Huge increases in electricity demand, averaging more than 13% annually in 2001-2008, had accompanied the rapid economic growth of the People’s Republic of China (PRC) in the years leading to the project appraisal in 2009. As supply could not keep pace with demand, power shortages became rampant in some areas.
Intensive coal production for local industrial and residential consumption as well as to generate electricity exports to other provinces has brought about severe air pollution in the Inner Mongolia Autonomous Region (IMAR) in the People’s Republic of China (PRC).
At the request of the Government of India (GOI), the Asian Development Bank (ADB) approved in March 2006 a 4-tranche, $300 million multitranche financing facility (MFF) to help implement the Uttarakhand Power Sector Investment Program (UPSIP). The UPSIP aimed to meet the priority infrastructure requirements identified in Uttarakhand’s roadmap for state energy sector development.
Uttarakhand, in the northern part of India, is one the country’s poorest states. It was created in November 2000 from a split in the state of Uttar Pradesh. At around 2008, its annual per capita electricity consumption was less than half the national average, and economic development was constrained by lack of power supply.
In 2006, the Asian Development Bank (ADB) approved a 10-year, $800 million multitranche financing facility (MFF) to support an investment program that aimed to assist Pakistan in overcoming the capacity constraints in its power transmission system.