project administration memorandum · construction of a new 400/220 kv substation with 2x315 mva...

Project Administration Memorandum

The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes.

Project Number: 38492-01 Loan Number: 2152-IND January 2006

IND: Power Grid Transmission (Sector) Project

ASIAN DEVELOPMENT BANK

PROJECT ADMINISTRATION MEMORANDUM

for the

POWER GRID TRANSMISSION (SECTOR) PROJECT

for

INDIA

LOAN 2152-IND

30 January 2006

CURRENCY EQUIVALENTS (as of 24 January 2006)

Currency Unit – Indian rupee/s (Re/Rs)

Re1.00 = $ 0.0226

$1.00 = Rs 44.1825

ABBREVIATIONS ADB – Asian Development Bank AFS – annual financial statements APA – Annual project accounts CERC – Central Electricity Regulatory Commission EMP – environmental management plan ESMD – Environmental and social Management Department ICB – international competitive bidding IEE – initial environmental examination IPDP – indigenous peoples development plan IPDF – Indigenous peoples development framework LIBOR – London interbank offered rate NTDP – National Transmission Development Plan PCB – polychlorinated biphenyls PMU – project management unit POWERGRID – Power Grid Corporation of India Limited RF – resettlement framework RP – resettlement plan SEB – State Electricity Board T&D – transmission and distribution WACC – weighted average cost of capital

WEIGHTS AND MEASURES cct-km – circuit-kilometers KV (kilovolt) – 1,000 volts MVA (megavolt-ampere) – 1,000,000 volt-amperes MW (megawatt) – 1,000,000 watts

NOTES

(i) The fiscal year (FY) of the Government ends on 31 March.

(ii) In this report, "$" refers to US dollars.

CONTENTS

PAGE LOAN PROCESSING HISTORY i PROJECT FRAMEWORK ii

I. PROJECT DESCRIPTION 1 A. Project Area and Location B. Objectives and Scope C. Project Components D. Special Features

II. COST ESTIMATES AND FINANCING PLAN 2

A. Detailed Cost Estimates B. Financing Plan C. Special Financing Feature D. Allocation of Loan Proceeds

III. IMPLEMENTATION ARRANGEMENTS 4 A. Executing and Implementing Agencies B. Project Management Organization

IV. IMPLEMENTATION SCHEDULE 4

V. COST ESTIMATES AND FINANCING PLAN DURING

IMPLEMENTATION 5

VI. PROCUREMENT 5

VII. DISBURSEMENT PROCEDURES 5

VIII. ACCOUNTING, AUDITING AND REPORTING 5

IX. PROGRESS REPORT, AND PROJECT PERFORMANCE MONITORING AND EVALUATION 6

X. SAFEGUARDS 6

XI. MAJOR LOAN COVENANTS 6

XII. KEY PERSONS INVOLVED IN THE PROJECT 6

XIII. ANTICORRUPTION 7

APPENDIXES PAGE 1. Organizational Chart of Power Grid Corporation of India, Limited 8 2. Implementation Schedule 9 3. Detailed Project Cost During Implementation 10 4. Detailed Financing Plan - During Implementation 11 5. Quarterly and Yearly Contract Awards and Disbursements Projection 12 6. List of Contract Packages (Contract Monitoring Sheets) 13 7. Pro Forma of the Executing Agency’s Project Progress Report 17 8. Major Loan Covenants 19 9. Key Persons Responsible for the Project 23

i

INDIA: POWER GRID TRANSMISSION (SECTOR) PROJECT

PROJECT ADMINISTRATION MEMORANDUM

LOAN PROCESSING HISTORY

MILESTONE EVENT DATES

a. Fact Finding/Appraisal - 29 July – 18 August 2004

b. Management review meeting (MRM) - 29 September 2004

c. Appraisal - 10 – 13 October 2004

d. Staff Review Committee (SRC) meeting - 28 October 2004

e. Loan negotiations - 24 – 25 November 2004

f. Board circulation - 29 November 2004

g. Board consideration and approval - 20 December 2004

h. Loan agreement signing - 3 November 2005

i. Loan effectiveness - 10 January 2006

ii

PROJECT FRAMEWORK1

Design Summary Performance Indicators/Targets

Monitoring Mechanisms

Assumptions and Risks

Goal Adequate and reliable supply to meet demands for electricity in India

100,000 MW of additional generation capacity by 2012 Electrification of rural households increased from 31% in 2004 to 100% in 2012

All India Electricity Statistics issued by Central Electricity Authority

Purposes National transmission grid strengthened and expanded with transmission bottlenecks removed and losses reduced

Availability of National Transmission Grid at 99% or greater T&D losses reduced from about 30% in 2004 to 20% in 2012.

Annual reports of POWERGRID Regular statistics from National Dispatch Center and Regional Control Centers Project review missions

Assumptions • Government’s

continued support and commitment to power sector reform and development of the national electricity market

• Timely and

transparent implementation of the Electricity Act 2003

• Load growth and

system expansion as forecast

Risk • Delays in

implementation of generation and distribution expansion programs.

Outputs • Tamil Nadu I Grid

Strengthened

820 circuit-kilometer (cct-km) of 400kV transmission lines, and 1,260 megavolt-ampere (MVA) of 400/220kV substation capacity added

Quarterly progress reports Project review missions Project completion report

Assumption • Funds for

operation and maintenance of project

1 As agreed upon during project appraisal.

iii

Design Summary Performance Indicators/Targets

Monitoring Mechanisms

Assumptions and Risks

• Tamil Nadu II Grid

Strengthened • Tamil Nadu, Andhra

Pradesh, and Union Territory of Pondicherry Grid Strengthened

436 cct-km of 400kV transmission lines and 630 MVA of 400/220kV substation capacity added 98 cct-km of 400kV transmission lines and 1,260 MVA of 400/220kV substation capacity added

components made available

• Candidate

subprojects to be selected based on agreed eligibility criteria

Activities Procure supply and construction contracts for implementation of the project packages Carry out initial environmental examination (IEE) including public consultations Prepare resettlement plan (RP) in consultation with stakeholders concerned Prepare indigenous peoples development plan (IPDP) if needed, in consultation with stakeholders concerned

Contract awards amounting to about $400 million by 31 December 2006 Summary IEE for final candidate subprojects by December 2005. Last RP by 31 December 2005 Last IPDP by 31 December 2005

Quarterly progress reports Project accounts Review missions Appraisal reports including Summary IEE, RP, and IPDP, if needed, for each candidate subproject.

