur 400
kV double-circuit transmission line and 38 cct-km line-in-line-out
of Ramagundam-Khammam 400 kV single-circuit transmission line,
respectively.
5. Subsequently after approval of the loan by ADB, the following
subprojects have been proposed by POWERGRID for which subproject
appraisal reports have been approved by ADB:
(i) Grid Strengthening for Kerala I that comprises construction
of 620 cct-km of new 400 kV transmission lines from Tirunelveli to
Muvattupuzha (East Cochi) via Edamon;
(ii) Grid Strengthening for Kerala II that comprises
construction of 160 cct-km of new
400 kV transmission lines from Muvattupuzha (East Cochi) to
North Trichur, construction of a new 400/220 kV substation with
2x315 MVA transformation capacity at Muvattupuzha (East Cochi), and
extension of 400/220 kV substation bays at North Trichur; and
(iii) Northern Region System Strengthening Scheme V that
comprises construction of
1,172 cct-km of new 400 kV transmission lines from Agra to
Bhiwadi and Bhiwadi to Moga, 160 cct-km of new loop in loop out of
400 kV transmission line from Hissar to Jaipur at Bhiwadi, and
extension of 400/220 kV substation bay at Bhiwadi, Moga and
Agra.
6. In selecting additional subprojects, POWERGRID will follow
the procedures that include (i) carrying out a technical
feasibility study for each subproject, (ii) preparing a
Resettlement Plan (RP), (iii) conducting an Initial Environmental
Examination (IEE), and (iv) if indigenous peoples are impacted,
preparing an Indigenous Peoples Development Plan (IPDP). The
technical feasibility study will include a detailed engineering
design of the subproject, cost estimates, contract packages, and
implementation schedule. ADB will not consider for inclusion in the
Project any subproject that does not satisfy any of the above
eligibility criteria or where the above procedures have not been
followed.
II. COST ESTIMATES AND FINANCING PLAN
A. Detailed Cost Estimates 7. The Project consists of
strengthening and augmentation of POWERGRID's transmission lines
and associated substations, which are part of POWERGRID's NTDP. The
revised cost estimates of the three core subprojects, and
additional subprojects to be implemented during the 2005 – 2009
period are summarized in Table 1 below:
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Table 1: Summary Cost Estimates
($ Million) Foreign
Exchange Local
Currency
Total Core Subprojects Base Cost 132.2 23.7 155.9 Taxes and
Duties 0.0 5.3 5.3 IDC 8.2 3.8 12.0 Subtotal 140.4 32.8 173.2
Candidate Subprojects 333.3 65.7 399.9 Total 473.7 98.5 572.2
IDC = interest and other charges during construction Source:
POWERGRID and Asian Development Bank estimates. 8. ADB has approved
a loan of $400 million from ADB’s ordinary capital resources to
help finance the Project. The loan will have a 20-year term
including a grace period of 5 years, an interest rate determined in
accordance with ADB’s London interbank offered rate (LIBOR)-based
lending facility, commitment charge of 0.75%, and such other terms
and conditions set forth in the Loan Agreement. 9. POWERGRID is the
borrower, with a guarantee from the Government of India, and will
bear the foreign exchange risk. ADB will finance 70% of the total
project costs as shown in Table 2 below. POWERGRID will fund the
remaining 30% of the total project costs, including interest and
other charges during construction, from its internal cash
generation and domestic commercial borrowings. The local currency
costs will be financed through borrowings as part of the overall
corporate financing requirements.
Table 2: Financing Plan
($ million)
Financing Source Foreign Currency Local
Currency Total %
ADB 400.0 0.0 400.0 70% POWERGRID 73.7 98.5 172.2 30%
Total 473.7 98.5 572.2 100% Note: POWERGRID's foreign exchange
contribution is toward the interest and other charges during
construction.
Source: Asian Development Bank and POWERGRID estimates. C.
Allocation of Loan Proceeds 10. POWERGRID shall apply the proceeds
of the Loan to the financing of expenditures on the Project in
accordance with the provisions of the Loan Agreement. 11. The goods
and services to be financed out of the proceeds of the Loan and the
allocation of amounts of the Loan among different categories of
such goods and services shall be in accordance with the provisions
of Schedule 3 of the Loan Agreement, and such Schedule may be
amended from time to time by agreement between the ADB and
POWERGRID.
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12. Except as ADB may otherwise agree, all goods and services to
be financed out of the proceeds of the Loan shall be procured in
accordance with the provisions of Schedule 3 of the Loan Agreement.
ADB may refuse to finance a contract where goods or services have
not been procured under procedures substantially in accordance with
those agreed between POWERGRID and ADB or where the terms and
conditions of the contract are not satisfactory to ADB. 13. Except
as ADB may otherwise agree, POWERGRID shall cause all goods and
services financed out of the proceeds of the Loan to be used
exclusively in the carrying out of the Project. 14. The closing
date for withdrawals from the Loan Account for the purposes of
Section 9.02 of the Loan Regulations shall be 31 December 2009 or
such other date as may from time to time be agreed between ADB and
POWERGRID.
III. IMPLEMENTATION ARRANGEMENTS
A. Executing Agency 15. POWERGRID is the executing agency for
the Project. POWERGRID’s organizational structure consists of (i) a
corporate center at the head office in Gurgaon (in the state of
Haryana) that is responsible for overall corporate planning, system
planning and engineering, management of transmission system
operations and projects, finance, commercial matters, and
personnel; and (ii) regional offices. POWERGRID’s organization
chart is given in Appendix 1. B. Project Management 16. The Project
will be implemented as a sector loan and additional subprojects
would be considered during implementation. POWERGRID has set up a
Program Management Unit (PMU) headed by an Executive Director
(Corporate Planning) at its headquarters. PMU, through the related
functional departments of POWERGRID, will be responsible for
processing and implementing the subprojects. POWERGRID has eight
regional offices each headed by an executive director/general
manager (in-charge) to implement the subprojects under their
respective jurisdiction. The general managers/additional general
managers in the region responsible for construction and
commissioning of the subprojects will report to their respective
regional heads. The regional heads will facilitate submission of
the implementation progress reports. The management of POWERGRID
receives monthly progress reports and reviews each subproject in
quarterly review meetings.
