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The project administration memorandum is an active document, progressively updated and revised as
necessary, particularly following any changes in project or program costs, scope, or implementation
arrangements. This document, however, may not reflect the latest project or program changes.
ASIAN DEVELOPMENT BANK
for the
for
INDIA
LOAN 2152-IND
30 January 2006
CURRENCY EQUIVALENTS
(as of 24 January 2006)
Re1.00 = $ 0.0226
$1.00 = Rs 44.1825
ABBREVIATIONS
cct-km – circuit-kilometers
KV (kilovolt) – 1,000 volts
MVA (megavolt-ampere) – 1,000,000 volt-amperes
MW (megawatt) – 1,000,000 watts
NOTES
PAGE
PROJECT FRAMEWORK ii
I. PROJECT DESCRIPTION 1
A. Project Area and Location
B. Objectives and Scope
C. Project Components
D. Special Features
VI. PROCUREMENT 5
X. SAFEGUARDS 6
XIII. ANTICORRUPTION 7
APPENDIXES PAGE
PROJECT FRAMEWORK1
• Timely and
transparent
implementation of
the Electricity Act
2003
Risk
• Delays in
implementation of
generation and
distribution
expansion
programs.
Outputs
• Tamil Nadu I Grid 820 circuit-kilometer (cct- Quarterly progress Assumption
Strengthened km) of 400kV transmission reports
lines, and 1,260 megavolt- • Funds for
ampere (MVA) of Project review missions operation and
400/220kV substation maintenance of
capacity added Project completion project
report
1
As agreed upon during project appraisal.
iii
Activities
Procure supply and Contract awards Quarterly progress Assumption
construction contracts for amounting to about $400 reports
implementation of the project million by 31 December • No delay in
packages 2006 project
implementation
Carry out initial environmental Summary IEE for final Project accounts
examination (IEE) including candidate subprojects by Risk
public consultations December 2005. Review missions
• Increase of steel
Prepare resettlement plan Last RP by 31 December Appraisal reports and aluminum
(RP) in consultation with 2005 including Summary IEE, prices
stakeholders concerned RP, and IPDP, if
Last IPDP by 31 needed, for each
Prepare indigenous peoples December 2005 candidate subproject.
development plan (IPDP) if
needed, in consultation with
stakeholders concerned
Inputs
ADB Loan $400 million Quarterly progress Assumption
reports
POWERGRID internal $168 million • Adequate funds
resources ADB review missions from
POWERGRID's
internal
resources.
ADB: Asian Development Bank, cct-km = circuit kilometer, GWh=gigawatt hours, IEE = initial environmental
examination, IPDP = indigenous peoples development plan, kV=kilovolt, MVA = megavolt-amperes, MW=megawatts,
POWERGRID = Power Grid Corporation of India Limited, RP = resettlement plan.
1
I. PROJECT DESCRIPTION
1. The Power Grid Transmission (Sector) Project (the Project) will benefit India's power
sector. The Project focuses on strengthening and expansion of the national transmission grid
including the states of Andhra Pradesh, Kerala and Tamil Nadu, the Union Territory of
Pondicherry, and also the northern part of the country.
2. The objective of the Project is to strengthen and develop India’s national transmission
grid to improve system reliability, facilitate interstate and interregional power transfers by
removing transmission bottlenecks, reduce transmission losses, facilitate efficient utilization of
existing and planned power plants, and facilitate development of a national power trading
market through open access to the national transmission grid.
3. The criteria for selecting each subproject to be considered for Asian Development Bank
(ADB) financing are as follows:
D. Project Components
4. Based on the data available and the above eligibility criteria, ADB and POWERGRID
have jointly appraised the following three core subprojects during project processing covering
the states of Andhra Pradesh and Tamil Nadu, and the Union Territory of Pondicherry:
(i) Grid Strengthening for Tamil Nadu I that comprises construction of 600 circuit-
kilometers (cct-km) of new 400 kilo-volt (kV) transmission lines from Tirunelveli to
Udumalpet, and 220 cct-km of new loop-in-loop-out 400 kV transmission lines from
Madurai to Trivandrum; construction of a new 400/220 kV substation with 2x315
megavolt-ampere (MVA) transformation capacity at Tirunelveli, and augmentation of
existing 400/220 kV substations at Udumalpet and Trivandum with a 315 MVA
transformer each; 2
2
220 cct-km of new loop-in-loop-out 400 kV transmission lines from Madurai to Trivandrum; and construction of a
new 400/220 kV substation with 2x315 megavolt-ampere (MVA) transformation capacity at Tirunelveli are being
implemented from POWERGRID’s own fund due to its urgency.