Assumption • No delay in

project implementation

Risk • Increase of steel

and aluminum prices

Inputs ADB Loan POWERGRID internal resources

$400 million $168 million

Quarterly progress reports ADB review missions

Assumption • Adequate funds

from POWERGRID's internal resources.

ADB: Asian Development Bank, cct-km = circuit kilometer, GWh=gigawatt hours, IEE = initial environmental examination, IPDP = indigenous peoples development plan, kV=kilovolt, MVA = megavolt-amperes, MW=megawatts, POWERGRID = Power Grid Corporation of India Limited, RP = resettlement plan.

1

I. PROJECT DESCRIPTION

A. Project Area and Location 1. The Power Grid Transmission (Sector) Project (the Project) will benefit India's power sector. The Project focuses on strengthening and expansion of the national transmission grid including the states of Andhra Pradesh, Kerala and Tamil Nadu, the Union Territory of Pondicherry, and also the northern part of the country. B. Objectives and Scope 2. The objective of the Project is to strengthen and develop India’s national transmission grid to improve system reliability, facilitate interstate and interregional power transfers by removing transmission bottlenecks, reduce transmission losses, facilitate efficient utilization of existing and planned power plants, and facilitate development of a national power trading market through open access to the national transmission grid. C. Selection and Eligibility Criteria of Subprojects 3. The criteria for selecting each subproject to be considered for Asian Development Bank (ADB) financing are as follows:

(i) The subproject should be technically feasible; (ii) The subproject will be part of Power Grid Corporation of India Limited’s

(POWERGRID's) National Transmission Development Plan (NTDP); (iii) Any subproject classified as category A in accordance with ADB’s Environment

Policy 2002 will not be eligible; (iv) The subproject will not include transmission lines emanating from power

generating stations; and (v) The State Electricity Board (SEB) or the region that is the beneficiary of the

subproject has a satisfactory payment record with POWERGRID, i.e., has an accounts receivable owing to POWERGRID of 3 months or less.

D. Project Components 4. Based on the data available and the above eligibility criteria, ADB and POWERGRID have jointly appraised the following three core subprojects during project processing covering the states of Andhra Pradesh and Tamil Nadu, and the Union Territory of Pondicherry:

(i) Grid Strengthening for Tamil Nadu I that comprises construction of 600 circuit-kilometers (cct-km) of new 400 kilo-volt (kV) transmission lines from Tirunelveli to Udumalpet, and 220 cct-km of new loop-in-loop-out 400 kV transmission lines from Madurai to Trivandrum; construction of a new 400/220 kV substation with 2x315 megavolt-ampere (MVA) transformation capacity at Tirunelveli, and augmentation of existing 400/220 kV substations at Udumalpet and Trivandum with a 315 MVA transformer each; 2

2 220 cct-km of new loop-in-loop-out 400 kV transmission lines from Madurai to Trivandrum; and construction of a

new 400/220 kV substation with 2x315 megavolt-ampere (MVA) transformation capacity at Tirunelveli are being implemented from POWERGRID’s own fund due to its urgency.

2

(ii) Grid Strengthening for Tamil Nadu II that comprises construction of 280 cct-km of new 400 kV transmission lines from Pugalur to Madurai, and 156 cct-km of new 400 kV transmission lines from Udumalpet to Arasur; construction of a new 400/220 kV substation with 2x315 MVA transformation capacity each at Pugalur and Arasur, and augmentation of 400/220 kV substation bays at Madurai and Udumalpet; and

(iii) Grid Strengthening for Tamil Nadu, Andhra Pradesh, and Union Territory of

Pondicherry that includes the establishment of a new 2x315 MVA substation at Pondicherry and Warangal by 60 cct-km line-in-line-out of one of the circuit of Neyveli-Sriperumbudur 400 kV double-circuit transmission line and 38 cct-km line-in-line-out of Ramagundam-Khammam 400 kV single-circuit transmission line, respectively.

5. Subsequently after approval of the loan by ADB, the following subprojects have been proposed by POWERGRID for which subproject appraisal reports have been approved by ADB:

(i) Grid Strengthening for Kerala I that comprises construction of 620 cct-km of new 400 kV transmission lines from Tirunelveli to Muvattupuzha (East Cochi) via Edamon;

(ii) Grid Strengthening for Kerala II that comprises construction of 160 cct-km of new

400 kV transmission lines from Muvattupuzha (East Cochi) to North Trichur, construction of a new 400/220 kV substation with 2x315 MVA transformation capacity at Muvattupuzha (East Cochi), and extension of 400/220 kV substation bays at North Trichur; and

(iii) Northern Region System Strengthening Scheme V that comprises construction of

1,172 cct-km of new 400 kV transmission lines from Agra to Bhiwadi and Bhiwadi to Moga, 160 cct-km of new loop in loop out of 400 kV transmission line from Hissar to Jaipur at Bhiwadi, and extension of 400/220 kV substation bay at Bhiwadi, Moga and Agra.

6. In selecting additional subprojects, POWERGRID will follow the procedures that include (i) carrying out a technical feasibility study for each subproject, (ii) preparing a Resettlement Plan (RP), (iii) conducting an Initial Environmental Examination (IEE), and (iv) if indigenous peoples are impacted, preparing an Indigenous Peoples Development Plan (IPDP). The technical feasibility study will include a detailed engineering design of the subproject, cost estimates, contract packages, and implementation schedule. ADB will not consider for inclusion in the Project any subproject that does not satisfy any of the above eligibility criteria or where the above procedures have not been followed.

II. COST ESTIMATES AND FINANCING PLAN

A. Detailed Cost Estimates 7. The Project consists of strengthening and augmentation of POWERGRID's transmission lines and associated substations, which are part of POWERGRID's NTDP. The revised cost estimates of the three core subprojects, and additional subprojects to be implemented during the 2005 – 2009 period are summarized in Table 1 below:

3

Table 1: Summary Cost Estimates

($ Million) Foreign

Exchange Local

Currency

Total Core Subprojects Base Cost 132.2 23.7 155.9 Taxes and Duties 0.0 5.3 5.3 IDC 8.2 3.8 12.0 Subtotal 140.4 32.8 173.2 Candidate Subprojects 333.3 65.7 399.9 Total 473.7 98.5 572.2

IDC = interest and other charges during construction Source: POWERGRID and Asian Development Bank estimates. 8. ADB has approved a loan of $400 million from ADB’s ordinary capital resources to help finance the Project. The loan will have a 20-year term including a grace period of 5 years, an interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, commitment charge of 0.75%, and such other terms and conditions set forth in the Loan Agreement. 9. POWERGRID is the borrower, with a guarantee from the Government of India, and will bear the foreign exchange risk. ADB will finance 70% of the total project costs as shown in Table 2 below. POWERGRID will fund the remaining 30% of the total project costs, including interest and other charges during construction, from its internal cash generation and domestic commercial borrowings. The local currency costs will be financed through borrowings as part of the overall corporate financing requirements.

