ACTIVITY TITLE
PAK: KARACHI ELECTRIC SUPPLY COMPANY LTD. (KESC) POST-PRIVATIZATION REHABILITATION, UPGRADE & EXPANSION
Reported by
Asian Development Bank XM-DAC-46004 Multilateral
ACTIVITY SCOPE COLLABORATION TYPE AID TYPE FINANCE TYPE FLOW TYPE TIED STATUS HIERARCHY
National 4 Multilateral (inflows) 2
Project-type interventions C01
Standard loan 421 Non-export credit OOF 21 Untied 1
Planned start date 2007-06-04
Planned end date 2011-12-23
Actual start date 2007-06-04
Actual end date 2011-12-23
activity status: Finalisation
Physical activity is complete or the final disbursement has been made, but the activity remains open pending financial sign off or M&E
WHO'S INVOLVED ( 2 )
PARTICIPATING ORG REFERENCE ROLE TYPE
Asian Development Bank
Accountable Multilateral
K-Electric Limited
Implementing Private Sector
DESCRIPTION
The assistance finances the turnaround of KESC, a loss-making, integrated utility with an exclusive license to supply electric power to the city of Karachi and surrounding areas. Following nationalization of KESC in the 1950's, ADB has supported KESC with several loans over the last 30 years through its public sector operations. Initially, ADB's assistance was mainly directed towards upgrading of physical assets, but with an acknowledged lack of focus on governance and management reform. Later efforts have recognized this, and privatization of KESC became a priority in later ADB interventions in the sector. After KESC?s privatization in late 2005, assisted by ADB, its new owners have embarked on a three-tier turnaround strategy based on (i) organizational restructuring and development; (ii) system balancing, modernization, and replacement; and (iii) generation capacity enhancement. The turnaround strategy requires capital expenditure during FY2007 to ?FY2009 of approximately PRs52 billion ($809 million): (i) generation rehabilitation and expansion, approximately PRs34 billion ($525 million); (ii) transmission and distribution (T&D) network investments, PRs17 billion ($268 million); and (iii) upgrading of commercial systems and rehabilitation of existing generation facilities, PRs1 billion ($16 million). In January 2014, KESC launched a rebranding strategy for its 100th year of incorporation, and changed its business name to K-Electric Limited.
policy marker( 2 )
CODELIST SIGNIFICANCE VOCABULARY DESCRIPTION
Environmentally sustainable growth
CODE ENVIRONMENTALLY SUSTAINABLE GROWTH
Reporting Organisation No description provided
Private sector development
CODE PRIVATE SECTOR DEVELOPMENT
Reporting Organisation No description provided
recipient country ( 1 )
PakistanPK
100
LOCATION ( 1 )
NAME DESCRIPTION POSITION CLASS REACH EXACTNESS
Pakistan
ID 1168579 (Geonames)
30 70 Activity Approximate
sector ( 1 )
OECD DAC CRS 5 digit1( 1 )
The sector reported corresponds to an OECD DAC CRS 5-digit purpose code http://reference.iatistandard.org/codelists/Sector/
Electric power transmission and distribution (centralised grids)23630
100
GLOSSARY
Electric power transmission and distribution (centralised grids)Grid distribution from power source to end user; transmission lines. Also includes storage of energy to generate power (e.g. pumped hydro, batteries) and the extension of grid access, often to rural areas.
capital spend
The percentage of the total commitment that is for capital spending
100
Financial Overview
Outgoing Commitment ( 1 )
Disbursement ( 1 )
Outgoing Commitment
Disbursement
Transactions ( 2 )
Outgoing Commitment ( 1 )
DATE DESCRIPTION PROVIDER RECEIVER VALUE
2007-06-04
Asian Development Bank
Multilateral
K-Electric Limited
Private Sector
125,000,000
USD
Outgoing Commitment
Disbursement ( 1 )
DATE DESCRIPTION PROVIDER RECEIVER VALUE
2013-12-31
Asian Development Bank
Multilateral
K-Electric Limited
Private Sector
125,000,000
USD
Disbursement
result( 1 )
output( 1 )
GLOSSARY
OutputResults of the activity that came about as a direct effect of your work and specific, what is done, and what communities are reached. For example, X number of individuals.