2
(ii) Grid Strengthening for Tamil Nadu II that comprises construction of 280 cct-km of
new 400 kV transmission lines from Pugalur to Madurai, and 156 cct-km of new 400
kV transmission lines from Udumalpet to Arasur; construction of a new 400/220 kV
substation with 2x315 MVA transformation capacity each at Pugalur and Arasur, and
augmentation of 400/220 kV substation bays at Madurai and Udumalpet; and
(iii) Grid Strengthening for Tamil Nadu, Andhra Pradesh, and Union Territory of
Pondicherry that includes the establishment of a new 2x315 MVA substation at
Pondicherry and Warangal by 60 cct-km line-in-line-out of one of the circuit of
Neyveli-Sriperumbudur 400 kV double-circuit transmission line and 38 cct-km line-in-
line-out of Ramagundam-Khammam 400 kV single-circuit transmission line,
respectively.
5. Subsequently after approval of the loan by ADB, the following subprojects have been
proposed by POWERGRID for which subproject appraisal reports have been approved by ADB:
(i) Grid Strengthening for Kerala I that comprises construction of 620 cct-km of new
400 kV transmission lines from Tirunelveli to Muvattupuzha (East Cochi) via
Edamon;
(ii) Grid Strengthening for Kerala II that comprises construction of 160 cct-km of new
400 kV transmission lines from Muvattupuzha (East Cochi) to North Trichur,
construction of a new 400/220 kV substation with 2x315 MVA transformation
capacity at Muvattupuzha (East Cochi), and extension of 400/220 kV substation
bays at North Trichur; and
6. In selecting additional subprojects, POWERGRID will follow the procedures that include
(i) carrying out a technical feasibility study for each subproject, (ii) preparing a Resettlement
Plan (RP), (iii) conducting an Initial Environmental Examination (IEE), and (iv) if indigenous
peoples are impacted, preparing an Indigenous Peoples Development Plan (IPDP). The
technical feasibility study will include a detailed engineering design of the subproject, cost
estimates, contract packages, and implementation schedule. ADB will not consider for inclusion
in the Project any subproject that does not satisfy any of the above eligibility criteria or where
the above procedures have not been followed.
8. ADB has approved a loan of $400 million from ADB’s ordinary capital resources to help
finance the Project. The loan will have a 20-year term including a grace period of 5 years, an
interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-
based lending facility, commitment charge of 0.75%, and such other terms and conditions set
forth in the Loan Agreement.
9. POWERGRID is the borrower, with a guarantee from the Government of India, and will
bear the foreign exchange risk. ADB will finance 70% of the total project costs as shown in
Table 2 below. POWERGRID will fund the remaining 30% of the total project costs, including
interest and other charges during construction, from its internal cash generation and domestic
commercial borrowings. The local currency costs will be financed through borrowings as part of
the overall corporate financing requirements.
10. POWERGRID shall apply the proceeds of the Loan to the financing of expenditures on
the Project in accordance with the provisions of the Loan Agreement.
11. The goods and services to be financed out of the proceeds of the Loan and the
allocation of amounts of the Loan among different categories of such goods and services shall
be in accordance with the provisions of Schedule 3 of the Loan Agreement, and such Schedule
may be amended from time to time by agreement between the ADB and POWERGRID.
4
12. Except as ADB may otherwise agree, all goods and services to be financed out of the
proceeds of the Loan shall be procured in accordance with the provisions of Schedule 3 of the
Loan Agreement. ADB may refuse to finance a contract where goods or services have not been
procured under procedures substantially in accordance with those agreed between
POWERGRID and ADB or where the terms and conditions of the contract are not satisfactory to
ADB.
13. Except as ADB may otherwise agree, POWERGRID shall cause all goods and services
financed out of the proceeds of the Loan to be used exclusively in the carrying out of the
Project.
14. The closing date for withdrawals from the Loan Account for the purposes of Section 9.02
of the Loan Regulations shall be 31 December 2009 or such other date as may from time to
time be agreed between ADB and POWERGRID.
A. Executing Agency
15. POWERGRID is the executing agency for the Project. POWERGRID’s organizational
structure consists of (i) a corporate center at the head office in Gurgaon (in the state of
Haryana) that is responsible for overall corporate planning, system planning and engineering,
management of transmission system operations and projects, finance, commercial matters, and
personnel; and (ii) regional offices. POWERGRID’s organization chart is given in Appendix 1.