Table 2: Financing Plan

($ million)

Financing Source Foreign Currency Local

Currency Total %

ADB 400.0 0.0 400.0 70% POWERGRID 73.7 98.5 172.2 30%

Total 473.7 98.5 572.2 100% Note: POWERGRID's foreign exchange contribution is toward the interest and other charges during construction.

Source: Asian Development Bank and POWERGRID estimates. C. Allocation of Loan Proceeds 10. POWERGRID shall apply the proceeds of the Loan to the financing of expenditures on the Project in accordance with the provisions of the Loan Agreement. 11. The goods and services to be financed out of the proceeds of the Loan and the allocation of amounts of the Loan among different categories of such goods and services shall be in accordance with the provisions of Schedule 3 of the Loan Agreement, and such Schedule may be amended from time to time by agreement between the ADB and POWERGRID.

4

12. Except as ADB may otherwise agree, all goods and services to be financed out of the proceeds of the Loan shall be procured in accordance with the provisions of Schedule 3 of the Loan Agreement. ADB may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between POWERGRID and ADB or where the terms and conditions of the contract are not satisfactory to ADB. 13. Except as ADB may otherwise agree, POWERGRID shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively in the carrying out of the Project. 14. The closing date for withdrawals from the Loan Account for the purposes of Section 9.02 of the Loan Regulations shall be 31 December 2009 or such other date as may from time to time be agreed between ADB and POWERGRID.

III. IMPLEMENTATION ARRANGEMENTS

A. Executing Agency 15. POWERGRID is the executing agency for the Project. POWERGRID’s organizational structure consists of (i) a corporate center at the head office in Gurgaon (in the state of Haryana) that is responsible for overall corporate planning, system planning and engineering, management of transmission system operations and projects, finance, commercial matters, and personnel; and (ii) regional offices. POWERGRID’s organization chart is given in Appendix 1. B. Project Management 16. The Project will be implemented as a sector loan and additional subprojects would be considered during implementation. POWERGRID has set up a Program Management Unit (PMU) headed by an Executive Director (Corporate Planning) at its headquarters. PMU, through the related functional departments of POWERGRID, will be responsible for processing and implementing the subprojects. POWERGRID has eight regional offices each headed by an executive director/general manager (in-charge) to implement the subprojects under their respective jurisdiction. The general managers/additional general managers in the region responsible for construction and commissioning of the subprojects will report to their respective regional heads. The regional heads will facilitate submission of the implementation progress reports. The management of POWERGRID receives monthly progress reports and reviews each subproject in quarterly review meetings.

IV. IMPLEMENTATION SCHEDULE

17. The Project will be implemented over 5 years, inclusive of procurement and construction activities, and is expected to be completed by December 2009. Implementation of the subprojects started in January 2005 and will be implemented until June 2009. The implementation schedule of the 3 core subprojects that have secured in-principle approval from the Government and the additional subprojects approved by ADB is given in Appendix 2. ADB will periodically review the implementation of the subprojects and discuss with the concerned staff of POWERGRID to check progress. ADB will also monitor POWERGRID’s overall technical and financial performance. In view of the long lead time needed to implement major transmission projects, POWERGRID has completed submission of appraisal reports to ADB in December 2005 for the remaining subprojects to be financed under the Project. ADB

5

has approved all of these subprojects. However, POWERGRID may submit appraisal reports for additional subprojects to ADB for consideration, should there be savings under the loan.

V. COST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION

18. POWERGRID will prepare Project cost estimates of foreign exchange costs and local costs for all subprojects, in the format shown in Appendix 3. A detailed financing plan of the Project, with estimated financing requirements for the major project components, will also be prepared in the format shown in Appendix 4. These tables will be revised and updated annually, or more often if necessary, based on progress with contract awards and actual implementation of the Project, and attached to the quarterly progress reports to ADB. 19. POWERGRID will also prepare annually the forecast contract awards and disbursements on a quarterly basis for one year ahead, in the format shown in Appendix 5. This will be submitted to ADB by 15 January each year.

VI. PROCUREMENT

20. Equipment and materials to be financed under the loan will be procured in accordance with ADB’s Guidelines for Procurement. International competitive bidding (ICB) will be used for supply contracts estimated to cost more than $500,000, international shopping for contracts from $100,000–$500,000, and direct purchase arrangement for those less than $100,000. Contract packages and bid specifications will be prepared to ensure maximum competition under ICB. The agreed upon contract package list for the three core subprojects and the additional subprojects approved by ADB, which will follow ICB procedures, is given in Appendix 6. To facilitate timely implementation of the Project and based on POWERGRID’s effectiveness in handling procurement under the two previous ADB-financed projects, POWERGRID has been allowed advance procurement action for eligible subprojects. POWERGRID has also been allowed to use the modified ADB bid documents applied under the Sipat subproject along with the agreed modifications. 21. For contracts to be awarded based on ICB procurement procedures, POWERGRID are exempted from ADB’s prior review of its bid documents provided that such documents are forwarded at the time of their release to ADB for post-facto approval, and POWERGRID issues amendments to such documents based on comments made by ADB, if any, during the bidding period. Further, POWERGRID may also award contracts of value less than $3 million in each case without seeking prior approval of ADB, provided the lowest priced bidder is also the lowest evaluated bidder, and with a proviso that (i) all cases involving unusual issues shall be submitted to ADB for prior approval, and (ii) all cases shall be subject to post-facto approval of ADB which shall retain the right to disallow utilization of loan proceeds in case it is unable to agree with POWERGRID on either the bid documents or the bid evaluation report. Any contract variations beyond the limit specified in the corresponding bidding document will require ADB’s prior approval.

VII. DISBURSEMENT PROCEDURES

22. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook, January 2001. No imprest account will be required for disbursements under the loan.

