ADB (2009) Sustainable Energy Efficiency Development Program PDF

Technical Assistance Consultant’s Final Report
Sri Lanka
Project Number: ADB TA 7060-PAK
August 2009
Pakistan:
Sustainable Energy Efficiency Development Program
Financed by the Asian Development Bank (ADB)
Prepared by
Hagler Bailly Pakistan | Econoler International
Islamabad, Pakistan
For Planning Commission

Government of Pakistan
Islamabad
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design).
ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program i
ABBREVIATIONS
ADB – Asian Development Bank

ADF – Asian Development Fund
AFD – Agence Française de Développement
BRESL – Barrier Removal to the Cost-Effective Development and
Implementation of Energy Efficiency Standards and Labeling
CAPE – Country Assistance Program Evaluation
CDM – Clean Development Mechanism
CER – Certified Emissions Reduction
CFL – compact fluorescent lamp
CIDA – Canadian International Development Agency
CPS – Country Partnership Strategy
DISCO – distribution company
DSM – demand side management
E3C – energy efficiency and energy conservation
EA – Executing Agency
EAD – Economic Affairs Division
EARF – Environmental Assessment Review Framework
EE – energy efficiency
EEC – Economic Coordination Committee
EECCG – Energy Efficiency and Conservation Consultative Group
EESRM – Energy Efficiency Sector Road Map
EIRR – economic internal rate of return
EMP – environmental management plan
EPA – Environmental Protection Agency
EURO – Euro
EURIBOR – Euro interbank offered rate
FFA – Framework Financing Agreement
FIRR – financial internal rate of return
FNPV – financial net present value
FY – fiscal year
GDP – gross domestic product
GTZ – Gesellschaft für Technische Zusammenarbeit GmbH
GWh – gigawatt-hour
IA – Implementing Agency
IB – incandescent bulb
ICB – international competitive bidding
IEE – initial environmental examination
IPD – Irrigation and Power Department
IPDF – indigenous peoples development framework
IPDP – indigenous peoples development plan
IPP – independent power producer
JICA – Japan International Cooperation Agency
KESC – Karachi Electric Supply Corporation
LAA – Land Acquisition Act
LARP – Land Acquisition and Resettlement Plan
LIBOR – London interbank offered rate
LNG – liquefied natural gas
LRMC – long run marginal cost
MFF – Multitranche Financing Facility
Asian Development Bank Consultants’ Final Report

ii ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program
MMscfd – million standard cubic feet per day

MMscmd – million standard cubic meters per day
MoWP – Ministry of Water and Power
MTDF – Medium Term Development Framework
MTOE – Million tonnes of oil equivalent
MW – megawatt
NCB – national competitive bidding
NEPRA – National Electric Power Regulatory Authority
NGO – non-governmental organization
NPCC – National Power Control Centre
NTDC – National Transmission and Dispatch Company
O&M – operation and maintenance
OCR – ordinary capital resources
PAM – project administration memorandum
PEPCO – Pakistan Electric Power Company
PFR – periodic financing request
PMO – program management office
PMU – project management unit
PPA – Power Purchase Agreement
PPTA – project preparatory technical assistance
PV – photovoltaic
QCBS – quality- and cost-based selection
RE – renewable energy
RP – resettlement plan
tCO2e – tonnes of carbon dioxide-equivalent
TJ – terajoule
TOE – tonnes of oil equivalent
USAID – United States Agency for International Development
W – Watt
WACC – weighted average cost of capital
WAPDA – Water and Power Development Authority
Consultants’ Final Report Asian Development Bank

ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program iii
CURRENCY EQUIVALENTS
(as of 30 April 2009)
Currency Unit – Pakistan rupee/s (PRe/PRs/Rs)
Rs1.00 = $0.0125
$1.00 = Rs80.00
WEIGHTS AND MEASURES
GWh – gigawatt-hour (1,000 megawatt-hours)

ha (hectare) – unit of area
km (kilometer) – 1,000 meters
kV – kilovolt (1,000 volts)
kW – kilowatt (1,000 watts)
kWh – kilowatt-hour
MVA – megavolt (1,000,000 volt-amperes)
MW – megawatt (1,000 kilowatts)
VA – volt-ampere
NOTE
(i) The fiscal year (FY) of the Government and its agencies runs from 1 July to
30 June of the following year. FY before a calendar year denotes the year in
which the fiscal year ends, e.g., FY2009 ends on 30 June 2009.
(ii) In this report, "$" refers to US dollars.

ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program v
CONTENTS
I. PROGRAM DESCRIPTION ............................................................................................ 11
A. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND

OPPORTUNITIES ............................................................................................... 11
B. THE PROPOSED INVESTMENT PROGRAM .................................................... 20
C. INVESTMENT PROGRAM BENEFITS, IMPACTS, ASSUMPTIONS, AND
RISKS .................................................................................................................. 31
II. PAKISTAN: ENERGY EFFICIENCY SECTOR ROADMAP 2009-2016 ........................ 37
A. SUMMARY .......................................................................................................... 37

B. ENERGY EFFICIENCY SECTOR ROADMAP .................................................... 38
III. SECTOR INVESTMENT PLAN: APPROACH, ESTIMATES AND SCHEDULE ........... 51
A. SUMMARY .......................................................................................................... 51

B. INDUSTRIAL SECTOR ....................................................................................... 57
C. TRANSPORTATION SECTOR ........................................................................... 85
D. RESIDENTIAL SECTOR ..................................................................................... 90
E. COMMERCIAL SECTOR .................................................................................. 101
F. AGRICULTURE ................................................................................................. 108
G. ENERGY TRANSFORMATION AND SUPPLY ................................................. 112
IV. PAKISTAN BASELINE DOMESTIC LIGHTING SURVEY ........................................... 129
A. SURVEY METHODOLOGY .............................................................................. 129

B. BASELINE DOMESTIC LIGHTING SURVEY FORM........................................ 134
C. SUMMARY OF THE SURVEY RESULTS......................................................... 140

vi ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program
APPENDICES
1. DESIGN AND MONITORING FRAMEWORK FOR THE INVESTMENT PROGRAM

AND TRANCHE-1 ......................................................................................................... 293
2. PROBLEM ANALYSIS .................................................................................................. 301
3. TRANCHE 1 NATIONAL COMPACT FLUORESCENT LAMP (CFL) PROJECT ......... 303
4. BIDDING DOCUMENT FOR SUPPLY OF COMPACT FLUORESCENT LAMPS

(CFLS) ........................................................................................................................... 325
5. COST ESTIMATES AND FINANCING PLAN ............................................................... 413
6. INVESTMENT PROGRAM SUPPORT COMPONENT ................................................. 417
7. IMPLEMENTATION ARRANGEMENTS ....................................................................... 421
8. PROCUREMENT PLAN ................................................................................................ 431
9. SUMMARY FINANCIAL MANAGEMENT ASSESSMENT OF TRANCHE-1

PROJECT ENTITIES .................................................................................................... 437
10. TRANCHE-1 PROJECT FINANCIAL ANALYSIS.......................................................... 451
11. SUMMARY OF ECONOMIC ANALYSIS....................................................................... 455
12. ENVIRONMENTAL BENEFITS AND SOCIAL SAFEGUARDS .................................... 461
13. SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY ................................ 465
14. PAKISTAN: ENERGY EFFICIENCY SECTOR INSTITUTIONAL MATRIX .................. 469
15. FUTURE TRANCHE PROJECTS ................................................................................. 477
16. PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM,

ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK ............................. 499
17. PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM,

TRANCHE-1 .................................................................................................................. 521
18. ENERGY EFFICIENCY SECTOR ASSESSMENT ....................................................... 527
19. INITIAL ENVIRONMENTAL EXAMINATION ................................................................ 533

ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program vii
TABLES
Table 1: Summary of Savings by Sector and Investment Requirements............................... 17

Table 2: Summary of Realizable Savings by Sector and Investment Requirements ............. 25
Table 3: Summary of Realizable Savings by Type of Energy ................................................ 25
Table 4: Phasing of EE Investments by Sector...................................................................... 25
Table 5: Total EE Investment Requirement for the Country .................................................. 26
Table 6: Indicative Sector Financing Plan.............................................................................. 26
Table 7: Indicative MFF Investment and Financing Plan ....................................................... 27
Table 8: Tranche 1 Cost Estimates and Financing Plan ........................................................ 28
Table 9: Energy Prices by Sector in Pakistan ........................................................................ 53
Table 10: Summary of Realizable Savings by Sector and Investment Requirements ............. 54
Table 11: Summary of Realizable Savings in Energy Demand by Type of Energy ................. 54
Table 12: Sectoral Distribution of Realizable Energy Savings in Energy demand................... 55
Table 13: Phasing of Investments by Sector ........................................................................... 56
Table 14: Fuel-wise Energy Consumption in Industrial Subsectors......................................... 59
Table 15: Energy Consumption, Realizable Savings, and Investment Requirements for
Natural Gas and Oil in Industry ................................................................................ 61
Electricity in Industry ................................................................................................ 61
Coal in Industry ........................................................................................................ 62
Table 18: Plant Capacities and Production Processes in the Cement Industry ....................... 63
Table 19: Process-Wise Cement Production, Coal Consumption, and Savings Potential ....... 65
Table 20: Energy Consumption, Realizable Savings, Investment Requirements and
Schedule for the Cement Industry ........................................................................... 66
Table 21: Technology Wise Coal Consumption in the Brick Industry ...................................... 67
Schedule for the Brick Industry ................................................................................ 69
Table 23: Electricity and Gas Consumption by the Iron and Steel Industry ............................. 71
Table 24: Process-Wise Electricity Consumption and Savings Potential in
the Private Sector .................................................................................................... 71
Table 25: Process-wise Gas Consumption and Savings Potential in the Private Sector........ 71
Table 26: Electricity Consumption, Realizable Savings, Investment Requirements and
Schedule for the Private Sector Steel Industry ........................................................ 72
Table 27: Natural Gas Consumption, Realizable Savings, Investment Requirements and
Schedule for the Private Sector Steel Industry ........................................................ 72
Table 28: Areas with Energy Efficiency Improvement Potential in the Textile Industry .......... 74

viii ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program
Schedule for the Textile Sector ................................................................................ 76
Schedule for the Textile Industry ............................................................................. 76
Table 31: Power Generation Potential from Bagasse .............................................................. 78
Table 32: Investment Requirements and Schedule for Export of Baggase-Based
Power by the Sugar Industry.................................................................................... 78
Table 33: Areas with Energy Efficiency Improvement Potential in the Paper Industry ........... 80
Schedule for the Paper Industry .............................................................................. 81
Schedule for Other Industry ..................................................................................... 84
Schedule for Other Industry ..................................................................................... 84
Schedule for Vehicle Tune-Ups ............................................................................... 87
Table 38: Energy Consumption, Realizable Savings, Investment Requirements, and
Schedule for Railway Track Electrification and Modal Freight Shift......................... 89
Table 39: Program Specifications and Costs for Mass Transit Programs ............................... 89
Schedule for Mass Transit Programs....................................................................... 90
Table 41: Fuel Utilization by End-Use in the Residential Sector.............................................. 91
Table 42: Total Residential Customer Base ............................................................................ 93
Schedule for Replacing and Upgrading Lighting Appliances ................................... 95
Table 44: Basis for Savings Potential and Investment Estimates for
Replacing Inefficient Electrical Appliances .............................................................. 96
Schedule for Replacing Electrical Appliances.......................................................... 97
Schedule for Replacing Gas Appliances................................................................ 100
Table 47: Realizable Savings, Investment Requirements and Schedule for
Installing Roof Insulation ........................................................................................ 101
Schedule for Replacing and Upgrading Lighting Appliances ................................. 104
Schedule for Replacing Electrical Appliances........................................................ 104
Schedule for Replacing Gas Appliances................................................................ 107

ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program ix
Table 51: Realizable Savings, Investment Requirements and Schedule for