B. Project Management
16. The Project will be implemented as a sector loan and additional subprojects would be
considered during implementation. POWERGRID has set up a Program Management Unit
(PMU) headed by an Executive Director (Corporate Planning) at its headquarters. PMU, through
the related functional departments of POWERGRID, will be responsible for processing and
implementing the subprojects. POWERGRID has eight regional offices each headed by an
executive director/general manager (in-charge) to implement the subprojects under their
respective jurisdiction. The general managers/additional general managers in the region
responsible for construction and commissioning of the subprojects will report to their respective
regional heads. The regional heads will facilitate submission of the implementation progress
reports. The management of POWERGRID receives monthly progress reports and reviews
each subproject in quarterly review meetings.
17. The Project will be implemented over 5 years, inclusive of procurement and construction
activities, and is expected to be completed by December 2009. Implementation of the
subprojects started in January 2005 and will be implemented until June 2009. The
implementation schedule of the 3 core subprojects that have secured in-principle approval
from the Government and the additional subprojects approved by ADB is given in Appendix 2.
ADB will periodically review the implementation of the subprojects and discuss with the
concerned staff of POWERGRID to check progress. ADB will also monitor POWERGRID’s
overall technical and financial performance. In view of the long lead time needed to implement
major transmission projects, POWERGRID has completed submission of appraisal reports to
ADB in December 2005 for the remaining subprojects to be financed under the Project. ADB
5
has approved all of these subprojects. However, POWERGRID may submit appraisal reports
for additional subprojects to ADB for consideration, should there be savings under the loan.
18. POWERGRID will prepare Project cost estimates of foreign exchange costs and local
costs for all subprojects, in the format shown in Appendix 3. A detailed financing plan of the
Project, with estimated financing requirements for the major project components, will also be
prepared in the format shown in Appendix 4. These tables will be revised and updated annually,
or more often if necessary, based on progress with contract awards and actual implementation
of the Project, and attached to the quarterly progress reports to ADB.
19. POWERGRID will also prepare annually the forecast contract awards and
disbursements on a quarterly basis for one year ahead, in the format shown in Appendix 5. This
will be submitted to ADB by 15 January each year.
VI. PROCUREMENT
20. Equipment and materials to be financed under the loan will be procured in accordance
with ADB’s Guidelines for Procurement. International competitive bidding (ICB) will be used for
supply contracts estimated to cost more than $500,000, international shopping for contracts
from $100,000–$500,000, and direct purchase arrangement for those less than $100,000.
Contract packages and bid specifications will be prepared to ensure maximum competition
under ICB. The agreed upon contract package list for the three core subprojects and the
additional subprojects approved by ADB, which will follow ICB procedures, is given in
Appendix 6. To facilitate timely implementation of the Project and based on POWERGRID’s
effectiveness in handling procurement under the two previous ADB-financed projects,
POWERGRID has been allowed advance procurement action for eligible subprojects.
POWERGRID has also been allowed to use the modified ADB bid documents applied under the
Sipat subproject along with the agreed modifications.
21. For contracts to be awarded based on ICB procurement procedures, POWERGRID are
exempted from ADB’s prior review of its bid documents provided that such documents are
forwarded at the time of their release to ADB for post-facto approval, and POWERGRID issues
amendments to such documents based on comments made by ADB, if any, during the bidding
period. Further, POWERGRID may also award contracts of value less than $3 million in each
case without seeking prior approval of ADB, provided the lowest priced bidder is also the lowest
evaluated bidder, and with a proviso that (i) all cases involving unusual issues shall be
submitted to ADB for prior approval, and (ii) all cases shall be subject to post-facto approval of
ADB which shall retain the right to disallow utilization of loan proceeds in case it is unable to
agree with POWERGRID on either the bid documents or the bid evaluation report. Any contract
variations beyond the limit specified in the corresponding bidding document will require ADB’s
prior approval.
22. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement
Handbook, January 2001. No imprest account will be required for disbursements under the loan.
6
23. POWERGRID will maintain separate accounts for the Project. POWERGRID will also
have its accounts and financial statements (balance sheet, statement of income and expenses,
and related statements) audited annually, in accordance with appropriate auditing standards
and consistently applied, by independent auditors whose qualifications, experience, and terms
of reference are acceptable to ADB. Within 6 months of the close of each financial year
POWERGRID will submit certified copies of audited annual project accounts (APA) and annual
financial statements (AFS) and related thereto. The APA will contain detailed descriptions of the
sources of receipts and expenditures. The AFS will consist of an income statement, balance
sheet, statement of cash flows and related notes to financial statement and consolidated for all
of POWERGRID’s operations.
