PCR Standard

Completion Report Project Number: 38456-013 MFF Number: 0021 Loan Numbers: 2438, 2439, 2727, 2972, and 3096 October 2020 Pakistan: Power Distribution Enhancement Investment Program This document is being disclosed to the public in accordance with ADB’s Access to Information Policy. CURRENCY EQUIVALENTS Currency unit – Pakistan rupee(s) (PRe/PRs) Currency unit – Special drawing rights (SDR) At Appraisal At Project Completion 05 August 2008 22 April 2019 PRe1.00 = $0.0139 $0.007058 $1.00 = PRs71.89 PRs141.675 SDR1.00 = $1.631 $1.391 $1.00 = SDR0.613 SDR0.719 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund AGP – Auditor General of Pakistan AEFS – audited entity financial statement APFS – audited project financial statement CPS – country partnership strategy DISCO – distribution company DMF – design and monitoring framework EIRR – economic internal rate of return FESCO – Faisalabad Electric Supply Company FIRR – financial internal rate of return FMC – facility management consultant GEPCO – Gujranwala Electric Power Company HESCO – Hyderabad Electric Supply Company IESCO – Islamabad Electric Supply Company LESCO – Lahore Electric Supply Company MEPCO – Multan Electric Power Company MFF – multitranche financing facility NEPRA – National Electric Power Regulatory Authority NTDC – National Transmission and Despatch Company PEPCO – Pakistan Electric Power Company PESCO – Peshawar Electric Supply Company PMU – project management unit QESCO – Quetta Electric Supply Company STG – secondary transmission grid T&D – transmission and distribution WACC – weighted average cost of capital WEIGHTS AND MEASURES GWh – gigawatt-hour km – kilometer kV – kilovolt kWh – kilowatt-hour MVA – megavolt ampere NOTES (i) The fiscal year (FY) of the Government of the Islamic Republic of Pakistan ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 30 June 2018. (ii) In this report, “$” refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Werner Liepach, Central and West Asia Department (CWRD) Director Joonho Hwang, Energy Division, CWRD Xiaohong Yang, Country Director, Pakistan Resident Mission (PRM) Team leader Ehtesham Zafar Khattak, Senior Project Officer (Infrastructure), PRM Team members Anjum Asif, Senior Operations Assistant, PRM Khurram Shahzad, Associate Project Analyst, PRM 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 legal or other status of any territory or area. CONTENTS Page BASIC DATA i MAPS xii I. PROGRAM DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 2 A. Program Design and Formulation 2 B. Program Outputs 3 C. Program Costs and Financing 3 D. Disbursements 4 E. Program Schedule 5 F. Implementation Arrangements 6 G. Consultant Recruitment and Procurement 7 H. Gender Equity 9 I. Safeguards 9 J. Monitoring and Reporting 11 III. EVALUATION OF PERFORMANCE 12 A. Relevance 12 B. Effectiveness 12 C. Efficiency 13 D. Sustainability 14 E. Development Impact 15 F. Performance of the Borrower and the Executing Agency 15 G. Performance of the Asian Development Bank 16 H. Overall Assessment 16 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 17 A. Issues and Lessons 17 B. Recommendations 18 APPENDIXES 1. Design and Monitoring Framework 19 2. Project Cost at Appraisal and Actual 21 3. Program Cost by Financier 22 4. Disbursement of ADB Loan and Grant Proceeds 26 5. Contract Awards of ADB Loan and Grant Proceeds 27 6. Chronology of Main Events 28 7. Status of Compliance with Loan Covenants 29 8. Re-Assessment of Economic and Financial Analysis 36 9. List of Subprojects Implemented Under the Program 45 10. Status of Compliance with Financial Covenants 70 BASIC DATA A. Loan Identification 1. Country Islamic Republic of Pakistan 2. MFF number and financing source M0021: - 2438-PAK / ordinary capital resources (OCR) - 2439-PAK / concessionary ordinary capital resources lending (COL) / Asian Development Fund - 2727-PAK / OCR - 2972-PAK / OCR - 3096-PAK / OCR 3. Program title Power Distribution Enhancement Investment Program 4. Borrower Islamic Republic of Pakistan 5. Executing agency Pakistan Electric Power Company (PEPCO) 6. Amount of loan $810 million 7. Financing modality Multitranche financing facility B. Loan Data 1. Appraisal – Date started 28 January 2007 – Date completed 30 June 2008 2. Loan negotiations Loan 2438/2439 – PFR1 – Date started 7 July 2008 – Date completed 9 July 2008 Loan 2727 – PFR2 – Date started 3 December 2010 – Date completed 7 December 2010 Loan 2972 – PFR3 – Date started 26 November 2012 – Date completed 28 November 2012 Loan 3096 – PFR4 – Date started 2 December 2013 – Date completed 3 