Installing Roof Insulation ........................................................................................ 107
Table 52: Fuel-wise Consumption in Tube Well Operations, 2008 ........................................ 108
Table 53: Total Number of Tube Wells in 2008 ..................................................................... 109
Schedule for Electrical Motor Replacement ........................................................... 111
Schedule for Diesel Engine Replacement ............................................................. 111
Table 56: GENCO-Wise Installed and Derated Capacities, Rehabilitation Plan and
Associated Costs ................................................................................................... 113
Table 57: GENCO-Wise Replacement Options, Associated Savings.................................... 115
Table 58: Energy Efficiency Investment Schedule and Payback for Upgrading GENCOs .... 117
Table 59: Crude Processed by Oil Refineries in FY2008 ...................................................... 119
Schedule for Oil Refineries .................................................................................... 120
Table 61: Fuel Consumed in Transportation of Oil by Road .................................................. 121
Table 62: Realizable Savings, Investment Requirements, and Schedule for
Transportation of Oil by Pipelines .......................................................................... 122
Table 63: SNGPL’s Proposed Compressor Upgrade Program.............................................. 123
Schedule for the SNGPL Compressor Replacement Program .............................. 124
Table 65: Potential Decompression Locations in the SNGPL and SSGC Networks ............. 126
Schedule for the Installation of Decompression Facilities Program ....................... 127
Table 67: Survey Sample Distribution.................................................................................... 131

x ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program
FIGURES
Figure 1: Pakistan Energy Balance and Efficiency Potential, 2008 ........................................ 22
Figure 2: Energy Consumption by Sector and Industrial Subsectors, FY2008 ....................... 58
Figure 3: Fuel-Wise Energy Consumption in Industrial Sector and Subsectors ..................... 59
Figure 4: Coal Consumption by Industrial Subsectors (2007-08) ........................................... 64
Figure 5: Coal Consumption by Industrial Subsector (2007-08) ............................................. 67
Figure 6: Energy Consumption in the Textile Industry ............................................................ 74
Figure 7: Energy Consumption in the Sugar Industry ............................................................. 77
Figure 8: Energy Consumption by the Paper Industry ............................................................ 79
Figure 9: Energy Consumption by Other Industry ................................................................... 82
Figure 10: Energy Consumption in the Transport Sector .......................................................... 85
Figure 11: Energy Consumption in the Residential Sector ....................................................... 91
Figure 12: Electricity Consumption by End-Use in the Residential Sector................................ 92
Figure 13: Total Household Light Points by Lamp Type ........................................................... 92
Figure 14: Natural Gas Consumption in the Residential Sector by End-Use ............................ 98
Figure 15: Utility-wise Monthly Residential Sector Gas Demand Profile................................... 98
Figure 16: Energy Consumption in the Commercial Sector .................................................... 102
Figure 17: Electricity Consumption by End-Use in the Commercial Sector ............................ 102
Figure 18: Natural Gas Consumption by End-Use in the Commercial Sector ........................ 105
Figure 19: Utility-wise Monthly Gas Demand Profile for the Commercial Sector .................... 105
Figure 20: Capacity Utilization of Oil Refineries for FY2008 ................................................... 119
Figure 21: Modal Distribution of Oil Transportation................................................................. 121
Figure 22: Urban/Rural Population Distribution in Pakistan .................................................... 129

ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program 11
I. PROGRAM DESCRIPTION
A. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES
1. Background and Strategic Context
1. In FY2008, Pakistan’s economy deteriorated after four years of steady growth based on
expansionary policy and structural reforms. This slowdown was partially caused by international
fuel and food price hikes, and was further aggravated by the domestic political transition. The
energy shortage crisis, which started in FY2007, worsened during FY2008-FY2009, further
straining the national budget and growth. The power supply deficit reached 5,000 MW during
summer peak in FY2009. Extended power outages, lasting more than 12 hours a day in some
areas, and gas shortages during the four winter months have had a negative effect on people
and businesses.
2. The economy grew at an average of 7% per year during FY2004-FY2008, which
translated into a rapid increase in energy demand of about 8.4% per year. However, primary
energy supply increased at only 6% per year during this time. In FY2008 the primary energy
supply was 63 MTOE. This consisted of natural gas (47.5%), oil (30.5%), hydropower (10.9%),
coal (9.2%), LPG (0.7%), and nuclear (1.2%). Pakistan is a net energy importer, and the oil
import bill was $12 billion in FY2008. Based on conservative annual GDP growth forecasts of
4%, the total annual energy demand is expected to double to 122 MTOE in ten years. At
$50/bbl crude oil price, the annual energy import bill would exceed $27 billion by FY2018.
3. The energy gap is a binding constraint to growth in Pakistan. It results from (i) weak
sector planning and management; (ii) poor sector performance; (iii) increasing demand; and
(iv) inefficient use of energy resources. Lack of investment in replacing obsolete technology
and infrastructure is a cause for inefficiencies. High energy losses and wastage throughout the
value chain result in high energy intensity. Pakistan uses 15% more energy than India and 25%
more than the Philippines for each dollar of GDP produced. Industrial production suffers from
high energy prices and low and unreliable supply. Production costs are high, making
businesses less competitive. The problem analysis is given in Appendix 2.
4. The Government of Pakistan (the Government) is struggling to cope with the energy
crisis and to increase energy supply. Ad hoc measures, such as rental power generation
programs, are having a limited impact. Meanwhile, public dissatisfaction is increasing due to
persistent power shortages and high energy prices. There are two ways to bridge the demand
and supply gap. The first one is to increase supply through new capacity additions and
improved sector performance. The second is to increase supply and curb demand through
energy efficiency and demand side management (DSM). The energy gap will continue to
remain until both measures are effectively implemented. The energy demand scenario, with
and without energy efficiency, is shown in Appendix 2.
5. Increasing supply capacity takes time and is expensive. Most planned power generation
and natural gas supply additions will be commissioned beginning 2014. Energy efficiency is
thus the least-cost and climate-friendly way of bridging the energy gap and securing energy
provision. Domestic energy prices will continue to increase with tariff rationalization and
removal of subsidies. Energy efficiency reduces the energy bill for all energy customers.

12 ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program
6. The Government is keen to invest in clean energy and to trigger market transformation
to improve energy efficiency on both the supply and demand sides. Energy efficiency means
investments in clean technology and infrastructure that deliver higher energy output. 1 The
Government requested ADB support with the development of an investment program in this
field. This intervention results from a ten-year policy dialogue with Pakistan, and is fully in line
with ADB’s Energy Policy (2009) and Energy Efficiency Initiative.
7. The MFF provides the anchor for sustainable financing for priority projects. The
demonstration effect of these projects will spearhead private sector investments into energy
efficiency and thus help engage the private sector. Clear energy-specific investment plans are
already in place, and each has sufficient implementation capacity to handle energy efficiency
transactions.
a. Strategic Framework and Roadmap

8. Pakistan’s development priorities are given in the ‘Vision 2030’ document. This stresses
structural change and greater productivity. A Medium-Term Development Framework (MTDF)
for 2005–2010 shows priority investments in key sectors. The Poverty Reduction Strategy
(2003) highlights the need for macroeconomic restructuring, the removal of infrastructure
bottlenecks, and private sector participation.
9. Energy security and affordability are priorities under Vision 2030 and MTDF. Optimizing
the energy mix is a must. Energy efficiency is part of this strategy, and is backed by a
Roadmap (Section II). The aim is to (i) integrate energy policy and the regulatory frameworks;
(ii) mainstream energy efficiency into national planning; (iii) rationalize energy pricing; (iv) create
fiscal and financial incentives; (v) establish technology standards, certification, and testing
regimes; and (vi) improve the information flow on energy efficiency, financing, technology, and
support services. The Roadmap was prepared by a government Energy Efficiency and
Conservation Consultative Group (EECCG). 2 This includes public and private sector
stakeholders as well as development partners.
10. Energy efficiency is a strategic intervention under ADB’s Pakistan Country Partnership
Strategy (CPS) for 2009-2013. Pakistan can be expected to realize substantial energy
efficiency gains by providing incentives to consumers, including potential savings on electricity
bills from the installation of more energy-efficient machinery and equipment.
b. Policy Framework
11. The Government has developed a policy framework to guide energy efficiency actions
and investments. The framework is set in the National Energy Conservation Policy adopted in
2006. It calls for maximized savings through rational use and application of clean energy
1
ADB, 2006. Report of the Energy Efficiency Initiative. Manila. “Energy efficiency is defined as economic
investments in energy generation, delivery and end-use equipment, facilities, buildings, and infrastructure that
deliver higher useful energy outputs or services. Energy efficiency results in (i) lower consumption of energy,
measured as energy input per unit of delivered output or service, and (ii) reduced emissions of greenhouse
gases.”
2
EECCG is chaired by the Planning Commission and consists of Economic Affairs Division, Ministries of Finance,
Water and Power, Petroleum and Natural Resources, Environment, Industry and Production, National Energy
Conservation Centre, Pakistan Electric Power Company, Pakistan Standards and Quality Control Authority,
Hydrocarbon Development Institute, Pakistan Council for Industrial and Scientific Research, and development
partners (ADB, AFD, JICA, UNDP, UNIDO, GTZ, WB, USAID).

technology. An integrated institutional structure and resource allocation is prescribed to

supplement the implementation.
2. Key Problems and Opportunities
12. ADB conducted an assessment of Pakistan’s energy efficiency situation. This found that
Pakistan needs to integrate energy efficiency into the overall energy strategy and mainstream
energy efficiency into development planning and investment. Lack of financing is a key barrier
to energy efficiency. The Government needs a flexible public sector financing mechanism to
deliver priority projects. These projects will result in energy savings, lower energy intensity, and
increase industrial competitiveness.
13. Energy shortages are the most severe obstacle to doing business in Pakistan. For
example, captive power generation is expensive (≈$0.20-$0.30 per kWh) and drives up
production costs. A survey of 650 small and medium-sized enterprises (SMEs) in the
manufacturing sector concluded that almost 80% did not intend to make new investments over
the next few years, mainly because of expensive and unreliable energy supply.
14. Rising energy prices are a large burden on both the Government budget and customers’
energy bills. High international fuel prices and volatility are undermining Pakistan’s energy
security. Since FY1998, prices of energy products in Pakistan have continually increased. For
example, the price of natural gas has increased by 274% for residential customers from FY1998
to FY2008, and 125% from FY2005 to FY2008. For commercial and industrial customers, it has
increased by 250% and 126%, respectively. Fuel oil prices have increase by 566% since
FY1998 and by 230% from FY2005 to FY2008. Power generation costs have increased, as oil-
based thermal power plants account for 68% of generating capacity. Electricity tariffs are
expected to be increased by 17.5% starting July 2009 and Government subsidies are to be
eliminated.
a. Physical Challenges
i. Supply Side
15. The total installed power generation capacity in Pakistan is 19,420 MW. However, only
14,000 MW of firm capacity was available in 2009 because of technical and financial
constraints. The shortfall in electricity supply has resulted in power rationing during peak hours
since FY2007. The rationing will continue to persist until capacity additions catch up with peak
demand. About two thirds of total electricity is generated from thermal power plants using
natural gas and fuel oil. Public sector thermal power plants are dilapidated, operating at 25%
reduced output, and at much lower efficiency rates compared to similar plants elsewhere. This
is a result of inadequate maintenance. Forced outage rates for these plants are at 12%, or
double that of IPPs.
16. In FY2008, production of natural gas peaked at 4,000 million standard cubic feet per day
(MMscfd) or 113 million cubic meters per day (MMscmd), compared to a demand of
4,500 MMscfd/127 MMscmd. Since FY2007, the country has faced gas shortages during the
winter months, when supplies to industry had to be cut to meet the heating needs of
households.
17. The energy system also suffers from high transformation losses. Despite improvements
in recent years, system-wide transmission and distribution losses remain high at 23.4% of
dispatched power, and close to 8% in the case of gas supply. The Government is investing in
power transmission and distribution rehabilitation and expansion. These investments will
improve efficiency and reduce losses. The gas transmission and distribution system is also

aging. High technical losses occur because of inefficient compressors. Due to a shortage of
financing, gas utilities are delaying investments to replace these compressor units, which could
double compressor efficiency, save 3,500 billion BTUs of gas per year, and enable 450 GWh of
additional generation annually (120 MW of capacity).
ii. Demand Side

18. During FY2002 to FY2007, electricity consumption rose by 6.8% per year, natural gas by
10.4%, liquefied petroleum gas (LPG) by 17.6%, and coal by 22.8%. Only oil consumption
leveled off temporarily due to large-scale fuel switching in the power and cement industry,
displaced by natural gas and coal, respectively—and transport system alignment, due to
increased use of compressed natural gas (CNG) in vehicles. Oil imports in FY2008 rose by
5.6%, but the cost increased by 60.4% because of the worldwide price hike.
19. Peak demand for electricity increased by 34% from FY2004 to FY2009. This was driven
by a rapid increase in household appliance use, the result of rising incomes and a burgeoning
consumer financing market. This lead to a shortfall of 4,000-5,000 MW, corresponding to 25-
30% of peak demand. About 45% of the population still does not have access to grid-supplied
electricity.
20. Households in Pakistan accounted for about half of total electricity consumption in
FY2008. Lighting, along with air conditioning in the summer, is the main driver of peak loads in
this sector. Inefficient household and commercial appliances are causing a huge burden on the
available energy supply.
21. The industrial sector is energy intensive. It accounted for 19% of the GDP in FY2008,
but was the biggest energy user with 43% of total energy consumption. This is primarily due to
dilapidated infrastructure and inefficient technology in use. Low energy productivity is a factor
affecting industrial competitiveness, and the cost of doing business.
3. Non Physical Challenges
a. Institutional Structure and Capacity