6

VIII. ACCOUNTING, AUDITING, AND REPORTING 23. POWERGRID will maintain separate accounts for the Project. POWERGRID will also have its accounts and financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards and consistently applied, by independent auditors whose qualifications, experience, and terms of reference are acceptable to ADB. Within 6 months of the close of each financial year POWERGRID will submit certified copies of audited annual project accounts (APA) and annual financial statements (AFS) and related thereto. The APA will contain detailed descriptions of the sources of receipts and expenditures. The AFS will consist of an income statement, balance sheet, statement of cash flows and related notes to financial statement and consolidated for all of POWERGRID’s operations.

IX. PROGRESS REPORT, AND PROJECT PERFORMANCE MONITORING AND EVALUATION

24. POWERGRID will prepare quarterly progress reports containing all the information listed in Appendix 7 and submit these to ADB, within 45 days after the end of each quarter. These reports will provide, inter alia, a narrative description of progress made during the period, changes in implementation schedule, problems or difficulties encountered, and the work to be carried out in the next period. The progress reports will also include a summary financial account for the project components including subprojects, consisting of project expenditures including for subprojects, during the period, and total expenditure to date, and benefit monitoring in accordance with ADB's Project Performance Management Systems Handbook. Performance will be evaluated on the basis of performance indicators/targets stipulated in the Project Framework.

X. SAFEGUARDS 25. POWERGRID has prepared and disclosed the required full Resettlement Plan for the three core subprojects to the affected people. A Resettlement Framework (RF) has also been prepared. The RF will serve as a basis to prepare subsequent RPs for additional subprojects. In addition, an Indigenous Peoples Development Framework (IPDF) has been prepared to guide POWERGRID in preparing an IPDP if indigenous peoples are impacted in any additional subproject. All plans will be prepared in full consultation with affected persons and disclosed in draft form to them and ADB for comments before finalization. 26. The three core subprojects have been categorized as a “B” in accordance with ADB’s Environmental Assessment Guidelines 2003. The initial environmental examination (IEE), which included environmental management plan for sample subprojects, was prepared in accordance with ADB’s Environmental Assessment Guidelines, 2003. An Environmental Assessment and Review Framework have been prepared to guide preparation of IEEs for additional subprojects. Environment Category B sensitive subprojects will be avoided to the extent possible. Any additional subproject deemed by ADB as environmentally B sensitive will require justification and documentation that anticipated impacts can be effectively mitigated and its SIEE will be made available to the general public at least 120 days before the subproject approval by ADB. As per the above procedure, POWERGRID has prepared IEE reports for additional subprojects and submitted to ADB which has been duly approved by ADB.

7

XI. MAJOR LOAN COVENANTS

27. The loan covenants which have been agreed among the Government, POWERGRID and ADB, to be complied with against the dates shown where applicable is in Appendix 8.

XII. KEY PERSONS INVOLVED IN THE PROJECT

28. The key persons responsible for the implementation/administration of the Project are in Appendix 9.

XIII. ANTICORRUPTION

29. ADB defines corruption as “the abuse of public or private office for personal gain.” ADB will systematically identify, in consultation with its member countries opportunities for reducing corruption as part of its broader emphasis upon promoting good governance and sound development management. The institutional arrangements and reporting mechanisms referred to in the PAM are put in place to enable monitoring and accounting of the use of ADB resources. The ADB’s Anticorruption Policy has set the guidelines and procedures in addressing corrupt practices. Anyone coming across evidence of corruption associated with the project must contact ADB’s Office of the General Auditor, which will investigate such allegations.

AGREED

For the Asian Development Bank: For the Executing Agency: _______________________________ ________________________________ Pil-Bae Song Mr. I.C Jaiswal Head, PAU/Principal Energy Specialist Executive Director, Corporate Planning Asian Development Bank Power Grid Corporation of India Limited

Appendix 1

8

POWER GRID CORPORATION OF INDIA LIMITED - ORGANIZATION CHART

Chairman and Managing Director

Corporate Planning, ESMD & CC Company Secretary Vigilance Contract Services Material Mgt.

Director (Finance)

Accounts, budget & Taxation

Commercial Finance

Bonds, Banking, PF,

Pension, Establishment

Internal Audit

Director (Operations)

Operation Services

System Operations

NRLDC

ERLDC

WRLDC

SRLDC

NERLDC

Director (Personnel)

Human Resources

Telecom

Commercial

Law

Director (Projects)

Engg., QA & I

LD&C and IT

CMG

BDDPI

BDD = Business Development Department, CC= Corporate Communication, CMG = Corporate Monitoring Group, DMS = Distribution Management Services, ERLDC = Eastern Region Load Despatch Center, ERSTS = Eastern Region Sub-transmission System, ERTS = Eastern Region Transmission System, ESMD = Environment and Social Management Department, IT = Information Technology, LD&C = Load Despatch & Communication, NERLDC = Northeastern Region Load Despatch Center, NERTS = Northeastern Region Transmission System, NRLDC = Northern Region Load Despatch Center, NRTS = Northern Region Transmission System, PF = Provident Fund, PI = Private Investment, QA = Quality Assurance, SRLDC = Southern Region Load Despatch Center, SRTS = Southern Region Transmission System, WRLDC = Western Region Load Despatch Center, WRTS = Western Region Transmission System.

DMS

Financial Concurrence, Cost Engg.

NRTS - I NRTS - II ERTS-I WRTS SRTS - I SRTS - II NERTS ERTS-II

9 Appendix 2

11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12Core Subprojects

TF TO CA DA CS CE ES EE CI. Grid Strengthening for TN-I

TF TO CA DA CS CE ES EE C

TF TO CA DA CS CE ES EE CII. Grid Strengthening for TN-II

TF TO CA DA CS CE ES EE C

TF TO CA DA CS CE ES EE CIII. Grid Strengthening for TN&AP and

Union Territory of PondicherryTF TO CA DA CS CE ES EE C

Candidate SubprojectsTF TO CA DA CS CE ES EE C

I. Grid Strengthening for Kerala-I

TF TO CA DA CS CE ES EE CII. Grid Strengthening for Kerala-II

TF TO CA DA CS CE ES EE CIII. Northern Region System Strengthening - V

AP = Andhra Pradesh; C = commissioning; CA = contract award; CE = commencement of erection; CS = commencement of supply; DA = drawing approval; EE = completion of erection;ES = completion of supply; TF = tender float; TO = tender opening; TN = Tamil Nadu. Note: Schedules are for the package(s) to be awarded first under each subproject. Estimate at Appraisal Revised Estimate at Inception (Jan. 2006)

