Sustainable Power Sector Support Project (RRP SRI 39415)

Detailed Description of Project Components

A. Transmission system strengthening

1. This component will contribute to a reliable, adequate and affordable power supply for sustainable economic growth and poverty reduction in Eastern, North Central, Southern and Uva provinces. The strengthened transmission system will alleviate existing sub- standard voltage conditions in district of the Eastern Province and provide increased load capacity in the Eastern, North Central, Southern and Uva provinces leading to improved efficiency and reliability in power supply. The component includes the following sub-projects:

(i) New Power Transmission Development: Construction of New Galle 3 x 31.5 megavolt ampere (MVA) 132/33 kilovolt (kV) grid substation and Ambalangoda-to- New Galle 40 kilometers (km) double circuit 132 kV transmission line:

T1a: New 3 x 31.5 MVA 132/33 kV New Galle Grid Substation Construction of a new grid substation at Galle comprising:

132 kV double busbar switchyard with: o 4 feeder bays o 1 static VAR compensator bay +10 megavolt ampere reactive (MVAr) to - 20 MVAr for voltage support o 3 transformer bays o 1 bus-coupler bay o 3 x 31.5 MVA transformers 33 kV switchyard with: o 3 transformer bays o 2 bus-section bays o 10 feeder bays o 2 generator bays o 6 capacitor bays with total of 30 MVA capacitors for loss reduction Control room and all associated communications, protection and control.

This substation is located adjacent to the existing Galle 132/33 kV substation, which is old and cannot be extended further. The existing double circuit 132 kV transmission line from grid substation to old Galle substation will be diverted into the New Galle grid substation. The other two 132 kV feeder bays will accommodate the new Ambalangoda-to-New Galle 132 kV double circuit transmission line (Item T1b).

T1b: Ambalangoda-to-New Galle 132 kV Transmission Line Construction of a new Ambalangoda-to-New Galle 132 kV transmission line comprising:

40 km double circuit Zebra conductor with optical fiber ground wire (OPGW), connecting to: o 2 x 132 kV feeder bays at New Galle substation (Item T1a) o 2 x 132 kV existing feeder bays at Ambalangoda substation. 2

(ii) North East Power Transmission Development: Construction of -to- Vavunativu (via Ampara) 129 km double circuit 132 kV transmission line; -to-Madagama 16 km double circuit 132 kV transmission line; stringing of second circuit of existing Kotmale-to-New 163 km 220 kV transmission line; Monaragala 1 x 31.5 MVA 132/33 kV grid substation; Vavunativu 2 x 31.5 MVA 132/33 kV grid substation; Pollonnaruwa 1 x 31.5 MVA 132/33 kV grid substation; and augmentation of existing Ampara 132/33 kV grid substation with 2 x 132 kV feeder bays.

T2a1: New 1 x 31.5 MVA 132/33 kV Monaragala Grid Substation Construction of a new grid substation at Monaragala comprising:

132 kV single busbar switchyard with: o 2 feeder bays o 1 transformer bay o 1 bus-section bay o 1 x 31.5 MVA transformer 33 kV switchyard with: o 1 transformer bay o 4 feeder bays Control room and all associated communications, protection and control.

The two 132 kV feeder bays will accommodate the new Medagama-to-Monaragala 132 kV double circuit transmission line (Item T2a2), which in turn will connect to the existing -to-Inginiyana hydropower station single circuit 132 kV transmission line.

T2b New 1 x 31.5 MVA 132/33 kV Grid Substation Construction of a new grid substation at Polonnaruwa comprising:

132 kV single busbar switchyard with: o 2 feeder bays o 1 transformer bay o 1 bus-section bay o 1 x 31.5 MVA transformer 33 kV switchyard with: o 1 transformer bay o 4 feeder bays Control room and all associated communications, protection and control 0.5 km x 2 circuits 132 kV LILO (line-in, line-out) transmission line.

Polonnaruwa grid substation will be connected in a LILO configuration to one circuit of the new Habarana-to-Valachchanai double circuit (with only one circuit to be strung initially) 132 kV transmission line, which is scheduled for construction by the Ceylon Electricity Board in 2011 under ADB’s Clean Energy and Access Improvement Project.1 The existing old single circuit Habarana-to-Valachchanai 132 kV transmission line will not connect to Polonnaruwa grid substation.