22. Past attempts to translate energy efficiency and energy conservation into policy and
actions failed due to financing barriers and limited political commitment. 3 The mainstreaming of
energy efficiency into policy and planning marks a radical change. This creates major
opportunities for investments. A holistic platform for energy efficiency is required to create a
sustainable policy and regulatory framework; an integration of energy efficiency in all levels of
national planning and public investments; energy price and utility rate-setting reforms and
incentives; a strong equipment standards, certification, and testing regime; and easy,
widespread access to energy efficiency-specific information, financing, products, and services
by all categories and levels of energy market players and end-users.
23. There is no integrated platform for energy sector strategy and policy making. The
overall planning and investment approval mandate is with the Planning Commission. The
Ministry of Water and Power and the Ministry of Petroleum and Natural Resources are
responsible for their respective subsectors. Energy efficiency covers multiple sectors and
requires an institutional structure that is functional and effective. The Government and
stakeholders agree on this need.
3
In Pakistan, the term ‘energy conservation’ is sometimes used interchangeably with the term ‘energy efficiency’.

i. The Planning Commission

24. The Planning Commission of Pakistan is the federal government institution responsible
for managing the economy. Its main function is to prepare strategic planning and policy of the
Government, including public sector development programs, and to approve and monitor public
investment projects. Integrated energy strategy and planning also falls under the functions of
the Planning Commission. It thus has an overarching, cross-ministerial and cross-sectoral
advisory and coordination mandate for the energy sector. The Office of the Member (Energy),
Planning Commission is in charge of these functions. ADB is supporting the strategic planning
and development capacity of this Office through an advisory TA on the Integrated Energy
Model. This would provide the Government with a tool to develop energy strategy and policy
based on objective sector-wide analysis.
ii. National Energy Conservation Centre (ENERCON)

25. ENERCON was established in 1985 and is the Government’s focal point on energy
efficiency. It was originally set up under the Planning Commission and was supported by
USAID technical and financial assistance. Since 1990, when USAID stopped the support,
ENERCON has been severely under-resourced and has been moved under several line
ministries, and is now under the Ministry of Environment. It has lost its key technical staff,
professional facilities, business processes, and knowledge base required to fulfill its mandate for
coordinating, promoting and facilitating national energy efficiency actions and creating an
enabling business environment. As a result ENERCON’s reputation has suffered, and it has
lost credibility within the Government and stakeholders, including the private sector.
b. Governance
26. ADB undertook a comprehensive governance assessment for the energy sector.
Several challenges related to fragmentation of functions and lack of integrated planning were
identified. Sector reforms have not yet been fully implemented. While the unbundling process
has been completed in the power sector, the entities created out of WAPDA still lack
independence from one another. There are actions in motion to improve corporate autonomy,
cut the circular debt between companies, and raise the bar on financial management standards.
27. From FY2002 to FY2007 electricity tariffs were kept below cost. The difference between
the tariff determined by NEPRA, the regulator, at cost-recovery level and that notified by the
Government was never recovered by power sector entities, leading to a circular debt situation.
This difference was exasperated by fuel price escalation in FY2008. Circular debt rose to PRs
308 billion. Payments to fuel suppliers were constrained by the generating companies. Also the
shortage in gas supply to the power system has decreased the capacity by around 500 MW. To
alleviate the crisis and prevent reoccurrence, the Government has set out a plan which includes:
(i) increases its customer tariffs to cost recovery levels, (ii) maximizing capacity of existing
plants, and (iii) resolving the circular debt.
c. Private Sector
28. The private sector plays a key role in sustaining growth momentum and in creating the
jobs needed to absorb the rapidly growing labor force. The CPS defines energy infrastructure
bottlenecks and shallow financial services industry as key constraints that raise the cost of
doing business in Pakistan. The absence of reliable infrastructure, coupled with rising cost of
energy products, affects companies’ bottom lines and increases production costs. Industries
are not investing in energy efficiency as it directly competes with production. There is no
available financing dedicated for energy efficiency. Banks do not have the capacity to
undertake due diligence on such projects.

29. The returns from energy efficiency investments in Pakistan can be high and the technical
risks relatively low. Energy efficiency investments can help to reduce energy consumption and
improve production. Benefits can also be gained through environmental improvements and
from the demonstration effect on the business community.
30. Public-Private Partnerships (PPPs) are being pursued for the import of natural gas as
LNG and through pipeline, import of power from neighbors, construction of large-scale
hydropower projects, and development of the Thar coal reserves. A number of independent
power producer (IPP) projects have been contracted and are in different stages of development.
The Government has also formulated a new policy to encourage investment in oil and gas
exploration. Renewable energy projects are being promoted, with a target of 10% of energy mix
to be met from renewable sources by 2015.
d. Standards and Testing

31. Enforcement of standards is generally weak in Pakistan. Successful energy efficiency
investments, particularly in terms of DSM, need to be underpinned by a comprehensive energy
performance standards and testing regime. The Pakistan Standards and Quality Control
Authority (PSQCA) is the national standardization body. There are existing quality standards for
lighting and some electrical appliances, but these do not adequately cover all main product
categories, types, or sizes, nor are they properly enforced. Quality and performance standards
need to be harmonized with international standards. The Pakistan Council of Scientific and
Industrial Research (PCSIR) is the national testing and certification body with seven regional
laboratories. Equipment testing facilities need to be rapidly augmented to enable PSCIR to
obtain international accreditation and undertake energy performance testing.
4. Opportunities for Energy Efficiency
32. Rising energy costs and increasing demand make energy efficiency an absolute priority
for Pakistan. Energy efficiency will generate ‘megawatts’, which cost a fraction of equivalent
‘megawatts’. It is the least-cost way of bridging the energy gap. The marginal cost of additional
supply is much higher than the cost of investing in energy efficiency. Additional benefits include
reduced consumer energy bills, and a cleaner environment (lower GHG emissions). Energy
efficiency is the short-term solution to the energy crisis. It reduces shortages by minimizing
power and gas rationing and forced outages. Public financing and policy incentives will
encourage businesses to invest in clean technology and savings practice.
33. The social and economic benefits are high and there is a multiplier effect on society,
through productive use of consumers’ time and money. Utility revenues will increase, resulting
in improved quality of service. The cross subsidy provided by the utilities to the low-income
customers will also be reduced.
34. The dispatch of the highest-cost generation plants will drop and result in financial gains
of the companies and the Government. Other benefits include new connections, lower bills for
low-income groups, and lower stress on the transmission and distribution systems.
a. Demand Side Potential and Investment Requirement

35. Demand side energy saving potential in FY2008 is estimated at 6.1 MTOE (268,400 TJ),
which corresponds to 15.4% of the total energy consumed in the country. Realizable energy
savings are highest in the industrial sector (corresponding to 11% of current sector
consumption), followed by domestic (26%), transport (14%), commercial sector (24%), and
agriculture (20%). Energy savings projected between 2010 and 2019 are estimated at
7.2 MTOE (315,800 TJ).

36. Investment costs related to demand side energy savings between 2010–2019 are
estimated at $5 billion (Table 1). Highest energy savings will be in the domestic (lighting and
appliances) and industrial (technology retrofits) sectors.
b. Supply Side Potential and Investment Requirement

37. Energy savings in transformation, transmission, and distribution are estimated at
2.1 MTOE (103,000 TJ) by FY2019. These represent 22.4% of total realizable savings.
Achieving these savings requires an investment of $3.3 billion. Additional investments in
transmission and distribution (gas) and refinery improvements bring the total transformation
energy efficiency requirements up to $3.54 billion by FY2019. Clean technology investment in
thermal power generation and gas transmission and distribution will deliver the highest energy
savings.
Table 1: Summary of Savings by Sector and Investment Requirements

Sector Energy Consumed, Realizable Energy Savings, Investment
FY2008 Savings as % FY2019 Required
of
(’000 (TJ) Consumption, (’000 (TJ) ($ Million)
TOE) FY2008 TOE)
Domestic Households 8,046 355,659 25.8% 2,074 91,696 1,288
Commercial Sector 1,456 64,337 23.9% 347 15,348 84
Industry 16,804 742,776 11.1% 2,445 108,081 2,450
Agriculture 804 35,531 19.6% 331 14,623 472
Transport 11,567 511,297 13.9% 1,906 84,224 685
Other Government 736 32,520 2.7% 42 1,851 -
Subtotal, Demand 39,413 1,742,119 15.4% 7,145 315,822 4,980
Transformation – Oil Refining 61 2,676 81
Transformation – Power Generation 2,121 93,763 3,292
Transmission and Distribution 148 6,544 130
Decompression 16 691 35
Subtotal, Supply 16,903 747,131 13.8% 2,330 102,984 3,538
Total 56,316 2,489,250 14.9% 9,475 418,806 8,518
FY = Fiscal year, TJ = Terajoule, TOE = Tonnes of oil equivalent.
Source: Energy Efficiency Investment Plan, Planning Commission.
5. External Assistance
38. The Government wants a medium-term partnership and commitment of the development
financiers in implementing energy efficiency in Pakistan. The EECCG provides a functional
platform for collaboration amongst all stakeholders and financiers. There is a direct linkage and
coordination of donors’ actions included in the Roadmap. A matrix of institutional
responsibilities has been prepared to complement the Roadmap.
39. AFD is cofinancing this MFF. Japan International Cooperation Agency (JICA) is
developing a national climate change policy program. GTZ is implementing industrial energy
audits and appliance labeling and certification programs. The United States Agency for

International Development is implementing a large technical assistance program to strengthen

energy DSM capacity in the utilities and the private sector. The World Bank is implementing
power utility-based DSM demonstration programs.
40. In the overall energy sector, ADB is the largest development partner, followed by the
World Bank and JICA. The European Investment Bank has signed up to a co-financing
partnership with ADB in the area of renewable energy. Islamic Development Bank is financing
small hydro projects in Northern Pakistan.
41. The Canadian International Development Agency (CIDA) has been helping with energy
policy and regulations and hydropower projects. CIDA has also supported public and private
companies with reforms in the management of hydrocarbon resources. The Government of
France is working on mini hydropower projects in NWFP. The Government of Germany is also
supporting renewable energy projects. The Government of Japan is also supporting the
modernization and expansion of the power transmission and distribution system. The
Government of the Netherlands is supporting the introduction of clean industrial production.
USAID is working on energy policy, pricing, cost of service, and capacity development.
6. ADB Operations and Sector Strategy
42. Strategy. ADB’s Energy Policy (2009) aims to help DMCs to provide reliable, adequate,
and affordable energy for inclusive growth in a socially, economically, and environmentally
sustainable way. The policy has three pillars: (i) promoting energy efficiency and renewable
energy; (ii) maximizing access to energy for all; and (iii) promoting energy sector reform,
capacity building, and governance. CPS is fully consistent with the energy policy. Key drivers
are energy security, energy efficiency, and clean energy. ADB is continuing to support energy
sector investments in the power supply chain (generation, transmission and distribution) and
reforms (including strengthening corporate governance in power entities and granting them
greater financial autonomy) and capacity development of key agencies (including improving
financial management and procurement practices, addressing the problems of circular debt and
the debt overhang, and rationalizing tariff structures).
43. Operations. ADB provides about one-third of total external assistance to the sector,
and has the largest portfolio of ongoing projects. ADB has been engaged in reforms, capacity
development activities, and private sector participation. Physical investments have focused on
power generation, transmission, and distribution. Since the start of operations in Pakistan in
1968, total lending to the sector amounts to about $4.2 billion, of which $3.6 billion is for the
power subsector and $0.6 billion for natural gas and petroleum development.
44. Past Performance. A country assistance program evaluation (CAPE) completed in May
2007 assessed the development impact of ADB’s strategy and operations over 1985-2006. The
CAPE rates the overall performance as only partly successful. However, operations in the
energy sector were rated successful.4 CAPE called for greater focus, better and simpler project
designs, and targeted policy dialogues.
45. Portfolio. The energy portfolio has three MFFs, totaling $2.1 billion and covering
renewable energy, power transmission, and power distribution. Technical assistance areas
4
The overall success rate of energy sector projects during 1985-2006 was a high 81%. The success rate for
projects approved in the 1990s was, however, much lower at 50%.