2008 2009

SUBPROJECT IMPLEMENTATION SCHEDULE

Subproject Name 2005 2006S No. 20072004

10

Appendix 3

Sub-projects Foreign Local Total Foreign Local Total Foreign Local TotalExchange Currency Exchange Currency Exchange Currency

Core Sub-projectsGrid Strengthening for TN-I 72.3 8.6 80.9 43.0 3.6 46.6Grid Strengthening for TN-II 44.7 12.5 57.2 44.7 12.5 57.2Grid Strengthening for TN&AP and UT of Pondicherry 20.8 7.6 28.4 20.8 7.6 28.4

Sub-total (Base Cost) 137.8 28.7 166.5 108.5 23.7 132.2

Physical Contingency 13.8 2.9 16.7 10.9 2.3 13.2Price Contingency 16.4 3.6 20.0 12.8 3.0 15.8

Sub-total (Contingencies) 30.2 6.5 36.7 23.7 5.3 29.0

IDC 10.2 4.8 15.0 8.2 3.8 12.0

Total (Core Sub-project) 178.2 39.8 218.0 140.4 32.8 173.2

Candidate Sub-projectsGrid Strengthening for Kerala-I 180.4 39.6 220.0 117.9 22.1 140.0Grid Strengthening for Kerala-II 47.6 10.4 58.0 38.4 10.3 48.7Establishment of 765/400 kV substation at Unnao */ Northern Region System Strengthening - V (NRSS-V)

59.0 13.0 72.0 104.9 13.6 118.5

Sub-total (Base Cost) 287.0 63.0 350.0 261.2 46.0 307.2

Physical Contingency 26.1 4.6 30.7Price Contingency 28.7 5.1 33.8

Sub-total (Contingencies) 54.8 9.7 64.5

IDC 17.3 10.0 27.3

Total (Candidate Sub-project) 287.0 63.0 350.0 333.3 65.7 399.0

Grand Total 465.2 102.8 568.0 473.7 98.5 572.2

DETAILED PROJECT COST DURING IMPLEMENTATION

During appraisal (RRP) Actual (Inception Mission - Jan 2006) Actual (on project completion)

* Establishment of 765/400 kV substation at Unnao, intially identified as one of the Candidate subprojects at RRP stage, did not evolve and subsequently another subproject,namely Northern Region System Strengthening - V (NRSS-V) has been included as a Candidate sub-project keeping in view the funding gap.

Included under Base

cost.

Included under Base

cost.

Included under Base

cost.

11

Appendix 4

Source Foreign Local Total % Foreign Local Total % Foreign Local Total %Exchange Currency Exchange Currency Exchange Currency

ADB 400.0 0.0 400.0 70 400.0 0.0 400.0 70

POWERGRID 65.2 102.8 168.0 30 73.7 98.5 172.2 30

Total 465.2 102.8 568.0 100 473.7 98.5 572.2 100

ADB: Asian Development Bank, POWERGRID: Power Grid Corporation of India Limited

During appraisal (RRP) Actual (Inception Mission - Jan 2006) Actual (on project completion)

DETAILED FINANCING PLAN - DURING IMPLEMENTATION

12 Appendix 5

PROJECT:LOAN NO. SEGMENT NO. FUNDS (OCR, SF)

QP QP QP QP

QA QA QA QAQP QP QP QPQA QA QA QA

- - -

- - - - - -

- - 1 In accordance with the allocation of loan proceeds as defined in the loan documents, or any other deatiled breakdown if found useful.

QA = Quarterly Actual (already awarded/commited/disbursed, when projections are prepared).QP = Quarterly Projected (to be awarded/commited/disbursed), when projections are prepared).

COUNTRY (Acronym)

Ref. Line no.

Category 1 CONTRACT/COMMITMENT ITEM 1

QUARTER 3

Month Awarded/ Commited or To be

Awarded/ QP Disbursement Amount Related

to the Contract/ Commitment (6)

Disbursement Amount Related to the Contract/

Commitment (10)=(2+4+6+8)

Contract Value/ Commitment

(9)=(1+3+5+7)

QUARTER 4

Month Awarded/ Commited or To

be Awarded/ QP Disbursement Amount Related to

the Contract/ Commitment (8)

Contract Value/ Commitment (7) QA

QP

QA

Disbursement Amount Related to

the Contract/ Commitment (2) QA

Month Awarded/ Commited or To be Awarded/ Commited

QP Disbursement Amount Related to the Contract/

Commitment (4)Contract Value/ Commitment (3) QA

Contract Value/ Commitment (5)

Month, Year Contract Awarded

Contract Value (Bank Financed)

Month Awarded/ Commited or To be Awarded/ Commited

Contract Value/ Commitment (1)

1

2

3

4

7

5

6

8

9

10

11

12

13

April, May, June July, August, September October, November, December

TOTAL PROJECTED FOR THE YEAR _______

QUARTER 2

TOTAL OF THIS PAGE ___ OF ___PAGES

GRAND TOTAL (LAST PAGE)

QUARTER 1Contracts Awarded on

Previous Year (s) January, February, March

15

14

WORKSHEET FOR QUARTERLY AND YEARLY CONTRACT AWARDS/COMMITMENTS AND DISBURSEMENT PROJECTIONS ($ Million)

Ref. PAI Nos. 4.13. Issued in July 1992 and 6.1. Issued in October 1990

PROJECTIONS MADE IN: (Month, Year)

Appendix 6

LOAN TITLE: POWER GRID TRANSMISSION (SECTOR) PROJECTLOAN NO. 2152-INDLOAN AMOUNT: $400.0 Million As of 17-Feb-06 LOAN CLOSING DATEADV. PROC. APPROVAL DATE: 29-Sep-04 30-Jun-09APPROVAL DATE: 21-Dec-04EFFECTIVE DATE: -

Contract Title Specific Receipt Approval Issue Bid Receipt Bid Bank Contract Receipt PCSS Amount (US$ Million) Specification No. Notice Draft Draft of Bid Closing Bid Validity Approval Award Signed Number Estimated Bank DisbursedSupplier's Name Date Bid Doc Bid Doc Invitation Date Eval'n Period Date Date 2/ Contract /Date Value Finance

Grid Strengthening for TN-1 INRC-52706-L195A-7 - Tower Package (I) 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 17-Jun-05 07-Dec-05 16-Dec-05 18-Jan-06 28-Feb-06 9.700 265,121,415400kV D/C Trinulveli-Udumalpet (A1) 01-Jul-05 16-Feb-06 + JV Electrical Manufac/Amitasha Enterpris. 18-Jul-05 1,717,942

