48078-005: second power transmission enhancement ...€¦ · the second power transmission...

Second Power Transmission Enhancement Investment Program (PFR PAK 48078-004)

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Project Number: 48078-005 Loan: LXXXX June 2018

Pakistan: Second Power Transmission Enhancement Investment Program and Tranche 3

Project Administration Manual

http://www.adb.org/Documents/RRPs/?id=48078-002-3

ABBREVIATIONS

ADB AGP

– –

Asian Development Bank Auditor General of Pakistan

BESS – battery energy storage system CPPA CPPA-G DMF EA EAD EARF EMP EMS FAM FMA FMC FMICRA

– – – – – – – – – – – –

Central Power Purchasing Agency Central Power Purchasing Agency (Guarantee) Limited design and monitoring framework executing agency Economic Affairs Division environmental assessment and review framework environmental management plan energy management system facility administration manual financial management assessment facility management consultant financial management internal control and risk assessment

GDP – gross domestic product GW GWh

– –

gigawatt gigawatt-hour

HESCO – Hyderabad Electric Supply Company km – kilometer KP – Khyber Pakhtunkhwa kV – kilovolt kWh LARF

– –

kilowatt-hour land acquisition and resettlement framework

LCP – least-cost plan MFF MOF MOWP

– – –

multitranche financing facility Ministry of Finance Ministry of Water and Power

MVA MW

– –

megavolt-ampere megawatt

NEPRA – National Electric Power Regulatory Authority NTDC – National Transmission and Despatch Company Limited PMU – project management unit PPTA QESCO RMS

– – –

project preparatory technical assistance Quetta Electric Supply Company revenue metering system

RRP SCADA SFS

– – –

Report and Recommendation to The President Supervisory Control and Data Acquisition System for Settlement

TA – technical assistance TASF – technical assistance special fund

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CONTENTS Page

I. TRANCHE 3 DESCRIPTION 3

II. IMPLEMENTATION PLANS 6 C. Program and Project Readiness Activities 6 D. Overall Program and Project Implementation Plans 6

III. PROJECT MANAGEMENT ARRANGEMENTS 7 A. Program and Project Implementation Organizations: Roles and Responsibilities 7 B. Key Persons Involved in Implementation 7 C. Program and Project Organization Structure 8

IV. COSTS AND FINANCING 10 A. Cost Estimates Preparation and Revisions 10 B. Key Assumptions 10 C. Detailed Cost Estimates by Expenditure Category for Tranche 1 (Table 7) 11 D. Allocation and Withdrawal of Loan Proceeds for Tranche 3 (Table 8) 11 E. Detailed Cost Estimates by Financier for Tranche 3 (Table 9) 12 F. Detailed Cost Estimates by Year for Tranche 3 (Table 11) 14 G. Contract Award and Disbursement 15 H. Fund Flow Diagram for Tranche 3 (Figure 4) 17

V. FINANCIAL MANAGEMENT 17 A. Financial Management Assessment 17 B. Disbursement 18 C. Accounting 19 D. Auditing and Public Disclosure 19

VI. PROCUREMENT AND CONSULTING SERVICES 20 A. Advance Contracting and Retroactive Financing 20 B. Procurement of Goods, Works, and Consulting Services 20 C. Procurement Plan for Tranche 3 21

VII. SAFEGUARDS 21 A. Land Acquisition and Resettlement 21 B. Environment 23

VIII. GENDER AND SOCIAL DIMENSIONS 24 A. Gender 24 B. Social Dimensions 24

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 25 A. Program and Project Design and Monitoring Frameworks 25 B. Monitoring 27 C. Evaluation 28 D. Reporting 28 E. Stakeholder Communication Strategy 29

X. ANTICORRUPTION POLICY 29

XI. ACCOUNTABILITY MECHANISM 30

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 30

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, following the policies and procedures of the government and Asian Development Bank (ADB). The PAM includes references to templates and instructions.

2. 3. The executing agency (EA), National Transmission and Despatch Company Limited (NTDC),

is responsible for implementing the project, as agreed jointly between the Borrower and ADB, and in accordance with government and ADB’s policies and procedures. ADB is responsible to support implementation, including EA’s compliance of their obligations and responsibilities for project implementation following ADB’s policies and procedures.

4. At Loan Negotiations, the Borrower and ADB shall agree to the PAM and ensure consistency with the Loan Agreements which shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreements, the provisions of the Loan Agreements shall prevail.

After ADB Management approval of the Tranche's Periodic Financing Request Report, changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

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I. TRANCHE 3 DESCRIPTION

1. Rationale. The Second Power Transmission Enhancement Investment Program (MFF II) Tranche 3 will expand the transmission system in Punjab to remove transmission network bottlenecks and facilitate delivery of clean hydropower to load centers. 2. Impact and Outcome. The project is aligned with the following impacts: (i) improved transmission infrastructure1, and (ii) improved energy market transparency and efficiency2. The outcome will be improved coverage, reliability, transparency, and quality of the power transmission service in Pakistan. 3. Outputs. Under Tranche 3, NTDC transmission network and capacity will be augmented and expanded in meeting growing electricity demand efficiently and reliably at load centers in Punjab. A large-scale grid connected battery energy storage system (BESS) pilot project will also enhance NTDC’s capacity in dispatching intermittent renewable energy and providing frequency regulations. Specifically, Tranche 3 will include the following outputs and sub-projects:

(i) Output 1: Transmission system capacity augmented and expanded: (a) Subproject 1: 500 kilovolt (kV) 3,000 megavolt-ampere (MVA) Lahore North

substation, extension at 500 kV Gujranwala Substation, and associated 194-kilometer (km) transmission lines;

(b) Subproject 2: 500 kV Maira Switching Station; and (c) Subproject 3: 220kV 480 MVA Jauharabad substation and associated 12

km transmission lines

(ii) Output 2: Grid connected large scale battery energy storage system (BESS) installed. This adopts high-level technology and includes Subproject 4: (20 MW/5 MWh) BESS pilot project.

4. Tranche 3 will promote high level technologies and climate change resilient transmission system. Tranche 3 will support the first large scale grid connected battery energy storage system (BESS) pilot project in Pakistan, which will provide sub-second frequency regulations by using wind power to help NTDC comply with frequency requirements as per Grid Code. Tranche 3 will promote deployment of high temperature low sag (HTLS) conductors which can operate at higher ambient temperature within requested vertical clearance. Comparing to equivalently sized conventional aluminum conductor steel reinforced (ACSR) conductors, the HTLS conductors can also transfer more current with less loss. Tranche 3 will also support replacement of porcelain insulators with fog resistant insulators such as glass or composite type at heavily polluted area. Tranche 3 will contribute reduction of 166,000 ton CO2-equivalent per year, due to loss reduction and improved efficiency. Technical justifications of the subprojects are presented in Table 1, while the detailed description as well as the status of the subprojects are presented in Appendix 1. 5. The Facility Management Consultant (FMC) funded by the support component of Tranche 1 (Loan 3420-PAK) will help the NTDC manage the implementation of Output 1. Individual consultants will help NTDC prepare and implement Subproject 4.

1 Government of Pakistan, Ministry of Water and Power. 2013. National Power Policy 2013. Islamabad. 2 Government of Pakistan. 2014. Pakistan Vision 2025: One Nation – One Vision. Islamabad.

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Table 1: Technical Justifications for Subprojects Subproject Technical Justification

Subproject 1: 500 kV Lahore North Grid Station with associated Transmission Line

• 500/220/132kV S/S with 4x750 MVA, 500/220kV, and 3 x250 MVA 220/132 kV transformers

• Six 500 kV line bays, six 220kV line bays, and two 132kV line bays

• Extension at 500 kV of Gujranwala S/S of two 500 kV line bays

• 500 kV D/C T/L Lahore North -proposed Lahore HVDC switching/ converter station (105km)

• 500 kV D/C T/L Lahore North -existing Gujranwala S/S (45km)

• 220kV D/C T/L for in/out of 220 kV Ghazi Rd.-KSK S/C T/L (15km)

• 220kV D/C T/L for in/out of 220 kV Lahore-Ravi Rd. S/C T/L (14km)

• 220kV D/C T/L for in/out of 220 kV KSK-Ravi Rd. S/C T/L (15km)

• Transmission line construction equipment, washing units, live line, and dead line crew equipment

• Replacement with fog resistant insulators for existing transmission system at heavily polluted area

The project is needed to meet the load demand in the Lahore north area at acceptable quality levels. In the absence of the project there will be substantial suppressed load and insufficient reliability to major load centers. In addition, the project will enable an alternate supply route for the North-South power transfers at 500 kV from the proposed new converter station at Lahore South to the substations at Gujranwala and Maira. At the expected project commissioning year 2023, the project benefits will include: (a) enabling a load of approximately 1100 MW representing 6300 GWh of energy which would otherwise be suppressed or poorly supplied, (b) the reduction of system losses by 60 MW (peak) amounting to a generation saving of 259 GWh p.a., and (c) the provision of N-1 reliability to a large section of the Lahore North load. The transmission line construction equipment and live line crew equipment are needed to enhance line construction work, including live line maintenance operations. The replacement with fog resistant insulators is needed to replace insulators which have been compromised by contamination with fog

• Reconductoring with HTLS conductors for 220 kV New Kotlakhpat - Bund Road - Sheikhupura D/C T/L (44 km)

• Reconductoring with ACSR conductors for a part of 220kV Gatti - Bandala D/C T/L (5 km)

• Replacement of 2x37 MVAR shunt reactors at 500 kV Sheikhupura substation & 4x37 MVAR shunt reactors at 500 kV Gatti substation, and 2x22 MVAR shunt reactors at 500 kV Sheikhupura substation

• Replacement of 2x450MVA 500/220kV Transformer at Gatti 500 kV substation

• Replacement of existing electro-mechanical protection relays with numerical relays for Islamabad, Lahore & Multan regions

(a) Reconductoring with HTLS conductors for 220 kV New Kotlakhpat - Bund Road - Sheikhupura D/C T/L (44 km): The existing line is dilapidated and overloaded. Furthermore, the increasing load demand in the area requires larger power flows but new line construction is restricted by unavailability of access routes. These triple problems will be resolved by reconductoring the existing lines with HTLS conductors utilizing the exiting towers. Furthermore, the HTLS conductors have substantially lower losses than the equivalent ACSR conductors and lower system losses will be realized.

(b) Reconductoring with ASCR conductors for a part of 220kV Gatti - Bandala D/C T/L (5 km): The reconductoring of the conductors is primarily necessitated by the poor technical condition of the line (31km). This is an important line in the network and need to be maintained in service.

(c) Replacement of 37 MVAR shunt reactors at Sheikhupura & Gatti 500 kV substations, and 22MVAR shunt reactors at Sheikhupura 500 kV substation: The existing shunt reactors are damaged and do not work as designed. Replacing the damaged shunt reactors with the new one is expected to reduce outage triggered by the over voltage, improving the reliability.

(d) Replacement of 2x450 MVA 500/220kV transformer at Gatti 500 kV substation: The recent inspection result

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Subproject Technical Justification

shows the transformer's condition is at risk of possible explosion due to deteriorated insulation after over 40-year operation. The replacement is needed for both safety considerations and widespread outage (450MW) if the transformer is taken out of service.

(e) Replacement of electro-mechanical relays with digital numerical relays in Islamabad, Lahore & Multan regions: The existing electro-mechanical relays are outdated and provide limited information when outage happen. Digital numerical relays are needed to improve outage response and system performance.

Subproject 2: 500kV Maira Switching Station

• Eight 500 kV line bays with four shunt reactor banks.

This switching station is an integral part of the overall evacuation arrangement of the hydro power plants: 870 MW Suki Kinari, 1,100MW Kohala and 640MW Mahal. The arrangement and location of the switching station has been selected on the basis of an Interconnection Study carried out by NTDC’s consultants. The project may be considered as an essential part of the least cost arrangement for the evacuation of the power from the above three hydro stations. The shunt reactors are needed for voltage control of the network at light load conditions.