include the integrated energy planning model, tariff rationalization, institutional strengthening
and restructuring.
7. Lessons
46. The energy sector needs substantial investments. Consistent policy dialogue is required
to achieve sustained progress and ensure maximum impact. Development partners have a
continuing role to play in reforms and financing. The reforms, while complex, are taking longer
than anticipated. Sector regulation and pricing is conceptually sufficient. However, there is a
heavy political influence in the decisions. Power sector unbundling and restructuring has been
achieved legally. However, power utilities lacked the financial autonomy needed to make sound
commercial decisions and investment in system maintenance, operations and expansion.
47. ADB’s strategy has focused on supporting power transmission and distribution
companies in achieving financial autonomy and improving service. ADB financing is most
useful if it is leveraged by working with other sources of finance, both public and private. ADB
and World Bank have clear and focused financing interventions backed by institutional reform
and capacity development support.
48. Most ADB-financed projects in the energy sector have been sector loans. The more
recent additions are MFFs. The latter allows flexibility in the selection of projects and project
management while maintaining focus on reforms and performance. Cost overruns have been
greatly reduced, although implementation remains slow. Delays have been caused by
cumbersome Government internal approval process (i.e. PC-I and PC-II) for physical
investments and recruitment of consultants. This is due to organizational and institutional
weaknesses, and shortage of qualified staff.
49. Specific lessons learned from previous projects include: (i) inadequate stakeholder
consultations during the design stage, (ii) weak management, (iii) lack of advance actions,
(iv) long delays in the approval of umbrella PC-I and individual tranche PC-Is, and
(v) inadequate project management skills. 5
50. The Program addresses these concerns, and incorporates PC-I approvals into project
readiness criteria. The umbrella PC-I for the MFF was approved at the MFF fact-finding stage.
Procurement process was initiated subsequent to Management endorsement of advance action.
The facility administration manual (FAM) has been prepared during program design. This
defines the roles and responsibilities of each implementing agency (IA) down to individual staff
levels. It also ensures IA’s ownership and targets start-up and implementation delays.
51. To mitigate project development and implementation delays, Program management
support is provided to help project entities in project preparation and management. The
Program will use the systems and capacity that is being created as part of other ADB-financed
projects. Close linkage with existing projects ensures that there is technical capacity for
implementation. Capacity constraints will be defined during early project preparation stages and
proper consulting inputs. The MFF allows the flexibility to develop capacity parallel with project
development and implementation.
5
Ten ADB-financed power projects approved before 1983 have been post-evaluated. All were classified as
‘generally successful’. The post-evaluation findings showed an average implementation delay of 2.4 years (78%).
Five of the projects experienced an average cost overrun of about 82%, and the other five an under-run of 28%.

B. THE PROPOSED INVESTMENT PROGRAM
1. Impact and Outcome
52. The Energy Efficiency Investment Program (EEIP) will bring about major energy savings
and cut GHG emissions by 30% during the ten-year period (2010-2019). It will improve
Pakistan’s energy security and economic competitiveness by lowering energy intensity and
improving energy productivity.
53. Energy efficiency will help balance energy demand and supply, and optimize the energy
mix by reducing oil imports. It will slow demand and increase supply. More specifically it will
(i) cut large financial outlays, (ii) minimize uneconomical standby capacity required to cater to
peak loads, (iii) reduce subsidies, and (iv) defer transmission and distribution system expansion
needs.
2. Outputs
54. The Program has physical and non-physical investments. Key outputs are as follows:
(i) Reduced electricity use in the industrial, residential and public sectors, amounting to
2,670 GWh, per year, corresponding to a peak load reduction of 1,094 MW;6
(ii) Reduced transformation losses in the gas transmission and thermal power
generation sectors totaling 601,671 TOE (26,595 TJ) per year, sufficient to fuel a
generation capacity of 604 MW;7
(iii) Reduced gas, oil, and coal use in the residential and industrial sectors amounting to
918,942 TOE (40,619 TJ) per year, sufficient for generating 923 MW;
(iv) A national energy efficiency standards, testing, and certification regime established;
(v) Energy efficiency mainstreamed into planning and investments, and managed
effectively under strengthened policy, legal, and regulatory frameworks and
institutional capacities; and
(vi) Annual reductions of GHG emissions by at least 1 million tons (Mt) CO2 from 2010
as a result of less fossil fuel use.
3. Special Features
55. Financing Partnerships

(i) External – AFD is cofinancing this MFF. The investments under the MFF are
closely linked and complemented by interventions of other IFIs and bilateral
agencies; and
(ii) Domestic – MFF will leverage commercial financing in energy efficiency and help
build clean energy portfolios of commercial banks. These investments have low
risks and robust paybacks.
6
Assuming a 66% coincidence factor for the CFLs distributed under Tranche 1.
7
Assuming 60% plant load factor and an average 43% efficiency for thermal power generation.

56. Private Sector Participation. The private sector will be engaged. The MFF will lower
the financing barrier which has impeded active private sector participation in the past. Energy
savings will lower production costs and increase competitiveness. Energy efficiency will also
create new business opportunities. Private energy service companies will be supported through
technical and financial support. PPPs will also emerge under the power generation component.
57. Impact Evaluation. An impact evaluation is conducted for the Tranche 1 project. The
exercise looked at the way consumption and cost change will impact on people and businesses.
Further evaluation will be done over time with future tranches. The results and lessons will be
incorporated into the design of each operation.
4. Sector Investment and Financing Plans
58. Overall energy savings potential in Pakistan in FY2008 is estimated to be 11.16 MTOE
(493,304 TJ), inclusive of savings in end uses as well as energy transformation (Figure 1).8
These savings correspond to 17.7% of the annual primary energy demand of 62.92 MTOE
(2,780,941 TJ).
8
The term ‘energy’ here is used to denote ‘modern’ or ‘commercial’ supplies only, and does not include ‘traditional’
sources such as simple combustion of biomass. In addition, ‘energy efficiency’ savings relate to improvements in
technology, processes, and infrastructure, and do not include the impacts of enhanced management,
conservation, or behavioral change. Similarly, the benefits of alternative fuels and renewable resources (with the
exception of bagasse use in the sugar industry) are not considered. These estimates correspond to technical
potential assessment for the entire economy, unlike the Energy Efficiency Investment Program (EEIP), which is
scoped around specific projects.

Figure 1: Pakistan Energy Balance and Efficiency Potential, 2008
Source: Pakistan Energy Yearbook, 2008 and PPTA consultants’ estimates (in red).

59. The overall energy efficiency investment plan will define the basis for energy efficiency
actions in the economy and lead to the implementation of the investment program. A portion of
the overall investment plan focuses on the six subprojects being proposed under the current
investment program (for details on overall investment plan estimates, please see Section III).
Considering a ten-year investment horizon ending in FY2019, the achievable energy savings in
FY2019 in selected key sectors targeted by the program are estimated to be 4.5 MTOE
(199,129 TJ), requiring an investment of $3.8 billion out of the total EE investment requirements
of $8.54 billion. Table 2 to Table 4 provide a breakdown of savings by type of energy and the
corresponding investments that would be required to achieve the total energy savings potential
for the selected sectors covered under the investment program. These estimates were
developed based on the technical EE potential, and the extent to which this potential can be
realized over a ten-year period taking into account the financial attractiveness of the
investments and existing implementation barriers and constraints. The assessment was based
mainly on secondary data and interviews with sectoral and industry experts, with the exception
of a countrywide household survey on use of domestic lighting devices.
a. Demand-side EE Potential and Investment Requirements in Targeted Program

Sectors
60. The overall demand-side savings potential in FY2008 for the investments proposed
under the program are estimated at 3.04 MTOE (134,411 TJ), corresponding to 7.7% of the total
energy consumed in the country in that year (Table 2). Realizable energy savings potential in
FY2008 in the industrial sector,9 corresponds to 8.1% of the sector’s final energy consumption
and for the domestic sector is 20.9% of FY2008’s domestic energy consumption. Energy
savings on the demand side that can be realized by FY2019 are estimated at 3.13 MTOE
(138,206 TJ), taking into account projected economic growth and the extent to which the
savings can be realized in the two sectors.
61. The investment costs for achieving these demand-side energy savings over the period
from FY2010 to FY2019 are estimated at $2.3 billion. Sectoral requirements are estimated at
$1.9 billion for industry and $0.4 billion for the domestic sector. Phasing of the proposed
investments for these sectors over a ten-year period is shown in Table 3. The bulk of the
investment will be required in the first five years to replace existing inefficient equipment,
followed by some additional investments to maintain efficiency in sectors where, due to market
imperatives, the induction of lower efficiency equipment is expected to continue into the near
future.
b. Supply and Transformations EE Potential and Investment Requirements in

Targeted Program Sectors
62. Savings that can be realized in the transformation, transmission, and distribution of
energy include efficiency improvements in power generation, 10 estimated at 1.2 MTOE
(55,070 TJ) in FY2019. These savings constitute 27.7% of total realizable demand- and supply-
side savings in FY2019 for the selected sectors, requiring an investment of $1.4 billion. The
corresponding figures for installation of high efficiency compressors in gas networks are 2.9%
and $0.13 billion, bringing the total supply-side EE requirements up to $1.5 billion by FY2019.
9
Includes textiles, sugar, pulp/paper and board, and cement subsectors
10
Thermal plants selected based on lower efficiency and lower payback criteria.

c. Distribution of Savings by Type of Energy

63. Realizable energy savings in final electricity consumption are estimated at 12% of the
electricity consumed in the country in FY2008. Savings in electricity in FY2019 are projected at
0.7 MTOE (31,964 TJ), corresponding to a generation capacity of 1,690 MW, assuming a
systemwide average plant factor of 60%. The residential sector accounts for about 27.8% of the
savings potential for electricity resulting from replacement of incandescent bulbs with compact
fluorescent lamps. Industry accounts for the remaining 72% of the savings potential. Industrial
electricity savings can be realized through use of efficient motors, process controls, and through
bagasse-fired generation.
64. Realizable energy savings in natural gas use are estimated at 12% of the total gas
consumed in the country in FY2008, and are projected at 2.1 MTOE (91,016 TJ) in FY2019,
accounting for 46% of the total energy efficiency potential of 4.5 MTOE in FY2019. These
savings could be utilized to fuel a power generation capacity of 2,300 MW.11 The bulk of the
savings potential in natural gas use is in the domestic sector (72% of total), and is associated
with the replacement of existing appliances, such as cook stoves, water and space heaters, with
high efficiency ones. Energy efficiency upgrades in industry account for 28% of the natural gas
savings potential, which can be realized through modifications in production and manufacturing
equipment, heat recovery, process improvements mainly in the cement, pulp and paper, and
sugar industries, as well as loss reduction and efficiency improvements in the gas utilities’
networks. Realizable savings for coal account for 9% of all coal consumed by industry, and can
be achieved through implementing heat recovery in the cement industry.
65. The energy efficiency potential in oil use resides primarily in the power sector, where
through thermal plant upgrades, savings of around 1.2 MTOE (55,070 TJ) can be realized.
d. Conclusions
66. Taking into account the realizable potential for energy savings, attractiveness of
investments, and existing barriers and constraints to energy efficiency improvements, the
priority areas for a ten-year national EE investment program can be identified as:
(i) Energy efficient lighting and replacement of gas appliances in the domestic
sector;
(ii) Replacement and rehabilitation of existing inefficient thermal power generation
units with new high efficiency configurations;
(iii) Replacement of inefficient compressors in the gas transmission systems and
(iv) Efficiency upgrades in the industrial sector, focusing on the cement, pulp and
paper, sugar, and textile industries)
67. Analyses of the technical, economic, policy, and institutional aspects of these
opportunities is recommended on an on-going basis to select program areas that will result in
the optimum utilization of available investment funds.
11
Assuming a generation efficiency of 48% for gas-fired combined-cycle units operating at a plant factor of 60%.

