<div><h4>Description</h4><p><p>The TA facility is estimated to cost $1,100,000, of which $1,000,000 will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-other sources). </p><p>The proposed transaction technical assistance facility (TA) will help the executing agencies and implementing agencies meet government and ADB financing requirements by supporting project preparation, increasing project readiness, building capacity in project implementation and overall portfolio management. The TA will support the following ensuing projects and provide initial implementation support after project approval to ensure smooth project implementation.</p><p>(i)Uttarakhand Transmission Strengthening and Distribution Improvement Project</p><p>(ii)Meghalaya Power Distribution Sector Improvement Project</p><p>(iii)Tripura Generation Upgrading and Distribution Strengthening Project</p><p>(iv)Other projects to be proposed by the Department of Economic Affairs (DEA), Ministry of Finance for ADB Financing.</p></p></div>

Enhancing Capacity to Design and Implement Energy Sector Projects

Technical assistance report project number: 53279 -001 transaction technical assistance facility f-trta september 2019 india : enhancing capacity to design and implement energy sector projects this document is being disclosed to the public in accordance with adb's access to information policy. currency equivalents as of 28 august 2019 currency unit - indian rupees Rs Rs1.00 = 0.01397 1.00 = Rs71.54420 abbreviations adb - asian development ban k dea - department of economic affairs gw - gigawatt note i the fiscal year fy of the government of india and its agencies ends on 31 march. fy before a calendar year denotes the year in which the fiscal year ends, e.g., fy 2019 ends on 31 march 2019 . ii in this report, refers to united states dollars . vice-president shixin chen , operations 1 director general hun kim , south asia department sard director priyantha wijayatunga, energy division, sard team leader jaimes kolantharaj, energy specialist, sard team member s angela francesca bernaldo, associate project officer , sard christoph meindl , energy specialist, sard noreen joy ruanes, operations assistant , sard jongmi son, financial specialist energy, sard in preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the asian development bank does not intend to make any judgments as to the lega l or other status of any territory or area.contents page transaction technica l assistance at a glance i. the technical assist ance facility 1 a. justification 1 b. outputs and activities 2 c. cost and financing 3 d. implementation arrangements 3 e. governance 4 ii. the president's deci sion 4 appendixes 1. cost estimates and financing plan 5 2. projects under technical assistanc e facility 6 3. list of linked documents 8 i. the technical assist ance facility a. justification 1. the government of india has identified development of the power sector as a focus area to promote sustained industrial growth .1 to boost the indian power sector , the government of india has initiated the following : i a draft amendment to electricity act 2003 introduced in september 2018, which discusses separation of content and carriage, direct benefit transfer of subsidy, 24 x7 power supply as an obligation, penal ties on violation of power purchase agreement , setting up smart meter and prepaid meters along with regulations related to the same; ii release of roadmap to achieve 175 gigawatts gw capacity in renewable energy by 2022, which includes 100 gw of solar power and 60 gw of wind power; ujwal discoms assurance yojana launched by the government of india to encourage operational and financial turnaround of state -owned power distribution companies , with aim s to reduce aggregate technical and commercial losses to 15 by fy2019; iv integrated power development scheme for strengthening s ubtransmission and distribution network in urban areas; v dindayal upadhya gram jyoti yojana scheme for strengthening the rural distribution network, separation of agricultural feeders, rural electrification and metering of distribution transformers and feeders; and vi pradhan mantri sahaj bijli har ghar yojana -saubhagya scheme for electrifying all unelectrified households by 2019 . for the past 4 years ,2 india's i ranking on ease of doing business -getting electricity jumped to 24 in 2014 from 137 in 2018 ; and ii energy deficit reduced to 0.7 of the electricity demand from 4.2 in 2014 . however, there are still many states lagging in power generation, transmission , and distribution due to lack of investments . in the distribution sector, these states are grappling with severe technical and commercial losses which seriously impact on the financial stability of the companies . lack of generation capacity addition and congestion in transmission network are the other constraints faced by these states. to address these issues , the government of india is now focusing on support ing these states to improve their power infrastructure. 2. in line with pillar 2 of adb's country partnership strategy for india , 2018 -2022, adb's operation in the energy sector in india is increasingly focusing on lagging states to support inclusive economic growth and reduce disparities in poverty rates across states. areas of intervention identified for lagging states include i distr ibution renovatio n and modernization; ii transmission strengthening; generation upgrad ing and reha bilitation , among others. to strengthen their power sector, small and low -income states, such as meghalaya, tripura, and uttarakhand have submitted or are preparing preliminary project reports for endorsement by the government of india for adb financing. however, these states will have difficulty in meeting government and adb financing requirements given their lack of competency in i project identific ation, design and cost -benefit analysis ; ii incorporating environmental and social safeguards in project design ; meeting project readiness ; iv preparing procurement documents ; and v financial and economic analysis. in addition, project implemen tation and overall portfolio performance in these states also need to be improved. 