During project preparation, Sri Lanka’s power sector was struggling to meet the demand for a reliable and affordable supply of electricity and improvements to the electricity transmission and distribution networks were much needed.
During project appraisal in 2010, Shandong was the second largest province in terms of industrial outputs in the People’s Republic of China (PRC). Its energy supply depended heavily on fossil fuels—coal (71%) and oil (26%)—causing high levels of carbon emissions. Its industry sector consumed over three quarters of its total energy in 2009.
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 totally meet 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.