24. POWERGRID will prepare quarterly progress reports containing all the information listed
in Appendix 7 and submit these to ADB, within 45 days after the end of each quarter. These
reports will provide, inter alia, a narrative description of progress made during the period,
changes in implementation schedule, problems or difficulties encountered, and the work to be
carried out in the next period. The progress reports will also include a summary financial
account for the project components including subprojects, consisting of project expenditures
including for subprojects, during the period, and total expenditure to date, and benefit
monitoring in accordance with ADB's Project Performance Management Systems Handbook.
Performance will be evaluated on the basis of performance indicators/targets stipulated in the
Project Framework.
X. SAFEGUARDS
25. POWERGRID has prepared and disclosed the required full Resettlement Plan for the
three core subprojects to the affected people. A Resettlement Framework (RF) has also been
prepared. The RF will serve as a basis to prepare subsequent RPs for additional subprojects. In
addition, an Indigenous Peoples Development Framework (IPDF) has been prepared to guide
POWERGRID in preparing an IPDP if indigenous peoples are impacted in any additional
subproject. All plans will be prepared in full consultation with affected persons and disclosed in
draft form to them and ADB for comments before finalization.
26. The three core subprojects have been categorized as a “B” in accordance with ADB’s
Environmental Assessment Guidelines 2003. The initial environmental examination (IEE), which
included environmental management plan for sample subprojects, was prepared in accordance
with ADB’s Environmental Assessment Guidelines, 2003. An Environmental Assessment and
Review Framework have been prepared to guide preparation of IEEs for additional subprojects.
Environment Category B sensitive subprojects will be avoided to the extent possible. Any
additional subproject deemed by ADB as environmentally B sensitive will require justification
and documentation that anticipated impacts can be effectively mitigated and its SIEE will be
made available to the general public at least 120 days before the subproject approval by ADB.
As per the above procedure, POWERGRID has prepared IEE reports for additional subprojects
and submitted to ADB which has been duly approved by ADB.
7
27. The loan covenants which have been agreed among the Government, POWERGRID
and ADB, to be complied with against the dates shown where applicable is in Appendix 8.
28. The key persons responsible for the implementation/administration of the Project are in
Appendix 9.
XIII. ANTICORRUPTION
29. ADB defines corruption as “the abuse of public or private office for personal gain.” ADB
will systematically identify, in consultation with its member countries opportunities for reducing
corruption as part of its broader emphasis upon promoting good governance and sound
development management. The institutional arrangements and reporting mechanisms referred
to in the PAM are put in place to enable monitoring and accounting of the use of ADB
resources. The ADB’s Anticorruption Policy has set the guidelines and procedures in addressing
corrupt practices. Anyone coming across evidence of corruption associated with the project
must contact ADB’s Office of the General Auditor, which will investigate such allegations.
AGREED
_______________________________ ________________________________
Pil-Bae Song Mr. I.C Jaiswal
Head, PAU/Principal Energy Specialist Executive Director, Corporate Planning
Asian Development Bank Power Grid Corporation of India Limited
8
Appendix 1
Corporate Planning, ESMD & CC Company Secretary Vigilance Contract Services Material Mgt.
Internal NERLDC
Audit
Financial
Concurrence,
Cost Engg.
BDD = Business Development Department, CC= Corporate Communication, CMG = Corporate Monitoring Group, DMS = Distribution Management Services, ERLDC = Eastern Region Load
Despatch Center, ERSTS = Eastern Region Sub-transmission System, ERTS = Eastern Region Transmission System, ESMD = Environment and Social Management Department,
IT = Information Technology, LD&C = Load Despatch & Communication, NERLDC = Northeastern Region Load Despatch Center, NERTS = Northeastern Region Transmission System,
NRLDC = Northern Region Load Despatch Center, NRTS = Northern Region Transmission System, PF = Provident Fund, PI = Private Investment, QA = Quality Assurance, SRLDC = Southern
Region Load Despatch Center, SRTS = Southern Region Transmission System, WRLDC = Western Region Load Despatch Center, WRTS = Western Region Transmission System.