Table 2: Summary of Realizable Savings by Sector and Investment Requirements

Sector Energy Consumed, FY2008 Energy Savings, FY2019 Investment
Required
(’000 TOE) (TJ) (’000 TOE) (TJ) ($ Million)
Domestic 8,046 355,659 1,685 74,469 370
Industry 16,804 742,776 1,442 63,736 1,910
Subtotal, Demand Side 3,127 138,206 2,280
Transmission – Gas Compression 132 5,853 130
Subtotal,
1,378 60,923 1,500
Transformation
Total 4,505 199,129 3,780
Source: Pakistan Energy Yearbook, 2008 and PPTA consultants’ estimates.
Table 3: Summary of Realizable Savings by Type of Energy

Sectors Savings as % Energy Savings, Savings as Corresponding
of Total FY2019 % of Total Power
Consumption, Savings Generation
FY2008 (’000 (TJ) Capacity
TOE)
(MW)*
Electricity 12% 723 31,964 16% 1,690
Natural Gas 12% 2,059 91,016 46% 2,300
Petroleum Products and LPG 11% 1,246 55,070 28%
Coal 9% 477 21,079 11%
Total 11% 4,505 199,129 100% 3,990
* MW calculated by assuming a plant load factor of 60% and gas-fired power generation efficiency at 48%.
Table 4: Phasing of EE Investments by Sector

($ Million)
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Domestic 28 83 27 80 89 63 - - - -
Industrial - 19 114 343 553 517 267 76 19 -
GENCO
Upgrades and
Replacements - - 153 210 150 135 202 272 183 67
Gas T&D
Upgrades - 16 42 44 28 - - - - -
Total 28 118 336 674 820 713 469 348 202 67
Cumulative 28 146 482 1,159 1,979 2,694 3,163 3,511 3,713 3,780

68. The overall investment requirement in energy efficiency on the next decade is estimated
at $8.5 billion for the country.
Table 5: Total EE Investment Requirement for the Country
($ Million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Annual 28 138 450 1,292 1,689 1,740 1,120 1,099 702 260
Cumulative 28 166 615 1,908 3,597 5,337 6,457 7,556 8,258 8,518
Source: Energy Efficiency Investment Plan, Planning Commission.
69. About 20% of the investments will be financed by the utilities themselves through
internally-generated funds or equity, and the remaining 80% will be secured from banks, private
sector, and IFIs.
Table 6: Indicative Sector Financing Plan
($ Million)
Source Amount
Government of Pakistan 588
Asian Development Bank 780
a
Agence Française de Développement 200
Other Financiers 1,850
Private 2,400
Commercial Borrowing 2,700
Total 8,518
Source: Asian Development Bank and project preparatory technical assistance
consultants’ estimates.
5. Multitranche Financing Facility
70. The Government seeks a flexible financing mechanism to back-up these clean
technology investments. The MFF modality is proposed because:
(i) There is a clear and sound strategic roadmap;
(ii) Sector-specific investment plans are in place and backed by policy;
(iii) Investment plan spreads out over a ten-year period;
(iv) The MFF will ensure sustainability, and sends a strong message to the market on
the Government’s commitment, and will leverage private and commercial financing;
(v) Individual sectors have the capacity to deliver projects;
(vi) It allows the Government to leverage technical assistance and financing from IFIs
and bilateral agencies, and ensures that there is no overlap and duplication, and
enables implementing one-off deals; and
(vii) Technologies are proven and available for large scale-up.

Table 7: Indicative MFF Investment and Financing Plan

($ Million)
Item Amount GOP ADB AFD
A. 1. Supply side
Thermal Power Plant Rehabilitation 550 90 370 90
Transmission and Distribution Upgrades 130 21 87 21
2. Demand side
Compact Fluorescent Lamp Project 85 20 40 25
Industrial Energy Efficiency Financing 250 41 168 41
Building Retrofits 60 10 40 10
Gas and Electric Appliance Replacements 80 13 54 13
B. Program Management Support 25 5 20 -
Total (A+B) 1,180 200 780 200
Source: Asian Development Bank and project preparatory technical assistance consultants’ estimates.
71. ADB will finance up to $780 and AFD $200 million equivalent. The Government will
finance the remaining $200 million. Conditions and arrangements for AFD cofinancing will be
through a bilateral framework and project financing agreements to be negotiated between the
Government and AFD. A cofinancing agreement will be entered into by ADB and AFD under
which the parties will jointly finance the procurement goods, civil works and consulting services
on pari-passu basis.
6. Project Selection Criteria
72. The MFF will finance operations in the following areas: (i) lighting and appliances in
domestic, public and commercial sectors, (ii) energy loss reduction in thermal power generation,
(iii) energy loss reduction technology in the transmission and distribution system, and
(v) industrial energy efficiency programs.
73. The following criteria will used for individual projects: (i) energy savings, (ii) mature and
applicable technologies, (iii) financial and economic viability, and (iv) residual environmental and
social impacts. Some projects will be demonstration models.
7. Tranche 1 Projects
74. Tranche 1 includes two projects: (i) the National CFL Project, and (ii) Program
Management Support Project. Summary of the two projects is provided in Appendices 3 and 5.
Table 8 shows the cost estimates and financing plan (details are in Appendix 5).
75. The National CFL Project will replace 30 million incandescent bulbs in the domestic
sector with efficient, high-quality CFLs. The Government will cover the cost of CFL bulk
procurement and public awareness campaign costs amounting to $65 million from the ADB and
AFD loan proceeds, and repay them from the budget. Eight power distribution companies
(DISCOs) and Karachi Electric Supply Company (KESC) will cover the cost of door-to-door CFL
delivery ($20 million equivalent) to registered household customers in their license areas.

Table 8: Tranche 1 Cost Estimates and Financing Plan

($ Million)
Project Components Amount al GOP ADB AFD
I. National CFL Project 85 20 40 25
II. Program Management Support Project 25 5 20 -
Total 110 25 60 25
Source: Asian Development Bank and project preparatory technical assistance consultants’ estimates.
76. The Program Management Support Project will help the Government to manage the
Program and to execute projects under each tranche. It will also help with policy and
institutional reform, safeguard management, gender mainstreaming matters, financing controls,
monitoring, evaluation and results reporting. The component will include design and due
diligence work for future tranches.
77. ADB financing under the first tranche will be split between OCR ($40 million) and ADF
($25 million) resources. The OCR loan will have a 15-year term, including a grace period of five
years, an interest rate determined in accordance with ADB’s LIBOR-based lending facility, a
commitment charge of 0.15% per annum, and such other terms and conditions set forth in the
draft loan and project agreements. The ADF loan will have a term of 32 years, including grace
period of eight years with an interest charge at the rate of 1% per annum during the grace
period and 1.5% per annum thereafter. The AFD loan will have a 15-year term, including a
grace period of five years, a variable interest rate equivalent of EURIBOR six-month flat and no
commitment charge, and such other terms and conditions set forth in the draft loan and project
agreements.
8. Future Tranches
78. Tranche-2 project will be a $30 million financial intermediary loan and risk sharing
demonstration project for industrial energy efficiency. The industrial sector is the biggest
consumer of energy in Pakistan, and the savings potential in clean and efficient technology and
equipment replacement or upgrades here is large. Industrial enterprises that have undergone
energy audits are not able to acquire the recommended clean technologies because of high-
cost of debt and inadequate tenors offered by the banking sector. The banks are keen to
acquire capacity to assess energy efficiency projects and build their clean energy books if they
can safely match-fund these assets to mitigate asset/liability mismatch (ALM) risk. The Ministry
of Industries and Production is leading a working group consisting of industry representatives
and commercial banks under EECCG to facilitate stakeholder inputs into the design of the
facility. The Government is expected to submit the PFR for this project in February 2010. The
project will be implemented in 18 months’ time. If successful, the financing model will be
replicated under subsequent tranches. This project is also linked with USAID and GTZ
technical assistance to industries in undertaking energy audits and for building the capacity of
energy service companies. Private energy service companies may be supported under this
facility.
79. Tranche-3 will be a thermal power plant rehabilitation and replacement project. The
project will rehabilitate and replace inefficient facility and equipment prioritized in the GENCO
investment plan. ADB is assisting the Government in conducting a diagnostics assessment of
three public sector GENCO assets, consisting of six thermal power plants operating on natural
gas and furnace oil. The study will compare the present performance with the technological
benchmarks, and based on techno-economic analysis recommend the required rehabilitation

option for each GENCO plant. The Ministry of Water and Power is preparing a detailed
investment plan based on the results of this assessment. Project feasibility study will be
prepared, and the Government is expected to submit the PFR for the first subproject in October
2010. Subsequent subproject PFR is expected in 2012.
80. The Tranche-4 project will be a gas compressor upgrade project. The current installed
capacity of compressor stations in northern Pakistan is approximately 200,000 horsepower,
based on 1,100 to 3,830 hp gas turbines driving centrifugal compressors. The gas consumed in
these compressors is considered a technical loss. In addition, these compressors incur high
maintenance costs and have low availability due to frequent breakdowns. The net efficiency of
the compressors in the system has improved significantly through installation of new
compressors. The project will replace existing stock of inefficient compressor units and bring
the total compression capacity up to 227,500 hp.
81. Subsequent tranche projects for (i) scaled-up industrial energy efficiency financing, (ii)
energy efficiency retrofitting programs in the public and commercial sectors, (iii) gas and electric
appliance appliances, and (iv) private thermal power generation efficiency rehabilitation will be
identified and prepared based on the selection criteria.
9. Implementation Arrangements
a. MFF Management
82. Executing Agency. The Planning Commission of Pakistan will be the Executing
Agency (EA) for the Program and will manage the overall Program implementation, and
monitoring and evaluation. It will be responsible for the submission of PFRs to ADB. Individual
projects and subprojects to be financed under the MFF will be identified and prepared by the
line or sector ministries and, as appropriate, concerned agencies in the relevant sector(s).
83. Program Management Office. The Planning Commission will establish a Program
Management Office (PMO). PMO will support the Office of the Member (Energy), Planning
Commission and the concerned agencies for the implementation of: (i) the Roadmap – policy,
planning, interagency and donor cooperation, and capacity building support; and (ii) the
Program – reporting, monitoring, selection and preparation of investment projects, and
consultant support. PMO will be sufficiently staffed under, and obtain resources from, the
Program Management Support Project. PMO will inform the EECCG on the Roadmap and the
implementation progress of the Program, and will facilitate EECCG meetings.
b. Tranche 1 Project Management

84. National CFL Project. EA will be the Ministry of Water and Power (MoWP). The
Pakistan Electric Power Company (PEPCO) has been delegated by MoWP to carry out the
procurement work. Eight DISCOs and KESC will help implement this project in their respective
license areas. Implementation arrangement are presented in Appendix 7.
85. PEPCO’s role will be to: (i) carry out bulk procurement of CFLs on behalf of MoWP; (ii)
organize public awareness campaign; and (iii) coordinate and monitor project implementation
activities. DISCOs and KESC will be responsible for: (i) transportation and delivery of CFLs to
all eligible households; (ii) collection and disposal of all incandescent bulbs replaced; (iii) project
accounting and financial management; and (iv) project reporting, auditing, and evaluation.
86. The project management units (PMUs) established in PEPCO and the 8 DISCOs under
the ADB-assisted "Power Distribution Enhancement Investment Program" will also be
responsible for implementing this project. These PMUs will coordinate and manage their
respective project activities and will liaise with the EA and project consultants.

87. Program Management Support Project. The Planning Commission, as EA, will be
responsible for this Project. It will recruit consultants to support sector agencies to prepare
projects to be financed under the MFF. External expertise will be provided to support PMO in
the implementation of the Roadmap actions and for adopting best practices in project and policy
development, as well as human resource development and training.
c. Implementation Period
88. The Program will be implemented over a ten-year period and may be completed earlier.
Each tranche is expected to have an implementation period of two to five years. The last PFR
should be submitted not later than the end of 2014. The MFF implementation schedule is
shown in Appendix 7.
89. Tranche 1
(i) The National CFL Project will be implemented in 28 months starting October 2009.
(ii) The Program Management Support Project will be implemented in 10 years
beginning October 2009, following the implementation of the MFF tranches.
d. Advance Contracting and Retroactive Financing