IV. IMPLEMENTATION SCHEDULE
17. The Project will be implemented over 5 years, inclusive of
procurement and construction activities, and is expected to be
completed by December 2009. Implementation of the subprojects
started in January 2005 and will be implemented until June 2009.
The implementation schedule of the 3 core subprojects that have
secured in-principle approval from the Government and the
additional subprojects approved by ADB is given in Appendix 2. ADB
will periodically review the implementation of the subprojects and
discuss with the concerned staff of POWERGRID to check progress.
ADB will also monitor POWERGRID’s overall technical and financial
performance. In view of the long lead time needed to implement
major transmission projects, POWERGRID has completed submission of
appraisal reports to ADB in December 2005 for the remaining
subprojects to be financed under the Project. ADB
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has approved all of these subprojects. However, POWERGRID may
submit appraisal reports for additional subprojects to ADB for
consideration, should there be savings under the loan.
V. COST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION
18. POWERGRID will prepare Project cost estimates of foreign
exchange costs and local costs for all subprojects, in the format
shown in Appendix 3. A detailed financing plan of the Project, with
estimated financing requirements for the major project components,
will also be prepared in the format shown in Appendix 4. These
tables will be revised and updated annually, or more often if
necessary, based on progress with contract awards and actual
implementation of the Project, and attached to the quarterly
progress reports to ADB. 19. POWERGRID will also prepare annually
the forecast contract awards and disbursements on a quarterly basis
for one year ahead, in the format shown in Appendix 5. This will be
submitted to ADB by 15 January each year.
VI. PROCUREMENT
20. Equipment and materials to be financed under the loan will
be procured in accordance with ADB’s Guidelines for Procurement.
International competitive bidding (ICB) will be used for supply
contracts estimated to cost more than $500,000, international
shopping for contracts from $100,000–$500,000, and direct purchase
arrangement for those less than $100,000. Contract packages and bid
specifications will be prepared to ensure maximum competition under
ICB. The agreed upon contract package list for the three core
subprojects and the additional subprojects approved by ADB, which
will follow ICB procedures, is given in Appendix 6. To facilitate
timely implementation of the Project and based on POWERGRID’s
effectiveness in handling procurement under the two previous
ADB-financed projects, POWERGRID has been allowed advance
procurement action for eligible subprojects. POWERGRID has also
been allowed to use the modified ADB bid documents applied under
the Sipat subproject along with the agreed modifications. 21. For
contracts to be awarded based on ICB procurement procedures,
POWERGRID are exempted from ADB’s prior review of its bid documents
provided that such documents are forwarded at the time of their
release to ADB for post-facto approval, and POWERGRID issues
amendments to such documents based on comments made by ADB, if any,
during the bidding period. Further, POWERGRID may also award
contracts of value less than $3 million in each case without
seeking prior approval of ADB, provided the lowest priced bidder is
also the lowest evaluated bidder, and with a proviso that (i) all
cases involving unusual issues shall be submitted to ADB for prior
approval, and (ii) all cases shall be subject to post-facto
approval of ADB which shall retain the right to disallow
utilization of loan proceeds in case it is unable to agree with
POWERGRID on either the bid documents or the bid evaluation report.
Any contract variations beyond the limit specified in the
corresponding bidding document will require ADB’s prior
approval.
VII. DISBURSEMENT PROCEDURES
22. The loan proceeds will be disbursed in accordance with ADB’s
Loan Disbursement Handbook, January 2001. No imprest account will
be required for disbursements under the loan.
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VIII. ACCOUNTING, AUDITING, AND REPORTING 23. POWERGRID will
maintain separate accounts for the Project. POWERGRID will also
have its accounts and financial statements (balance sheet,
statement of income and expenses, and related statements) audited
annually, in accordance with appropriate auditing standards and
consistently applied, by independent auditors whose qualifications,
experience, and terms of reference are acceptable to ADB. Within 6
months of the close of each financial year POWERGRID will submit
certified copies of audited annual project accounts (APA) and
annual financial statements (AFS) and related thereto. The APA will
contain detailed descriptions of the sources of receipts and
expenditures. The AFS will consist of an income statement, balance
sheet, statement of cash flows and related notes to financial
statement and consolidated for all of POWERGRID’s operations.
IX. PROGRESS REPORT, AND PROJECT PERFORMANCE MONITORING AND
EVALUATION
24. POWERGRID will prepare quarterly progress reports containing
all the information listed in Appendix 7 and submit these to ADB,
within 45 days after the end of each quarter. These reports will
provide, inter alia, a narrative description of progress made
during the period, changes in implementation schedule, problems or
difficulties encountered, and the work to be carried out in the
next period. The progress reports will also include a summary
financial account for the project components including subprojects,
consisting of project expenditures including for subprojects,
during the period, and total expenditure to date, and benefit
monitoring in accordance with ADB's Project Performance Management
Systems Handbook. Performance will be evaluated on the basis of
performance indicators/targets stipulated in the Project
Framework.
X. SAFEGUARDS 25. POWERGRID has prepared and disclosed the
required full Resettlement Plan for the three core subprojects to
the affected people. A Resettlement Framework (RF) has also been
prepared. The RF will serve as a basis to prepare subsequent RPs
for additional subprojects. In addition, an Indigenous Peoples
Development Framework (IPDF) has been prepared to guide POWERGRID
in preparing an IPDP if indigenous peoples are impacted in any
additional subproject. All plans will be prepared in full
consultation with affected persons and disclosed in draft form to
them and ADB for comments before finalization. 26. The three core
subprojects have been categorized as a “B” in accordance with ADB’s
Environmental Assessment Guidelines 2003. The initial environmental
examination (IEE), which included environmental management plan for
sample subprojects, was prepared in accordance with ADB’s
Environmental Assessment Guidelines, 2003. An Environmental
Assessment and Review Framework have been prepared to guide
preparation of IEEs for additional subprojects. Environment
Category B sensitive subprojects will be avoided to the extent
possible. Any additional subproject deemed by ADB as
environmentally B sensitive will require justification and
documentation that anticipated impacts can be effectively mitigated
and its SIEE will be made available to the general public at least
120 days before the subproject approval by ADB. As per the above
procedure, POWERGRID has prepared IEE reports for additional
subprojects and submitted to ADB which has been duly approved by
ADB.