Subproject 3: 220kV Jauharabad Substation with associated transmission line

• 220kV S/S at Jauharabad with 3x160 MVA 220/132kV transformers along with allied equipment and accessories

• Four 220kV line bays and eight 132kV line bays

• Two 220kV D/C T/L of twin bundle Rail conductor for looping In/Out of existing Ludewala – Chashnupp D/C T/L at 220kV Jauharabad (12km)

The project is needed to meet the future load demand in the Jauharabad, Quaidabad, and Adi Kot areas at acceptable quality levels. In the absence of the project major load centers will have poor reliability of supply. At the expected project commissioning year 2023, the project benefits will include: (a) enabling a load of approximately 32 MW representing 139 GWh of energy which would otherwise be suppressed or poorly supplied, (b) the reduction of system losses by 15.5 MW (peak) amounting to a generation saving of 44.3 GWh p.a., and (c) the provision of N-1 reliability to a large section of area loads.

Subproject 4: Grid Connected Battery Energy Storage System Pilot Project

• Lithium-ion Battery Packs (5 MWh)

• Balance of system including inverters (20MW)

• Transformers (220kV/33kV, 30MVA 1unit and 33kV/0.44kV, 5MVA 6 units)

A 20 MW/5MWh battery energy storage system at the proposed location of the Jhimpir-1 substation would provide two major benefits – network stability support by primary frequency control and improved dispatch of variable renewable generation.

D/C =Double circuit, HTLS = high temperature low sag, km = kilometer, kV = kilovolt, MVA = megavolt-ampere, MW = megawatt, T/L = transmission line, S/S = substation.

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II. IMPLEMENTATION PLANS

A. Program and Project Readiness Activities

Table 2: Processing Schedule

Indicative Activities 2018 Responsible Party

A M J J A S O N D

Advance contracting actions

ADB, NTDC

Establish implementation arrangements

Negotiations and PFR signing

ADB, EAD, NTDC ADB Management Consideration of Tranche 3

Loan signing of Tranche 3

Subsidiary on-lending agreement

EAD, NTDC

Loan effectiveness for Tranche 3 ADB, EAD, NTDC ADB = Asian Development Bank, EAD = Economics Affairs Division, NTDC = National Transmission and Despatch Company Limited, PFR = periodic financing request.

B. Overall Program and Project Implementation Plans 6. The implementation schedules for Tranche 3 are in Table 2 while detailed procurement and construction schedules of sub-projects are presented in Appendix 2.

Table 2: Tranche 3 Implementation Schedule

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1. Issue tender documents and

undertake procurement

1.2. Award contracts

1.2. Construct assets

1.3. Make assets operational

2.1. Issue tender documents and

undertake procurement

2.2. Award contracts

2.3. Construct assets

2.4. Make the system operational

1.1. Additional NTDC PMU staff

appointed

1.2. NTDC gender action plan

implemented

1.3. EMP activities implementation

1.4. Communication activities

1.5. Project Reviews

1.6. Midterm Review

1.7. Project Completion Report

Activities

Output 1: Transmission network in North Pakistan augmented and expanded

A. DMF

Output 2: Grid connected large scale battery energy storage system (BESS) installed

B. Management Activities

20232019 2020 2021 2022

DMF = design and monitoring framework, Q = quarter.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Program and Project Implementation Organizations: Roles and Responsibilities

Table 4: Management Roles and Responsibilities Implementation Organizations

Management Roles and Responsibilities

Steering committee

• Chaired by Secretary, Ministry of Energy (Power Division), and consisting of Joint Secretary (NTDC), Joint Secretary (Power/Finance), Managing Director of NTDC will provide support and guidance as deemed necessary. The Ministry of Energy (Power Division) will provide overall sector coordination and liaise with ADB on policy and reforms and overall ADB project-related issues. The

Executing Agency

• National Transmission and Despatch Company Limited (NTDC) will monitor the implementation of the investment program following the Framework Financing Agreement, and subsequent tranches following the loan and project agreements.

Implementing Agency

• NTDC: The existing project management unit (PMU) for MFF II Tranches 1 and 2 will be responsible for the day-to-day project implementation of the physical outputs relating to the transmission system and operation (as defined under their transmission license). PMU will also be responsible for complying with the safeguards requirements (Chapter VII) and design and monitoring framework (Chapter IX), and loan covenants. The facility management consultant (FMD) will support the PMU for implementation.

Borrower • Islamic Republic of Pakistan

Financier • Asian Development Bank

B. Key Persons Involved in Implementation

Table 5: Key Persons in Executing Agency and Financier Executing Agency National Transmission and Despatch Company

Managing Director PMU

Zafar Abbas Telephone: (92-42) 9920 2229 Facsimile: (92-42) 9920 2053 Email address: [email protected] Office Address: #414 WAPDA House, Lahore Munawer Hussain Abbasi Chief Engineer, Project Management Unit Email address: [email protected]

Financier Asian Development Bank

Energy Division Ashok Bhargava Director, CWEN Telephone: (63-2) 632 6387 Email address: [email protected]

Mission Leader Lei Zhang Senior Energy Specialist, CWEN/Pakistan Resident Mission Telephone: (92) 51208 7300 ext. 324 Email address: [email protected]

mailto:[email protected]




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C. Program and Project Organization Structure 7. To cope with its unprecedented challenges to at least double the transmission capacity within several years, NTDC is restructuring its organization to improve institutional efficiency. The restructuring focuses on strengthening its core functions: planning, design, project development, system management and operations, and improving regulatory compliance, such as timely submission of tariff petition, investment plan and loan forecast, among others, in accordance with NEPRA rules and regulations. These functions will be strengthened through creating two groups, i.e., (i) planning, design and engineering (Group 1), and (ii) asset development and management (Group 2). Two deputy managing directors (DMD), DMD (Planning & Engineering) and DMD (Asset Development & Management) lead the two groups. A Corporate Affair Department headed by General Manager was established to improve regulatory compliance and strategic planning (Figure 1).

Figure 1: Recommended NTDC Structure

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8. Under this context, ADB’s project management unit (PMU) is positioned under Group (Asset Development and Management). Dedicated project managers (PMs) or project directors (PDs) subproject to size of subprojects are being assigned. PMs or PDs will report to dedicated PMU Head (General Manager) who will further report to DMD (Asset Development and Management). The PMs or PDs will be full responsible at subproject level for procurement and execution until commissioning, under the overall guidance of PMU Head (General Manager). The PMs or PDs will select staff responsible for (i) procurement, (ii) scheduling/coordination; (iii) safeguards; (iv) finance; and (v) design and engineering. These staff will report to PMs or PDs and coordinate with their line departments in parallel (Figure 2). A facility management consultant (FMC)3 has been engaged to support PMU in implementing MFF II. Specifically, it assists in the design, procurement, project management, environmental and social safeguards monitoring, and capacity building throughout the investment program. In addition, they supplement technical capacity of PMU in state-of-the-art design of 500 kV substations, as well as introduce international best practices.

Figure 2: Proposed PMU Structure for MFF II in NTDC

3 The consultants were engaged through PAK: Second Power Transmission Enhancement Investment Program

Tranche 1 (Loan 3420).

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IV. COSTS AND FINANCING

9. Tranche 3. The loan amounts to $280 million and will be financed from ADB’s ordinary capital resources. The loan will have a 25-year term, including a grace period of 5 years, and an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)–based lending facility, a commitment charge of 0.15% per year, and such other terms and conditions set forth in the draft loan and project agreements (Appendixes 3 and 4). Based on the custom-tailored method, the average loan maturity is 15.98 years and the maturity premium payable to ADB is 0.10% per year. $4 million grant from ADB’s high level technology fund (HLTF) will cofinance the battery energy storage system (BESS) pilot project. 10. Counterpart funding. NTDC will finance land acquisition, resettlement compensation; environmental and social mitigations, administration and audit; taxes, and duties. ADB will finance the goods and turnkey contracts, interest during construction (on ADB portion of financing), and contingency. A. Cost Estimates Preparation and Revisions 11. The cost estimates for Tranche 3 were prepared based on the updated technical analysis by NTDC and consultants. The cost estimates were based on the most recent prices and a market assessment done by NTDC and consultants. These estimates were reviewed by ADB and endorsed by NTDC. B. Key Assumptions

12. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: 1 USD = PRs115.40 as of 04 April 2018. (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:

Table 6: Escalation Rates for Price Contingency Calculation (Tranche 3)

Item 2018 2019 2020 2021 2022 Average

Foreign rate of price inflation 1.50% 1.5% 3.0% 4.6% 6.2% 4.11% Domestic rate of price inflation

4.80% 4.9% 10.2% 16.0% 22.0% 14.38% Source: Asian Development Bank.

(iii) All costs are expressed in March 2018 prices. (iv) Physical contingencies are computed at 5% of total base costs and 9% for taxes

and duties. (v) Financial charges during implementation consist of interest during construction of

12% per annum (government’s on-lending rate to NTDC) calculated on the average outstanding amount, and commitment charges of 0.15% per annum calculated on the average undisbursed amount of ADB loan.

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C. Detailed Cost Estimates by Expenditure Category

Table 7. Detailed Cost Estimates by Expenditure Category for Tranche 3

($ million)

Item

Local

Currency

Foreign

currency Total Costa

% of Base

Cost

A. Investment Costsb

1 500 KV Lahore North S/S and T/L 59.69 139.29 198.98 62.0%

2 500 KV Maira Switching station 7.61 17.76 25.37 7.9%

3 220kV Jauharabad S/S and T/L 5.37 12.54 17.91 5.6%

4 Battery Energy Storage System Pilot - 6.44 6.44 2.0%

5 Social and Environment Mitigation 5.00 - 5.00 1.6%

6 Land Acquisition and Resettlement 26.98 - 26.98 8.4%

7 Taxes and duties 12.05 28.11 40.15 12.5%

Total Base Cost (A) 116.71 204.13 320.83 100.0%

B. Contingenciesc

1 Physical 5.84 10.21 16.04 5.0%

2 Price 15.93 16.46 32.39 10.1%

Subtotal (B) 21.77 26.67 48.43 15.1%

C. Financing Charges During Implementationd

1 Interest during Implementation 40.72 16.79 57.51 17.9%

2 Commitment Charges - 1.23 1.23 0.4%

Subtotal (C) 40.72 18.02 58.74 18.3%

Total (A+B+C) 179.20 248.82 428.00 133.4% a Includes taxes and duties of $40.15 million to be financed from NTDC cash resources for Tranche 3. b In March 2018 prices. c Physical contingencies are computed at 5% and 9% for Taxes and Duties. Price contingencies computed at 1.5% in 2018, 1.5% in 2019 and onward on foreign exchange costs; and 4.8% in 2018, 5.0 in 2019, 5.2% in 2020 and onward on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-year fixed swap rate plus a contractual spread of 0.5% and 0.10% of maturity premium. The ADB loan will be on-lent at 12.00% per annum and carry the same repayment and grace periods. Commitment charges are calculated at 0.15% on average undisbursed amount. Source: NTDC and ADB estimates.

D. Allocation and Withdrawal of Loan Proceeds

Table 8. Allocation and Withdrawal Loan Proceeds for Loan [XXXX]

Number Item

Total Amount Allocated for ADB

Financing ($) Basis for Withdrawal

from the Loan Amount

1 Turnkey and goods supply contracts** 244,700,000

100% of total expenditures claimed*

2 Interest and Commitment Charges 18,020,000 100% of amount due

3 Unallocated 17,280,000

Total 280,000,000 Source: Asian Development Bank. *Exclusive of taxes and duties imposed within the territory of the Borrower. **Subject to the condition for withdrawal described in paragraph 7 of Schedule 3 to the Ordinary Operations Loan Agreement.