1 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loans, Grant, Administration of Grant, and Technical Assistance Grant to the Democratic Socialist Republic of for the Clean Energy and Access Improvement Project. Manila. 3

T2c: New 2 x 31.5 MVA 132/33 kV Vavunativu Grid Substation Construction of a new grid substation at Vavunativu comprising:

132 kV single busbar switchyard with: o 2 feeder bays o 2 transformer bays o 1 bus-section bay o 2 x 31.5 MVA transformer 33 kV switchyard with: o 2 transformer bays o 8 feeder bays o 1 bus-section bay Control room and all associated communications, protection and control.

The two 132 kV feeder bays will accommodate the new Mahiyangana-to-Vavunativu 132 kV double circuit transmission line (Item T2e).

T2d Existing Ampara 132/33 kV Grid Substation Augmentation of the existing grid substation at Ampara comprising:

Extension of 132 kV single busbar switchyard: o Additional 2 feeder bays.

The two new 132 kV feeder bays will accommodate one circuit of the new Mahiyangana-to-Vavunativu 132 kV double circuit transmission line (Item T2e) in a LILO configuration. Ampara grid substation is currently supplied by a single circuit 132 kV transmission line from Inginiyana hydropower station, interconnected by the single circuit 132 kV transmission line to Badulla grid substation. The existing Inginiyana-to-Ampara transmission line does not meet modern standards and will need to be upgraded once Ampara is supplied by the new Mahiyangana-to- Vavunativu transmission line.

T2a2: Medagama-to-Monaragala 132 kV Transmission Line Construction of a new Medagama-to-Monaragala 132 kV transmission line comprising:

16 km double circuit Zebra conductor with galvanized steel wire (GSW) earth conductors, connecting to: o 2 x 132 kV feeder bays at Monaragala grid substation (Item T2a1) o Existing Badulla-to-Inginiyana hydropower station single circuit 132 kV transmission line.

T2e Mahiyangana-to-Vavunativu 132 kV Transmission Line via Ampara Construction of a new Mahiyangana-to-Vavunativu 132 kV transmission line comprising:

98 km double circuit Zebra conductor with OPGW, connecting to: o 2 x 132 kV feeder bays at Vavunativu grid substation (Item T2cd) o 2 x 132 kV feeder bays at Mahiyangana grid substation (new bays to be constructed by the Ceylon Electricity Board under separate government financing).

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Construction of a new 132 kV LILO transmission line from 132 kV Mahiyangana-to- Vavunativu transmission line, to connect Ampara grid substation comprising:

31 km double circuit Zebra conductor with OPGW, connecting to: o Mahiyangana-to-Vavunativu 132 kV transmission line (Item T2e) o 2 x 132 kV feeder bays at Ampara grid substation (Item T2d).

T2f: Second Circuit Stringing of existing 163 km Kotmale-New Anuradhapura 220 kV Transmission Line Stringing of a second circuit on the existing Kotmale–to-New Anuradhapura 220 kV transmission line comprising:

163 km second circuit Zebra conductor on the existing double circuit towers, connecting to: o Existing 132 kV feeder bay at Kotmale grid substation o Existing 132 kV feeder bay at New Anuradhapura grid substation.

B. Expansion of rural electrification and distribution system improvement

2. This component will extend the low voltage system into remote villages and will enhance capacity and contribute to greater reliablity of the distribution network in Ampara district of the Eastern Province and Haldummulla and Ragala areas in . The component includes the following sub-projects:

(i) Ampara District Distribution Development (Eastern Province): Construction of 165 km, 33 kV medium voltage and 593 km, 0.4 kV low voltage distribution lines including 67 of 33/0.4 kV and 11/0.4 kV distribution substations to electrify 12,190 households.2

D1: Rural Electrification The rural electrification component in Ampara district will include:

63 distribution transformers, 3 phase, 100 kVA, 33/0.4 kV and 11/0.4 kV, total capacity of 6.3 MVA 4 distribution transformers, 3 phase, 160 kVA, 33/0.4 kV and 11/0.4 kV, total capacity of 0.64 MVA 165 km of 33 kV, 3 phase, overhead medium voltage distribution lines Racoon conductor 593 km of 0.4 kV, 3 phase, low voltage aerial bundled conductor overhead distribution lines Electrification of 12,190 rural households.