9 Appendix 2
TF TO CA DA CS CE ES EE C
TF TO CA DA CS CE ES EE C
II. Grid Strengthening for TN-II
TF TO CA DA CS CE ES EE C
TF TO CA DA CS CE ES EE C
III. Grid Strengthening for TN&AP and
Union Territory of Pondicherry
TF TO CA DA CS CE ES EE C
Candidate Subprojects
TF TO CA DA CS CE ES EE C
I. Grid Strengthening for Kerala-I
TF TO CA DA CS CE ES EE C
II. Grid Strengthening for Kerala-II
TF TO CA DA CS CE ES EE C
III. Northern Region System Strengthening - V
AP = Andhra Pradesh; C = commissioning; CA = contract award; CE = commencement of erection; CS = commencement of supply; DA = drawing approval; EE = completion of erection;
ES = completion of supply; TF = tender float; TO = tender opening; TN = Tamil Nadu.
Note: Schedules are for the package(s) to be awarded first under each subproject. Estimate at Appraisal Revised Estimate at Inception (Jan. 2006)
10
Appendix 3
DETAILED PROJECT COST DURING IMPLEMENTATION
During appraisal (RRP) Actual (Inception Mission - Jan 2006) Actual (on project completion)
Sub-projects Foreign Local Total Foreign Local Total Foreign Local Total
Exchange Currency Exchange Currency Exchange Currency
Core Sub-projects
Grid Strengthening for TN-I 72.3 8.6 80.9 43.0 3.6 46.6
Grid Strengthening for TN-II 44.7 12.5 57.2 44.7 12.5 57.2
Grid Strengthening for TN&AP
20.8 7.6 28.4 20.8 7.6
and UT of Pondicherry 28.4
Sub-total (Base Cost) 137.8 28.7 166.5 108.5 23.7 132.2
Candidate Sub-projects
Grid Strengthening for Kerala-I 180.4 39.6 220.0 117.9 22.1 140.0
Grid Strengthening for Kerala-II 47.6 10.4 58.0 38.4 10.3 48.7
Establishment of 765/400 kV
substation at Unnao */ Northern
59.0 13.0 72.0 104.9 13.6 118.5
Region System Strengthening - V
(NRSS-V)
Sub-total (Base Cost) 287.0 63.0 350.0 261.2 46.0 307.2
* Establishment of 765/400 kV substation at Unnao, intially identified as one of the Candidate subprojects at RRP stage, did not evolve and subsequently another subproject,
namely Northern Region System Strengthening - V (NRSS-V) has been included as a Candidate sub-project keeping in view the funding gap.
11
Appendix 4
During appraisal (RRP) Actual (Inception Mission - Jan 2006) Actual (on project completion)
Source Foreign Local Total % Foreign Local Total % Foreign Local Total %
Exchange Currency Exchange Currency Exchange Currency
ADB: Asian Development Bank, POWERGRID: Power Grid Corporation of India Limited
12 Appendix 5
WORKSHEET FOR QUARTERLY AND YEARLY CONTRACT AWARDS/COMMITMENTS AND DISBURSEMENT PROJECTIONS ($ Million)
Ref. PAI Nos. 4.13. Issued in July 1992 and 6.1. Issued in October 1990
PROJECTIONS MADE IN:
PROJECT: (Month, Year)
LOAN NO. SEGMENT NO. FUNDS (OCR, SF) COUNTRY (Acronym)
Contracts QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 TOTAL PROJECTED FOR THE
Awarded on
January, February, March April, May, June July, August, September October, November, December YEAR _______
Previous Year (s)
Ref.
Month Awarded/ Month Awarded/ Month Awarded/ Month Awarded/ Disbursement
Line Category 1 CONTRACT/COMMITMENT ITEM
1
QP Disbursement QP Disbursement QP Disbursement QP Disbursement
Month, Year Commited or To be QP Commited or To be QP Commited or To be QP Commited or To QP Contract Value/ Amount Related
no. Amount Related to Amount Related to Amount Related Amount Related to
Contract Awarded QA Awarded/ Commited QA Awarded/ Commited QA Awarded/ QA be Awarded/ Commitment to the Contract/
the Contract/ the Contract/ to the Contract/ the Contract/
Contract Value QP Contract Value/ QP Contract Value/ QP Contract Value/ QP Contract Value/ (9)=(1+3+5+7) Commitment
QA Commitment (2) QA Commitment (4) QA Commitment (6) QA Commitment (8)
(Bank Financed) QA Commitment (1) QA Commitment (3) QA Commitment (5) QA Commitment (7) (10)=(2+4+6+8)
1
- - -
10
11
12
13
14
15
• cumulative contract awards financed by the ADB loan, and comparison with time-
bound projections (targets);
• cumulative disbursements from the ADB loan, and counterpart funds
(expenditure-to-date to be reported usually in the third quarter progress report),
and comparison with time-bound projections (targets); and
• reestimated costs to completion, need for reallocation within ADB loan
categories, and whether an overall project cost overrun is likely, in any.