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Table 9. Allocation and Withdrawal Proceeds for Grant [XXXX]

ALLOCATION AND WITHDRAW GRANT PROCEEDS

Number Item

Total Amount Allocated for

HLTF Financing ($)

Basis for Withdrawal from the Grant Amount

1 Turnkey contract** 3,000,000 100% of total expenditures claimed*

2 Consulting services 1,000,000 100% of total expenditures claimed*

Total 4,000,000 Source: Asian Development Bank. *Exclusive of taxes and duties imposed within the territory of the Borrower. **Subject to the condition for withdrawal described in paragraph 5 of Schedule 1 to the Grant Agreement, and disbursement will be front loaded.

E. Detailed Cost Estimates by Financier

Table 10. Detailed Cost Estimates by Financier for Tranche 3 ($ million)

Item Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category

Total

Cost


1 500 KV Lahore North S/S and T/L 198.98 100.0% - 0.0% - 0.0% 198.98

2 500 KV Maira Switching station 25.37 100.0% - 0.0% - 0.0% 25.37

3 220kV Jauharabad S/S and T/L 17.91 100.0% - 0.0% - 0.0% 17.91

4 Battery Energy Storage System Pilot 2.44 37.9% 4.00 62.1% - 0.0% 6.44

5 Social and Environment Mitigation - 0.0% - 0.0% 5.00 100.0% 5.00

6 Land Acquisition and Resettlement - 0.0% - 0.0% 26.98 100.0% 26.98

7 Taxes and duties - 0.0% - 0.0% 40.15 100.0% 40.15

Total Base Cost (A) 244.70 76.3% 4.00 1.2% 72.13 22.5% 320.83

B. Contingenciesc 17.28 35.7% - 0.0% 31.15 64.3% 48.43

C. Financing Charges During Implementationd 18.02 30.7% - 0.0% 40.72 69.3% 58.74

Total (A+B+C) 280.00000 65.4% 4.00 0.9% 144.00 33.6% 428.00

ADB NTDCADB Grant (HLTF)

a Includes taxes and duties of $40.15 million to be financed from NTDC cash resources for Tranche 3. b In March 2018 prices. c Physical contingencies are computed at 5% and 9% for Taxes and Duties. Price contingencies computed at 1.5% in 2018, 1.5% in 2019 and onward on foreign exchange costs; and 4.8% in 2018, 5.0 in 2019, 5.2% in 2020 and onward on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-year fixed swap rate plus a contractual spread of 0.5% and 0.10% of maturity premium. The ADB loan will be on-lent at 12.00% per annum and carry the same repayment and grace periods. Commitment charges are calculated at 0.15% on average undisbursed amount. Source: NTDC and ADB estimates.

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F. Detailed Cost Estimates by Outputs

Table 11. Detailed Cost Estimates by Outputs ($ million)

Item Total Cost Amount% of Cost

CategoryAmount

% of Cost

CategoryAmount

% of Cost

CategoryAmount

% of

Cost

Categor

y


Output 1

1 500 KV Lahore North S/S and T/L 198.98 198.98 100.0% - 0.0% - 0.0% - 0.0%

2 500 KV Maira Switching station 25.37 - 0.0% 25.37 100.0% - 0.0% - 0.0%

3 220kV Jauharabad S/S and T/L 17.91 - 0.0% - 0.0% 17.91 100.0% - 0.0%

Output 2

4 Battery Energy Storage System Pilot 6.44 - 0.0% - 0.0% - 0.0% 6.44 100.0%

5 Social and Environment Mitigation 5.00 4.11 82.1% 0.52 10.5% 0.37 7.4% - 0.0%

6 Land Acquisition and Resettlement 26.98 22.16 82.1% 2.83 10.5% 1.99 7.4% - 0.0%

7 Taxes and duties 40.15 32.98 82.1% 4.21 10.5% 2.97 7.4% - 0.0%

Total Base Cost (A) 320.84 258.23 80.5% 32.92 10.3% 23.24 7.2% 6.44 2.0%

B. Contingenciesc

1 Physical 16.04 12.91 80.5% 1.65 10.3% 1.16 7.2% 0.32 2.0%

2 Price 32.37 28.00 86.5% 2.56 7.9% 1.81 5.6% - 0.0%

Subtotal (B) 48.42 40.92 84.5% 4.21 8.7% 2.97 6.1% 0.32 0.7%

C. Financing Charges During Implementationd58.74 48.25 82.1% 6.15 10.5% 4.34 7.4% - 0.0%

Total (A+B+C) 428.00 347.39 81.2% 43.28 10.1% 30.56 7.1% 6.76 1.6%

Sub-Project 3

Jauharabad

Sub-Project 1 Sub-Project 2 Sub-Project 5

Lahore North Maira Switching BESS


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G. Detailed Cost Estimates by Year

Table 12. Detailed Cost Estimates by Year for Tranche 3 ($ million)

Item Total Cost Amount% of Cost

CategoryAmount

% of Cost

CategoryAmount

% of Cost

CategoryAmount

% of

Cost

Categor

y


Output 1

1 500 kV Lahore North S/S and T/L 198.98 198.98 100.0% - 0.0% - 0.0% - 0.0%

2 500 kV Maira Switching station 25.37 - 0.0% 25.37 100.0% - 0.0% - 0.0%

3 220 kV Jauharabad S/S and T/L 17.91 - 0.0% - 0.0% 17.91 100.0% - 0.0%

Output 2

4 Battery Energy Storage System Pilot 6.44 - 0.0% - 0.0% - 0.0% 6.44 100.0%

5 Social and Environment Mitigation 5.00 4.11 82.1% 0.52 10.5% 0.37 7.4% - 0.0%

6 Land Acquisition and Resettlement 26.98 22.16 82.1% 2.83 10.5% 1.99 7.4% - 0.0%

7 Taxes and duties 40.15 32.98 82.1% 4.21 10.5% 2.97 7.4% - 0.0%

Total Base Cost (A) 320.84 258.23 80.5% 32.92 10.3% 23.24 7.2% 6.44 2.0%

B. Contingenciesc

1 Physical 16.04 12.91 80.5% 1.65 10.3% 1.16 7.2% 0.32 2.0%

2 Price 32.37 28.00 86.5% 2.56 7.9% 1.81 5.6% - 0.0%

Subtotal (B) 48.42 40.92 84.5% 4.21 8.7% 2.97 6.1% 0.32 0.7%

C. Financing Charges During Implementationd58.74 48.25 82.1% 6.15 10.5% 4.34 7.4% - 0.0%

Total (A+B+C) 428.00 347.39 81.2% 43.28 10.1% 30.56 7.1% 6.76 1.6%

Sub-Project 3

Jauharabad

Sub-Project 1 Sub-Project 2 Sub-Project 5

Lahore North Maira Switching BESS


15

H. Contract Award and Disbursement Projections

Figure 2a. Tranche 3 S-Curve (ADB OCR Loan)

Figure 2b. Tranche 3 S-Curve (ADB Grant, HLTF)

16

Table 13a. Contract Award and Disbursement Projection (ADB OCR Loan)

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

2019 9.12050 197.11500 0.00000 0.00000 206.23550 0.00000 0.91205 19.11140 3.58615 23.60960

2020 0.00000 0.00000 0.00000 0.00000 0.00000 23.21520 30.88475 30.66290 4.31205 89.07490

2021 0.00000 0.00000 0.00000 0.00000 0.00000 38.95550 0.85000 46.62250 1.52150 87.94950

2022 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 8.10050 0.00000 0.00000 8.10050

2023 0.00000 0.00000 0.00000 55.74450 55.74450 0.00000 0.00000 0.00000 0.00000 0.00000

2024 0.00000 71.26550 71.26550

261.98000 280.00000

Note: Exckusive of Interest and Commitment Charges ($18.02 million)

Contract Awards (in USD million) Disbursements (in USD million)

Total Contract Awards Total Disbursements

OCR = ordinary capital resources, Q = quarter Source: Asian Development Bank estimates.

Table 13b. Contract Award and Disbursement Projection (ADB Grant, HLTF)


2019 0.42500 2.97500 0.00000 0.00000 3.40000 0.00000 0.08500 0.29750 0.08500 0.46750

2020 0.00000 0.00000 0.00000 0.00000 0.00000 2.38000 0.08500 0.29750 0.08500 2.84750

2021 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.08500 0.00000 0.00000 0.08500

2022 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

2023 0.00000 0.00000 0.00000 0.60000 0.60000 0.00000 0.00000 0.00000 0.00000 0.00000

2024 0.00000 0.60000 0.60000

4.00000 4.00000


Total Contract Awards Total Disbursements HLTF = high level technology fund, Q = quarter Source: Asian Development Bank estimates.

Table 13c. Contract Award and Disbursement Projection (Project, Total)


2019 9.54550 200.09000 0.00000 0.00000 209.63550 0.00000 0.99705 19.40890 3.67115 24.07710

2020 0.00000 0.00000 0.00000 0.00000 0.00000 25.59520 30.96975 30.96040 4.39705 91.92240

2021 0.00000 0.00000 0.00000 0.00000 0.00000 38.95550 0.93500 46.62250 1.52150 88.03450

2022 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 8.10050 0.00000 0.00000 8.10050

2023 0.00000 0.00000 0.00000 56.34450 56.34450 0.00000 0.00000 0.00000 0.00000 0.00000

2024 0.00000 71.86550 71.86550

265.98000 284.00000

Note: Exckusive of Interest and Commitment Charges ($18.02 million)


Total Contract Awards Total Disbursements

17

I. FUND FLOW DIAGRAM Figure 3. Fund Flow

ADB

GOP

NTDC

(Implementing Agency)

Financing Agreement (Loan)

Onlending Agreement

Contractor

ContractInvoice

With

draw

al

appli

catio

n

Dire

ct Pa

ymen

t

Project Agreement

For commitment procedure, ADB loan and HLTF grant proceeds go directly from ADB to a nominated bank of the supplier on a reimbursement basis.

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment 13. The financial management assessment (FMA) was conducted in March 2018 following ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note. The FMA considered the capacity of the NTDC, including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. 14. Based on the assessment, the key financial management risks identified are: (i) incomplete and in accurate financial reports due to manual system; (ii) delay in submission of APFS due to reorganization structure starting mid 2018; and (iii) delaying in submission of NTDC’s audited financial statements to ADB which could undermine NTDC’s ability to meet financial covenant and NTDC’s sustainability to implement the project. 15. It is concluded that the overall pre-mitigation financial management risk of NTDC is substantial. NTDC has agreed to implement an action plan to address the deficiencies (Table 14).

18

Table 14: Financial Management Action Plan

Action Responsibility Resources Timing

Monitor Implementation of a

computerized accounting software

to automate the accounting and

reporting processes to ensure that

the financial statements are free of

material errors and misstatements

as well as timely submission and

resolution of issues.

NTDC Director Finance By 2020

Providing NTDC’s audited financial

statements to ADB 1 month after

relevant approved authority.

NTDC Finance Director After effectiveness

Auditor Terms of Reference will be

reviewed to confirm audit scope of

financial covenants.

NTDC Finance Director 6 months

Financial management assessment

to be reviewed during project

implementation

ADB Project team After NTDC completes

phase 1 -

implementation of new

organization structure

ADB = Asian Development Bank, NTDC = National Transmission and Despatch Company Limited.

B. Disbursement

(i) Disbursement Arrangements for ADB Funds 16. The loan and grant proceeds will be disbursed following ADB’s Loan Disbursement Handbook (2017, as amended from time to time),4 and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.5 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. 17. Statement of expenditure (SOE) procedure.6 The SOE procedure may be used for reimbursement of eligible expenditures up to $100,000. Supporting documents and records for the expenditures claimed under the SOE should be made readily available for review by ADB's disbursement and review missions upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. 18. Before submitting the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is set following the Loan Disbursement Handbook. Individual payments below this amount should be paid by NTDC and subsequently claimed to ADB through reimbursement, unless otherwise accepted by ADB. 19. No withdrawals (other than in relation to interest and commitment charges ADB is entitled to withdraw from the loan account and pay to itself, on behalf of the borrower) shall be

4 http://www.adb.org/documents/ loan-disbursement-handbook 5 Disbursement eLearning available in http://wpqr4.adb.org/disbursement_elearning. 6 SOE forms are available in Appendix 7B and 7D of ADB’s Loan Disbursement Handbook (2017, as amended from

time to time).

http://wpqr4.adb.org/disbursement_elearning

19

made from the loan account until (i) ADB has received a certified copy of the duly executed and effective subsidiary loan agreement between the borrower and NTDC, and (ii) ADB has received a copy of the audited annual financial statements of NTDC for the fiscal year ending 30 June 2017.

