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1 Public Disclosure Authorized SOUTH ASIA South Asia Energy and Mining Global Practice IBRD/IDA Specific Investment Loan FY 2011 Seq No: 8 ARCHIVED on 01-Jun-2015 ISR18947 Implementing Agencies: Public Disclosure Authorized Key Dates Key Project Dates Board Approval date:21-jun-2011 Planned Mid Term Review Date:09-Feb-2015 Original Closing Date:31-Dec-2016 Project Development Objectives Effectiveness Date:29-Sep-2011 Actual Mid-Term Review Date:09-Feb-2015 Revised Closing Date:31-Dec-2016 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The development objectives are to: (a) establish cross-border transmission capacity between India and Nepal of about 1000 MW to facilitate electricity trade between the two countries; and, (b) increase the supply of electricity in Nepal by the sustainable import of at least 100 MW. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A1: Muzaffarpur-Sursand 400 kv Transmission Line (Non-IDA financed):(cost $29.70 M) Public Disclosure Authorized Component A2: Dhalkebar-Bhittamod 400 kv Transmission Line (non-ida financed):(cost $17.90 M) Component B1: Hetauda-Dhalkebar-Inarwa Transmission Line and Substations:(Cost $ M) Component B2: Synchronization of Operation of the Nepal and Indian Grids:(Cost $10.00 M) Component C: Technical Advisory Services:(Cost $11.00 M) Componet B3: Transmission Lines and IFMIS of NEA:(Cost $39.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory 6/1/2015 Page 1 of 8
2 Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Two Special Purpose Vehicles (SPVs) in India and Nepal are managing the construction of the Dhalkebar-Muzzaffarpur transmission line. TATA Power Company and KEC India Limited are responsible for construction of transmission lines in Nepal and India portion respectively. There is a good progress in implementation of this transmission line. All the private land required for the tower footings have been acquired and construction activities is going on. In the Muzzaffarpur- Sursand section (Indian side), out of 233 towers, 184 foundations and 157 towers has been erected. Similarly, 27 kms of stringing has been completed. The construction of this section of the DM line is expected to be completed by June Similarly, in Dhalkebar- Bhittamod (Nepal side) section out of 112 towers 67 foundations and 37 towers has been erected. Power Transmission Company Nepal (PTCN) is planning to complete the line by June As the new interconnecting substation at Dhalkebar would not be ready by June 2015, the DM line is planned to be operated at 132 kv initially for short period and connect to the old Dhalkebar substation. In this regard, NEA needs to ensure that in addition to adequate capacity being available in the 132 kv bus-bar (Dhalkebar), downstream 11 kv network is also available to transmit the power to consumers. Schematic single line diagrams for the transmission lines are provided in the Annex 5. All the contract orders for Hetauda-Dhalkebar-Inaruwa (HDI) have now been placed. After a delayed start, the progress in construction of HDI transmission line has been satisfactory. The detailed route alignment survey and preparation of plan profile is completed. The check survey is 96.25% completed. There is also good progress in collecting land parcel data for tower foundations and tower erection work. Out of 399 locations, land parcels data for tower foundations have been completed for 383. Out of 790 tower locations, 176 foundations works have been completed, and 111 towers are erected. Land necessary for the construction of 220 kv substations at Hetauda, Dhalkebar and Inaruwa has been acquired. The contract agreement for Dhalkebar substation has been executed on June 12, 2014 with Central China Power Grid International Economic & Trade Co., China. The contractor has mobilized its staff at site and at the moment working on ground leveling. As per the contract duration, completion of the Dhalkebar substation will take 15 months. As per the current work progress, the substation would not be ready when the DM line under component A1 and A2 will be complete. As an alternative measure the DM line is planned to be connected to old Dhalkebar substation at 132 kv operating voltage until the new substation is ready. This connection would have limited transfer capacity of about 200 MW which would be sufficient to receive the 150 MW of electricity that NEA has agreed to purchase from India that would be available from July The team had requested NEA to immediately start revising the previous study on power system synchronization by hiring consultants with expertise in power system dynamic studies. This activity however, is on hold as Nepal and India has formed a committee under the leadership of the Joint Secretary Mr. Keshav Dhoj Adhikari to review the power systems of both countries including study of synchronization of power system of both countries. The Systems Planning Department of NEA and POWERGRID of India are jointly reviewing the issues involved in synchronizing India and Nepal power systems. The team will closely follow-up the progress of this report and if the report prepared the committee is found to be satisfactory, then we will request the project to process with procurement of necessary power system stabilizers. Hetauda-Bharatpur (HB) 220 kv transmission line and associated sub-stations. There is a good progress in implementation of this transmission line. Supply of all equipment including towers has been completed, except for nine multi circuit towers. The structural drawing for the 4D