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XI. MAJOR LOAN COVENANTS
27. The loan covenants which have been agreed among the
Government, POWERGRID and ADB, to be complied with against the
dates shown where applicable is in Appendix 8.
XII. KEY PERSONS INVOLVED IN THE PROJECT
28. The key persons responsible for the
implementation/administration of the Project are in Appendix 9.
XIII. ANTICORRUPTION
29. ADB defines corruption as “the abuse of public or private
office for personal gain.” ADB will systematically identify, in
consultation with its member countries opportunities for reducing
corruption as part of its broader emphasis upon promoting good
governance and sound development management. The institutional
arrangements and reporting mechanisms referred to in the PAM are
put in place to enable monitoring and accounting of the use of ADB
resources. The ADB’s Anticorruption Policy has set the guidelines
and procedures in addressing corrupt practices. Anyone coming
across evidence of corruption associated with the project must
contact ADB’s Office of the General Auditor, which will investigate
such allegations.
AGREED
For the Asian Development Bank: For the Executing Agency:
_______________________________ ________________________________
Pil-Bae Song Mr. I.C Jaiswal Head, PAU/Principal Energy Specialist
Executive Director, Corporate Planning Asian Development Bank Power
Grid Corporation of India Limited
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Appendix 1
8
POWER GRID CORPORATION OF INDIA LIMITED - ORGANIZATION CHART
Chairman and Managing Director
Corporate Planning, ESMD & CC Company Secretary Vigilance
Contract Services Material Mgt.
Director (Finance)
Accounts, budget & Taxation
Commercial Finance
Bonds, Banking, PF,
Pension, Establishment
Internal Audit
Director (Operations)
Operation Services
System Operations
NRLDC
ERLDC
WRLDC
SRLDC
NERLDC
Director (Personnel)
Human Resources
Telecom
Commercial
Law
Director (Projects)
Engg., QA & I
LD&C and IT
CMG
BDDPI
BDD = Business Development Department, CC= Corporate
Communication, CMG = Corporate Monitoring Group, DMS = Distribution
Management Services, ERLDC = Eastern Region Load Despatch Center,
ERSTS = Eastern Region Sub-transmission System, ERTS = Eastern
Region Transmission System, ESMD = Environment and Social
Management Department, IT = Information Technology, LD&C = Load
Despatch & Communication, NERLDC = Northeastern Region Load
Despatch Center, NERTS = Northeastern Region Transmission System,
NRLDC = Northern Region Load Despatch Center, NRTS = Northern
Region Transmission System, PF = Provident Fund, PI = Private
Investment, QA = Quality Assurance, SRLDC = Southern Region Load
Despatch Center, SRTS = Southern Region Transmission System, WRLDC
= Western Region Load Despatch Center, WRTS = Western Region
Transmission System.
DMS
Financial Concurrence, Cost Engg.
NRTS - I NRTS - II ERTS-I WRTS SRTS - I SRTS - II NERTS
ERTS-II
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9 Appendix 2
11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2
3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
10 11 12Core Subprojects
TF TO CA DA CS CE ES EE CI. Grid Strengthening for TN-I
TF TO CA DA CS CE ES EE C
TF TO CA DA CS CE ES EE CII. Grid Strengthening for TN-II
TF TO CA DA CS CE ES EE C
TF TO CA DA CS CE ES EE CIII. Grid Strengthening for TN&AP
and
Union Territory of PondicherryTF TO CA DA CS CE ES EE C
Candidate SubprojectsTF TO CA DA CS CE ES EE C
I. Grid Strengthening for Kerala-I
TF TO CA DA CS CE ES EE CII. Grid Strengthening for
Kerala-II
TF TO CA DA CS CE ES EE CIII. Northern Region System
Strengthening - V
AP = Andhra Pradesh; C = commissioning; CA = contract award; CE
= commencement of erection; CS = commencement of supply; DA =
drawing approval; EE = completion of erection;ES = completion of
supply; TF = tender float; TO = tender opening; TN = Tamil Nadu.
Note: Schedules are for the package(s) to be awarded first under
each subproject. Estimate at Appraisal Revised Estimate at
Inception (Jan. 2006)
2008 2009
SUBPROJECT IMPLEMENTATION SCHEDULE
Subproject Name 2005 2006S No. 20072004
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Appendix 3
Sub-projects Foreign Local Total Foreign Local Total Foreign
Local TotalExchange Currency Exchange Currency Exchange
Currency
Core Sub-projectsGrid Strengthening for TN-I 72.3 8.6 80.9 43.0
3.6 46.6Grid Strengthening for TN-II 44.7 12.5 57.2 44.7 12.5
57.2Grid Strengthening for TN&AP and UT of Pondicherry 20.8 7.6
28.4 20.8 7.6 28.4
Sub-total (Base Cost) 137.8 28.7 166.5 108.5 23.7 132.2
Physical Contingency 13.8 2.9 16.7 10.9 2.3 13.2Price
Contingency 16.4 3.6 20.0 12.8 3.0 15.8
Sub-total (Contingencies) 30.2 6.5 36.7 23.7 5.3 29.0
IDC 10.2 4.8 15.0 8.2 3.8 12.0
Total (Core Sub-project) 178.2 39.8 218.0 140.4 32.8 173.2
Candidate Sub-projectsGrid Strengthening for Kerala-I 180.4 39.6
220.0 117.9 22.1 140.0Grid Strengthening for Kerala-II 47.6 10.4
58.0 38.4 10.3 48.7Establishment of 765/400 kV substation at Unnao
*/ Northern Region System Strengthening - V (NRSS-V)
59.0 13.0 72.0 104.9 13.6 118.5
Sub-total (Base Cost) 287.0 63.0 350.0 261.2 46.0 307.2
Physical Contingency 26.1 4.6 30.7Price Contingency 28.7 5.1
33.8
Sub-total (Contingencies) 54.8 9.7 64.5
IDC 17.3 10.0 27.3
Total (Candidate Sub-project) 287.0 63.0 350.0 333.3 65.7
399.0
Grand Total 465.2 102.8 568.0 473.7 98.5 572.2
DETAILED PROJECT COST DURING IMPLEMENTATION
During appraisal (RRP) Actual (Inception Mission - Jan 2006)
Actual (on project completion)
* Establishment of 765/400 kV substation at Unnao, intially
identified as one of the Candidate subprojects at RRP stage, did
not evolve and subsequently another subproject,namely Northern
Region System Strengthening - V (NRSS-V) has been included as a
Candidate sub-project keeping in view the funding gap.