19-Aug-05C-52706-L175-7 - ACSR Moose Conductor 17-Jun-05 16-Dec-05 $(Trinulveli-Udumalpert (I) (B1) 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05 11-Nov-05 16-Feb-06 18-Nov-05 28-Feb-06 7.500 5,885,220Sterlite Industries, India 18-Jul-05 +

19-Aug-05 INR 119,000C52706-L179-7 - Insulator Package (I) 17-Jun-05 16-Dec-05 1/ INR (Trinulveli-Udumalpet) (C1) 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05 11-Nov-05 16-Feb-06 20-Dec-05 28-Feb-06 1.100 30,241,501W.S. Industries (India) Ltd. 18-Jul-05

19-Aug-05C-52707-L195A-7 - Tower Package (II) A-2 17-Jun-05 INRKEC Limited, India 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05 07-Dec-05 16-Dec-05 18-Jan-06 28-Feb-06 9.700 340,405,081

18-Jul-05 16-Feb-06 +19-Aug-05 1,063,150

C-52707-L175--7 - Conductor (II) (B2) 17-Jun-05 $Sterlite Industries, India 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05 11-Nov-05 16-Dec-05 18-Nov-05 28-Feb-06 7.500 5,830,995

18-Jul-05 16-Feb-06 +19-Aug-05 INR 119,000

C52707-L179-7 - Insulator (II) (C2) 17-Jun-05 1/W.S. Industries (India) Ltd. 14-Mar-05 28-Feb-05 14-Mar-05 16-Apr-05 01-Jul-05 11-Nov-05 16-Dec-05 20-Dec-05 1.100 INR

18-Jul-05 16-Feb-06 28-Feb-06 38,581,30519-Aug-05

Grid Strengthening for TN II, TN, AP and Union Territory of PondicherryC-55808-L195A-7 - Tower Package (I), 23-May-05 16-May-05 03-Jun-05 16-May-05 15-Jul-05 09-Dec-05 28-Dec-05 16-Jan-06 28-Feb-06 8.000 INR400kV, Pugalar-Madurai (A1) 09-Aug-05 31-Jan-06 321,522,671Associated Transrail Structured Ltd, India 23-Aug-05 28-Feb-06 +

30-Aug-05 788,750C-55808-L175-7 - ACSR Moose Conductor 15-Jul-05 $(B1) Apar Industries, Ltd. (India) 23-May-05 16-May-05 03-Jun-05 16-May-05 09-Aug-05 09-Dec-05 28-Dec-05 21-Dec-05 28-Feb-06 7.500 5,572,400

23-Aug-05 31-Jan-06 + INR30-Aug-05 28-Feb-06 8,110,800

C-55808-L179-7 - Insulator Package (C1) 15-Jul-05Modern Insulators, Ltd. (India) 23-May-05 16-May-05 03-Jun-05 16-May-05 09-Aug-05 09-Dec-05 28-Dec-05 21-Dec-05 28-Feb-06 1.100 INR

23-Aug-05 31-Jan-06 45,054,08130-Aug-05 28-Feb-06

Appendix 6



(C-55809-L195A-7 (A2)Transmission Line (II) - Tower Package 16-Jul-05 20-Sep-05 31-Mar-06 9.100(400kV, Udumalpet-Arasur, LILO of 01-Aug-05 22-Aug-05 18-Jul-05 04-Oct-05 27-Jan-06 15-Feb-06Ramagundam-Khammam, @Warangal 18-Oct-05 15-Mar-06LILO of Neyveli-Sriperumbudur)

18-Oct-05ACSR Moose Conductor 16-Jul-05 01-Aug-05 22-Aug-05 18-Jul-05 20-Sep-05 27-Jan-06 15-Feb-06 31-Mar-06 6.800(C-55809-L175-7 (B2) 04-Oct-05 15-Mar-06

20-Sep-05Insulator Package (C-55809-L179-7 (C2) 16-Jul-05 01-Aug-05 22-Aug-05 18-Jul-05 04-Oct-05 27-Jan-06 15-Feb-06 31-Mar-06 1.000

18-Oct-05 15-Mar-06C-55802-S119A-7 - Substation Package 09-Sep-05 07-Jan-06 INR(Pugalur & Madurai) (A1) 1-Jun-05 27-Apr-05 30-May-05 16-Apr-05 01-Aug-05 09-Dec-05 07-Feb-06 18-Jan-06 07-Feb-06 10.500 464,985,126Alsthom Ltd, India 16-Aug-05 28-Feb-06 +

2,030,937C-55803-S119A-7 - Substation Package 09-Sep-05 07-Jan-06 INR(Arasur & Udumalpet) (A2) 1-Jun-05 27-Apr-05 30-May-05 16-Apr-05 01-Aug-05 09-Dec-05 07-Feb-06 18-Jan-06 07-Feb-06 10.500 459,212,520Bharat Heavy Electricals Ltd., India 16-Aug-05 28-Feb-06 +

1,046,900C-55806-S119A-7 Substation Package 23-Sep-05at Pondicherry (B1) 25-May-05 07-Jun-05 10-Jun-05 24-May-05 13-Sep-05 27-Jan-06 21-Jan-06 31-Mar-06 9.500

25-Aug-05 21-Feb-0625-Jul-05 31-Mar-06

C55807-S119A-7 Substation Package 23-Sep-05at Warangal (B2) 25-May-05 07-Jun-05 10-Jun-05 24-May-05 13-Sep-05 27-Jan-06 21-Jan-06 31-Mar-06 9.000

25-Aug-05 21-Feb-0625-Jul-05 31-Mar-06

Grid Strengthening of Kerala I 8-Sep-05 INRC-52709-L195A-7 - Tower Package (A1) 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 04-Jan-06 30-Jan-06 28-Feb-06 494,138,409400kV Tirunelvelli-Edamon T/L 18-Nov-05 +Kalpataru Power Transmission Ltd. 2,836,000C-52710-L195A-7 Tower Package (A2) 8-Sep-05 INR400 kV Tirunelvelli-Edamon T/L 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 04-Jan-06 30-Jan-06 28-Feb-06 616,493,000M/s RPG Transmission Lines 18-Nov-05 +

2,613,600C-52709-L175-7 Conductor (B1) 8-Sep-05 $Apar Industries, Ltd. India 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 22-Dec-05 17-Mar-06 18-Jan-06 28-Feb-06 7,194,426

