Sri Lanka’s power sector struggled to meet the growing demand for electricity at acceptable reliability and sufficiently low cost during the decade leading to this project’s appraisal in 2010. The transmission system was weak and substantial investments were needed to strengthen the network and improve its reliability.
During project appraisal in 2008, only 33% Nepal’s households were being served with grid electricity, and the country could not generate adequate power to meet the demand. Nepal’s hydropower generation potential alone is estimated at 43,000 megawatt (MW) but the total installed generation capacity was only 615 MW in 2008.
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).
Despite remarkable progress during the previous decade, only about a third of Bangladesh’s households had access to electricity in 2005. The country had been suffering from unreliable power supply because of insufficient generation capacity, an inadequate transmission grid, and unbalanced distribution facilities.