C. Project Purpose
D. Implementation Progress
• the borrower's compliance with policy loan covenants such as sector reform
initiatives and EA reforms, and the reasons for any noncompliance or delay in
compliance;
• the borrower’s and EA’s compliance with financial loan covenants including the
EA’s financial management, and the provision of audited project accounts or
audited agency financial statements; and
• the borrower’s and EA’s compliance with project-specific loan covenants
associated with implementation, environment, and social dimensions.
Summarize the major problems and issues affecting or likely to affect implementation progress,
compliance with covenants, and achievement of immediate development objectives.
Recommend actions to overcome these problems and issues (e.g., changes in scope, changes
in implementation arrangements, and reallocation of loan proceeds).
19
Appendix 8
MAJOR COVENANTS
2. POWERGRID will ensure that adequate funds are budgeted LA, Schedule 4,
for and duly expended for implementation of environmental para 6(a).
mitigation measures set forth in the IEE and EMP for each
subproject and ensure that these are incorporated in detailed
designs (including any amendments due to detailed designs with
prior approval by ADB). POWERGRID shall ensure that these
measures are also followed during construction and operation of
the subprojects.
3. POWERGRID shall obtain all necessary environmental LA, Schedule 4,
clearances as required, from relevant statutory authorities of the para 6(b).
Government, and in particular, shall not undertake works in any
stretch of transmission lines passing through reserve forests or
other forestland unless the required forest and environmental
clearances are obtained from the Ministry of Forest and
Environment.
4. POWERGRID shall ensure that all Subprojects shall be LA, Schedule 4,
subject to ADB’s classification and any Subproject deemed para 6(c).
sensitive shall require justification and documentation including
effective mitigation measures for anticipated impacts.
5. POWERGRID shall use only polychlorinated biphenyls (PCB)- LA, Schedule 4,
free transformers for all the substations renovated and/or para 7(a).
established under the Project.
6. POWERGRID shall install oil separator (oil trap) in all outlets LA, Schedule 4,
of the sewers of substations. The sludge of oil trapped by the para 7(b).
separator will be kept in safe place within the property of the
substation and will be sold only to the authorized third parties in
accordance with applicable laws and regulations of the
Guarantor.
20
Social
8. POWERGRID shall implement Subprojects in accordance LA, Schedule 4,
with requirements of the Government’s applicable laws, and para. 9
ADB’s Involuntary Resettlement Policy, 1995.
12 By not later than 3 months of Effective Date for the Core LA, Schedule 4,
Subprojects and at least 2 months prior to commencement of para 12(b).
civil works under each Subproject other than Core Subprojects,
POWERGRID shall engage an independent individual expert in
consultation with ADB, for monitoring and verification of the RP
implementation under each Subproject.
13. POWERGRID shall monitor, audit, and report semi-annually, LA, Schedule 4,
the implementation of the IEE and EMP for each Subproject to para. 13.
ADB. Likewise, POWERGRID shall submit progress report and
completion reports on land acquisition and resettlement under
the progress reports for each Subproject.
21
Financial
15 POWERGRID shall obtain from all SEB’s and other LA, Schedule 4,
beneficiaries, irrevocable letter of credit, in the aggregate para. 22
amounting to no less than 100% of average monthly billings of
previous financial year as allowed by CERC.
16 POWERGRID shall not incur any debt, if after such debt may LA, Schedule 4,
be incurred the ratio of debt to equity would be greater than para. 25.
80:20 and a self-financing ratio of 20%.
18. POWERGRID shall produce for each of its fiscal year, funds LA, Schedule 4,
from internal resources equivalent to not less than twenty para. 26.
percent of the annual average of POWERGRID’s capital
expenditures incurred, or expected to be incurred for the
previous, current, and following fiscal year.
19. With 3 months of the Effective Date, POWERGRID shall LA, Schedule 4,
establish the Project Performance Management System (PPMS) para. 14.
for the Project in a form acceptable to ADB.
22
Appendix 9