The rural electrification component will connect new customers by extending the existing low voltage network. New distribution transformers will be installed where the existing distribution transformer capacity is insufficient or where voltage constraints require additional distribution transformers.

(ii) Ampara District Distribution Network Reliability Improvement: Reliability improvement of 33 kV network comprising installation of 75 auto-reclosers and 100 load break switches

2 Poor households will be provided with a credit support to be recovered in installments over an extended period of time to enable them to finance initial connection charges. The credit will be available through the ADB's Clean Energy and Access Improvement Project (footnote 1) approved in 2009 and covering Ampara district among the three selected project districts. 5

D2: Distribution Reliability Improvement The distribution reliability improvement component will enhance the reliability and operational flexibility of the distribution network in Ampara district. This will be carried out by installing 33 kV auto reclosers and 33 kV load break switches in the existing medium voltage network. Modern auto reclosers improve the protection and sectionalizing capabilities of the network. This will ensure that the minimum number of customers is affected by fault and operational switching. In addition, this type of switchgear can be operated remotely, which reduces outage times as staff no longer have to travel to remote rural areas to operate the equipment manually. This component will include:

75 nos. of 33 kV autoreclosers 100 nos. of 33 kV load break switches.

(iii) Eastern Province Distribution Capacity Development: Purchase of tools and specialized utility vehicles for 30 line gangs in Ampara, and districts to enable implementation of rural electrification as well as future and ongoing medium and low voltage line maintenance.

D3: Distribution Tools and Equipment This component includes tools, equipment, heavy machinery and specialized vehicles, including sundry spare materials for rehabilitation of the 0.4 kV network in Trincomallee, Batticaloa and Ampara districts in the Eastern Province. The network in the Eastern Province is in poor shape with little maintenance having been carried out in recent times. The following new tools and equipment are therefore required to (a) rehabilitate the existing medium and low voltage network, and (b) accelerate household rural electrification in the province:

30 tool sets for low voltage aerial bundled conductor 30 hydraulic compression tools for conductor connections 45 portable single phase meter testing equipment to ensure accurate revenue metering 15 portable three phase meter testing equipment to ensure accurate revenue metering 20 earth resistance testers (1000 volt) to ensure safe earthing 20 insulation testers (2500 volt) to ensure adequate insulation 500,000 H connectors to remake poor conductor connections 50,000 compression sleeves to remake poor conductor connections 100 km of aerial bundled conductor and accessories to rehabilitate and reinforce the 0.4 kV low voltage network 200 fuse switch disconnectors, 4 pole, 160 ampere for isolating and protecting low voltage distribution mains 3 auger vehicles for digging pole foundations 3 cranes, 5 MT, for installation and removal of medium and low voltage poles 3 lorries, 10 ton, for carting miscellaneous materials, poles and conductor to site 3 bucket vehicles (elevated platform vehicles) for safe overhead line maintenance and construction work 3 all terrain vehicles, 4 wheel drive, for design, construction and maintenance work 3 crew cab utility vehicles for transport of staff and minor materials and equipment to site 6

2 fork lift vehicles, 5 ton, for loading/offloading heavy line materials and equipment.

D4: Strengthening of Distribution System in Uva Province This component will strengthen the medium voltage distribution system in Haldummulla and Ragala areas in Uva Province. The component includes construction of 33 kV primary distribution backbone line reinforcements to remove network constraints and improve voltage conditions to existing rural customers, comprising the following elements:

33 km of Lynx conductor3 double circuit pole line from Balangoda grid substation to Haldummulla Construction of a two-section, single busbar gantry at Haldummulla 12 km of Lynx conductor single circuit pole line from Ragala to Padiyapalalle Upgrade 9 km of existing pole line from Racoon conductor to Lynx conductor from Ragala to Walapane.