3. the proposed transaction technical assistance ta facility will help the executing agencies ea and implementing agencies ia meet government and adb financing requirements by supporting project preparation, increasing project readiness, building capacity in project implementation and overall portfolio management. the ta will support the following 1 ministry of power, government of india . 2 india brand equify foundation . 2 ensuing projects3 and provide initial implementation support after project approval to ensure smooth project implementation : i uttarakhand transmission strengthening and distribution improvement project ; ii meghalaya power distribution sector improvement project ; tripura ge neration upgrading and distribution strengthening project ; and iv other projects to be proposed by the department of economic affairs dea, ministry of finance for adb financing .4 4. the projects to be supported by this ta are aligned with the operational priorities of adb's strategy 2030 i addressing remaining poverty and reducing inequality by providing improved access to electricity and access to quality jobs, health and social services; ii tackling climate change , building climate re silience , and enhancing environmental sustainability; accelerating progress in gender equality by providing new opportunities using energy -based livelihoods ; and iv promoting rural development and food security through enhanced power supplies to rural areas .5 5. the ta facility modality is suitable as i it supports ensuing andor ongoing projects in the energy sector in low -income states in india with similar due diligence requirements; ii the ta will enhance project preparation efficiency and improve readiness of projects that have limited processing resources; the ta will promote sharing of experiences among different states working with the same team of consultants; and iv strengthen coordination in project preparation. overall, this ta facility will reduce transaction costs and time through minimizing the resources of stand -alone transaction tas. b. outputs and activities 6. output 1: network planning and detailed technical assessment supported . technical experts will assist ias in carry ing out basic s urvey s to ascertain the condition of existing network , network planning to optimize the network configuration , and identif ication of key areas that require immediate attention . based on the network planning, t echnical expertise will support ias in prepar ing detailed technical specifications , engineering estimates , and cost -benefit analysis for selected investment projects for potential adb financing. ias are ex pected to improve skills in preparing these documents through handholding and coaching support from technical experts. 7. output 2: procurement, financial and economic assessment supported . technical expertise will be provided to support ias in preparing procurement risk assessment , financial management assessment, financial analysis , and economic analysis necessary in prepar ing selected investment projects for potential adb financing. ias' capacity in these areas will be developed through handholding and coaching interventions by technical experts. 8. output 3: environmen t and social safeguards due diligence completed. technical expertise to conduct due diligence on proposed projects' potential impact on environment, involuntary resettlement, indigenous peoples, and other social dimensions will be provided to support project preparation. activities will include : i preparation of safeguards documents on environmental, involuntary reset tlement , and indigenous peoples; ii preparation of climate adaptation measures; and gender and poverty analysis, collection of socioeconomic baseline data, and preparation of gender action plans. 3 the ensuing projects i, ii and are included in the country operations business plan for india, 2019 -2022. 4 projects that have attached technical assistance funds will not be supported by this ta 5 adb. 2018. strategy 2030: achieving a prosperous, inclusive, resilient, and s ustainable asia and the pacific. manila.3 9. output 4: safeguard capacity of implementing agen cies improved. technical expertise and capacity building will be provided to selected ias with ongoing or ensuing projects to strengthen the quality of safeguard implementation and monitoring . this will be carried out by supporting additional surveysstudi es, seminars, workshops and on -the-job training for ia staff across multiple projects. c. cost and financing 10. the ta facility is estimated to cost 1,100, , of which 1,, will be financed on a grant basis by adb's technical assistance special fund tasf -other sources . the key expenditure items are listed in appendix 1. the ta facility scope is expected to be expanded to cover other additional activities , consistent with t he ta's outputs and outcome , and supplementary funding may be requested as needed. 11. the government agencies respons ible for each project will provide counterpart support in the form of counterpart staff, office space , office supplies , project related information and other in-kind contributions. the government was informed that approval of the ta does not commit adb to finance any ensuing project. d. implementation arrangements 12. the dea, ministry of finance, government of india will be the ea of the ta facility . government department or agencies responsible for each pr oject will be the ias for the ta, subject to the approval of dea and adb. after the initial approval of dea, adb will administer the ta facility and work directly with the state line agencies of the projects for all activities connected with the ta, such as finalization of terms of reference and recruitment of consultants specific to the project components and preparation of reports . 