Sri Lanka Early Warning Update
Asian Development Bank Business Opportunities: Volume 7, October 2008
Friday, October 17, 2008
This Bulletin is a periodic electronic update from the Bank Information Center to inform civil society about Asian Development Bank (ADB) projects in Bangladesh before they are approved by the Board of Directors of the ADB. This Update covers project information, organized by sectors. The information is compiled directly from ADB’s Business Opportunities.
For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center
Phone: +1-202-737 7752; Email: southasia@bicusa.org; Web: www.bicusa.org
For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit (See: http://www.adb.org/Disclosure/contact.asp).
About Business Opportunities (BOp)
Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing. The BOp listings do not guarantee that financing will be approved for particular projects. However, BOp listings serve as important tools for monitoring and follow up of proposed projects. These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them. Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list. BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.
Project Cycle (ADB website for complete project cycle)
ADB’s Project Cycle
Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).
During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.
If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people. For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.
Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.
Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).
After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.
ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.
If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.
For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank
Commonly Used BOp Acronyms
TA: Technical Assistance
AOTA: Advisory and Operational Technical Assistance Loans
PPTA: Project Preparatory Technical Assistance
RETA: Regional Technical Assistance
EIA: Environmental Impact Assessment
IEE: Initial Environmental Examination
N: New Project
R: Revised (italic text indicates change from previous month)
ADB Environmental Categorization
Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.
Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.
Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.
Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.
Current Business Opportunities for Sri Lanka
Energy
AOTA: SRI 39419-01
Project Name
Capacity Building for Power Sector Regulation
Executing Agency
Ceylon Electricity Board
TA Amount (US$ '000)
1,000.00
Sector/Subsector
Energy /Energy Sector Development
Date of First Listing
28 April 2008
Project Impact
The TA will aim to establish a competitive, commercially managed, financially viable, and efficient power sector by helping to functionalize a new sector regulatory framework by building the capacity of PUCSL to regulate the sector and CEB to respond to regulatory requirements.
Project Outcome
The project will support PUCSL to issue licenses to CEB and other utilities and process the first tariff petition by PUCSL to CEB. It will also support the CEB to develop a new business processes and operations plan, and a financial data reporting system to be in line with regulatory requirements.
Project Outputs
The TA will (i) provide hands-on support for licensing and tariff review by PUCSL; (ii) provide basic training for PUCSL staff and organize a study tour to regulators in the neighboring countries; (iii) support CEB in realigning its business process and reporting system to respond to regulatory requirement, and (iv) support CEB in its first tariff filing.
Consulting Services
The expertise and duration of the required consultants will be determined during the TA fact-finding.
Project Processing Stage
|
SRC/Technical Review Completed |
: |
25 September 2008 |
Recruitment of Consultants
Recruitment of consultants is expected to commence in July 2008.
Project Officer
Tomoyuki Kimura (632-6611)
Energy Division, SARD
tkimura@adb.org
AOTA: SRI 39419-02
Project Name
Rural Electrification Efficiency and Rural Household
Executing Agency
Ceylon Electricity Board
TA Amount (US$ '000)
2,000.00
Sector/Subsector
Energy /Transmission & Distribution
Date of First Listing
28 April 2008
Project Impact
Improved energy efficiency and access to electricity in rural areas
Project Outcome
Implementation of pilot projects for output-based outsourcing for rural distribution and credit scheme for rural household connection
Project Outputs
Support CEB in designing the pilot project scheme, selecting service providers and capacity building of stakeholders
Consulting Services
The expertise and duration of the required consultants will be determined during the TA fact-finding.
Project Processing Stage
|
SRC/Technical Review Completed |
: |
25 September 2008 |
Recruitment of Consultants
Recruitment of consultants is expected to commence in August 2008.
Project Officer
Tomoyuki Kimura (632-6611)
Energy Division, SARD
tkimura@adb.org
AOTA: SRI 39419-03
Project Name
Demand Side Management for Municipal Street Lighting
Executing Agency
Ceylon Electricity Board
TA Amount (US$ '000)
1,200.00
Sector/Subsector
Energy /Transmission & Distribution
Date of First Listing
28 April 2008
Project Impact
Improved energy efficiency
Project Outcome
Energy conservation on municipal street lighting and reduction of the government subsidy
Project Outputs
Establishment of internal ESCO units in Ceylon Electricity Board and Lanka Electric Company to undertake management of street lighting from municipalities
Consulting Services
A team of consultants will be engaged and selected by ADB following ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB
Project Processing Stage
|
SRC/Technical Review Completed |
: |
25 September 2005 |
Recruitment of Consultants
To be initiated soon after the project has been approved by the Board
Project Officer
Nataliya Kulichenko (632-5660)
Energy Division, SARD
nkulichenko@adb.org
LOAN: SRI 39419-01
Project Name
Clean Energy and Access Improvement Project
Executing Agency
Ceylon Electricity Board
Loan Amount (US$ million)
132.15
Sector/Subsector
Energy /Energy Sector Development
Date of First Listing
28 March 2008
Project Impact
Increased transmission and distribution capacity and affordable and reliable power supply.
Project Outcome
(i) enhanced transmission grid reliability to avoid system collapse and reduce losses; (ii) removal of grid constrains to bring in 200MW capacity from the proposed small hydropower plants and future clean energy projects.
Project Outputs
(i) a new system control center (Subcomponent 1) (ii) augmentation and construction of five 132/33 kv grid substations for small hydropower development (Subcomponent 2); (iii) augmentation of eight 132/33kV grid substations, construction of three 132/33kV grid substations and associated four 132kV transmission lines (Subcomponent 3); and (iv) capacity enhancement of transformers at five 33/11kV substations (Subcomponent 4).
Procurement
Goods
All procurement to be financed under the ADB loan will be carried out in accordance with ADB's Guidelines on Procurement. The contracts on the basis of design, supply, installation, and commissioning will be undertaken in 7 contract packages based on International Competitive Bidding procedures. Tentative contract packages includes, new system control center, construction of new and augmentation of existing grid substations for renewable energy projects and transmission system.
Services
Consulting service will be required for implementation support for Subcomponent 1 (New system control center).. CEB will select and engage consultants using ADB's Quality-and Cost-Based Selection (QCBS) procedures and in accordance with ADB's Guidelines on the Use of Consultants (using simplified technical proposal method). About 22 person months of international and 3 person-months of national consultants are expected to be required.
Environmental Category
B
Project Processing Stage
|
SRC Completed |
: |
25 September 2008 |
Project Officer
Tomoyuki Kimura (632-6611)
Energy Division, SARD
tkimura@adb.org
The Bank Information Center (BIC) partners with civil society in developing and transition countries to influence the World Bank and other international financial institutions (IFIs) to promote social and economic justice and ecological sustainability. BIC is an independent, non-profit, non-governmental organization that advocates for the protection of rights, participation, transparency, and public accountability in the governance and operations of the World Bank, regional development banks, and IMF. For more information about BIC, see www.bicusa.org.