C. Energy efficiency and renewable energy4:

3. This component will include:

(i) Estate Micro-Hydro Rehabilitation and Repowering Pilot: comprising (i) consulting support (a) to develop a detailed technical specification and funding eligibility criteria for micro-hydro rehabilitation and grid connection, and (b) for provision of engineering assessment and monitoring of projects for the duration of the pilot project; and (ii) funding in the form of a credit line in an amount of $US1.29 million to private developers for approximately 19 micro-hydro projects providing about 1.3 mega-watt (MW) of grid connected capacity on a net metering basis. (ii) Energy appliance testing laboratory. Purchase of lighting appliance testing equipment. (iii) Reactive Power Management: comprising installation of 40 MVAr of 33 kV breaker switched capacitor banks at Aniyakanda (10 MVAr), Ambalangoda (10 MVAr) and (20 MVAr) grid substations to facilitate transmission line loss reduction. (iv) Moragolla5 Hydropower Station: preparation of a detailed engineering design of approximately 30 MW run-of-river hydropower station for possible financing under a subsequent ADB loan. This sub-component includes review of the feasibility study, detailed engineering design and preparation of bidding documents.

4. Table 1 provides a detailed summary of cost estimates by each project component.

3 “Lynx” conductor is aluminium conductor steel reinforced with a nominal conductor cross-sectional area of 180 mm2. 4 Some energy efficiency interventions (i.e., energy appliance testing laboratory, except lighting appliance testing equipment to be financed from loan proceeds; training of energy auditors; and energy efficient lighting) under this component will be financed by attached TA for Implementation of Energy Efficiency Policy Initiatives (accessible from the list of linked documents in Appendix 2) on a grant basis from the Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility and administered by ADB. 5 The feasibility study for the Moragolla hydropower station was prepared under financing from the Kuwait Fund for Arab Economic Development. 7

Table 1: Summary Project Cost Estimates

Project Component Cost in USD million Foreign Local Total Exchange Currency Cost

A. Transmission T1 - New Galle Substation and Associated Transmission Line 14.7 8.0 22.7 i. New Galle 132/33 kV substation 8.0 1.1 9.1 ii. Ambalangoda-Galle 132 kV transmission Line 6.7 6.3 13.0 Items not funded by ADB 0.0 0.7 0.7

T2 - Northeast Substations and Associated Transmission Lines 32.3 26.7 59.0 i. Monaragala 132/33 kV substation 3.0 2.3 5.3 ii. Medagama-Monaragala 132 kV transmission line 2.4 1.8 4.2 iii. Polonnaruwa 132/33 kV substation 3.3 2.4 5.6 iv. Vavunativu 132/33 kV substation 4.1 2.2 6.3 v. Mahiyangana -Vavunativu 132 kV transmission line via Ampara 13.2 10.7 23.9 vi. Ampara 132/33 kV substation augmentation 0.4 0.0 0.4 vii. Kotmale - Anuradhapura 220 kV transmission line (2nd cct stringing) 5.9 3.4 9.3 Items not funded by ADB 0.0 3.9 3.9

Subtotal (A) 47.0 34.7 81.7

B. Distribution D1 Rural electrification (Ampara) 3.8 5.0 8.8 D2 Distribution reliability improvement (Ampara) 2.5 0.1 2.6 D3 Distribution tools and equipment 3.1 0.0 3.1 D4 Strengthening of distribution system in Uva Province 0.3 1.2 1.5 Items not funded by ADB 0.0 5.3 5.3

Subtotal (B) 9.8 11.6 21.3

C. Energy Efficiency and Renewable Energy E1 Estate hydropower plant rehabilitation and repowering 0.7 0.8 1.5 E2 Energy efficiency testing laboratories 0.1 0.1 0.3 E3 Reactive power management 1.2 0.1 1.2 E4 Moragolla hydropower plant detailed design 5.8 0.0 5.8 Items not funded by ADB 0.0 0.4 0.4

Subtotal (C) 7.7 1.4 9.1

Taxes and Duties 0.0 20.5 20.5

Total Base Cost 64.5 68.1 132.6

Contingencies i. Physical 2.6 2.8 5.3 ii. Price 0.3 6.8 7.1

Financing Charges During Implementation 5.7 11.3 17.0

Total Project Cost 73.0 89.0 162.0