(ii) Disbursement Arrangements for Counterpart Fund 20. NTDC, as a revenue generating company, will finance taxes and duties, project administration and audit, and cost of land acquisition and resettlement compensation, and environmental and social mitigations, following the government regulations. C. Accounting 21. NTDC will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following International Public Sector Accounting Standard for cash-based accounting. NTDC will prepare separate project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. D. Auditing and Public Disclosure 22. NTDC will cause the detailed project financial statements to be audited following International Standards for Supreme Audit Institutions, by Office of Auditor General of Pakistan. The audited project financial statements (APFS) together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by NTDC. 23. NTDC will also cause the entity-level financial statements to be audited in accordance with International Standards on Auditing, by an independent auditor acceptable to ADB. The audited entity-level financial statements, together with the auditors’ report, will be submitted in the English language to ADB within one month after their approval by the relevant authority. 24. The annual audit report for the project financial statements will include an audit management letter and audit opinions which cover (i) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework; (ii) whether loan and grant proceeds were used only for the purposes of the project or not; and (iii) the level of compliance for each financial covenant contained in the legal agreements for the project. 25. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor. 26. The government and NTDC have been made aware of ADB’s approach to delay submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements (APFS).7 ADB reserves the right to require a change in the auditor (in a

7 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue, and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement new reimbursement, and new commitment letters will not be processed.

20

manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits are not conducted satisfactorily to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used following ADB’s policies and procedures. 27. Public disclosure of the APFS, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.8 After the review, ADB will disclose the APFS and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.9

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing 28. ADB approved advanced contracting for procurement of goods and works for all tranches under the MFF, including the project. All advance contracting and retroactive financing will follow ADB Procurement Guidelines (2015, as amended from time to time)10 and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).11 The issuance of invitations to bid will be subject to ADB approval. Approval of advance contracting and retroactive financing does not commit ADB to finance the project. 29. Advance contracting. All activities for procuring goods and works, and consultant recruitment prior to contract signing may be undertaken before Tranche 3 effectiveness. 30. Retroactive financing. Tranche 3 may finance eligible expenditures up to 20% of the ADB loan, incurred within 12 months before signing the loan agreement. Such financing will be subject to compliance with the requirements in the subproject land acquisition and resettlement framework (LARF) (see Chapter VII). B. Procurement of Goods, Works, and Consulting Services 31. To improve procurement efficiency and streamline procurement decision making at management level, NTDC will increase financial delegation threshold to its management up to [$50 million] for procurement of each works or turnkey contract, [$15 million] for procurement of each goods contract, and [$5 million] for recruiting consulting firm. 32. All procurement will follow ADB’s Procurement Guidelines (2015, as amended from time to time), using international competitive bidding (ICB). ADB’s User’s Guide and Standard Bidding Documents for (i) Goods, (ii) Large Works, and (iii) Plant: Design, Supply, and

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will

withhold processing requests for new contract awards and disbursement of new reimbursement, and new commitment letters. ADB will inform the NTDC of ADB’s actions and advise that the loan may be suspended if the audit documents are not received within the next 6 months.

(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

8 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications 9 This type of information would generally fall under public communications policy exceptions to disclosure. ADB.

2011. Public Communications Policy. Paragraph 97(iv) and/or 97(v). 10 Available in http://www.adb.org/site/business-opportunities/operational-procurement/goods-

services/documents#procurement. 11 Available in http://www.adb.org/documents/guidelines-use-consultants-asian-development-bank-and-its-borrowers.

http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

http://www.adb.org/site/business-opportunities/operational-procurement/goods-services/documents#procurement

http://www.adb.org/site/business-opportunities/operational-procurement/goods-services/documents#procurement

http://www.adb.org/documents/guidelines-use-consultants-asian-development-bank-and-its-borrowers

21

Installation (for the EPC contract) will be used. The bidding documents used in similar procurements for EPC contracts and goods under Tranches 1 and 2 will also be used as master bidding documents for NTDC to prepare the bidding documents under Tranche 3. 33. Tranche 3 will follow a procurement plan indicating the methods and review procedures for goods, works, and consulting services which will be updated at least every 18 months. The procurement plan for Tranche 3 is in Section C. The packages are described in the succeeding paras. 34. Goods and works for Tranche 3. Eleven packages will be procured under Tranche 3 comprising of (i) 5 packages for substations (ADB-300); (ii) 5 packages for transmission lines (ADB-301); and (iii) 1 package for BESS pilot project (ADB-302). The detailed procurement and contract implementation schedules are in Appendix 1. As HLTF will cofinance ADB-302, universal procurement will apply to the civil works, goods, turnkey contracts and consulting services to be financed by ADB and High-Level Technology Fund. 35. Consulting services for Tranche 3. Individual consultants will be recruited to provide capacity building on NTDC and National Electric Power Regulatory Authority (NEPRA) and advise on i) revision of Grid Code for better frequency compliance; and ii) development of commercial ancillary services market which is a key feature of the power market being designed. The individual consultants will be funded by HLTF grant. C. Procurement Plan for Tranche 3

36. The Procurement Plan is in Appendix 3.

VII. SAFEGUARDS

37. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement (SPS 2009, as amended from time to time),12 ADB funds may not be applied to the activities described in the ADB Prohibited Investment Activities List in Appendix 5 of the SPS. 38. Accessing safeguards documents. Safeguards documents [e.g., land acquisition and resettlement framework (LARF) and land acquisition and resettlement plans (LARPs) and environmental assessment review framework (EARF)] are available on the program and project records on the ADB website. A. Land Acquisition and Resettlement 39. Land acquisition, compensation and income rehabilitation will follow the requirements in the SPS, the corresponding loan agreement and the same stipulations in the LARF and subproject specific LARPs/RP for the respective tranche. 40. Involuntary resettlement (category A) and indigenous peoples (category C). About 311 acres of private agriculture land owned by 107 families will be acquired for three new substations. The installation of transmission lines (about 250 km) will temporarily impact about 3,000 acres cropped area and about 3,000 wood trees, owned by 598 families. The farm land is cultivated by land owners without involving any tenants, farm workers or leaseholders. Thus,

12 Available at http://www.adb.org/documents/safeguard-policy-statement

http://www.adb.org/documents/safeguard-policy-statement

22

only the owners of farm land will be affected, and they will be compensated for the affected crops and trees. Construction of transmission lines will be undertaken in three phases:. (i) excavation and concreting of towers foundations; (ii) erection of towers; and (iii) stringing of conductors. Crops that are temporarily affected during construction of towers and trees to be removed will be compensated in accordance with SPS, LARF and subproject-specific updated LARP. No physical displacement of APs will occur under any subproject of Tranche 3, although 50 of total 63 AFs of Lahore North grid station will lose 10% or more of their productive land. None of the subprojects will impact communities of indigenous peoples or groups or ethnic minorities, or interfere with their territories, livelihoods, customary properties, or natural or cultural resources. 41. The NTDC intends to construct the subprojects through turnkey contractors. The land acquisition and resettlement conditions agreed with NTDC that will apply to the turnkey contracts include (i) updating/ finalization and disclosure of LARP and approval of same by ADB a) following the notification of Section 6 of the Land Acquisition Act for substations and b) based on the approved route following the check survey conducted by the contractors for allied transmission lines, (ii) implementation of updated LARP before start of construction work, (iii) issuance of internal monitoring report by NTDC (through the social team13 of FMC) and a third-party monitoring report by an independent monitoring consultant, validating the implementation of LARP and payments to APs, and (iv) approval of the third-party monitoring report by ADB-a condition to be met before the initiation of civil works. Construction of substations will be completed in one go with all APs compensated before the start of construction activities. Construction of transmission lines will be undertaken in three phases: (a) excavation and concreting of towers foundations, (b) erection of towers, and (c) stringing of conductors. APs affected by transmission lines will be compensated before the start of construction phase for tower foundations based on section-wise RPs prepared in accordance with the detailed designs If additional impacts are incurred based on movement of the machinery on a site, APs will be compensated based on actual damage. NTDC will ensure that all compensations are paid and a third-party monitoring report confirming the latter is prepared for each such section. NTDC will then issue notice to proceed to move to the next section. Based on the safeguards lessons learnt from MFF1 and Tranches 1 and 2 of MFF 2, EA should seek ADB’s no-objection prior to commencement of construction work. ADB will grant such no objection after payments to APs have been validated by an independent external monitor. 42. All draft and updated/final LARPs, and any due diligence reports (DDR) or a corrective action plan (CAP) will be disclosed to the ADB and Project’s websites while Urdu summary of LARPs/DDRs and CAPs disclosed to APs and copies made available in the project implementation units and relevant public offices. The NTDC through the PMU and ESIC is responsible to ensure compliance with SPS’s requirements as detailed in the Loan Agreement, schedule 5, the LARF, LARPs/DDRs and any safeguards remedial or corrective actions recommended in the monitoring reports. In case of any deviation from the timing and agreed safeguard, requirements including the LAR conditions and implementation/monitoring arrangements, NTDC will inform ADB about such a deviation and prepare a corrective action plan to be implemented and monitored as part of LARP to correct any safeguards noncompliance. 43. Status of Implementation of Tranche 1 and 2 of MFF 2: Both, Tranches 1 and 2 are classified as category “B” for environment, “B” for involuntary resettlement, and “C” for

13 FMC’s social team comprises a Social Development/Resettlement Specialist, a Resettlement

Database/Management Information System Specialist, a Grievance Redress Management Specialist, a Revenue Specialist and a Gender Specialist.

23

indigenous peoples. Tranche 1 involves temporary impacts to the farmland under transmission line towers, while tranche 2 involves acquisition of land for two new substations. The draft LARPs of both tranches will be updated based on the detailed designs of transmission line routes and land awards that are under process. Nevertheless, construction work in a small section of transmission line contract under tranche 1 commenced before compensating APs, which is being corrected in accordance with ADB’s Safeguard Policy Statement (2009), the MFF’s land acquisition and resettlement framework (LARF), and the subproject specific LARP. A corrective action plan (CAP) has been prepared by NTDC that has been approved by ADB and disclosed. Cost of damaged crops and trees to APs will be paid by NTDC and validated by an independent monitoring consultant in June 2018.

44. The safeguards management capacity of NTDC’s ESIC is being strengthened through a social team under FMC (footnote 13) recruited by NTDC under Tranche 1 loan. The FMC will assist ESIC in updating the draft LARPs of tranche 1, 2 and 3 and preparation of LARPs of forthcoming tranche 4 and internal monitoring of LARPs, establish a gender-segregated central resettlement database, establish a computerized grievance redress mechanism and record keeping that will help generate monitoring reports and handle APs issues or concerns in a systematic and efficient manner. B. Environment 45. To ensure compliance with the SPS, NTDC, through the PMU, will implement the initial environmental examinations and environmental management plans. The PMU will ensure that:

(i) obtain environmental assessment reports and all regulatory clearances from the provincial Environmental Protection Agency before starting civil works;

(ii) submit updated environmental assessment reports (if any) to ADB for review and disclosure on the ADB website;

(iii) include EMPs in bidding documents for future contracts; (iv) ensure that contractors prepare site-specific EMPs at least 10 days before taking

possession of any work site, and implement site-specific EMPs; (v) monitor implementation of the site-specific EMPs; (vi) disclose environment-related documents locally in the relevant project

implementation units and on the project website; (vii) in case of unanticipated environmental impacts occurring during project

implementation, prepare and implement a corrective action plan; (viii) a non-compliance notice will be issued to the contractor in case of

nonconformance with the EMP, and (ix) submit semi-annual safeguard monitoring reports to ADB.