90. The Government has requested ADB’s approval for advance procurement of works,
goods, and consultants. Advance procurement actions will apply for all tranches. The
Government requested retroactive financing of up to 20% of each loan amount.
e. Procurement
91. International competitive bidding (ICB) is the preferred method. Some national
competitive bidding (NCB) will be used for some items. ICB will be used for goods contracts
estimated to cost the equivalent of $1 million or more, and for works contracts estimated to cost
the equivalent of $5 million or more. NCB will be used for goods contracts estimated to cost
less than $1 million, and for works contracts estimated to cost less than $5 million. A
procurement plan is presented in Appendix 8. Procurement plans for subsequent Tranches
may include other modes of procurement, in line with the nature of the project.
92. All procurement will be carried out in accordance with ADB’s Procurement Guidelines
(2007, as amended from time to time). The procedures for national competitive bidding are the
Public Procurement Rules 2004 [S. R. O. 432 (1)/2004] issued on 9th June 2004 by the Public
Procurement Regulatory Authority Ordinance 2002 (XXII of 2002). These comply with ADB
rules.
93. Consulting services will be engaged using quality and cost-based selection (QCBS)
method. Individual consultants will be recruited in accordance with Government procedures
acceptable to ADB. Other modes of selection of firms may be used for subsequent tranches in
line with ADB’s Guidelines, depending on the circumstances of the project.
94. Project implementation consultants engaged under the Power Distribution Enhancement
Investment Program (Loan 2439-PAK) will be asked to support the National CFL Project
implementation.
f. Anticorruption Policy
95. The ADB reserves the right to investigate any alleged corrupt, fraudulent, collusive, or
coercive practices relating to this MFF. This has been explained and agreed with the
Government, EA and IAs. The procurement documents highlight these requirements. All

contracts financed under MFF will have provisions specifying the rights of ADB to audit and
examine the records and accounts of the EA/IAs and all contractors, suppliers, consultants, and
other service providers involved in the MFF projects. ADB retains the right to suspend or cancel
the entire MFF in case of proven wrongdoing.
g. Disbursement
96. All loan disbursements will be done in accordance with ADB’s Loan Disbursement
Handbook (2007, as amended from time to time). Under Tranche 1, imprest accounts will be
established to the Planning Commission and PEPCO. The total advance amount to be
deposited into the imprest accounts shall not exceed the lower of (i) the estimated ADB’s share
of eligible expenditures to be financed through the imprest account for six months, or (ii) the
equivalent of ten percent of each loan amount. Statement of expenditure (SOE) procedure will
be used to reimburse eligible expenditures and to liquidate advances provided into the imprest
accounts for any individual payment not exceeding $100,000.
h. Auditing, and Performance Monitoring and Evaluation

97. The FFA, loan agreements, and FAM describe ADB’s requirements for accounting,
auditing, reporting, monitoring and evaluation. These requirements have been thoroughly
discussed and agreed with the Government, EA and IAs.
i. Governance Measures
98. Specific governance undertakings are given in the FFA. ADB will assess the financial
management, corporate governance, and procurement capacity of each entity. Measurable
performance indicators have been agreed for each project, and will be monitored. The results
framework also captures these indicators.
C. INVESTMENT PROGRAM BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS
1. Investment Program Benefits and Beneficiaries
a. Macroeconomic Benefits
99. Long-term economy-wide benefits include annual savings of $4 billion by FY2019,
corresponding to 3% of the GDP. 12 Presently, oil accounts for 31% of the total energy
consumption in the country, out of which 84% is imported to meet demand. The country’s oil
import bill was around $12 billion in FY2008 (7.5% of GDP). A high level of dependence on oil
imports results in a suboptimal energy supply mix, as oil is the most expensive non-renewable
energy source. The proportion of oil in the energy mix is projected to increase to 36% by
FY2019. Realization of the energy savings potential in the economy will result in a 14%
decrease in the projected energy deficit by FY2019, with a corresponding reduction of 22% in
the projected oil import bill.13 This will improve the country’s balance of payments. In the long
term this will help optimize the energy mix, secure reliable energy supply, and reduce
consumption costs, which will lead to social and economic benefits and improved economic
conditions.
12
Assuming average annual GDP growth rate of 5.5%.
13
Developed using crude oil price of $50/bbl.

100. While the Government hopes to remove existing power shortages by FY2012, it needs
to invest a significant amount to enhance power generation capacity and the transmission and
distribution system. By saving 2,670 GWh on the demand side, the Program will ensure that
government’s targets are met in the most cost effective and sustainable manner.
101. Energy deficits can cause social unrest and political instability, resulting in reactionary,
short-term policy responses, such as high-cost rental power and the installation of inefficient
capacities. Such measures have long-term implications on the economy. A rational approach
is to opt for energy efficiency and allocation of energy to productive sectors, and to add supply-
side capacities, which are least-cost and bring in long-term benefits.
102. Electricity is largely being consumed in the domestic and industrial sectors and is not a
major energy source for the agriculture and transportation sectors. While domestic electricity
consumers have some degree of flexibility in coping with power shortages, industry is forced to
curtail production in the short term. The long-term response of the manufacturing industry to
power shortages is to invest in captive power generation, which draws on the scarce capital and
management resources of the sector. Reliable energy supply through the proposed program,
specifically the industrial efficiency component, will help increase industrial output in the near
term.
b. Increased Competitiveness
103. The Program will establish sustainable business models for the large-scale
implementation of energy efficiency programs in the country. It will facilitate a viable energy
efficiency audit and management industry, and affect market transformation in favor of energy
and environmentally efficient products and services. The electricity and gas saved would be
available for uses that are more productive, will increase utility revenues by redirecting sale to
higher-tariff consumers, and reduce the need for lifeline subsidies. The program will help the
Government move towards attaining its stated policy objectives of achieving energy efficiency
and energy security.
104. Energy efficiency in industries will reduce the sector’s energy bill, thereby lower
production costs of goods and services for the efficient segments. This will induce competition
within the industry, promote efficiency in the long-term, and lead to a transformation of the
sector towards lower energy intensity. Simultaneously, the increased demand for efficient
appliances and equipment will induce competition in the suppliers’ market, promoting skill and
technological development in the local manufacturers as well. Lower production costs, through
reduced energy bills for energy intensive industry, will help establish competitive markets. The
Program will facilitate a viable energy efficiency audit and management industry, and affect
market transformation in favor of energy and environmentally efficient products and services.
c. Environmental Benefits
105. The Program will result in a range of environmental benefits. Energy efficiency leads to
a cleaner and better environment. At least 1 MtCO2 emission reductions will be realized
annually beginning 2010. In Pakistan, power generation, particularly from fossil fuels, has
negative environmental impacts, which will be mitigated by saving electricity at the end-use
level, and by efficiency at the generation level. Emissions of atmospheric pollutants from
industrial plants will result in cleaner air. The natural gas saved will displace heavy fuel oil in
power generation and industry, which will help in improving air quality through lower sulfur and
particulate emissions. The construction of a lamp waste management facility will lower health
risks associated with residual mercury from the expanding CFL market.

d. Technical Aspects
106. Investment Plan: The investment plan is based on the country’s technical energy
efficiency potential and the extent to which this potential is realizable over a ten-year period. It
takes into account the financial attractiveness of investments and existing implementation
barriers and constraints. The overall energy savings potential in FY2008 is estimated at
11.2 MTOE (493,304 TJ), inclusive of savings in end-use as well as transformations. These
savings correspond to 17.7% of the primary energy demand of 63 MTOE (2,780,941 TJ).
Considering a ten-year investment program ending in FY2019 for improving energy efficiency in
the economy, achievable energy savings in FY2019 are estimated at 9.5 MTOE (418,800 TJ),
requiring an investment of $8.5 billion, of which $3.7 billion represents investments in the overall
potential of the programs proposed under the investment plan.
107. Investment Program: The Program will accelerate the implementation of investments in
energy efficiency and initiate actions that will help realize 18.4% of the total technical energy
savings potential in the country. Reduced electricity use in the industrial, residential, and public
sectors of 2,670 GWh per year amount to 3.6% of the country’s 73,400 GWh electricity
consumption. The corresponding peak load reduction of 1,094 MW amounts to 6.3% of the
country’s present available capacity of 17,506 MW. Reduced transformation and supply losses
of 601,671 TOE (26,595 TJ) per year in the gas transmission and thermal power generation
represent 1.3% of the country’s total oil and gas consumption in FY2008. Reduced gas, oil, and
coal use in the residential and industrial sectors amounting to 918,942 TOE (40,619 TJ) per
year, represent savings of 2% of the country’s current total energy consumption.
108. Tranche 1, National CFL Project. Grid-connected households have 42 million light
points fitted with IBs. The project will replace, 10 million IBs in 2010 (Round 1) and 20 million in
2011 (Round 2). The maximum peak load from IBs is estimated to be 3,166 MW in the country.
Peak demand will be reduced by about 1,094 MW (at 66% peak coincidence), resulting in
savings of 2,132 GWh/year valued at $177 million. Considering upstream losses and reserve
margin requirements, the project is therefore capable of avoiding $1.84 billion in investments for
1,600 MW in new installed peak generation capacity that would otherwise be required by 2011.
109. A domestic lighting baseline survey was performed in March 2009. It found that 37
million IB light points in the 40W-100W range contribute at least 2,028 MW to the system peak.
IBs in households are consuming as much as 4,140 GWh annually. Average daily load curves
show peak demand on the power grid starting at 1700 hours in the winter and 1900 hours in the
summer, and lasting approximately five hours in both cases. Household lighting represents
15% of this evening peak.
e. Financial Aspects
110. A financial management assessment of project entities has been undertaken
(Appendix 9). They all meet ADB’s minimum standards.
111. A financial analysis was carried out following ADB’s guidelines (Appendix 10).
Financial viability was gauged by compared incremental costs and benefits of ‘with-project’ and
‘without-project’ scenarios. All financial costs and benefits are expressed at constant 2009
prices. Cost streams were used to determine the financial internal rate of return (FIRR). The
current generation tariff (February 2009), was used to calculate savings resulting from less
electricity sold at below-cost rates to subsidized low-income customers, and the benefit gained
by selling energy saved to retail customers above cost (in accordance with the overall customer
sales profile). A combined preliminary FIRR estimate of 110% is recorded, which compares
favorably with the estimated weighted average cost of capital (WACC) of 11.8%.

f. Economic Analysis
112. The proposed projects to be financed under the Program are part of Pakistan’s
integrated energy efficiency investment plan. These projects would constitute a key component
of the planned market transformation and deployment of energy efficient technologies. The
economic internal rate of return (EIRR) for the projects was determined assuming an economic
discount rate of 12%, exchange rate of Rs 80/$, and an oil price of $50/bbl. Society’s
willingness-to-pay was taken as the economic price of electricity, which is calculated at Rs
6.06/kWh. Natural gas was priced at the economic price of imported LNG for the domestic and
commercial sectors, and at fuel oil prices for the industrial sector. The border prices of
petroleum products in the country were linked directly to international crude oil prices. The
market price of indigenous and imported coal was adjusted for sales tax to arrive at the
economic price of coal. The total program cost is estimated at $1,180 million. After valuing
energy benefits at their economic price, the aggregated EIRR for the six components was
estimated to be 66%. A summary of the economic analysis is provided in Appendix 11.
113. The EIRR of the National CFL Project was calculated at 145%, reflective of a relatively
short period in which investment in a CFL can be recovered.
114. Sensitivity of project economics to changes in key variables was tested. The EIRR was
observed to be sensitive to the variables evaluated, but exceeded the economic hurdle rate for
all sensitivities tested, including the multiple downside (combined) scenario. On this basis, the
projects appear to be economically viable.
g. Environmental Aspects
115. The program’s environmental and social safeguards evaluation is in Appendix 12. An
Environmental Assessment and Review Framework (EARF) is in place. It complies with the
Pakistan Environmental Protection Act 1997 and associated rules, regulations, and guidelines,
and is in conformity with ADB’s Environment Policy (2002) and Environmental Assessment
Guidelines (2003). The National CFL Project falls under Category B. No significant adverse
impact, have been identified. No activities are planned in an environmentally sensitive or
protected area. Provision for lamp waste management capacities are included in the support
component.
116. Environmental assessment for investments packaged under future tranches will be
conducted within the agreed framework and ADB rules.
h. Clean Development Mechanism Assessment

117. The Clean Development Mechanism (CDM), established under the Kyoto Protocol and
managed by the United Nations Framework Convention on Climate Change (UNFCCC), will
provide additional financing to support the development of energy efficiency projects. The
projects under the Program are likely to be eligible for carbon financing.
118. Carbon emission reduction potentials have been estimated based on CDM methodology.
Estimated emission reduction under the CFL project is approximately 1,260,000 tons of CO2
equivalent (tCO2e) up to 2012. At a conservative price of $10/tCO2e, this could generate
revenues of about $12.6 million to the project up to 2012. ADB’s Asia Pacific Carbon Fund
could purchase up to 50% of CERs upfront.
119. Carbon emission reductions generated after 2012 are approximately 4,100,000 tCO2e,
which may amount to about $20.5 million (assuming a conservative price of $5/tCO2e). This
could be purchased by ADB’s Future Carbon Fund.

i. Social Safeguards
120. The Tranche 1 project does not entail land acquisition or economic or physical
resettlement. Therefore, the ADB’s Involuntary Resettlement policy is not triggered nor it will be
triggered in future tranches. No component of the present or future tranches is planned in the
tribal areas of NWFP or areas with formally identified indigenous people. Therefore, the
Program will not trigger ADB’s Indigenous Peoples Policy.
j. Poverty and Social Assessment

