The Union Government on 8 November 2016 signed 48 Million US dollars loan agreement with Asian Development Bank (ADB) to help Assam state in continuing its drive to improve access to efficient and reliable power.
This is the second tranche loan of the 300 million US dollars multi tranche financing facility for the Assam Power Sector Investment Program that was approved by the ADB Board in July 2014.
The first tranche loan of 50 million US dollars was signed in February 2015.
Highlights of the Loan Agreement
• This loan will help strengthen the state’s distribution system, improve energy efficiency and reduce technical and commercial losses.
• Part of the loan will be used to strengthen institutional capacity of APDCL through setting up independent meter testing laboratories, load dispatch centers and installing centralized uniform billing system to 1.2 million customers.
• This loan from ADB’s ordinary capital resources makes up to 80 percent of the total project cost of almost 60 million US dollars with the Government of Assam providing counterpart finance of 12 million US dollars.
• The loan has a 25-year term, including a five-year grace period with an annual interest rate determined in accordance with ADB's LIBOR-based lending facility.
Highlights of the Project
• The project will help Assam to enhance capacity and efficiency of its power distribution system to improve electricity service to end users.
• It will help Assam in attracting investment and tap its economic potential, in addition to reducing power outages.
• It will help Assam in adding an additional substation capacity, expand and improve medium voltage network, reduce system losses by 3 percent and enhance energy efficiency through renovation and modernization of existing 33/11 kV substations.
• It is expected to be completed by December 2019.
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