ADB will ensure that:

(x) monitoring and supervision activities on the subprojects are carried out on an ongoing basis until a project completion report is issued;

(xi) project review missions visit project sites to ascertain the status of implementing the EMP with detailed review by ADB's safeguard specialists, officers and/or consultants

(xii) updated environmental assessment reports are timely reviewed and disclosed on the ADB website; and

(xiii) semi-annual safeguard monitoring reports are timely reviewed to disclosed on the ADB web-site.

24

The Contractor will ensure that:

(xiv) site-specific EMPs are prepared and submitted for approval to the PMU at least 10 days before taking possession of any work site,

(xv) the site-specific EMPs are implemented and monitored, and monthly environmental monitoring reports sent to PMU; and

(xvi) in case of unanticipated environmental impacts occurring during project implementation, a corrective action plan needs to be prepared in coordination with the PMU and duly implemented.

C. Indigenous Peoples 46. Sites that have impacts on indigenous peoples will be avoided. However, where this is not possible, due to no other reasonably viable alternative, an indigenous people’s plan (IPP) will be prepared and implemented following SPS 2009. All efforts will be made to select sites with unencumbered government land, before taking course of land acquisition.

VIII. GENDER AND SOCIAL DIMENSIONS

A. Gender 47. Reliable and adequate electricity supply promotes business expansion, increases employment, and improves living conditions, which contribute to poverty reduction. Reliable and good-quality electricity supply is necessary to meet the basic human needs of health and education. Poor and vulnerable consumers, as well as public institutions such as hospitals and schools, are often particularly disadvantaged by inadequate power supply, load shedding, and poor product quality. Tranche 3 will help solve these issues by enabling more reliable and better quality electricity supply. Tranche 3 is classified as some gender benefits. Tranche 3 will support implementation of NTDC action plan to meet government’s 10% quota of employed women, particularly to have 30% female staff at Project Management Unit. B. Social Dimensions 48. Pakistan is currently facing a severe power crisis, mostly hitting the low income and poor segments of the population. Small and medium enterprises (SMEs) sector which generates 77% of the total employment of the industrial sector is adversely affected from the existing energy crisis. Small businesses like tailoring, cleaning, small restaurants, repair/maintenance, and retail shops are facing losses while paying significant amount of money to operate through power generators. The MFF II and Tranche 3 will indirectly benefit all these population segments including poor and vulnerable through improved infrastructure of power supply. 49. The MFF II and Tranche 3 do not entail direct impacts on affordability or operational employment opportunities. During construction, the turnkey contractor will be required to ensure equal opportunities for all social groups, equal pay for equal work regardless of gender, and prohibition of child labor. The contractor will also be required to undertake HIV/AIDS awareness activities with foreign workers. Monitoring will be done by the PMU.

25

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND

COMMUNICATION

A. Design and Monitoring Framework

DESIGN AND MONITORING FRAMEWORK FOR TRANCHE 3

Impact(s) the Project is Aligned with

Transmission infrastructure improved (National Power Policy, 2013)14

Energy market transparency and efficiency improved (Pakistan 2025: One Nation, One Vision)15

Results Chain

Performance Indicators with Targets and

Baselines Data Sources and

Reporting Risks

Outcome By 2024 Coverage, reliability, transparency, and quality of the power transmission service in Pakistan improved

a. About 3.4 GW of additional peak power supplied (metered) through the grid (2016 Baseline: 22.9 GW)

a.-b. NEPRA’s Annual State of the Industry Report

Delayed progress on policy and regulatory, reforms

b. Transmission losses reduced to less than 2.5%(2016 Baseline: 2.7%)

c. System duration interruption of NTDC’s system decreased by at least 20% (2016 Baseline: 27.6 minutes)

d. Transmission License and Grid Code fully complied (2016 baseline: not fully complied)

c. NTDC’s Annual Performance Evaluation Report

d. NEPRA’s annual state of the industry report

Outputs 1. Transmission system capacity augmented and expanded

By 2023 1a. 150 km of new 500 kV transmission lines connecting Lahore North substation commissioned (2016 baseline: 5,17 km of 500 kV transmission line) 1b. 56 km of new 220 kV transmission lines associated Lahore North substation (44km) and Jauharabad substation (12 km) commissioned

1a-d. NEPRA’s Annual State of the Industry Report

1f-g. Quarterly Progress Report

Delayed NTDC’s restructuring hampers implementation

14 Government of Pakistan, Ministry of Water and Power. 2013. National Power Policy 2013. Islamabad. 15 Government of Pakistan. 2014. Pakistan Vision 2025: One Nation – One Vision. Islamabad.

26

Results Chain

Performance Indicators with Targets and

Baselines Data Sources and

Reporting Risks

(2016 baseline: 9,814 km of 220 kV transmission line)

1c. 44 km of 220 kV transmission lines reconductored with HTLS conductors commissioned in Punjab (2016 baseline: 2 km of 220 kV transmission line of HTLS conductors in operation)

1d. 3,480 MVA new substation capacity at Lahore North substation (3,000 MVA) and Jauharabad substation (480 MVA) commissioned. (2016 baseline: 42,687 MW of NTDC’s grid stations)

1e. Eight 500 kV line bays with 4 shunt reactors banks at Maira switching station installed, and transformer and shunt reactors at 2 substations replaced

1f. NTDC PMU staff increased to 16, with 30% women (2017 baseline: 14 staff with 14% women)

2. Grid connected large scale battery energy storage system (BESS) installed

2a. 20MW/5MWh energy storage capacity installed in NTDC system by 2023 (2017 baseline: 0)

2b. BESS O&M staff employed by 2019, with at least 3 women in technical positions

2a. NEPRA’s Annual State of the Industry Report

2b. Quarterly Progress Report

Delayed NTDC’s restructuring hampers implementation

Key Activities with Milestones

1. Transmission system capacity augmented and expanded

1.1 Issue tender documents and undertake procurement (Q3 2018).

1.2 Award contracts (Q2 2019).

1.3 Construct assets (Q2 2019–Q2 2022).

1.4 Make assets operational (Q3 2022–Q2 2023).

27

Key Activities with Milestones

2. Grid connected large scale battery energy storage system (BESS) installed

2.1 Issue tender documents and undertake procurement (Q1 2019).

2.4 Award contract (Q3 2019).

2.5 Construct assets (Q4 2019–Q3 2020)

2.3 Make the systems operational (Q4 2020–Q3 2022).

Inputs

ADB: $280.0 million (regular OCR loan)

HLTF: $4.0 million (grant)

NTDC: $144 million

Assumptions for Partner Financing

Not Applicable.

ADB = Asian Development Bank, HLTF = High Level Technology Fund, HTLS = High Temperature Low Sag, GW = gigawatt, km = kilometers, MVA = megavolt-ampere, NEPRA = National Electric Power Regulatory Agency, NTDC = National Transmission and Dispatch Company Limited, OCR = ordinary capital resources, O&M = operation and maintenance; PMU = Project Management Unit. Source: Asian Development Bank.

B. Monitoring

50. Project performance monitoring. The indicators below will be monitored and reported on in NTDC’s quarterly progress reports and ADB review missions. The financial indicators will be monitored annually during the audit of the financial statements:

(i) annual power supplied through the grid (GW) and electricity (GWh); (ii) transmission losses (GWh); (iii) transmission capacity (MVA); (iv) annual net income after tax; (v) NTDC’s annual debt-service coverage ratio (ratio of cash flow from

operations to annual debt service obligations); (vi) receivable ratio (days in receivable is calculated by taking average account

receivables for last year and current year multiply by 360 days and divide by revenues or sales); and

(vii) annual self-financing ratio (ratio of cash flow from operations to average capital expenditures).

51. Compliance monitoring. Loan covenants—i.e., policy, legal, financial, economic, environmental, and others—will be monitored through the quarterly progress reports and review missions. 52. Safeguards monitoring. Safeguards compliance will be performed by NTDC’s PMU through ESIC, with the FMC’s support and individual consultants to complete internal monitoring requirements. The monitoring results will be reported in the quarterly internal monitoring reports of LARPs/RPs and semi-annual safeguards monitoring reports by EMC submitted to ADB and disclosed on the ADB website. Findings of the monitoring reports will be disclosed locally. 53. Gender and social dimensions monitoring. Monitoring will be required for ensuring that the gender targets are met for women’s recruitment and training. Social dimensions,

28

particularly equal employment opportunities for all social groups, equal pay for equal work regardless of gender, and prohibition of child labor will be monitored by NTDC’s PMU. Social monitoring results will be included in the quarterly progress reports, and semi-annual safeguards monitoring reports. C. Evaluation 54. Inception mission. ADB will field an inception mission after loan signing to (i) re-establish the working relationship between ADB and NTDC, and (ii) ensure that the executing agencies understand ADB's procedures. 55. Review missions. ADB will field semi-annual review missions until the subprojects are complete to assess overall project implementation and update the project implementation schedule based on mission findings. 56. Midterm review mission. ADB will field a midterm review mission within one year after loan effectiveness to assess whether attainment of the project’s immediate objective (in terms of the design and monitoring framework) is still likely to be achieved. 57. Project completion review mission. ADB will also field a project completion review mission upon physical completion of the project to commence preparation of ADB’s project completion report (PCR). NTDC, in coordination with CPPA-G, will also submit a PCR to ADB within six months of physical completion of the project. D. Reporting 58. NTDC will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. In addition, safeguards-specific monitoring reports including quarterly internal monitoring reports of LARRs and semiannual safeguards monitoring reports will also be provided to ADB. To ensure that project continue to be both viable and sustainable, project financial statement and the EA’s audited financial statement, together with the associated auditor's report, should be adequately reviewed. E. Stakeholder Communication Strategy 59. Project information will be strategically disseminated through media at main milestones including loan signing, contract awards and project completion. A grievance redress mechanism will be established on site for each subproject. 60. In compliance with the minimum requirements of ADB’s Public Communications Policy (2011), NTDC will be responsible for (i) designating a focal point for regular contact with project-affected people and other stakeholders; (ii) identifying mechanisms for feedback during design and implementation; (iii) identifying details of types of information to be disclosed, and mechanisms for public notice including language and timing; and (iv) implementing and monitoring disclosure and dissemination. 61. Project documents will be disclosed on the ADB website. Table 14 outlines the

29

framework communication strategy to be implemented by ADB.

Table 14: Disclosure of Project Documents

Project Document Disclosure Audience

Design and Monitoring Framework

Included in Project Administration Manual Project-affected people

Initial environmental examination

Post fact-finding mission, and as updated during project implementation

General public, project-affected people in particular

Resettlement planning documents

Post fact-finding mission, and as updated during project implementation

General public, project-affected people in particular

Periodic Financing Request Report

Within 2 weeks of approval of the loan General public

Legal agreements No later than 14 days of approval of the project

General public

Project administration manual

After loan negotiations General public, project-affected people in particular

Audited Project Financial Reports

Within 14 days after ADB’s confirmation of their acceptability

General public

Social and environmental monitoring reports

Routinely disclosed, no specific requirements

General public

Major change in scope Within 2 weeks of approval of the change General public

Progress reports Within 2 weeks of circulation to Board or management approval

General public

Completion reports Within 2 weeks of circulation to Board for information

General public

Evaluation reports Routinely disclosed, no specific requirements

General public

X. ANTICORRUPTION POLICY

62. The Borrower, through NTDC shall comply with ADB's Anticorruption Policy (1998, as amended to date), and operate fully with any investigation by ADB and extend all necessary assistance, including providing access to all relevant books and records for the satisfactory completion of such investigation. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.16 NTDC shall ensure that anticorruption provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the record and account of NTDC and all project consultants, suppliers, consultants and other service providers as they relate to the project. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.17

16 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 17 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp

http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf

http://www.adb.org/integrity/unit.asp

30

63. To support these efforts, relevant provisions will be included in the loan agreement/regulations and the bidding documents for the project. Procurement will follow ADB's Procurement Guidelines, consultant selection will adopt ADB's Guidelines on the Use of Consultants, and disbursement will be made in accordance with ADB's disbursement policies, guidelines, practices, and procedures.