towers are under preparation. Land acquisition has been completed in Chitwan district and 95% of land acquisition completed in Makwanpur district. Right of Way (RoW) compensation for these districts are under progress. Out of 226 tower locations, 99 tower foundations have been completed and 50 towers are erected. There is also good progress in implementation of associated substations and switching stations. Bharatpur-Bardaghat (BB) 220 kv transmission line. About 100% of supply has arrived at site since long time; after a long delay due to hurdles in forest clearance the construction activities have started. So far eight foundations have been completed. With the help of cadastral map 80 percent of land parcels have been identified. Supply of Conductor, Earth wire and OPGW for the Transmission Line. Contract Agreement for Supply of Conductor, Earth wire and OPGW has been signed between NEA and Apar Industries Pvt. Limited, India on March 14, Advance payment is made and Letter of Credit has been opened. The contract time has been extended from January 8, 2015 to July 7, Type test of the conductor is on-going. Delivery of 2,000 km ACSR Moose conductor is expected by May NEA Integrated Financial Management Information System (IFMIS). After issuing Request for Proposal (RFP) to the shortlisted firms, NEA has received two proposals for acquisition, installation, and commissioning and operation maintenance of a system integrator for an integrated financial management information system (IFMIS) of NEA. NEA had submitted the technical evaluation report to the Bank for no-objection. We found that the evaluation report is incomplete as it does not include scoring the firms. NEA will be resubmitting the technical evaluation report including technical scores. Contract Agreement of Transmission Master Plan has been concluded between NEA and EDF France on December 2, Most of the data collection works is complete. Phase I Report that include Demand Forecast, Generation Scenario / Export Potential have been submitted by EDF. Relevant data has been collected, peak and off-peak conditions are defined, load growth is forecasted, generation expansion scenario is defined, and gird modelling is under way. Design of optimum target network is underway, planning criteria is prepared and is under discussion. Draft AS-IS report is submitted for on Analysis of NEA s Implementation Process and Recommendation under the transmission master plan and the consultant is preparing recommendation for the revised process. A workshop was organized March 2015 in Nepal to discuss the implementation process among stake holders. The consultant conducted training on transmission planning for four NEA engineers. Training on overhead standards and PLS-CADD will be conducted in Nepal. 6/1/2015 Page 2 of 8
3 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other Overall -- Substantial Substantial Results Project Development Objective Indicators PHINDPDOTBL Cross-Border Transmission Capacity (Megawatt, Custom) Value Date 27-May Dec Apr Dec-2016 PHINDPDOTBL Quantity of electricity imported from India into Nepal under the PSA (Gigawatt-hour (GWh), Custom) Value Date 27-May Dec Apr Dec /1/2015 Page 3 of 8
4 Overall Comments Intermediate Results Indicators Construction Progress (Text, Custom) Value 0 83 foundations completed and 21 towers erected. 176 foundations completed and 111 towers erected. Line operational Date 27-May Dec Feb Dec-2016 Synchronization of Nepal grid and India grid (Text, Custom) Value No synchronization No Synchronization No Synchronization Power system stabilizers installed and systems synchronized Transmission System Master Plan (Text, Custom) Value 0 Preliminary draft report submitted for zone 6 Preliminary draft report submitted for zones 4, 5 and 6. Final Transmission System Master Plan developed. Date 27-May Dec Dec Dec /1/2015 Page 4 of 8
5 Construction progress (Text, Custom) Value 0 83 tower foundations and 21 towers erected 176 foundations completed and 111 towers erected Line operational Date 27-May Dec Feb Dec-2016 Construction progress (Text, Custom) Value 25% of tower foundation completed 83 foundations and 21 towers erected 176 foundations completed and 111 towers erected Line operational Date 17-May Dec Feb Dec-2016 Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Value Transmission lines constructed under the project (Kilometers, Core Breakdown) Value /1/2015 Page 5 of 8
6 Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Value Transmission lines constructed under the project (Kilometers, Core Breakdown) Value Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Value Date 17-May Dec Apr Dec-2016 Transmission lines constructed under the project (Kilometers, Core Breakdown) Value Date 17-May Dec Dec Dec /1/2015 Page 6 of 8
7 Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Value Date 27-May Dec Dec Dec-2016 Transmission lines constructed under the project (Kilometers, Core Breakdown) Value Date 27-May Dec Dec Dec-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IDA Effective XDR % P IDA Effective XDR % P IDA-H6600 Effective XDR % P IDA-H8580 Effective XDR % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IDA Effective 21-Jun Jul Sep Dec Dec-2016 P IDA Effective 24-Jun Sep Dec Dec Dec-2016 P IDA-H6600 Effective 21-Jun Jul Sep Dec Dec-2016 P IDA-H8580 Effective 24-Jun Sep Dec Dec Dec /1/2015 Page 7 of 8
8 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P Additional Financing for Nepal-India Electricity Transmission and Trade Project 6/1/2015 Page 8 of 8
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