Included under Base
cost.
Included under Base
cost.
Included under Base
cost.
-
11
Appendix 4
Source Foreign Local Total % Foreign Local Total % Foreign Local
Total %Exchange Currency Exchange Currency Exchange Currency
ADB 400.0 0.0 400.0 70 400.0 0.0 400.0 70
POWERGRID 65.2 102.8 168.0 30 73.7 98.5 172.2 30
Total 465.2 102.8 568.0 100 473.7 98.5 572.2 100
ADB: Asian Development Bank, POWERGRID: Power Grid Corporation
of India Limited
During appraisal (RRP) Actual (Inception Mission - Jan 2006)
Actual (on project completion)
DETAILED FINANCING PLAN - DURING IMPLEMENTATION
-
12 Appendix 5
PROJECT:LOAN NO. SEGMENT NO. FUNDS (OCR, SF)
QP QP QP QP
QA QA QA QAQP QP QP QPQA QA QA QA
- - -
- - - - - -
- - 1 In accordance with the allocation of loan proceeds as
defined in the loan documents, or any other deatiled breakdown if
found useful.
QA = Quarterly Actual (already awarded/commited/disbursed, when
projections are prepared).QP = Quarterly Projected (to be
awarded/commited/disbursed), when projections are prepared).
COUNTRY (Acronym)
Ref. Line no.
Category 1 CONTRACT/COMMITMENT ITEM 1
QUARTER 3
Month Awarded/ Commited or To be
Awarded/ QP Disbursement Amount Related
to the Contract/ Commitment (6)
Disbursement Amount Related to the Contract/
Commitment (10)=(2+4+6+8)
Contract Value/ Commitment
(9)=(1+3+5+7)
QUARTER 4
Month Awarded/ Commited or To
be Awarded/ QP Disbursement Amount Related to
the Contract/ Commitment (8)
Contract Value/ Commitment (7) QA
QP
QA
Disbursement Amount Related to
the Contract/ Commitment (2) QA
Month Awarded/ Commited or To be Awarded/ Commited
QP Disbursement Amount Related to the Contract/
Commitment (4)Contract Value/ Commitment (3) QA
Contract Value/ Commitment (5)
Month, Year Contract Awarded
Contract Value (Bank Financed)
Month Awarded/ Commited or To be Awarded/ Commited
Contract Value/ Commitment (1)
1
2
3
4
7
5
6
8
9
10
11
12
13
April, May, June July, August, September October, November,
December
TOTAL PROJECTED FOR THE YEAR _______
QUARTER 2
TOTAL OF THIS PAGE ___ OF ___PAGES
GRAND TOTAL (LAST PAGE)
QUARTER 1Contracts Awarded on
Previous Year (s) January, February, March
15
14
WORKSHEET FOR QUARTERLY AND YEARLY CONTRACT AWARDS/COMMITMENTS
AND DISBURSEMENT PROJECTIONS ($ Million)
Ref. PAI Nos. 4.13. Issued in July 1992 and 6.1. Issued in
October 1990
PROJECTIONS MADE IN: (Month, Year)
-
Appendix 6
LOAN TITLE: POWER GRID TRANSMISSION (SECTOR) PROJECTLOAN NO.
2152-INDLOAN AMOUNT: $400.0 Million As of 17-Feb-06 LOAN CLOSING
DATEADV. PROC. APPROVAL DATE: 29-Sep-04 30-Jun-09APPROVAL DATE:
21-Dec-04EFFECTIVE DATE: -
Contract Title Specific Receipt Approval Issue Bid Receipt Bid
Bank Contract Receipt PCSS Amount (US$ Million) Specification No.
Notice Draft Draft of Bid Closing Bid Validity Approval Award
Signed Number Estimated Bank DisbursedSupplier's Name Date Bid Doc
Bid Doc Invitation Date Eval'n Period Date Date 2/ Contract /Date
Value Finance
Grid Strengthening for TN-1 INRC-52706-L195A-7 - Tower Package
(I) 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 17-Jun-05 07-Dec-05
16-Dec-05 18-Jan-06 28-Feb-06 9.700 265,121,415400kV D/C
Trinulveli-Udumalpet (A1) 01-Jul-05 16-Feb-06 + JV Electrical
Manufac/Amitasha Enterpris. 18-Jul-05 1,717,942
19-Aug-05C-52706-L175-7 - ACSR Moose Conductor 17-Jun-05
16-Dec-05 $(Trinulveli-Udumalpert (I) (B1) 14-Mar-05 28-Feb-05
14-Mar-05 16-Apr-05 01-Jul-05 11-Nov-05 16-Feb-06 18-Nov-05
28-Feb-06 7.500 5,885,220Sterlite Industries, India 18-Jul-05 +
19-Aug-05 INR 119,000C52706-L179-7 - Insulator Package (I)
17-Jun-05 16-Dec-05 1/ INR (Trinulveli-Udumalpet) (C1) 14-Mar-05
28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05 11-Nov-05 16-Feb-06
20-Dec-05 28-Feb-06 1.100 30,241,501W.S. Industries (India) Ltd.