XI. ACCOUNTABILITY MECHANISM

64. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.18

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

Date Details

4 April 2018 Draft following Fact-Finding Mission

18 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

http://www.adb.org/Accountability-Mechanism/default.asp

Appendix 1 31

TRANCHE DESCRIPTION 1. Over the last decade, Pakistan suffered substantial energy shortages. There was

insufficient new generation to keep in pace with growing energy demand resulting in significant

setbacks to Pakistan’s economy and the living conditions of the people. Recently, the

Government of Islamic Republic of Pakistan has made significant efforts in addressing the

situation and substantial new generation in hydro, thermal and renewable energy sources such

as wind and solar new generation plants are being implemented. The availability of new

generation would in turn put substantial pressures on the transmission and distribution systems

which until now were supplying only a portion of the potential load demand due to generation

supply constraints. Thus, it is imperative to remove all constraints and bottlenecks in the

transmission system and the distribution system before the added generation is made available.

2. The National Transmission and Despatch Company Limited (NTDC) is planning the

development of the transmission network to cope with the expected load additions that are

expected to materialize shortly. The Second Power Transmission Enhancement Investment

Program (MFF II) funded by Asian Development Bank (ADB) is a major effort in addressing the

constraints in the transmission system. In both Tranche 1 and Tranche 2 of the MFF II project

transmission network development has added or are being added substantial additional

capacity. The Tranche 3 will continue the program to remove various transmission network

bottlenecks in the system and to enable the network’s capability in feeding the expected future

loads in accordance with technical requirements and economic guidelines. These developments

are essential in order to enable the new generation sources to feed the growing load demand in

the associated areas and provide he required reliability to the transmission system.

3. Subproject 1: New Lahore North Grid Station and associated transmission lines:

This subproject will establish a new 500/220/132 kV substation at Lahore north and enhance the

power supply to this major city where a reliable power network is considered essential. The new

substation will also prevent overloading of existing Lahore 500/220 kV substation, meet growing

load demand within the city of Lahore and enhance system reliability. It will also reduce

transmission losses in the 500, 220 and 132 kV systems in Lahore. Furthermore, with the 500

kV connection to the new receiving/converter station connecting with the major thermal power

plants planned in the country's south and the 500 kV connections to Gatti, Lahore, Gujranwala

(or Gakkhar) and new Rewat substations it will enhance the stable power supply and improve

the reliability around the city of Lahore. A proposed additional connection in the future with

Maira will enable the new hydro power generation to be brought to the Lahore load center. It is

estimated that the project will enable a load of approximately 1100 MW representing 6300 GWh

of energy which was suppressed or poorly supplied before will now be possible to be supplied at

the expected project commissioning in 2023. Further the system losses in that year will be now

be reduced by 60 MW (peak) amounting to a generation saving of 259 GWh p.a.

4. Lahore is one of the most important metropolitan cities of Pakistan and a highly reliable

power system is considered to be essential. Currently, Lahore (Sheikhupura) 500/220/132 kV

substation is the major source of power feeding the LESCO load center. Another 500 kV

substation is being constructed in Lahore South but this will only address the supply constraints

32 Appendix 1

in the Lahore south area. The 500 kV and 220 kV network of NTDC at and around Lahore

(Sheikhupura) substation are currently stressed during the summer months. Similarly, the 132

kV networks of LESCO in the area are also stressed during this period and lacking alternative

feeding possibilities. In particular, the 500/220/132 kV transformers at Lahore, 220 kV

transmission lines from Lahore to Bund Road and the 132 kV transmission network feeding

areas around Lahore and Attabad substation are stressed and various load management

measures including altered 132kV line openings are carried out to operate the network within

the declared voltage limits. Further, during contingency conditions when a single line or inter-

bus transformer is taken out of service there will be more problems resulting in a major

disruption of power supply to important areas of the Lahore city.

5. This subproject will address the above situation by establishing a new 500/220/132 kV

substation in the northern area of Lahore and provide a number of alternative feeding

possibilities to the 220 and 132 kV networks. The site for the proposed substation, near

Khairpur Malian, has been selected by NTDC and is conveniently located for the

interconnections needed at 500, 220 and 132 kV. The new substation will prevent overloading

of existing Lahore 500/220 kV substation, meet growing load demand in the northern areas of

the Lahore city, and enhance system reliability. The 220 and 132 kV system loss reduction

achieved for the summer loads of 2018 is 36.6 MW. As the load increases in future years, these

benefits will increase substantially (as losses are proportional to the square of the current

carried).

6. An additional 500 kV switching station in the Lahore north area is also important in

enhancing the power flows at 500 kV in the North – South power flows of the extra high voltage

(EHV) transmission network. A high voltage direct current (HVDC) line is planned from Matiari

(which will be the collection point for a number of power generation plants in the South, totaling

over 50,000 MW) to Lahore, the major load center in the North. Connections will need to be

made from this receiving/converter station to the 500 kV lines and substations in close proximity

including Gatti, Lahore (Sheikhupura), Gujranwala, New Rewat and the proposed Lahore North

new substation. In addition, the three major hydro power plants, 870 MW Suki Kinari, 1100MW

Kohala and 640MW Mahal are being constructed in the KPK and AJK provinces and their

combined output will be transported to a switching station at Maira. Lahore North will also serve

as one of the convenient receiving points for disposal of the power produced with a 500 kV

connection between Maira and Lahore North. With the availability of the new 500 kV switchyard

at Lahore North, the 500 kV interconnections to the other major 500 kV lines and substations at

can be better organized. The connections from Lahore North 500 kV bus bars to the Lahore

Converter Station, Lahore (Sheikhupura), Gujranwala, and New Rewat substations and Maira

switching station will enhance supply reliability to all related grid substations. The resulting

interconnections will stabilize and enhance the 500 kV power flows and provide alternative

supply possibilities to address the N-1 conditions that could arise in the important 500 kV lines.

This will enhance the overall 500 kV network reliability in the northern areas.

7. The project also includes some additional items needed for the efficient operation of the

Lahore area networks. These consist of:

Appendix 1 33

a. Transmission line construction equipment and live line crew equipment: this

component is needed to enhance the live line maintenance operations at the HV

and EHV level. More efficient live line crews will help reduce the time for planned

outage of lines for regular maintenance purposes.

b. Replacement with fog resistant insulators for existing transmission system at

heavily polluted area: This component is needed as there are sections of the

lines where insulators have been compromised by contamination with fog which

is quite prevalent in Lahore during the winter months. The lowered insulation has

triggered line tripping. Replacement of defective insulators will help reduce

downtime due to line outages.

8. The work to be carried out by NTDC in this sub project consist of:

a. A new 500/220/132 kV substation (Lahore North) with 3x750MVA, 500/220 kV

transformers and 3 x 250MVA, 220/132 kV transformers.

b. Six 500 kV line bays, six 220kV line bays, and two 132kV line bays at Lahore

North

c. Extension at 500 kV Gujranwala S/S by two 500 kV line bays

d. A 500 kV double circuit transmission line, approx. 105 km long on quad bundled

Drake conductor from 500 kV Lahore North to Lahore South convertor station.

e. A 500 kV double circuit transmission line, approx. 45 km long on quad bundled

Drake conductor from 500 kV Lahore North to Gujranwala.

f. A 220 kV double circuit transmission line, approx. 15 km long on twin bundled

Rail conductor for looping In/Out of the existing K.S.K – Ghazi Road 220 kV

single circuit transmission line at Lahore North.

g. A 220 kV double circuit transmission line, approx. 15 km long on twin bundled

Rail conductor for looping In/Out of the existing K.S.K – Ravi 220 kV single circuit

transmission line at Lahore North.

h. A 220 kV double circuit transmission line, approx. 14 km long on twin bundled

Rail conductor for looping In/Out of the existing Lahore – Ravi 220 kV single

circuit transmission line at Lahore North.

i. Transmission line construction equipment, washing units, live line and dead line

crew equipment

j. Replacement with fog resistant insulators for existing transmission system at

heavily polluted area

9. In addition, the following works will be undertaken by LESCO for the efficient evacuation

from this substation:

a. Two 132 kV double circuit transmission lines, approx. 9+9 = 18 km long on Rail

conductor for looping In/Out of the existing K.S.K – Attabad 132 kV double circuit

at Lahore North.

b. A 132 kV double circuit transmission line, approx. 16 km long on Rail conductor

from Lahore North to Fatehpuri.

10. Further, the 500 kV interconnection between Lahore North and Maira will be carried out

under separate financing arrangements.

34 Appendix 1

11. This project also includes reconductoring of 220 kV transmission lines, replacement of

shunt reactors and transformer, and replacement of electro-mechanical relays with digital

numerical relays.

(a) Reconductoring with HTLS conductors for 220 kV New Kotlakhpat - Bund Road - Sheikhupura transmission line: 12. The existing line is dilapidated and overloaded. Furthermore, the increasing load

demand in the area requires larger power flows but new line construction is restricted by

unavailability of access routes. These triple problems can be resolved by reconductoring the

existing lines with HTLS conductors utilizing the exiting towers. In view of the higher tensile

strength and reduced weight of these conductors higher capacity conductors can be strung on

the existing towers which are in good condition. Furthermore, the HTLS conductors have

substantially lower losses than the equivalent ACSR conductors and lower losses can be

achieved giving substantial benefits. The work to be carried out by NTDC in this sub project as:

a. Reconductoring with HTLS conductors for 220 kV New Kotlakhpat - Bund Road -

Sheikhupura D/C T/L (44 km)

(b) Reconductoring with ASCR conductors for a part of 220kV Gatti - Bandala

transmission line: 13. The reconductoring of the conductors is primarily necessitated by the poor technical

condition of the line (31km long). The line has been in service for over 38 years. Its first 5km

section from Gatti substation suffered from tower breakdowns, which has resulted in more than

70 mid span joints. The line is operated at a lower rating in view of the danger of further

breakdowns. The frequent outage due to the poor technical condition of the line will be

addressed by reconductoring the part with the new ASCR conductor, which is same type of

conductor as that of the rest of the line. The work to be carried out by NTDC in this sub project

as:

a. Reconductoring with ASCR conductors for a part of 220kV Gatti - Bandala D/C T/L (5

km).

(c) Replacement of shunt reactors at Sheikhupura & Gatti 500 kV substations:

14. The existing shunt reactors are damaged and do not work as designed. This resulted in

frequent tripping of 500 kV backbone transmission lines during off-peak time in winter when the

load is substantially reduced. The affected transmission lines are 500 kV Gatti - Baraotha line -

(2), 500 kV Shekhupura - Gujranwala line -(2), and 500 kV Shekhupura - New Lahore (or

Lahore South) line. The tripping is triggered by the over voltage resulting from smaller power

transfers during off peak time over long power lines. Shunt reactors were installed to lower the

voltage within the standard range. Replacing the damaged shunt reactors with the new ones is

expected to reduce the outage triggered by the over voltage, improving the system reliability.

The work to be carried out by NTDC in this sub project consist of:

a. Replacement of 2x37 MVAR shunt reactors at Sheikhupura 500 kV substation

and 4x37 MVAR shunt reactors at Gatti 500 kV substation; and

Appendix 1 35

b. Replacement of 2x22MVAR shunt reactor at Sheikhupura 500 kV substation.

(d) Replacement of an Auto Transformer at Gatti 500 kV substation:

15. The recent inspection test result of the 450 MVA 500/220 kV auto-transformer bank T4

at Gatti 500 kV substation was not satisfactory, showing that the transformer's condition is at

risk of possible explosion due to deteriorated insulation after over 40-year operation. From

preventive maintenance point of view, its replacement with a new one is urgent. Its capacity size

remains the same because another large-scale 500 kV substation at Faisalabad West is

scheduled to commission in 2021, which will shoulder the part of current load. With the project,

the possible widespread outage (450MW), which could result in loss of revenue, can be

avoided. The work to be carried out by NTDC in this sub project consist of:

a. Replacement of 2x450MVA 500/220kV Auto Transformer at Gatti 500 kV

substation.

