Activity ID
657
Approval Date
Country
ESMAP Reviewer
Not assigned
Fiscal Year
Mitigation Measures
N/A
Old nid
67618
Outcome Details
Outcome 1: (Actual) Client Capacity Increased.
The ESMAP activity helped improve the institutional capacity in Maharashtra State Electricity Transmission Corporation Limited to effectively implement its proposed investment plan to bridge high demand-supply gap in power in the state of Maharashtra, effectively maintain assets and enhance competition (through transmission open access) in the state. Under the activity, several meetings, workshops and field visits were conducted for dissemination of proposed changes and to obtain feedback the changes, which resulted in better design and implementation. The activity has helped facilitate fast-track transmission infrastructure development and improved business processes/organizational structures of the MSETCL.The ESMAP activity served as a springboard for IFC?s loan to MSETCL.
Outcome 2: (Actual) Development Financing Informed.
IFC Loan for MSETCL (2009,$200M IFC loan)
The ESMAP activity helped improve the institutional capacity in Maharashtra State Electricity Transmission Corporation Limited to effectively implement its proposed investment plan to bridge high demand-supply gap in power in the state of Maharashtra, effectively maintain assets and enhance competition (through transmission open access) in the state. Under the activity, several meetings, workshops and field visits were conducted for dissemination of proposed changes and to obtain feedback the changes, which resulted in better design and implementation. The activity has helped facilitate fast-track transmission infrastructure development and improved business processes/organizational structures of the MSETCL.The ESMAP activity served as a springboard for IFC?s loan to MSETCL.
Outcome 2: (Actual) Development Financing Informed.
IFC Loan for MSETCL (2009,$200M IFC loan)
Outputs
No outputs defined!
Product Line
Technical Assistance (TA) (non-lending)
Programs
Project ID
P111243
Region
Responsible Unit
SASDE
Risk Description
There are no significant risks associated with the project. The project is in line with India Country Assistance Strategy (CAS) which primarily aims at focusing on outcomes, applying selectivity to effectively target the limited resources and to expand the Bank Group#s role as a knowledge provider and generator. There exists political risk, which is a modest risk. Also there exist sector level risks such as mismatch between transmission and distribution capabilities of the state. Overall, the project lies in the category of low risk project, but because of overall sector risks in Maharashtra, grant activity risk has been assigned as moderate.
SAP Commitments
0
SAP Disbursements
0
SAP Implementation Rate
0
SAP Total Disbursement
209,918
Status
Closed
Summary
The project assisted the state transmission company - Maharashtra State Electricity Transmission Company Limited (MSETCL) - in strengthening its institutional capacity for efficient utilisation of investments being undertaken to meet the transmission capacity requirements of the state. Existing processes and skill sets within MSETCL are insufficient to carry out large projects efficiently. Thus, the company is proposing to explore various Public Private Partnership (PPP) options such as Engineering, Procurement and Construction (EPC) contracting (or turnkey) or Independent Power Transmission Company (IPTC) through competitive bid based tariffs to execute these projects rather than carrying out the activities in-house. This will help in bringing project management, technical and financial expertise of international and national players who have executed large-scale projects efficiently. There is also a need for the prioritization of these investments to achieve improvements in the supply of energy in poor urban areas and improve access in rural areas; and to facilitate the development of competitive electricity markets. Consulting services would be sought under this ESMAP funded activity to strengthen contracting skills to manage large number of EPC contracts, to introduce business process re-engineering, to improve incentive structure and accountability of employees to encourage timely execution of projects, and to build capabilities in strategic procurement. The funds under this activity were utilized for bringing in policy level decisions to encourage private sector participation (PSP). There is a scope for bringing in significant innovation through better construction techniques, better equipment technology and innovative financing. The study also evaluated detailed analysis and framework for operationalisation of selected PPP approach. Capacity building support for the effective implementation of PPP framework and support to operationalise this framework would be needed to enhance the sector#s performance.
Team Leader
Kavita Saraswat