Output
indicator( 4 )
Project Output/s
Output/s as listed by the project staff.
INDICATOR
Output 1
Results in Extended Annual Review Report: https://www.adb.org/sites/default/files/project-document/149119/40943-014-xarr.pdf
FACET BASELINE TARGET ACTUAL % PERIOD
Qualitative Qualitative
INDICATOR
Output 2
Some results are in the Environmental and Social Monitoring Reports | Oct 2014: https://www.adb.org/sites/default/files/project-documents//40943-014-esmr-01.pdf
FACET BASELINE TARGET ACTUAL % PERIOD
Qualitative Qualitative
INDICATOR
Output 3
Status of Development Objectives: The two new combined cycle thermal power stations (220MW Korangi CCPP and 560MW Bin Qasim II) are fully operational, and have improved K-Electric''s generation fleet efficiency. About 1,010 MW of new capacity is on line, which provides lower cost and more reliable power to Karachi residents. System improvements and loss reduction initiatives have reduced the average T&D losses of K-Electric during the fiscal year ending June 2014 to 25.3% from 27.8% in fiscal year 2013. Collections, especially from residential and industrial consumers, increased. Ten new grids have been energized, 62 kilometers of new transmission lines have been laid out, and 189 kilometers of existing transmission lines have been rehabilitated. K-Electric continues to add more grid stations at strategic locations and expand/rehabilitate its transmission and distribution networks. Fifty four percent of Karachi does not experience any load-shedding, while the remaining customers experience scheduled load shedding of 3 to 6 hours. Average daily load shedding has improved from 6 to 7 hours to 4.5 hours, which is better than in other parts of the country (including the capital city of Islamabad). A system of local integrated business centers with streamlined operational procedures has greatly increased K-Electric''s responsiveness to its customers. Distribution service providers were contracted in high-loss areas. The company registered profitability in Jun 2012 after 17 years of operating at a loss. K-Electric registered net profit of PRs12 billion for the fiscal year ending June 2014. Through its Corporate Social Responsibility programs, K-Electric has delivered various water purification and educational programs to communities in the areas of its generation plants and consumer bases. Sixteen major hospitals have also been exempted from load-shedding.
FACET BASELINE TARGET ACTUAL % PERIOD
Qualitative Qualitative
INDICATOR
Output 4
Status of Operation/Construction: (i) The 220 MW combined cycle Korangi Thermal Power Station was commissioned in September 2009, and the 560 MW combined cycle Bin Qasim Power Station II became fully operational in May 2012. (ii) KESC has increased transformer capacity in the grid and has implemented supervisory control and data acquisition (SCADA) systems for load dispatch management and real-time system monitoring. The system has been rolled out to all Karachi-area grids. Ten new grids have been energized, 62 kilometers of new transmission lines have been laid out, and 189 kilometers of existing transmission lines have been rehabilitated. K-Electric continues to add more grid stations at strategic locations and expand/rehabilitate its transmission and distribution networks. (iii) Integrated Business Centers (IBC) cover 80% of billed customers. Eight IBCs have been formally launched in the regions of Defence, North Nazimabad, Gulshan-e-Iqbal, Clifton, Liaqatabad, KIMZ, SITE and Johar. Another 10, although not formally launched, are effectively functioning as IBCs, having processes, procedures, and loss reduction initiatives in place that already constitute a formal IBC. (iv) Distribution Service Providers contracted in Aug 2012 to do meter reading, billing and bill distribution, LT network maintenance and customer service in the high T&D loss areas of Gadap and Aurangi1 have delivered positive results.
FACET BASELINE TARGET ACTUAL % PERIOD
Qualitative Qualitative
other identifier( 1 )
REFERENCE IDENTIFIER OWNER ORG IDENTIFIER TYPE DESCRIPTION
46004
Asian Development Bank
Previous Reporting Organisation Identifier
CODE B1
No description provided
conditions( 2 )
NARRATIVE TYPE DESCRIPTION
Fiduciary
Fiduciary The condition attached requires use of certain public financial management or public accountability measures by the recipient
Performance
Performance The condition attached requires certain outputs or outcomes to be achieved by the recipient