(e) Replacement with digital numerical protection relays for Islamabad, Lahore &

Multan regions:

16. The existing electro-mechanical relays provide limited information when outage happen

with tripped relays. This would delay the recovery process due to lack of information, resulting in

prolonged outage duration. The project will improve reliability by shortening outage duration with

sophisticated information provided by digital numerical relays. These numerical protection relays

operate faster than the existing electro-mechanical relays, equipped with digital displays, built in

fault/event recorders, and more advanced features which would assist outage recovery process

and fault location identification. The replacement is expected to enhance the network reliability.

The expected benefits include:

a. Increased reliability

b. Fast fault operating time due to non-moving mechanical parts

c. State of the art protection features

d. Digital display for measurements and records

e. Built in event and fault recorders

f. Less maintenance

g. Quick Data retrieval for post mortem analysis

17. Around 70% of existing relays of the regions will be replaced with the digital numerical

relays. The work to be carried out by NTDC in this subproject consist of:

a. Replacement of electro-mechanical relays with digital numerical relays at 34 grid

stations in Islamabad, Lahore & Multan regions. The list of the target grid stations

is shown below.

No.

Name of Grid Station No.

Name of Grid Station

1 220kV Bahawalpur 18 220kV Samundri Road

2 220kV Bandala 19 220kV Sangjani (ISPR)

3 220KV Bannu 20 220KV Sarfraznagar

4 220KV Bund Road 21 220KV Shahibagh

36 Appendix 1

5 220kV Burhan 22 220KV Sialkot

6 220KV Daud Khel 23 220kV University

7 220kV G/S Chishtian 24 220kV Vehari

8 220KV Ghakkar 25 220kV Wapda Town

9 220KV Grid Station Vehari

26 500kV DG Khan

10 220KV J.W.Road 27 500kV RY Khan

11 220KV Kala Shah Kaku 28 500KV Gatti Faisalabad

12 220kV Ludewala 29 500kV Multan

13 220KV Mardan 30 500kV Muzaffargarh

14 220kV Muzaffargarh 31 500kV Rawat

15 220KV New kot Lakhpat 32 500KV Sheikh Muhammadi Peshawar

16 220KV Nishatabad 33 500kV Sheikhupura

17 220KV Ravi 34 500KV Yousafwala

18. Subproject 2: Maira Switching Station: The proposed 500 kV switching station is

planned as a part of the overall evacuation arrangement for three major hydro power plants,

namely 870 MW Suki Kinari, 1100MW Kohala and 640MW Mahal which are scheduled to

commission in December 2022, June 2024 and December 2024 respectively. The projects are

important in the context of the major effort underway to bridge the large energy shortfall which

has been plaguing the power sector in Pakistan for many years. The power generated needs to

be evacuated to the load centers in the Punjab region. The optimum arrangement for the power

evacuation is for the individual power lines from each power plant to be brought to a switching

station at a convenient location and the dispersal of this power therefrom to the load centers at

Lahore and Islamabad.


a. Maira Switching Station with eight line bays and four Shunt Reactor Banks

20. In addition, the following works at 500 kV network will be carried out under other

financing arrangements:

a. Suki Kinari HPP- Maira Switching Station D/C T/L (200km).

b. Maira switching station - Islamabad West G/S D/C T/L (140km).

c. Maira switching station - Karot HPP D/C T/L (20km).

d. Maira switching station - Lahore North G/S D/C T/L (235km).

e. In/out of Maira-Suki Kinari S/C T/L at Kohala HPP (1km).

f. In/out of Neelum Jhelum-Gujranwala S/C T/L at Kohala HPP (1km).

g. In/out of Maira-Suki Kinari S/C T/L at Mahal HPP (50km).

h. In/out of Maira-Suki Kinari S/C T/L at Azad Pattan HPP (50km).

21. Subproject 3: 220kV Jauharabad Substation with associated transmission line:

The addition of a 220/132 kV grid substation at Jauharabad will address the current deficiencies

faced in the Jauharabad, Quasibad and surrounding areas of the supply network. With the new

220/132 kV substation, the 132 kV network flows will be substantially reduced, and the network

voltages considerably improved. The substations will now be able to continue supplying the load

of the area for some time, network voltages improved and the substations within the area will

Appendix 1 37

now be able to be supplied by more than one power source, thus enabling N-1 reliability

considerations to be met. It is estimated that the project will enable a load of approximately 32

MW representing 139 GWh of energy which would have to be suppressed or poorly supplied

before, will now be possible to be supplied at the expected project commissioning in 2023.

Further the system losses in that year will be now be reduced by 15.5 MW (peak) amounting to

a generation saving of 44.3 GWh p.a. in that year.

22. The existing system in the area has two sources of power supply at 220 kV: the

Ludewala substation and the Daud Khel substation. The area loads have been increasing and in

the summer the voltages at many locations in the 132 kV system falls to the range of 115 to 109

kV. Also, currently due to transmission constraints, the Quaidabad substation is operated in split

mode. This arrangement is done to support overloading, reactive power and voltages of the

area in real time. The optimum arrangement to remove above system constraints and to

improve the power supply position for future load growth in FESCO area, is the introduction of a

new 220/132kV substation at Jauharabad which is the main load center, apart from the areas

where grid substations are already present.


a. 220kV S/S at Jauharabad with 3x160 MVA 220/132 kV transformers along with

allied equipment and accessories

b. Four 220kV line bays and eight 132kV line bays

c. Two 220kV D/C T/L of twin bundle Rail conductor for looping In/Out of existing

Ludewala – Chashnupp D/C T/L at 220kV Jauharabad (12km)

24. Subproject 4: Grid Connected Battery Energy Storage System Pilot Project: A 20

MW battery energy storage system at the proposed location of the Jhimpir-1 substation would

provide two major benefits – network stability support and improved dispatch of variable

renewable generation.


a. Installation of Lithium-ion Battery Packs (5 MWh);

b. Installation of balance of system including inverters (20MW); and

c. Installation of transformers (220kV/33kV, 30MVA 1 unit and 33kV/0.44kV, 5MVA

6 units).

26. The following shows the project benefit.

• Network stability support: system studies have shown that proposed BESS can

provide frequency regulations in post-contingency scenarios.

a. BESS can be programed to provide primary (e.g: within 10 secs and sustained

for 20 secs) and secondary response to reduce the variation (e.g: within 30 secs

and sustained for 30 mts)

▪ This helps in frequency containment which in turn averts the need for

automatic under-frequency load-shedding

▪ It reduces the primary reserve requirements of other generators such as

RLNG plants which are forced to operate at a lower efficiency in open

38 Appendix 1

cycle mode when providing primary and secondary reserve

• Improved dispatch of variable renewable generation: the energy storage allows for

smoothening out of the natural variations in wind power thereby reducing the forecast

error on a short-term basis.

a. This enables the system operator, i.e. NPCC to maintain wind farm dispatch

close to the generation forecasts used in the day-ahead dispatch algorithm

b. It also reduces the amount of primary and secondary reserve that the dispatcher

needs to keep as insurance for a large forecast error. The reduced need for

reserves means that a larger number of power plants can operate at their peak

power output / maximum efficiency.

Ap

pe

nd

ix 2

39

PROCUREMENT AND IMPLEMENTATION SCHEDULE FOR TRANCHE 3

De

sign

Ere

ction

Strin

gin

g

Installation

ADB-300A Procurement of Plant-Design, Supply, Installation,

Testing and Commissioning of 500kV Lahore North S/S

and extension at 500kV Nokar S/S

7 7 1 5 2 60 60 1 14 7 1 7 14 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

IS2E 69.9 21-Jul-18 28-Jul-18 04-Aug-18 05-Aug-18 10-Aug-18 12-Aug-18 11-Oct-18 10-Dec-18 11-Dec-18 25-Dec-18 01-Jan-19 02-Jan-19 09-Jan-19 23-Jan-19 24-Jan-19 29-Jan-19 31-Jan-19 14-Feb-19 15-Feb-19 22-Feb-19 23-Feb-19 10-Mar-19 13-Mar-19 20-Mar-19 21-Mar-19 09-Apr-19 18-Apr-19 19-Apr-19 03-Jun-19 19-Nov-21

Contract

(days)

900

ADB-300B Procurement of Plant-Design, Supply, Installation,

Testing and Commissioning of 500kV Maira Switching

station

7 7 1 5 2 60 60 1 14 7 1 7 14 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S2E 25.4 20-Aug-18 27-Aug-18 03-Sep-18 04-Sep-18 09-Sep-18 11-Sep-18 10-Nov-18 09-Jan-19 10-Jan-19 24-Jan-19 31-Jan-19 01-Feb-19 08-Feb-19 22-Feb-19 23-Feb-19 28-Feb-19 02-Mar-19 16-Mar-19 17-Mar-19 24-Mar-19 25-Mar-19 09-Apr-19 12-Apr-19 19-Apr-19 20-Apr-19 09-May-19 18-May-19 19-May-19 03-Jul-19 19-Dec-21

Contract

(days)

900

ADB-300C Procurement of Plant-Design, Supply, Installation,

Testing and Commissioning of 220kV Jauharabad S/S

and associated TL (12 km)

7 7 1 5 2 60 60 1 14 7 1 7 14 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S2E 17.9 20-Aug-18 27-Aug-18 03-Sep-18 04-Sep-18 09-Sep-18 11-Sep-18 10-Nov-18 09-Jan-19 10-Jan-19 24-Jan-19 31-Jan-19 01-Feb-19 08-Feb-19 22-Feb-19 23-Feb-19 28-Feb-19 02-Mar-19 16-Mar-19 17-Mar-19 24-Mar-19 25-Mar-19 09-Apr-19 12-Apr-19 19-Apr-19 20-Apr-19 09-May-19 18-May-19 19-May-19 03-Jul-19 02-Jul-21

Contract

(days)

730

ADB-300D Procurement of supply of substation equipment 7 7 1 5 2 42 60 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S1E Lot 1: Replacement of 37 MVAR Shunt Reactors at Sheikhupura

& Gatti substation, and 20MVAR at Sheikhupura substation

6.5 15-Jul-18 22-Jul-18 29-Jul-18 30-Jul-18 04-Aug-18 06-Aug-18 17-Sep-18 16-Nov-18 17-Nov-18 22-Nov-18 24-Nov-18 08-Dec-18 09-Dec-18 16-Dec-18 17-Dec-18 01-Jan-19 04-Jan-19 11-Jan-19 12-Jan-19 16-Mar-19 09-Feb-19 10-Feb-19 27-Mar-19 17-Sep-20

Contract

(days)

540

Lot 2: Replacement of 500/220kV, 450MVA Transformer at Gatti

substation

8.4 15-Jul-18 22-Jul-18 29-Jul-18 30-Jul-18 04-Aug-18 06-Aug-18 17-Sep-18 16-Nov-18 17-Nov-18 22-Nov-18 24-Nov-18 08-Dec-18 09-Dec-18 16-Dec-18 17-Dec-18 01-Jan-19 04-Jan-19 11-Jan-19 12-Jan-19 16-Mar-19 09-Feb-19 10-Feb-19 27-Mar-19 17-Sep-20

Contract

(days)

540

ADB-300E Procurement of plant-design, supply, installation, testing

and commissioning of numerical relays for Islamabad,

Lahore & Multan Region

7 7 1 5 2 60 60 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S1E 5.8 20-Aug-18 27-Aug-18 03-Sep-18 04-Sep-18 09-Sep-18 11-Sep-18 10-Nov-18 09-Jan-19 10-Jan-19 15-Jan-19 17-Jan-19 31-Jan-19 01-Feb-19 08-Feb-19 09-Feb-19 24-Feb-19 27-Feb-19 06-Mar-19 07-Mar-19 09-May-19 04-Apr-19 05-Apr-19 20-May-19 19-May-21