18-Jul-05
19-Aug-05C-52707-L195A-7 - Tower Package (II) A-2 17-Jun-05
INRKEC Limited, India 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05
01-Jul-05 07-Dec-05 16-Dec-05 18-Jan-06 28-Feb-06 9.700
340,405,081
18-Jul-05 16-Feb-06 +19-Aug-05 1,063,150
C-52707-L175--7 - Conductor (II) (B2) 17-Jun-05 $Sterlite
Industries, India 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05
11-Nov-05 16-Dec-05 18-Nov-05 28-Feb-06 7.500 5,830,995
18-Jul-05 16-Feb-06 +19-Aug-05 INR 119,000
C52707-L179-7 - Insulator (II) (C2) 17-Jun-05 1/W.S. Industries
(India) Ltd. 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05
11-Nov-05 16-Dec-05 20-Dec-05 1.100 INR
18-Jul-05 16-Feb-06 28-Feb-06 38,581,30519-Aug-05
Grid Strengthening for TN II, TN, AP and Union Territory of
PondicherryC-55808-L195A-7 - Tower Package (I), 23-May-05 16-May-05
03-Jun-05 16-May-05 15-Jul-05 09-Dec-05 28-Dec-05 16-Jan-06
28-Feb-06 8.000 INR400kV, Pugalar-Madurai (A1) 09-Aug-05 31-Jan-06
321,522,671Associated Transrail Structured Ltd, India 23-Aug-05
28-Feb-06 +
30-Aug-05 788,750C-55808-L175-7 - ACSR Moose Conductor 15-Jul-05
$(B1) Apar Industries, Ltd. (India) 23-May-05 16-May-05 03-Jun-05
16-May-05 09-Aug-05 09-Dec-05 28-Dec-05 21-Dec-05 28-Feb-06 7.500
5,572,400
23-Aug-05 31-Jan-06 + INR30-Aug-05 28-Feb-06 8,110,800
C-55808-L179-7 - Insulator Package (C1) 15-Jul-05Modern
Insulators, Ltd. (India) 23-May-05 16-May-05 03-Jun-05 16-May-05
09-Aug-05 09-Dec-05 28-Dec-05 21-Dec-05 28-Feb-06 1.100 INR
23-Aug-05 31-Jan-06 45,054,08130-Aug-05 28-Feb-06
-
Appendix 6
LOAN TITLE: POWER GRID TRANSMISSION (SECTOR) PROJECTLOAN NO.
2152-INDLOAN AMOUNT: $400.0 Million As of 17-Feb-06 LOAN CLOSING
DATEADV. PROC. APPROVAL DATE: 29-Sep-04 30-Jun-09APPROVAL DATE:
21-Dec-04EFFECTIVE DATE: -
Contract Title Specific Receipt Approval Issue Bid Receipt Bid
Bank Contract Receipt PCSS Amount (US$ Million) Specification No.
Notice Draft Draft of Bid Closing Bid Validity Approval Award
Signed Number Estimated Bank DisbursedSupplier's Name Date Bid Doc
Bid Doc Invitation Date Eval'n Period Date Date 2/ Contract /Date
Value Finance
(C-55809-L195A-7 (A2)Transmission Line (II) - Tower Package
16-Jul-05 20-Sep-05 31-Mar-06 9.100(400kV, Udumalpet-Arasur, LILO
of 01-Aug-05 22-Aug-05 18-Jul-05 04-Oct-05 27-Jan-06
15-Feb-06Ramagundam-Khammam, @Warangal 18-Oct-05 15-Mar-06LILO of
Neyveli-Sriperumbudur)
18-Oct-05ACSR Moose Conductor 16-Jul-05 01-Aug-05 22-Aug-05
18-Jul-05 20-Sep-05 27-Jan-06 15-Feb-06 31-Mar-06
6.800(C-55809-L175-7 (B2) 04-Oct-05 15-Mar-06
20-Sep-05Insulator Package (C-55809-L179-7 (C2) 16-Jul-05
01-Aug-05 22-Aug-05 18-Jul-05 04-Oct-05 27-Jan-06 15-Feb-06
31-Mar-06 1.000
18-Oct-05 15-Mar-06C-55802-S119A-7 - Substation Package
09-Sep-05 07-Jan-06 INR(Pugalur & Madurai) (A1) 1-Jun-05
27-Apr-05 30-May-05 16-Apr-05 01-Aug-05 09-Dec-05 07-Feb-06
18-Jan-06 07-Feb-06 10.500 464,985,126Alsthom Ltd, India 16-Aug-05
28-Feb-06 +
2,030,937C-55803-S119A-7 - Substation Package 09-Sep-05
07-Jan-06 INR(Arasur & Udumalpet) (A2) 1-Jun-05 27-Apr-05
30-May-05 16-Apr-05 01-Aug-05 09-Dec-05 07-Feb-06 18-Jan-06
07-Feb-06 10.500 459,212,520Bharat Heavy Electricals Ltd., India
16-Aug-05 28-Feb-06 +
1,046,900C-55806-S119A-7 Substation Package 23-Sep-05at
Pondicherry (B1) 25-May-05 07-Jun-05 10-Jun-05 24-May-05 13-Sep-05
27-Jan-06 21-Jan-06 31-Mar-06 9.500
25-Aug-05 21-Feb-0625-Jul-05 31-Mar-06
C55807-S119A-7 Substation Package 23-Sep-05at Warangal (B2)
25-May-05 07-Jun-05 10-Jun-05 24-May-05 13-Sep-05 27-Jan-06
21-Jan-06 31-Mar-06 9.000
25-Aug-05 21-Feb-0625-Jul-05 31-Mar-06
Grid Strengthening of Kerala I 8-Sep-05 INRC-52709-L195A-7 -
Tower Package (A1) 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05
04-Jan-06 30-Jan-06 28-Feb-06 494,138,409400kV Tirunelvelli-Edamon
T/L 18-Nov-05 +Kalpataru Power Transmission Ltd.
