The World Bank Report No: ISR8164 Implementation Status & Results South Asia Nepal-India Electricity Transmission and Trade Project (P115767) Public Disclosure Copy Operation Name: Nepal-India Electricity Transmission and Trade Project Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 26-Mar-2013 (P115767) Country: South Asia Approval FY: 2011 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Jun-2011 Original Closing Date 31-Dec-2016 Planned Mid Term Review Date Last Archived ISR Date 22-Jul-2012 Effectiveness Date 29-Sep-2011 Revised Closing Date 31-Dec-2016 Actual Mid Term Review Date Project Development Objectives 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? Yes No Component(s) Component Name Component Cost Component A1: Muzaffarpur-Sursand 400 kV Transmission Line (Non-IDA financed) 29.70 Component A2: Dhalkebar-Bhittamod 400 kV Transmission Line (non-IDA financed) 17.90 Component B1: Hetauda-Dhalkebar-Duhabi Transmission Line and Substations 108.60 Component B2: Synchronization of Operation of the Nepal and Indian Grids 10.00 Component C: Technical Advisory Services 11.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Project implementation pace has dramatically improved. The Bank provided its no objection in December 2012 for NEA to proceed with contract award as recommended in the Page 1 of 5 The World Bank Report No: ISR8164 consolidated Bid Evaluation Report for Hetauda-Dhalkebar-Inaruwa transmission line procurement. The contract was awarded in early February and construction is set to start soon; the check survey is already in process by a joint team from the contractor and NEA. The contract value of the lowest evaluated responsive bid is US$52.428 million. The team has discussed possible approaches with NEA to further economize on project construction time as indicated in the Work Plan. Public Disclosure Copy The Owner’s Engineer has been mobilized. NEA has recently amended its contract with the Owners’ Engineer to include technical support with sub-station design. The Bank team endorses this increase in the scope of work, since sub-station design is on the critical path for NEA construct and to receive power in June 2015. Activity on preparation for construction of the Nepal portion of Dhalkebar-Muzaffarpur line needs to gain momentum. Locations Country First Administrative Division Location Planned Actual Nepal Eastern Region Udayapur Nepal Eastern Region Sunsari Nepal Eastern Region Siraha Nepal Central Region Sindhuli Nepal Central Region Sarlahi Nepal Eastern Region Saptari Nepal Central Region Rautahat Nepal Central Region Makwanpur Nepal Central Region Mahottari Nepal Central Region Bara Nepal Central Region Dhanusa Results Public Disclosure Copy Project Development Objective Indicators Page 2 of 5 The World Bank Report No: ISR8164 Indicator Name Core Unit of Measure Baseline Current End Target Cross-Border Transmission Capacity Number Value 0.00 0.00 1000.00 Date 27-May-2011 31-Dec-2012 31-Dec-2016 Public Disclosure Copy Comments There is some limited cross The level is still zero because border trade taking place at construction of the line has low voltages across the not yet started. border of Bihar and Nepal. However, no transmission level power trade is taking place. Quality of electricity imported from India into Number Value 0.00 0.00 744.00 Nepal under the PSA Date 27-May-2011 31-Dec-2012 31-Dec-2016 Comments None so far None so far because no line exists yet Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Construction Progress Text Value 0 Line operational Date 27-May-2011 31-Dec-2012 31-Dec-2016 Comments Contract was expected to be awarded in June 2012; there is a seven month delay at present. Synchronization of Nepal grid and India grid Text Value No synchronization No synchronization. Power system stabilizers installed and systems synchronized Date 27-May-2011 31-Dec-2012 31-Dec-2016 Comments Transmission System Master Plan Text Value 0 Final Transmission System Master Plan developed. Public Disclosure Copy Date 27-May-2011 31-Dec-2012 31-Dec-2014 Comments Construction progress Text Value 0 Line operational Date 27-May-2011 31-Dec-2012 31-Dec-2016 Comments Delayed Construction progress Text Value 0 Line operational Page 3 of 5 The World Bank Report No: ISR8164 Date 27-May-2011 31-Dec-2012 31-Dec-2016 Comments Delayed Public Disclosure Copy Data on Financial Performance (as of 19-Feb-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P115767 IDA-49020 Effective 21-Jun-2011 15-Jul-2011 29-Sep-2011 31-Dec-2016 31-Dec-2016 P115767 IDA-H6600 Effective 21-Jun-2011 15-Jul-2011 29-Sep-2011 31-Dec-2016 31-Dec-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115767 IDA-49020 Effective XDR 53.80 53.80 0.00 0.00 53.80 0.00 P115767 IDA-H6600 Effective XDR 9.70 9.70 0.00 3.39 6.31 35.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation NEA will expedite operationalization of PTCN which is the special purpose company responsible for construction of the Nepal portion of the Dhalkebar-Muzaffarpur transmission line for import of power from India to Nepal. Page 4 of 5 The World Bank Report No: ISR8164 NEA will enter into MOU with ESSD and review its procedures and timelines for securing right of way, forest clearance, and compensatory afforestation as applicable, for all transmission lines owned by NEA. Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Projects P132631-Additional Financing for Nepal-India Electricity Transmission and Trade Project Public Disclosure Copy Page 5 of 5