Contract

(days)

730

ADB-301A Procurement of Plant-Design, Supply, Installation,

Testing and Commissioning of 500kV T/Line Nokar-

Lahore North- Lahore HVDC Converter station (150km)

7 7 1 5 2 90 60 1 14 7 1 7 14 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S2E 66.2 13-Apr-18 10-May-18 22-Jun-18 23-Jun-18 28-Jun-18 30-Jun-18 28-Sep-18 27-Nov-18 28-Nov-18 12-Dec-18 19-Dec-18 20-Dec-18 27-Dec-18 10-Jan-19 11-Jan-19 16-Jan-19 18-Jan-19 01-Feb-19 02-Feb-19 09-Feb-19 10-Feb-19 25-Feb-19 28-Feb-19 07-Mar-19 08-Mar-19 27-Mar-19 05-Apr-19 06-Apr-19 21-May-19 20-May-21

Contract

(days)

730

ADB-301B Procurement of Plant-Design, Supply, Installation,

Testing and Commissioning of 220kV lines associated

with 500kV Lahore North S/S (44km)

7 7 1 5 2 60 60 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S1E 8.8 18-May-18 25-Jun-18 02-Jul-18 03-Jul-18 08-Jul-18 10-Jul-18 08-Sep-18 07-Nov-18 08-Nov-18 13-Nov-18 15-Nov-18 29-Nov-18 30-Nov-18 07-Dec-18 08-Dec-18 23-Dec-18 26-Dec-18 02-Jan-19 03-Jan-19 07-Mar-19 31-Jan-19 01-Feb-19 18-Mar-19 08-Sep-20

Contract

(days)

540

ADB-301C Procurement of plant-design, supply, reconducting,

testing and commissioning of 220 kV HTLS D/C

transmission lines: Kotlakhpat-Bund Road-Sheikhupura

D/C T/L (44 km) and Gatti---Bandala (5 km)

7 7 1 5 2 60 60 1 14 7 1 7 14 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S2E 10 15-Jul-18 22-Jul-18 29-Jul-18 30-Jul-18 04-Aug-18 06-Aug-18 05-Oct-18 04-Dec-18 05-Dec-18 19-Dec-18 26-Dec-18 27-Dec-18 03-Jan-19 17-Jan-19 18-Jan-19 23-Jan-19 25-Jan-19 08-Feb-19 09-Feb-19 16-Feb-19 17-Feb-19 04-Mar-19 07-Mar-19 14-Mar-19 15-Mar-19 03-Apr-19 12-Apr-19 13-Apr-19 28-May-19 18-Nov-20

Contract

(days)

540

ADB-301D Procurement of supply of transmission line equipment 7 7 1 5 2 60 90 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S/1E Lot 1: Construction equipment 8.8 31-Jul-18 07-Aug-18 14-Aug-18 15-Aug-18 20-Aug-18 22-Aug-18 21-Oct-18 19-Jan-19 20-Jan-19 25-Jan-19 27-Jan-19 10-Feb-19 11-Feb-19 18-Feb-19 19-Feb-19 06-Mar-19 09-Mar-19 16-Mar-19 17-Mar-19 19-Apr-19 14-Apr-19 15-Apr-19 30-May-19 29-May-20

Contract

(days)

365

Lot 2: Live line washing units 2.1 31-Jul-18 07-Aug-18 14-Aug-18 15-Aug-18 20-Aug-18 22-Aug-18 21-Oct-18 19-Jan-19 20-Jan-19 25-Jan-19 27-Jan-19 10-Feb-19 11-Feb-19 18-Feb-19 19-Feb-19 06-Mar-19 09-Mar-19 16-Mar-19 17-Mar-19 19-Apr-19 14-Apr-19 15-Apr-19 30-May-19 29-May-20

Contract

(days)

365

Lot 3: Live line tools and plants equipment 3.0 31-Jul-18 07-Aug-18 14-Aug-18 15-Aug-18 20-Aug-18 22-Aug-18 21-Oct-18 19-Jan-19 20-Jan-19 25-Jan-19 27-Jan-19 10-Feb-19 11-Feb-19 18-Feb-19 19-Feb-19 06-Mar-19 09-Mar-19 16-Mar-19 17-Mar-19 19-Apr-19 14-Apr-19 15-Apr-19 30-May-19 29-May-20

Contract

(days)

365

Lot 4: Dead line tools and plants equipment 6.0 31-Jul-18 07-Aug-18 14-Aug-18 15-Aug-18 20-Aug-18 22-Aug-18 21-Oct-18 19-Jan-19 20-Jan-19 25-Jan-19 27-Jan-19 10-Feb-19 11-Feb-19 18-Feb-19 19-Feb-19 06-Mar-19 09-Mar-19 16-Mar-19 17-Mar-19 19-Apr-19 14-Apr-19 15-Apr-19 30-May-19 29-May-20

Contract

(days)

365

ADB-301E Procurement of supply of fog resistant insulators for

enhancing grid resilience to air pollution in heavily

polluted area

7 7 1 5 2 60 60 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S/1E 3.0 31-Jul-18 07-Aug-18 14-Aug-18 15-Aug-18 20-Aug-18 22-Aug-18 21-Oct-18 20-Dec-18 21-Dec-18 26-Dec-18 28-Dec-18 11-Jan-19 12-Jan-19 19-Jan-19 20-Jan-19 04-Feb-19 07-Feb-19 14-Feb-19 15-Feb-19 18-Jun-19 15-Mar-19 16-Mar-19 30-Apr-19 29-Apr-20

Contract

(days)

365

ADB-302 Procurement of plant-design, supply, installation, testing

and commissioning of grid connected battery energy

storage system pilot project

7 7 1 5 2 60 60 1 5 2 14 1 7 1 15 3 7 1 180 28 1 45

1S/1E 6.4 15-Oct-18 22-Oct-18 29-Oct-18 30-Oct-18 04-Nov-18 06-Nov-18 05-Jan-19 06-Mar-19 07-Mar-19 12-Mar-19 14-Mar-19 28-Mar-19 29-Mar-19 05-Apr-19 06-Apr-19 21-Apr-19 24-Apr-19 01-May-19 02-May-19 04-Jul-19 30-May-19 31-May-19 15-Jul-19 14-Jul-20

Contract 365

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40 Appendix 3

PROCUREMENT PLAN FOR TRANCHE 3

Basic Data Project Name: MFF Power Transmission Enhancement Investment Program II Tranche 3

Project Number: 48078-005 Approval Number:

Country: Pakistan Executing Agency: National Transmission & Despatch Company Limited

Project Procurement Classification: Category B Implementing Agency: N/A

Project Procurement Risk: High

Project Financing Amount: US$ 428,000,000 ADB Financing: US$ 280,000,000 Cofinancing (ADB Administered): US$ 4,000,000 Non-ADB Financing: US$ 144,000,000

Project Closing Date: 31 December 2023

Date of First Procurement Plan: 17 April 2018 Date of this Procurement Plan: 17 April 2018

A. Methods, Thresholds, Review and 18-Month Procurement Plan 1. Procurement and Consulting Methods and Thresholds

Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold Comments

International Competitive Bidding for Goods

US$ 1,000,000 and Above

National Competitive Bidding for Goods Between US$ 100,000 and US$ 999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Goods Up to US$ 99,999 International Competitive Bidding for Works

US$ 15,000,000 and Above based on country procurement threshold

National Competitive Bidding for Works Between US$ 100,000 and US$ 14,999,999

The first NCB is subject to prior review, thereafter post review.

Shopping for Works Up to US$ 99,999

Consulting Services Method Comments

Quality- and Cost-Based Selection for Consulting Firm Quality-cost ratio of 90:10 Individual Consultants Selection for Individual Consultant

2. Goods and Works Contracts Estimated to Cost $1 Million or More

The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

Package Number General Description Estimated

Value Procurement

Method Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

ADB-300A Procurement of plant-design, supply, installation, testing and commissioning of 500kV Lahore North S/S and extension at 500kV Nokar S/S

69,900,000.00

ICB Prior 1S2E Q3 / 2018 Prequalification of Bidders: N Domestic Preference Applicable: Y Advance Contracting: N

Appendix 3 41

Bidding Document: Plant

ADB-300B Procurement of plant-design, supply, installation, testing and commissioning of 500kV Maira Switching station

25,400,000.00

ICB Prior 1S2E Q3 / 2018 Prequalification of Bidders: N Domestic Preference Applicable: Y Advance Contracting: N Bidding Document: Plant

ADB-300C Procurement of plant-design, supply, installation, testing and commissioning of Jauharabad 220kV substation and associated transmission line (12 km)

17,900,000.00


ADB-300D Procurement of supply of substation equipment

14,960,000.00

ICB Prior 1S1E Q3 / 2018 Prequalification of Bidders: N Domestic Preference Applicable: Y Advance Contracting: N Bidding Document: Goods

Lot 1: Replacement of 37 MVAR Shunt Reactors at Sheikhupura & Gatti substation, and 20 MVAR at Sheikhupura substation

6,500,000.00

Lot 2: Replacement of 500/220kV, 450MVA Transformer at Gatti substation

8,460,000.00

ADB-300E Procurement of plant-design, supply, installation, testing and commissioning of Numerical Relays for Islamabad, Lahore & Multan Region

5,800,000.00


ADB-301A Procurement of plant- 66,200,000.00 ICB Prior 1S2E Q2 / 2018 Prequalification

42 Appendix 3

design, supply, installation, testing and commissioning of 500 kV transmission line Nokar S/S- Lahore North S/S- Lahore HVDC switching/ converter station (150 km)

of Bidders: N Domestic Preference Applicable: Y Advance Contracting: N Bidding Document: Plant

ADB-301B Procurement of plant-design, supply, installation, testing and commissioning of 220 kV transmission lines associated with Lahore North S/S (44 km)

8,800,000.00


ADB-301C Procurement of plant-design, supply, reconducting, testing and commissioning of 220 kV HTLS D/C transmission lines Kotlakhpat-Bund Road-Sheikhupura D/C T/L (44 km) and Gatti---Bandala (5 km)

10,000,000.00


ADB-301D Procurement of supply of transmission line equipment

19,900,000.00

ICB Prior 1S1E Q3 / 2018 Prequalification of Bidders: N Domestic Preference Applicable: Y Advance Contracting: N Bidding Document: Goods

Lot 1: Construction equipment

8,800,000.00

Lot 2: Live line washing units

2,100,000.00

Lot 3: Live line tools and plants equipment

3,000,000.00

Lot 4: Dead line tools and plants equipment

6,000,000.00

ADB-301E Procurement of supply 3,000,000.00 ICB Prior 1S1E Q2 / 2018 Prequalification

Appendix 3 43

of fog resistant insulators for enhancing grid resilience to air pollution in heavily polluted area

of Bidders: N Domestic Preference Applicable: Y Advance Contracting: N Bidding Document: Goods

ADB-302 Procurement of plant-design, supply, installation, testing, commissioning, and operation and maintenance of grid connected battery energy storage system pilot project

6,440,000.00


3. Consulting Services Contracts Estimated to Cost $100,000 or More

The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Package Number General Description Estimated

Value Recruitment

Method Review (Prior/ Post)

Advertisement Date

(quarter/year) Type of

Proposal Comments

CS-0001 Individual Consultants 700,000.00 ICS Prior Q1 / 2019

Assignment: International Expertise: Various

Advance Contracting: Y Comments: Provide capacity building to NTDC and NEPRA

CS-0002 Individual Consultants 300,000.00 ICS Prior Q1 / 2019

Assignment: National Expertise: Various

Advance Contracting: Y Comments: Provide capacity building to NTDC and NEPRA

44 Appendix 3

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procurement

Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

None Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date

(quarter/year) Type of

Proposal Comments

None

B. Indicative List of Packages Required Under the Project

The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure

Comments

None

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Type of Proposal Comments

None