2,836,000C-52710-L195A-7 Tower Package (A2) 8-Sep-05 INR400 kV
Tirunelvelli-Edamon T/L 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05
04-Jan-06 30-Jan-06 28-Feb-06 616,493,000M/s RPG Transmission Lines
18-Nov-05 +
2,613,600C-52709-L175-7 Conductor (B1) 8-Sep-05 $Apar
Industries, Ltd. India 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05
22-Dec-05 17-Mar-06 18-Jan-06 28-Feb-06 7,194,426
18-Nov-05 + INR102,000
-
Appendix 6
LOAN TITLE: POWER GRID TRANSMISSION (SECTOR) PROJECTLOAN NO.
2152-INDLOAN AMOUNT: $400.0 Million As of 17-Feb-06 LOAN CLOSING
DATEADV. PROC. APPROVAL DATE: 29-Sep-04 30-Jun-09APPROVAL DATE:
21-Dec-04EFFECTIVE DATE: -
Contract Title Specific Receipt Approval Issue Bid Receipt Bid
Bank Contract Receipt PCSS Amount (US$ Million) Specification No.
Notice Draft Draft of Bid Closing Bid Validity Approval Award
Signed Number Estimated Bank DisbursedSupplier's Name Date Bid Doc
Bid Doc Invitation Date Eval'n Period Date Date 2/ Contract /Date
Value Finance
C52710-L175-7 Conductor (B2) 8-Sep-05 $Sterlite Industries,
India 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 22-Dec-05 17-Mar-06
18-Jan-06 28-Feb-06 5,423,000
18-Nov-05 + INR119,000
C-52709-L179-7 Insulator (C1) 8-Sep-05 INRBharat Heavy Elect.
Ltd, India 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 22-Dec-05
17-Mar-06 18-Jan-06 28-Feb-06 53,863,792
18-Nov-05 +3,802,000
C-52710-L179-7 Insulator (C2) 8-Sep-05 08-Sep-05 08-Nov-05
INRBirla NGK Insulator, Ltd., India 06-Sep-05 12-Oct-05 18-Nov-05
22-Dec-05 17-Mar-06 18-Jan-06 28-Feb-06 62,668,422
+3,700,000
Grid Strengthening of Kerala II 21-Sep-05 21-Sep-05 13-Oct-05
21-Sep-05 26-Nov-05C-52711-L195A-7 (A1) - Tower Package 18-Nov-05
28-Nov-05 28-Feb-06400kV Edamon-Muvattupuzha T/L (Part I)
C-52712-L195A-7 (A2) - Tower Package 21-Sep-05 21-Sep-05
13-Oct-05 21-Sep-05 26-Nov-05400 kV D/C Edamon-Muvattupuzha T/L
18-Nov-05 28-Nov-05 28-Feb-06(Part II)
C-52713-L195A-7 (A3) - Tower Package 21-Sep-05 21-Sep-05
13-Oct-05 21-Sep-05 26-Nov-05400 kV D/C Muvattupuzha-North Trissur
18-Nov-05 28-Nov-05 28-Feb-06
C-52711-L175-7 (B1) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05
26-Nov-05Conductor Package 18-Nov-05 28-Nov-05
28-Feb-06
C-52712-L175-7 (B2) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05
26-Nov-05Conductor Package 18-Nov-05 28-Nov-05
28-Feb-06
C-52713-L175-7 (B3) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05
26-Nov-05Conductor Package 18-Nov-05 28-Nov-05
28-Feb-06
C-52711-L179-7 (C1) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05
26-Nov-05Insulator Package 18-Nov-05 28-Nov-05
28-Feb-06
C-52712-L179-7 (C2) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05
26-Nov-05Insulator Package 18-Nov-05 28-Nov-05 28-Feb-06
-
Appendix 6
LOAN TITLE: POWER GRID TRANSMISSION (SECTOR) PROJECTLOAN NO.
2152-INDLOAN AMOUNT: $400.0 Million As of 17-Feb-06 LOAN CLOSING
DATEADV. PROC. APPROVAL DATE: 29-Sep-04 30-Jun-09APPROVAL DATE:
21-Dec-04EFFECTIVE DATE: -
Contract Title Specific Receipt Approval Issue Bid Receipt Bid
Bank Contract Receipt PCSS Amount (US$ Million) Specification No.
Notice Draft Draft of Bid Closing Bid Validity Approval Award
Signed Number Estimated Bank DisbursedSupplier's Name Date Bid Doc
Bid Doc Invitation Date Eval'n Period Date Date 2/ Contract /Date
Value Finance
C-52713-L179-7 (C3) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05
26-Nov-05Insulator Package 18-Nov-05 28-Nov-05 28-Feb-06
C-52714-S919A-7 (Substation Package) 5-Oct-05 10-Oct-05
27-Oct-05 07-Oct-05 20-Dec-05Muvattupuzha (New) Extensions of North
03-Jan-06 30-Apr-06Thrissur, Udumalpet &
TrivandrumSubstation
Northern Region System StrengtheningTower Package (A1) 400kV D/C
MogaBhiwadi, Part I
Tower Package (A2) 400 kV D/C Moga-Bhiwadi, Part II
ACSR Moose Conductor (B1)
120 KN & 60 KN Insulator Package (C1)
400 kV D/C Agra-Bhiwadi, Part ITower Package (A3)
400 kV D/C Agra-Bhiwadi, Part II and LILOof 400 kV S/C
Hissar-Jaipur Line atBhiwadi (Tower Package - A4)
ACSR Moose Conductor (B2)
120 KN & 160 KN Insulator Package (C2)
Extension of 400 kV Bhiwadi and AgraSubstations (A1)
Extension of 400 kV Moga Substations(B1)
Prepared by: Sheila1/ Clarifications on the evaluation were
sought by ADB on 18 Nov 2005 and Power Grid's response was received
on 23 Nov. 2005.2/ Contract awards dates (in italics) were the
projected dates provided by the Power Grid.