121. The energy savings will contribute to increased and reliable energy supply to various
sectors. Poor and marginalized populations are often amongst the hardest hit by energy
shortages. The load shedding resorted to by electrical utilities is far greater in rural areas.
Access to and affordability of modern energy services is also the lowest amongst the poor.
These population segments are therefore expected to benefit from the energy savings, both in
terms of associated costs as well as the excess supplies made available to service their
requirements.
122. The Tranche 1, National CFL Project is designed to benefit domestic households by
providing CFLs at the cost of IB replacement. This will reduce their monthly energy bills.
Similar benefits will accrue from the replacement of domestic gas appliances, including water
heaters, space heaters and gas stoves.
123. The expected two-fold increase in the use of CFLs by low-income and lifeline consumers
will result in lower monthly electricity bills for them over the 7.8 year expected lamp lifetime. For
end-use households, as much as $803 million could be saved in electricity use over the life of
the 30 million CFLs. This translates to an average Rs 293.1 in annual electricity cost savings
per IB-CFL replacement for each household. Summary poverty reduction and social strategy is
given in Appendix 13.
124. In addition, poor households will learn about other affordable energy efficient choices for
reducing household energy bills due to awareness building. Improved electricity supplies to the
poor will directly contribute to increased economic opportunities and social service delivery to
them. More reliable energy supplies and the resulting sustained economic activity, in particular
in the industrial sector, will generate indirect benefits in terms of employment and increased
labor productivity and incomes.
125. Reduced energy demand resulting from its efficient use across the economy will reduce
the large financial outlays that would otherwise be required for developing additional energy
capacity and related infrastructure in the future. This will help save public funds that could
instead be directed towards much-needed social development requirements. A secure and
predictable electricity supply will lead to social and economic benefits and improved conditions
for schools, hospitals, and other social services.
k. Gender Impacts
126. Reduced energy bills will increase the disposable incomes of households, which will
improve social welfare and bring relief to domestic consumers running their households on
limited budgets, particularly amongst the middle and lower income groups. The domestic gas
appliance replacement program will introduce efficient cooking and heating devices, which will
help build awareness on energy efficiency, particularly amongst women.

l. Risks and Assumptions

127. Lack of progress on reforms, a deterioration in the macroeconomic situation,
weaknesses in financial management and institutional ineffectiveness are potential macro level
risk factors. These are mitigated by a commitment of the present Government to continue with
these reforms, the IMF-supported economic stabilization program, and the ongoing and planned
measures to improve transparency and accountability of financial management systems.
128. The key assumption made in designing the Program is that the Government executes
the energy efficiency sector Roadmap, successfully combining physical and non-physical
investments.
129. Investments in energy efficiency in Pakistan have low technical risks and yield high
returns. Potential risks may, however, include (i) weak political commitment towards
implementation of the Roadmap; (ii) high government relending rate; (iii) delay in project
approvals.
130. These risks are mitigated by political commitment and sound strategic planning and
management. The Planning Commission will be responsible for the implementation of the
energy efficiency policy and associated investment projects. A dedicated PMO will support the
Planning Commission. The functions and facilities of the National Energy Conservation Centre
will be realigned into the Planning Commission. Stakeholder consultations will be done at the
Government’s Energy Efficiency and Conservation Consultative Group (EECCG).
131. Project-level risks will be mitigated by instituting project readiness filters. Simple project
design and thorough due diligence will avoid delays in project implementation. The National
CFL Project has some risks: (i) timely procurement of CFLs and their distribution without any
leakage to the commercial market; (ii) capacity of DISCOs to undertake timely distribution of
CFLs, and (iii) the Government’s ability to implement and enforce strict controls on energy
efficiency testing and labeling of CFLs.
132. These risks will be mitigated by ensuring (i) the use of international energy performance
standards and international competitive bidding for the bulk procurement of CFLs; (ii) that the
distribution of CFLs to customers is done at the customers’ homes; (iii) that each CFL will be
clearly marked ‘not for sale’; and (iv) that suppliers deliver the CFLs directly to the DISCO
distribution points. Each customer will receive voucher(s) as part of their electricity bill and be
made aware of the free distribution via saturation media communication and social mobilization
campaign.
133. Appropriate monitoring mechanisms for effective distribution and reporting of the CFL
logistics and transactions will be developed. All relevant stakeholders will be invited to
participate in developing the proposed CFL and voucher distribution mechanism. The
mechanism will be optimized during implementation of the first procurement and distribution
round. Lessons from the distribution of the first round will be incorporated in the subsequent
round.

II. PAKISTAN: ENERGY EFFICIENCY SECTOR ROADMAP 2009-2016
A. SUMMARY
134. Pakistan is suffering from an acute energy crisis which is caused by (i) insufficient
energy supply capacity, (ii) poor sector performance, (iii) increasing demand, and (iv) inefficient
use of energy resources. Pakistan needs to embark on a determined and sustained long-term
plan to optimize the energy mix and its use across all sectors of the economy.14
135. Improving energy efficiency and energy productivity are key components of the energy
policy and energy security strategy of Pakistan. These will reduce unproductive and volatile
demand and result in energy savings. Lower energy intensity will boost energy access, help
meet national social development goals, and reduce environmental degradation and carbon
emissions. An ‘energy-productive’ Pakistan will be more competitive in the global economy.
136. The Government of Pakistan (GoP) is committed to resolving the energy crisis and
achieving energy security for the country. This would require sound leadership, sustained
political and financial commitment, and a clear vision and strategy from the GoP for
implementing and mainstreaming energy efficiency and energy conservation (also referred to as
E3C) actions in all major energy consuming sectors and markets. The GoP adopted the Energy
Efficiency Sector Roadmap (the ‘Roadmap’) and an associate Investment Program. The
Roadmap comprises of a series of correlated and sequential policy, regulatory, and institutional
measures and capital investments aimed to:
(i) Establish a dynamic business environment for the sustained transformation of the
energy efficiency market in Pakistan; and15
(ii) Scale up deployment of proven technologies through public investments in all
major energy consuming sectors and markets (industry, transportation, domestic
and commercial buildings, and agriculture), as well as the energy supply chain
(energy production, generation, transformation, transmission, and distribution).
137. The Roadmap defines the overall approach, elements, impacts, and timelines necessary
under which the respective roles of all relevant stakeholders can be coordinated, sequenced,
financed, implemented, and monitored. It is complemented by the Energy Efficiency Sector
Investment Plan which presents a quantitative assessment of the national energy efficiency
savings potential and investment requirements, economic benefit analysis, and detailed project
and activity design and costing. The Investment Plan is the first such comprehensive analysis
of the energy efficiency and energy productivity improvements in Pakistan that are based on
existing technologies. The Investment Plan is discussed in Section III.
14
Growing energy needs, coupled with insufficient supply and transformation capacity, are leading to severe deficits
of electricity and natural gas and escalating fuel imports. This seriously impedes economic activity and growth,
and further strains the balance of payments position of the country. A majority of the population are being denied
basic energy services on a reliable and affordable basis, resulting in social disruption.
15
Pakistan has a large untapped energy efficiency market. Past efforts to mainstream and develop energy
efficiency projects have largely failed due to unavailability of financing. Expanding the energy efficiency market
requires policy and financial incentives, including demonstrable benefits and market prospects.

B. ENERGY EFFICIENCY SECTOR ROADMAP
138. The detailed Pakistan Energy Efficiency Sector Roadmap is provided below. A
corresponding energy efficiency sector institutional matrix is given in Appendix 14.

Asian Development Bank
ADB TA 7060-PAK: Pakistan Sustainable Energy Efficiency Development Program

Objectives Impact Performance Measurement Time Frame Agency
1. Policy and
Regulatory
Framework
1.1 Policy: Remove fiscal burden of Identify and remove existing National energy efficiency August 2009 PC/ECC
Implement high energy cost anomalies and contradictions policy coordination and
immediate, in policy and regulatory implementation mandate
medium and Achieve energy security framework streamlined into the Planning
long term EE through optimal energy Commission
policy and mix and balanced Remove barriers,
planning actions demand and supply impediments, and bottlenecks Revised PC-1 proforma, and Draft: January 2010 PC, with relevant
to energy efficiency evaluation guidelines explicitly stakeholder inputs
Alleviate energy crisis, investments, service and including energy efficiency Final: June 2009
particularly electricity and product delivery, and informed and clean energy aspects into (review 2011)
gas ‘loadshedding’ consumer behavior all public investments
Reduce energy waste Integrate energy efficiency into 10-year National Energy PC, with relevant
and high peak demand planning, and decision making Efficiency Action Plan with Draft: September 2009 ministry/stakeholder
in both public and private quantified targets, milestones, ECNEC Approval: agency inputs
Increase energy October 2009
productivity and sectors institutional roles, annual
economic workplans and mandatory
Formulate mandatory public public sector energy efficiency Mandatory provisions
competitiveness sector energy efficiency to be continuously
actions
Reduce intensity of investments, procurement, and reviewed and updated
energy use per unity operational practices Energy tariffs rationalized to PC, relevant ministries,
Energy pricing study:
output across economic Undertake low- /no-cost policy reflect economic cost of November 2009
with IFI/consultant
sectors and improve per measures to encourage service provision and sectoral support
capita energy access cross subsidies removed
energy efficiency and Implementation: By
Sustained transformation conservation Effective phase-out of specific July 1, 2010
into an environmentally inefficient devices (GLS, PC, with IFI/consultant
mercury vapor streetlamps, Phase-out program and relevant
friendly, low-carbon design: December
economy two-stroke motorcycle implementation agency
engines, substandard 2009 support
Establish climate resilient domestic gas appliances, etc.)
infrastructure
Consultants’ Final Report
MoLJHR and regulatory

bodies (NEPRA, OGRA.
Supportive actions and etc.)
legislation: June 2010
Relevant line agencies
Phase-out
implemented: 2011-
2016
39
40
1.2 Regulations: Increased public and Improved energy standards National energy efficiency MEPS for lighting: PSQCA, PC
Develop private investment in amongst suppliers, major end- standards, certification, and June 2010
effective energy efficient use segments, and equipment labeling for domestic and
regulatory technology and practice commercial MEPS for domestic PSQCA, PC
framework and Reduced energy production, equipment/appliances and office electric
remove barriers, Reduced wastage of transportation and appliances: June
anomalies, set energy transformation losses 2010-June 2011
performance Reduction in stock of inefficient
standards, and and obsolete products, MEPS for domestic PSQCA, OGRA,
facilitate energy gas appliances: SNGPL/SSGC, PC

technologies, and installations
efficiency September 2010
investments Increased local production,
manufacturing, support, and Vehicle fuel efficiency, PSQCA, Pak EPA
consumer market for energy traction, and emissions
efficiency products and (Euro I-IV) standards:
services June 2010-June 2011
Other standards and Municipalities, NEPRA,

regulations (street OGRA, PSQCA,
lighting, ToD tariffs, net PEPCO/DISCOs, OCAC
metering, fuel
quality/composition,
standby consumption,
etc.): December 2010
onwards
Upgraded and expanded Industrial equipment PSQCA, EDB, FPCCI
industrial EE requirements for standards and
major equipment (boilers, certification program:
motors, HVAC, etc.) June 2010-June 2011
Certified ‘green’, passive, and Revised Building PC, PSQCA with int.
zero-energy buildings Energy Code and consultant support
building certification (USAID EP-EEC, etc.)

criteria:
December 2010
Accredited energy
performance testing and PSQCA, PCSIR, with IFI
certification facilities and Testing protocols, support (GEF/UNDP
procedures facilities, and labeling BRESL, USAID CLASP,
schemes: January etc.)
Definition of EE equipment 2011 onwards
and product categories for

fiscal exemptions and GoP notifications: FBR
surcharges on inefficient Starting July 1, 2009
alternatives
Energy audits and Program Stakeholder agencies,
implemented energy implementation: private sector, bilateral
efficiency measures in public Starting 2010 programs (GTZ REEE,
and private buildings and etc.)
industries
1.3 Legislation: Provide legal basis for Energy efficiency -specific