December 2013 3. Date of Board approval Loan 2438/2439 – PFR1 12 September 2008 Loan 2727 – PFR2 14 December 2010 Loan 2972 – PFR3 14 December 2012 Loan 3096 – PFR4 13 December 2013 4. Date of loan agreement Loan 2438/2439 – PFR1 29 November 2008 Loan 2727 – PFR2 28 January 2011 Loan 2972 – PFR3 9 September 2013 Loan 3096 – PFR4 30 April 2014 5. Date of loan effectiveness Loan 2438 – PFR1 ii – In loan agreement 28 January 2009 – Actual 13 January 2009 – Number of extensions 0 Loan 2439 – PFR1 – In loan agreement 28 January 2009 – Actual 13 January 2009 – Number of extensions 0 Loan 2727 – PFR2 – In loan agreement 28 March 2011 – Actual 5 October 2011 – Number of extensions 3 Loan 2972 – PFR3 – In loan agreement 8 December 2013 – Actual 10 December 2013 – Number of extensions 1 Loan 3096 – PFR4 – In loan agreement 29 July 2014 – Actual 18 July 2014 – Number of extensions 0 6. Project completion date Loan 2438 – PFR1 – Appraisal 30 June 2012 – Actual 30 June 2012 Loan 2439 – PFR1 – Appraisal 31 December 2018 – Actual 31 December 2018 Loan 2727 – PFR2 – Appraisal 30 March 2015 – Actual 30 June 2018 Loan 2972 – PFR3 – Appraisal 30 June 2016 – Actual 30 June 2018 Loan 3096 – PFR4 – Appraisal 31 December 2016 – Actual 30 June 2018 7. Loan closing date Loan 2438 – PFR1 – In loan agreement 30 June 2012 – Actual 30 June 2012 – Number of extensions 0 Loan 2439 – PFR1 – In loan agreement 31 December 2018 – Actual 31 December 2018 – Number of extensions 0 Loan 2727 – PFR2 – In loan agreement 30 March 2015 – Actual 30 June 2018 – Number of extensions 3 Loan 2972 – PFR3 – In loan agreement 31 December 2016 – Actual 30 June 2018 iii – Number of extensions 2 Loan 3096 – PFR4 – In loan agreement 30 June 2017 – Actual 30 June 2018 – Number of extensions 1 8. Financial closing date Loan 2438 – PFR1 – Actual 03 January 2014 Loan 2439 – PFR1 – Actual 22 April 2019 Loan 2727 – PFR2 – Actual 22 April 2019 Loan 2972 – PFR3 – Actual 22 April 2019 Loan 3096 – PFR4 – Actual 22 April 2019 9. Terms of loan Loan 2438 – PFR1 – Interest rate London interbank offered rate (LIBOR) plus 0.20% and 0.15% commitment charge per annum – Maturity (number of years) 20 – Grace period (number of years) 3 (for principal repayment only) Loan 2439 – PFR1 – Interest rate 1% per annum during grace period and 1.5% thereafter – Maturity (number of years) 32 – Grace period (number of years) 8 (for principal repayment only) Loan 2727 – PFR2 – Interest rate LIBOR plus 0.30% – Maturity (number of years) 20 – Grace period (number of years) 3 (for principal repayment only) Loan 2972 – PFR3 – Interest rate LIBOR plus 0.60% less 0.20% credit – Maturity (number of years) 25 – Grace period (number of years) 5 Loan 3096 – PFR4 – Interest rate LIBOR plus 0.40% plus 0.10% maturity premium and commitment charge of 0.15% – Maturity (number of years) 25 – Grace period (number of years) 5 10. Terms of relending (if any) Loan 2438 – PFR1 – Interest rate 17% – Maturity (number of years) 15 – Grace period (number of years) 2 (for principal repayment only) – Second-step borrower Distribution companies Loan 2439 – PFR1 – Interest rate 17% – Maturity (number of years) 15 iv – Grace period (number of years) 8 (for principal repayment only) – Second-step borrower PEPCO Loan 2727 – PFR2 – Interest rate 15% – Maturity (number of years) 17 – Grace period (number of years) 3 (for principal repayment only) – Second-step borrower Distribution companies Loan 2972 – P FR3 – Interest rate 15% – Maturity (number of years) 20 – Grace period (number of years) 2 – Second-step borrower Distribution companies Loan 3096 – PFR4 – Interest rate 15% – Maturity (number of years) 20 – Grace period (number of years) 2 – Second-step borrower Distribution companies 11. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval L2438 – PFR1 15 February 2009 3 January 2014 59 months L2439 – PFR1 14 May 2010 15 February 2019 105 months L2727 – PFR2 1 December 2011 19 February 2019 87 months L2972 – PFR3 1 June 2014 1 April 2019 58 months L3096 – PFR4 1 December 2014 22 March 2019 52 months Effective Date Actual Closing Date Time Interval L2438 – PFR1 13 January 2009 3 January 2014 59 months L2439 – PFR1 13 January 2009 22 April 2019 123 months L2727 – PFR2 5 October 2011 22 April 2019 91 months L2972 – PFR3 10 December 2013 22 April 2019 64 months L3096 – PFR4 18 July 2014 22 April 2019 57 months b. Amount ($) (i) Loan 2438-PAK (OCR) – PFR1 ($ ’000) Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balance Category (1) (2) (3) (4=1+2–3) (5) (6 = 4–5) Allocated 217,030 0 45,136 171,894 171,894 0 Unallocated 24,970 0 24,970 0 0 0

Load more