-
Appendix 7 17
PRO FORMA OF THE EXECUTING AGENCY’S PROJECT PROGRESS REPORT
A. Introduction and Basic Data
Provide the following:
• ADB loan number, project title, borrower, executing
agency(ies), implementing agency(ies);
• total estimated project cost and financing plan; • status of
project financing including availability of counterpart funds
and
cofinancing; • dates of approval, signing, and effectiveness of
ADB loan; • original and revised (if applicable) ADB loan closing
date and elapsed loan period
based on original and revised (if applicable) loan closing
dates; and • date of last ADB review mission.
B. Utilization of Funds (ADB Loan, Cofinancing, and Counterpart
Funds) Provide the following:
• cumulative contract awards financed by the ADB loan, and
comparison with time-bound projections (targets);
• cumulative disbursements from the ADB loan, and counterpart
funds (expenditure-to-date to be reported usually in the third
quarter progress report), and comparison with time-bound
projections (targets); and
• reestimated costs to completion, need for reallocation within
ADB loan categories, and whether an overall project cost overrun is
likely, in any.
C. Project Purpose
Provide the following:
• status of project scope/implementation arrangements compared
with those in the report and recommendation of the President (RRP),
and whether major changes have occurred or will need to be
made;
• an assessment of the likelihood that the immediate development
objectives (project purpose) will be met in part or in full, and
whether remedial measures are required based on the current project
scope and implementation arrangements;
• an assessment of changes to the key assumptions and risks, if
any, that affect attainment of the development objectives; and
• other project developments, including monitoring and reporting
on environmental and social requirements that might adversely
affect the project's viability or accomplishment of immediate
objectives, if any.
D. Implementation Progress Provide the following:
• progress or achievements in implementation since the last
progress report;
-
18
• assessment of the progress of each project component, such as,
- recruitment of consultants and their performance; - procurement
of goods and works (from preparation of detailed designs and
bidding documents to contract awards); and - the performance of
suppliers, manufacturers, and contractors for goods and
works contracts; • assessment of progress in implementing the
overall project to date in comparison
with the original implementation schedule—quantifiable and
monitorable target, (include simple charts such as bar or milestone
to illustrate progress, a chart showing actual versus planned
expenditure; and
E. Compliance with Covenants
Provide the following:
• the borrower's compliance with policy loan covenants such as
sector reform initiatives and EA reforms, and the reasons for any
noncompliance or delay in compliance;
• the borrower’s and EA’s compliance with financial loan
covenants including the EA’s financial management, and the
provision of audited project accounts or audited agency financial
statements; and
• the borrower’s and EA’s compliance with project-specific loan
covenants associated with implementation, environment, and social
dimensions.
F. Major Project Issues and Problems Summarize the major
problems and issues affecting or likely to affect implementation
progress, compliance with covenants, and achievement of immediate
development objectives. Recommend actions to overcome these
problems and issues (e.g., changes in scope, changes in
implementation arrangements, and reallocation of loan
proceeds).
-
19
Appendix 8 MAJOR COVENANTS
Project Specific Covenants Reference Due Date Status/Actions to
be Taken
Environmental 1. POWERGRID will ensure that the Project is
undertaken and all subproject facilities are operated and
maintained, in accordance with all applicable laws and ADB’s
Environment Policy 2002. POWERGRID shall prepare and implement each
Subproject, the IEE, and the EMP (with budget).
LA, Schedule 4, para 5.
2. POWERGRID will ensure that adequate funds are budgeted for
and duly expended for implementation of environmental mitigation
measures set forth in the IEE and EMP for each subproject and
ensure that these are incorporated in detailed designs (including
any amendments due to detailed designs with prior approval by ADB).
POWERGRID shall ensure that these measures are also followed during
construction and operation of the subprojects.
LA, Schedule 4, para 6(a).
3. POWERGRID shall obtain all necessary environmental clearances
as required, from relevant statutory authorities of the Government,
and in particular, shall not undertake works in any stretch of
transmission lines passing through reserve forests or other
forestland unless the required forest and environmental clearances
are obtained from the Ministry of Forest and Environment.
LA, Schedule 4, para 6(b).
4. POWERGRID shall ensure that all Subprojects shall be subject
to ADB’s classification and any Subproject deemed sensitive shall
require justification and documentation including effective
mitigation measures for anticipated impacts.
LA, Schedule 4, para 6(c).
5. POWERGRID shall use only polychlorinated biphenyls (PCB)-free
transformers for all the substations renovated and/or established
under the Project.
LA, Schedule 4, para 7(a).
6. POWERGRID shall install oil separator (oil trap) in all
outlets of the sewers of substations. The sludge of oil trapped by
the separator will be kept in safe place within the property of the
substation and will be sold only to the authorized third parties in
accordance with applicable laws and regulations of the
Guarantor.
LA, Schedule 4, para 7(b).
-
20
7. POWERGRID, through Environmental and Social Management
Department (ESMD), shall continue to implement its internal
environmental and social policies and procedures and shall
undertake routine monitoring to check the implementation of the
mitigation measures recommended by the IEE and the EMP for each
subproject.
LA, Schedule 4, para. 8
Social 8. POWERGRID shall implement Subprojects in accordance
with requirements of the Government’s applicable laws, and ADB’s
Involuntary Resettlement Policy, 1995.
LA, Schedule 4, para. 9
9. For each subproject, POWERGRID shall ensure timely provision
of budget for land acquisition and other activities in order to
satisfy ADB’s requirements relating to involuntary
resettlement.