18-Nov-05 + INR102,000

Appendix 6



C52710-L175-7 Conductor (B2) 8-Sep-05 $Sterlite Industries, India 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 22-Dec-05 17-Mar-06 18-Jan-06 28-Feb-06 5,423,000

18-Nov-05 + INR119,000

C-52709-L179-7 Insulator (C1) 8-Sep-05 INRBharat Heavy Elect. Ltd, India 06-Sep-05 12-Oct-05 08-Sep-05 08-Nov-05 22-Dec-05 17-Mar-06 18-Jan-06 28-Feb-06 53,863,792

18-Nov-05 +3,802,000

C-52710-L179-7 Insulator (C2) 8-Sep-05 08-Sep-05 08-Nov-05 INRBirla NGK Insulator, Ltd., India 06-Sep-05 12-Oct-05 18-Nov-05 22-Dec-05 17-Mar-06 18-Jan-06 28-Feb-06 62,668,422

+3,700,000

Grid Strengthening of Kerala II 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05C-52711-L195A-7 (A1) - Tower Package 18-Nov-05 28-Nov-05 28-Feb-06400kV Edamon-Muvattupuzha T/L (Part I)

C-52712-L195A-7 (A2) - Tower Package 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05400 kV D/C Edamon-Muvattupuzha T/L 18-Nov-05 28-Nov-05 28-Feb-06(Part II)

C-52713-L195A-7 (A3) - Tower Package 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05400 kV D/C Muvattupuzha-North Trissur 18-Nov-05 28-Nov-05 28-Feb-06

C-52711-L175-7 (B1) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05Conductor Package 18-Nov-05 28-Nov-05

28-Feb-06


28-Feb-06


28-Feb-06

C-52711-L179-7 (C1) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05Insulator Package 18-Nov-05 28-Nov-05

28-Feb-06

C-52712-L179-7 (C2) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05Insulator Package 18-Nov-05 28-Nov-05 28-Feb-06

Appendix 6



C-52713-L179-7 (C3) 21-Sep-05 21-Sep-05 13-Oct-05 21-Sep-05 26-Nov-05Insulator Package 18-Nov-05 28-Nov-05 28-Feb-06

C-52714-S919A-7 (Substation Package) 5-Oct-05 10-Oct-05 27-Oct-05 07-Oct-05 20-Dec-05Muvattupuzha (New) Extensions of North 03-Jan-06 30-Apr-06Thrissur, Udumalpet & TrivandrumSubstation

Northern Region System StrengtheningTower Package (A1) 400kV D/C MogaBhiwadi, Part I

Tower Package (A2) 400 kV D/C Moga-Bhiwadi, Part II

ACSR Moose Conductor (B1)

120 KN & 60 KN Insulator Package (C1)

400 kV D/C Agra-Bhiwadi, Part ITower Package (A3)

400 kV D/C Agra-Bhiwadi, Part II and LILOof 400 kV S/C Hissar-Jaipur Line atBhiwadi (Tower Package - A4)

ACSR Moose Conductor (B2)

120 KN & 160 KN Insulator Package (C2)

Extension of 400 kV Bhiwadi and AgraSubstations (A1)

Extension of 400 kV Moga Substations(B1)

Prepared by: Sheila1/ Clarifications on the evaluation were sought by ADB on 18 Nov 2005 and Power Grid's response was received on 23 Nov. 2005.2/ Contract awards dates (in italics) were the projected dates provided by the Power Grid.

Appendix 7 17

PRO FORMA OF THE EXECUTING AGENCY’S PROJECT PROGRESS REPORT

A. Introduction and Basic Data

Provide the following:

• ADB loan number, project title, borrower, executing agency(ies), implementing agency(ies);

• total estimated project cost and financing plan; • status of project financing including availability of counterpart funds and

cofinancing; • dates of approval, signing, and effectiveness of ADB loan; • original and revised (if applicable) ADB loan closing date and elapsed loan period

based on original and revised (if applicable) loan closing dates; and • date of last ADB review mission.

B. Utilization of Funds (ADB Loan, Cofinancing, and Counterpart Funds) Provide the following:

• cumulative contract awards financed by the ADB loan, and comparison with time-bound projections (targets);

• cumulative disbursements from the ADB loan, and counterpart funds (expenditure-to-date to be reported usually in the third quarter progress report), and comparison with time-bound projections (targets); and

• reestimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely, in any.

C. Project Purpose


• status of project scope/implementation arrangements compared with those in the report and recommendation of the President (RRP), and whether major changes have occurred or will need to be made;

• an assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements;

• an assessment of changes to the key assumptions and risks, if any, that affect attainment of the development objectives; and

• other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives, if any.

D. Implementation Progress Provide the following:

• progress or achievements in implementation since the last progress report;

18

• assessment of the progress of each project component, such as, - recruitment of consultants and their performance; - procurement of goods and works (from preparation of detailed designs and

bidding documents to contract awards); and - the performance of suppliers, manufacturers, and contractors for goods and

works contracts; • assessment of progress in implementing the overall project to date in comparison

with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure; and

E. Compliance with Covenants


• the borrower's compliance with policy loan covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance;

• the borrower’s and EA’s compliance with financial loan covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and

• the borrower’s and EA’s compliance with project-specific loan covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

19

Appendix 8 MAJOR COVENANTS

Project Specific Covenants Reference Due Date Status/Actions to be Taken

Environmental 1. POWERGRID will ensure that the Project is undertaken and all subproject facilities are operated and maintained, in accordance with all applicable laws and ADB’s Environment Policy 2002. POWERGRID shall prepare and implement each Subproject, the IEE, and the EMP (with budget).

LA, Schedule 4, para 5.

2. POWERGRID will ensure that adequate funds are budgeted for and duly expended for implementation of environmental mitigation measures set forth in the IEE and EMP for each subproject and ensure that these are incorporated in detailed designs (including any amendments due to detailed designs with prior approval by ADB). POWERGRID shall ensure that these measures are also followed during construction and operation of the subprojects.

LA, Schedule 4, para 6(a).

3. POWERGRID shall obtain all necessary environmental clearances as required, from relevant statutory authorities of the Government, and in particular, shall not undertake works in any stretch of transmission lines passing through reserve forests or other forestland unless the required forest and environmental clearances are obtained from the Ministry of Forest and Environment.

LA, Schedule 4, para 6(b).

4. POWERGRID shall ensure that all Subprojects shall be subject to ADB’s classification and any Subproject deemed sensitive shall require justification and documentation including effective mitigation measures for anticipated impacts.