13. the ta facility will be implemented over a period of 30 months from september 2019 to february 2022. disbursements under the ta facility will be in accordance with adb's technical assistance disbursement handbook 2010, as amended from time to time. 14. the implementation arrangements are summarized in table 1. table 1: implementation arrangements aspects arrangements indicative implementation period september 2019 -february 2022 executing agency department of economic affairs, ministry of finance implementing agencies implementing agenc ies are the agencies that are preparing or implementing energy project s. for practical purposes, the ta will be administered by adb in close coordination with implementing agencies consultants to be selected and engaged by ia and adb ics international 22 person -months 375, ics national 48 person -months 300, disbursement the ta resources will be disbursed following adb's technical assistance disbursement handbook 2010, as amended from time to time. asset turnover or disposal arrangement upon ta completion none adb = asian development bank, ia = implementing agen cy, ics = individual consultant selection , ta = technical assistance . source: asian development bank . 4 15. consulting services. the ta facility will provide an initial 70 person -months of consulting services 22 person-months international and 48 person -months national6 in the field of network planning and technical analysis for energy sector projects, procurement , financial management, financial analysis , economic analysis , environment safeguards , social development involuntary resettlement, indigenous peoples, gender , and poverty assessment . it is expected that the consult ants will be recruited using individual consultant selection method and deployed based on the requirements of each project being prepared or implemented . adb will engage t he consultants following the adb procurement policy 2017, as amended from time to ti me and its associated project administration instructions andor staff instructions . individual consultant selection , rather than through firm, is appropriate in this instance because the ta facility involves multiple activities that are not necessarily interdependent and will require a varied range of consultants and services. however, where suitable, recruitment through a firm might be considered. e. governance 16. since adb will administer the ta facility, the financial management , procurement capacity and integrity risks during ta facility implementation are assessed to be low. however, thorough risk assessment s for procurement, financial management and integrity for ensuing investment projects will be cond ucted under the ta facility. ii. the president's decision 17. the president, acting under the authority delegated by the board, has approved the provision of technical assistance not exceeding the equivalent of 1,, on a grant basis to india for the enhancing capacity to design and implement energy sector project s, and hereby reports this action to the board. 6 ta facility savings may be utilized for additional consultant inputs, as may be necessary. appendix 1 5 cost estimates and financing plan ' item amount a. asian development banka 1. consultantsa. remuneration and per diemi. international consultants 375.0 ii. national consultants 320.0 b. out-of-pocket expendituresi. international and local travel 50.0 ii. report and communications 5.0 . miscellaneous administration and support costs 5.0 2. surveys 155.0 3. training, seminars, and conferences 50.0 4. contingencies 40.0 total 1 .0 note: the technica l assistance is estimated to cost 1,100,, of which contributions from the asian development bank are presented in the table. implementing agencies of each project will provide counterpart support in the form of counterpa rt staff, office space, office supplies, project -related information and other in -kind contributions. the value of the government contribution is estimated to account for 10 of the total ta cost. a financed by the asian development bank's technical assistance special fund tasf -other sources.source: a db. 6 appendix 2 projects under technical assistance facility table a2.1: indicative consultants' input allocation person -month item indicative risk category total project 1a low risk project 2b low risk project 3c complex a. international power distribution specialist 22.0 4.0 6.0 1.0 3.5 1.0 12.5 2.0 power sector specialisttransmission generation 3.0 1.0 0.5 1.5 scada and communication specialist 2.0 0.5 0.5 1.0 environmental specialist 3.5 1.0 0.5 2.0 social and gender specialist 3.5 1.0 0.5 2.0 energy economist 1.5 0.5 0.0 1.0 financial management specialist 3.0 0.5 0.5 2.0 procurement specialist 1.5 0.5 0.0 1.0 b. national 48.0 9.0 12.5 26.5 power distribution specialist 13.0 2.0 2.0 9.0 power sector specialist transmission generation 5.0 1.0 1.5 2.5 scada and communication specialist 3.0 0.5 1.0 1.5 environmental specialist 4.0 1.0 1.0 2.0 climate risk analyst 2.0 0.5 0.5 1.0 social and gender specialist 5.0 1.0 1.5 2.5 procurement specialist 6.0 1.0 2.0 3.0 project implementation analyst total 10.0 70.0 2.0 15.0 3.0 16.0 5.0 39.0 scada = supervisory control and data acquisition. a uttarakhand transmission strengthening and distribution improvement project . b meghal aya power distribution sector improvement project . ctripura generation upgrad ing and distribution strengthening project. source : asian development bank. appendix 2 7 table a2.2: indicative technical assistance budget allocation excluding consultants ' item indicative risk category total project 1a low risk project 2b low risk project 3c complex training, seminars, and conferences 50.0 10.0 20.0 20.0 surveys 155.0 20.0 50.0 85.0 total 205.0 30.0 70.0 105.0 a uttarakhand transmission strengthening and distribution improvement project. b meghalaya power distribution sector improvement project. c tripura generation upgradation and distribution strengthening project. source : asian development bank. 8 appendix 3 list of linked documents http:.adb.orgdocumentslinkeddocsid=53279 -001-tarep ort 1. terms of reference for consultants

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Enhancing Capacity to Design and Implement Energy Sector Projects: Technical Assistance Report

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