LA, Schedule 4, para. 10
10 POWERGRID shall set up the Social, Resettlement and
Environment Implementation Unit under the ESMD. These units shall
be assisted, as required, by local community-based organizations to
be engaged for field implementation.
LA, Schedule 4, para. 11
11 Within 3 months of Effective Date, POWERGRID shall establish
a grievance redress committee under each Core Subproject, in
accordance with the related RP. Similarly, POWERGRID shall
establish, prior to commencement of civil works, for each
subproject other than the Core Subprojects, a grievance redness
committee in accordance with the related RP.
LA, Schedule 4, para. 12(a).
12 By not later than 3 months of Effective Date for the Core
Subprojects and at least 2 months prior to commencement of civil
works under each Subproject other than Core Subprojects, POWERGRID
shall engage an independent individual expert in consultation with
ADB, for monitoring and verification of the RP implementation under
each Subproject.
LA, Schedule 4, para 12(b).
13. POWERGRID shall monitor, audit, and report semi-annually,
the implementation of the IEE and EMP for each Subproject to ADB.
Likewise, POWERGRID shall submit progress report and completion
reports on land acquisition and resettlement under the progress
reports for each Subproject.
LA, Schedule 4, para. 13.
-
21
Financial
14 POWERGRID shall maintain its Accounts Receivables at a level
not exceeding an amount equivalent to the income proceeds of its
transmission services for the preceding 3 months of billable amount
allowed by CERC.
LA, Schedule 4, para. 21
15 POWERGRID shall obtain from all SEB’s and other
beneficiaries, irrevocable letter of credit, in the aggregate
amounting to no less than 100% of average monthly billings of
previous financial year as allowed by CERC.
LA, Schedule 4, para. 22
16 POWERGRID shall not incur any debt, if after such debt may be
incurred the ratio of debt to equity would be greater than 80:20
and a self-financing ratio of 20%.
LA, Schedule 4, para. 25.
17 POWERGRID shall, commencing from September 2005 and
thereafter not later than 30 September each year, prepare and
furnish to ADB its 10-year financial projections, including its
investment program, financial plan, income statements, cash flow
statements and balance sheets for at least succeeding 5 years.
LA, Schedule 4, para. 23(a)
18. POWERGRID shall produce for each of its fiscal year, funds
from internal resources equivalent to not less than twenty percent
of the annual average of POWERGRID’s capital expenditures incurred,
or expected to be incurred for the previous, current, and following
fiscal year.
LA, Schedule 4, para. 26.
Benefit Monitoring and Progress Reports
19. With 3 months of the Effective Date, POWERGRID shall
establish the Project Performance Management System (PPMS) for the
Project in a form acceptable to ADB.
LA, Schedule 4, para. 14.
-
22
Conditions for Award of Civil Works Contracts (other than Core
Subprojects)
20. Prior to award of civil works contract under each Subproject
(other than Core Subprojects), POWERGRID shall have disclosed
through appropriate measures, the draft Resettlement Plan to
persons affected by the Subproject, and submitted the same to ADB
for review and obtained its approval.
LA, Schedule 3, para. 14.
ADB = Asian Development Bank, CERC = Central Electricity
Regulatory Commission, EMP = Environmental Management Plan, IEE =
initial environmental examination, LA = Loan Agreement, PCB =
polychlorinated biphenyls, POWERGRID = Power Grid Corporation of
India Limited, PPMS = Project Performance Management System , RP =
Resettlement Plan, SEB = State Electricity Board,
-
23
Appendix 9
KEY PERSONS RESPONSIBLE FOR THE PROJECT
Asian Development Bank Position Contact Address Mr. Thevakumar
Kandiah Director, South Asia Energy
Division +63-2-632-6301 [email protected]
Mr. Pil-Bae Song Head, PAU/Principal Energy Specialist, South
Asia Energy Division
+63-2-632-6947 [email protected]
Ms. Sheila D. Bulanhagui Project Officer, South Asia Energy
Division
+63-2-632-6430 [email protected]
Department of Economic Affairs, Ministry of Finance
Position Contact Address
Mr. Sanjay Kumar Deputy Secretary, ADB Division, Department of
Economic Affairs
+91-11-230-98688 [email protected]
Power Grid Corporation of India, Ltd.
Position Contract Address
Mr. I. C. Jaiswal Executive Director (Corporate Planning)
+91-124-257-1960 [email protected]
Mr. Sanjeev Singh Ms. Seema Gupta
Additional General Manager (Corporate Planning) Deputy General
Manager (Corporate Planning)
+91-124-257-1953 [email protected] +91-124-257-1953
[email protected]
Mr. Ajay Holani Chief Manager (Corporate Planning)
+91-124-257-1953 [email protected]
Loan Processing HistoryProject FrameworkI. Project DescriptionA.
Project Area and LocationB. Objectives and ScopeC. Selection and
Eligibility Criteria of SubprojectsD. Project Components
II. Cost Estimates and Financing PlanA. Detailed Cost
EstimatesC. Allocation of Loan Proceeds
III. Implementation ArrangementsA. Executing AgencyB. Project
Management
IV. Implementation ScheduleV. Cost Estimates and Financing Plan
during ImplementationVI. ProcurementVII. Disbursement
ProceduresVIII. Accounting, Auditing and ReportingIX. Progress
Report, and Project Performance Monitoring and EvaluationX.
SafeguardsXI. Major Loan CovenantsXII. Key Persons Involved in the
ProjectXIII. AnticorruptionAppendixes1. Organizational Chart of
Power Grid Corporation of India, Limited2. Implementation
Schedule3. Detailed Project Cost During Implementation4. Detailed
Financing Plan - During Implementation5. Quarterly and Yearly
Contract Awards and Disbursements Projection6. List of Contract
Packages (Contract Monitoring Sheets)7. Pro Forma of the Executing
Agency’s Project Progress Report8. Major Loan Covenants9. Key
Persons Responsible for the Project