LA, Schedule 4, para 6(c).

5. POWERGRID shall use only polychlorinated biphenyls (PCB)-free transformers for all the substations renovated and/or established under the Project.

LA, Schedule 4, para 7(a).

6. POWERGRID shall install oil separator (oil trap) in all outlets of the sewers of substations. The sludge of oil trapped by the separator will be kept in safe place within the property of the substation and will be sold only to the authorized third parties in accordance with applicable laws and regulations of the Guarantor.


20

7. POWERGRID, through Environmental and Social Management Department (ESMD), shall continue to implement its internal environmental and social policies and procedures and shall undertake routine monitoring to check the implementation of the mitigation measures recommended by the IEE and the EMP for each subproject.

LA, Schedule 4, para. 8

Social 8. POWERGRID shall implement Subprojects in accordance with requirements of the Government’s applicable laws, and ADB’s Involuntary Resettlement Policy, 1995.


9. For each subproject, POWERGRID shall ensure timely provision of budget for land acquisition and other activities in order to satisfy ADB’s requirements relating to involuntary resettlement.


10 POWERGRID shall set up the Social, Resettlement and Environment Implementation Unit under the ESMD. These units shall be assisted, as required, by local community-based organizations to be engaged for field implementation.


11 Within 3 months of Effective Date, POWERGRID shall establish a grievance redress committee under each Core Subproject, in accordance with the related RP. Similarly, POWERGRID shall establish, prior to commencement of civil works, for each subproject other than the Core Subprojects, a grievance redness committee in accordance with the related RP.

LA, Schedule 4, para. 12(a).

12 By not later than 3 months of Effective Date for the Core Subprojects and at least 2 months prior to commencement of civil works under each Subproject other than Core Subprojects, POWERGRID shall engage an independent individual expert in consultation with ADB, for monitoring and verification of the RP implementation under each Subproject.


13. POWERGRID shall monitor, audit, and report semi-annually, the implementation of the IEE and EMP for each Subproject to ADB. Likewise, POWERGRID shall submit progress report and completion reports on land acquisition and resettlement under the progress reports for each Subproject.

LA, Schedule 4, para. 13.

21

Financial

14 POWERGRID shall maintain its Accounts Receivables at a level not exceeding an amount equivalent to the income proceeds of its transmission services for the preceding 3 months of billable amount allowed by CERC.


15 POWERGRID shall obtain from all SEB’s and other beneficiaries, irrevocable letter of credit, in the aggregate amounting to no less than 100% of average monthly billings of previous financial year as allowed by CERC.


16 POWERGRID shall not incur any debt, if after such debt may be incurred the ratio of debt to equity would be greater than 80:20 and a self-financing ratio of 20%.


17 POWERGRID shall, commencing from September 2005 and thereafter not later than 30 September each year, prepare and furnish to ADB its 10-year financial projections, including its investment program, financial plan, income statements, cash flow statements and balance sheets for at least succeeding 5 years.

LA, Schedule 4, para. 23(a)

18. POWERGRID shall produce for each of its fiscal year, funds from internal resources equivalent to not less than twenty percent of the annual average of POWERGRID’s capital expenditures incurred, or expected to be incurred for the previous, current, and following fiscal year.


Benefit Monitoring and Progress Reports

19. With 3 months of the Effective Date, POWERGRID shall establish the Project Performance Management System (PPMS) for the Project in a form acceptable to ADB.


22

Conditions for Award of Civil Works Contracts (other than Core Subprojects)

20. Prior to award of civil works contract under each Subproject (other than Core Subprojects), POWERGRID shall have disclosed through appropriate measures, the draft Resettlement Plan to persons affected by the Subproject, and submitted the same to ADB for review and obtained its approval.


ADB = Asian Development Bank, CERC = Central Electricity Regulatory Commission, EMP = Environmental Management Plan, IEE = initial environmental examination, LA = Loan Agreement, PCB = polychlorinated biphenyls, POWERGRID = Power Grid Corporation of India Limited, PPMS = Project Performance Management System , RP = Resettlement Plan, SEB = State Electricity Board,

23

Appendix 9

KEY PERSONS RESPONSIBLE FOR THE PROJECT

Asian Development Bank Position Contact Address Mr. Thevakumar Kandiah Director, South Asia Energy

Division +63-2-632-6301 [email protected]

Mr. Pil-Bae Song Head, PAU/Principal Energy Specialist, South Asia Energy Division

+63-2-632-6947 [email protected]

Ms. Sheila D. Bulanhagui Project Officer, South Asia Energy Division


Department of Economic Affairs, Ministry of Finance

Position Contact Address

Mr. Sanjay Kumar Deputy Secretary, ADB Division, Department of Economic Affairs


Power Grid Corporation of India, Ltd.

Position Contract Address

Mr. I. C. Jaiswal Executive Director (Corporate Planning)


Mr. Sanjeev Singh Ms. Seema Gupta

Additional General Manager (Corporate Planning) Deputy General Manager (Corporate Planning)

+91-124-257-1953 [email protected] +91-124-257-1953 [email protected]

Mr. Ajay Holani Chief Manager (Corporate Planning)


Loan Processing HistoryProject FrameworkI. Project DescriptionA. Project Area and LocationB. Objectives and ScopeC. Selection and Eligibility Criteria of SubprojectsD. Project Components

II. Cost Estimates and Financing PlanA. Detailed Cost EstimatesC. Allocation of Loan Proceeds

III. Implementation ArrangementsA. Executing AgencyB. Project Management

IV. Implementation ScheduleV. Cost Estimates and Financing Plan during ImplementationVI. ProcurementVII. Disbursement ProceduresVIII. Accounting, Auditing and ReportingIX. Progress Report, and Project Performance Monitoring and EvaluationX. SafeguardsXI. Major Loan CovenantsXII. Key Persons Involved in the ProjectXIII. AnticorruptionAppendixes1. Organizational Chart of Power Grid Corporation of India, Limited2. Implementation Schedule3. Detailed Project Cost During Implementation4. Detailed Financing Plan - During Implementation5. Quarterly and Yearly Contract Awards and Disbursements Projection6. List of Contract Packages (Contract Monitoring Sheets)7. Pro Forma of the Executing Agency’s Project Progress Report8. Major Loan Covenants9. Key Persons Responsible for the Project

project administration memorandum · construction of a new 400/220 kv substation with 2x315 mva...

Documents