Access of all citizens to energy Commensurate with MoLJHR, PSQCA,
Legislative efficiency related efficiency products, services, additional legislation and timelines given above NEPRA, OGRA
support and regulation, standards, regulations (e.g., appliance
and information, irrespective of
operational and policy location and income standards and labeling, T&D
rules to support implementation performance levels, dispersed
energy Elimination of substandard and generation and net metering,
efficiency policy inefficient energy consuming building energy code, vehicle
and regulatory stock in all economic sectors fitness and emission
environment Incorporation of efficient standards, etc.)
practices and procurement in General and sectoral energy Beginning January PC (EEC), FBS, DISCOs,
all development planning and use surveys and census 2010 SNGPL/SSGC, FPCCI,
public investments conducted periodically and NTRC, NHA,
Removal of barriers to energy established database of municipalities
efficiency investments and industrial, transportation,
service by the private sector agricultural, and buildings
energy statistics
Reduced peak loads and
smoothing out of power Mandatory public sector PC, provincial and local
demand profiles through DSM procurement, performance, Beginning July 1, 2010 governments,
and end-user behavior and investment requirements municipalities
changes in EE across federal,
provincial, and local
Reduced system losses in all governments
forms of energy supply and
delivery
Market transformation towards

the manufacture, import, and
sale of efficient energy-
consuming equipment,
appliances, and devices
41
42
2. Economic
Evaluation and
Planning
2.1 Analysis: Meaningful targets, Realization of economically National EE investment plan July 1, 2009 (reviewed PC with IFI support
Evaluate energy investments, and viable savings in energy for 2009-16 annually) (ADB)
savings financial support directed supply, delivery, and use
potential in each towards cost-effective
major economic energy efficient Prioritization of high-payback Incorporation of EE evaluation April 2010 (updated
energy efficiency investments results into national integrated annually) PC with IFI support (ADB
sector, technology deployment IEM, etc.)

corresponding and market development and identification of optimal energy planning and optimal
EE investment long-term development supply mix
requirements, strategies
and associated
financial costs,
returns, and
economic
benefits
2.2 Costing and Adequate budgetary Determination of subsidies, National Industrial EE Pilot: June 2010 MoF, EAD, SBP, PIDC,
financing: provisions for additional rebates, surcharges and other financing facility utilizing LFIs, MoIP, with IFI
Determine up-front financial costs of fiscal support justified for EE commercial banks and SME Full-scale: March 2011 support (ADB IEM, etc.)
incremental and EE investments and facilitation financing institutions
avoided costs of mandatory procurement, operationalized
EE deployment, and program Development of incentives and
including public development ready financing for EE Annual disbursement levels of
and private investment by relevant EE-related loans, grants, and Annual reporting: SBP, Commercial Banks
Cost-sharing and government administrations carbon financing through Starting November
investments in 2009
upgrades, financing of EE and agencies, public and domestic and international
retrofits, investment support private industry and agencies
replacements, amongst government, transportation, SMEs, ESCOs,
private sector, and IFIs and individual consumers Specific policy, financial, and
and additional fiscal incentives notified by PC/relevant
procurement, Establishment of dedicated EE the GoP for manufacture, Beginning August ministries/FBR/ECC
2009 (reviewed and
and related funds and lines of credit in import, and provision of EE

program commercial and non-profit products and services updated annually)
management, financing organizations
communications
, and impact Allocation of EE investment
evaluation and operational provisions in
mechanisms. annual PSDP and government
agency budgets

2.3 Planning: Mainstreaming of EE in Enhanced productivity of Reduced national energy Annual intensity data HDIP, PC
Integrate least- national development energy use and reduction of intensity in terms of GDP reporting: Beginning
cost EE options planning to realize waste and losses output/energy consumed Year 2009-2010
in national national and global
energy planning benefits Improvement in environmental Reduced carbon footprint of
based on life- conditions and reduced economy in terms of Annual emissions data Pak EPA
cycle payback Transition of economy pollution levels caused by CO2/GDP output emissions reporting:
accounting and towards more energy use and increasing Beginning 2010
set targets for sustainable, indigenously industrialization
annual EE- fueled, and low-carbon
development track Reduced volatility and impact Increased annual budgetary MoF
related actions of energy supply/demand outlays for EE-specific EE specific annual
and investments Improved global shortfalls, quality of service, activities by both public and budgetary provisions:
competitiveness of local and prices private sector Beginning FY2009-10
industry and exports
Growth in market demand and Various manufacturer,
sales of EE-related products See Market Surveys trade and sales
and services and Potential associations, Customs
Assessment (Item 4 (FBR)
below)
Increased affordability and HDIP, FBS, Finance
access to modern energy Division (Economic
services by lower income and Per capita annual Survey)
marginalized population energy consumption,
segments access and
affordability indicators:
Increased utilization by Beginning FY2010-11 MoE (DNA)
country of international carbon
financing and realization of
credits associated with clean Annual reporting by
energy development DNA of CDM
registrations and
CER/VER awards:
Beginning Year 2009
3. Project
Implementation
43
44
3.1 Investment Energy efficiency market Improvement in installed base Significant replacement/ban of Beginning in PEPCO/DISCOs, retail
climate: transformation and accumulation of efficient GLS by quality CFLs and March/April 2010 outlets, MoF, FBR
Increased energy-consuming stock in all FTLs in commercial and
private sector Improve business categories (industrial residential buildings
participation in confidence in EE equipment, vehicles, buildings,
EE investments, investments, as well as appliances, etc.) and Replacement of inefficient July 2011 onwards SNGPL/SSGC, retail
upgrades, incentives to encourage enhanced production, domestic gas cook stoves, outlets, multilateral
manufacturing, behavioral change transport, and transformation space and water heaters with programs (GEF, CDM,
and services amongst end-users efficiency for primary energy efficient variants etc.), MoF
supplies in power, gas, and oil

Enhanced national Establishment of Beginning 2011 Private sector, bilateral
technical and industrial products commercially viable ESCO assistance (USAID EP-
base for EE servicing, Gradual indigenization and operations EEC, etc.)
manufacturing and expansion of local EE system
technology sales Private sector and
and component manufacturing, Increased sales of major EE relevant stakeholders, IFI
technical services, and upgrade and replacement and TA assistance (ADB
financing options technologies (e.g., certified SEED, etc.)
industrial equipment,
controllers, insulation,
diagnostic and tune-up
equipment, building retrofits,
etc.)
Installed CHP capacity in
industry, high-pressure
boilers/cogeneration in sugar
mills
3.2 Public energy Immediate and Design and financing of Specific itemized allocation for Beginning FY2010-11 MoF, PC
efficiency institutionalized energy mandatory and voluntary EE-related programs and
programs: efficiency upgrades and public EE spending, including spending in the National
and savings industrial audits and upgrades, Budget
procurement building and lighting retrofits,
Creation of guaranteed vehicle fleet tune-ups, Guidelines, criteria, and December 2009 PC
market for EE products streetlight replacements, and procedures for ensuring onwards (revised
and services equipment standards energy efficiency in all major annually)
public sector expenditures,
Enhanced awareness of Public- and donor-funded acquisitions, and practices
EEtechnologies and energy efficiency facilitation,
options across relevant promotion, deployment, , and Number, type, capacity, and
sectors and technical assistance programs, location of specific public
demonstration of including targeted rebates and energy efficiency programs
payback opportunities subsidies

3.3 Support Availability of physical Provision of up-to-date data Numbers of industrial and Assessed and PC, FPCCI, EDB, private
infrastructure: and institutional support and information on energy building energy audits and reported: Starting 2010 sector
Facilitation of required for EE project efficiency options, energy end-use surveys (updated annually)
EE service implementation and technologies, sources, undertaken
implementation assimilation into national savings, vendors, financing,
and delivery economy and benefits to all energy Number of vehicle diagnostic PC (EEC), private sector,
stakeholders in an organized, and tune-up stations OMCs
reliable, and freely accessible established
(i.e., online, free-of-cost, EE codes, standards, and PSQCA, PCSIR, with IFI
verifiable, etc.) basis labeling schemes developed support (GEF/UNDP
Creation of technical and and implemented BRESL, USAID CLASP,
management capacity within etc.)
EE testing and certification
major energy stakeholder facilities set up
groups and categories as well
as provision of such services EE/DSM cells and EMPs Annual reports,
to individual end-users on established in major energy institutional TA programs
demand supply and user agencies
System-wide T&D upgrades NTDC, DISCOs, SNGPL,
undertaken in power and gas SSGC
T&D and associated loss
reductions
Numbers of ESCOs and Private sector, PC (EEC),
energy efficiency related bilateral assistance
businesses, information (USAID EP-EEC, etc.)
services, and educational and
training programs
institutionalized Various manufacturer,
trade and sales
Penetration and price/quality associations, Customs
range of energy efficiency (FBR)
products and technological
solutions in domestic market
(e.g., CFLs, thermal insulation
materials, control devices,

etc.)
45
46
Capacity Building
4. Institutional
Strengthening
4.1 Focus agencies: Enhanced EE-based Streamlined and integrated Energy efficiency program June 2009 PC
Planning project evaluation coordination and management and
Commission; capacity implementation of the national coordination office established
power and gas energy efficiency policy and at the Planning Commission
utilities Inclusion of efficiency programs

options in integrated The Energy Efficiency Center
energy modeling and Reduced energy consumption (EEC) established by
planning process profile of public sector integrating National Energy August 2009 PC (EEC), DISCOs,
development and operational Conservation Center activities SNGPL, SSGC, EDB,
Establishment of EE- expenditures into the Planning Commission FPCCI, HDIP, AEDB,
based public sector PCRET, other major
investment and Improved institutional Institutional and project stakeholders
procurement planning mandates and service delivery reports on EE-related Annual: Starting 2010
and approval processes in energy sector planning and activities, targets, and
management expenditure MoPD (PC), MoWP,
Collection and MoPNR, MoIP, MoC,
dissemination of EE and EE-specific policy, regulatory, MoD, MoE, MoFAL,
energy-use related data and technical advice to GoP Short- and medium-term MoR, MoSt, MoTI, etc.
and information energy efficiency business Starting January 1 or
Improved inter-agency operational plans for focus
coordination in EE planning, July 1, 2010
agencies developed and (applicable FY):
options analysis, and program approved
development Reviewed and revised
annually, with periodic
Greater liaison with private external performance
sector and consumers on monitoring
demand side energy
management
4.2 Other relevant Increased awareness Clear enunciation of Activity reports, notifications, Periodic Relevant stakeholder
agencies and and participation of institutional roles, plans, publications, and services agencies
stakeholders: market stakeholders in facilities, rules, instruments, offered by key organizations
regulators, the energy efficiency activities, etc., relevant to
private planning and investment energy efficiency developers Establishment of accredited Commensurate with PSQCA, PCSIR, private
businesses and process and end-users quality and performance timeline for sector
financial sector, testing, certification, and Regulations above
NGOs, etc. labeling protocols and (Item 1)
facilities
Creation of associated retrofit, Relevant agencies

replacement, and disposal Program specific, identified in respective
mechanisms for beginning with CFL program design
obsolete/hazardous stock waste management in
2010
5. Market
Facilitation
5.1 Energy auditing Identification of viable Creation of EE survey, Number of industrial and Continuous, ongoing PC (EEC), FPCCI, EDB,
and technical energy efficiency options, assessment, and commercial building audits private sector
advisory lowering of market risks implementation support conducted
services for EE investments, and capacity for servicing private
promotion of EE-related and public sector requirements Number of energy use Institutionalized PC (EEC), HDIP, FBS,
sales and services surveys undertaken in surveys beginning in relevant focal agencies
different sectors 2009-10
Regular publication of energy PC (EEC), HDIP, FBS,
use and EE related data and Continuous, ongoing relevant focal agencies
information in the public
domain
5.2 Information and Improved EE data and Identification of efficient Directory of available online Beginning 2010 PC (EEC), FPCCI, EDB,
technical information access technologies, best practices, EE information, publications, private sector
knowledge amongst all energy benchmarks, financial and ESCOs, and consultancy
dissemination: sector stakeholders economic gains in all firms
highlight economic sectors
savings Greater awareness of EE Establishment of dedicated Beginning 2010 PC (EEC), FPCCI, EDB,
potential, other investment options and Optimization of energy technical, financial, and private sector, other
benefits, and returns for informed resources utilization though management advisory relevant stakeholder
business decision-making by optimal mix of resources services, including manuals,
opportunities in producers, suppliers, and (including renewable and operational guidelines,
energy consumers alternative fuels), technologies, standards, and comparative
efficiency and operational methods indices
Creation of EE-specific Beginning 2009 PC (EEC), MoEd, HEC,
curricula, training, and NGOs, etc.
research programs in
secondary and tertiary
educational institutions and
vocational centers
47
48
5.3 Awareness and Improved awareness of Widespread understanding General awareness- raising Beginning immediately PC (EEC), DISCOs,
outreach: energy efficiency and acceptability of efficient and promotional campaigns SNGPL, SSGC, MoIB,
Mass potential, methods, energy use, products, through mass media, Institutionalized, private sector, PEMRA
communication economics, choices, and standards, practices, seminars, workshops, periodic activities
and social benefits amongst general providers, life-cycle savings, educational curricula, etc., by starting in 2010
mobilization population, resulting in and associated incentives and major energy sector
discernable behavioral facilities available stakeholders
change in procurement
and end-use practices Establishment of social Relevant program
communication component in As required executing and

all energy efficiency cells, implementing agencies
projects, and programs in the
public and private sectors
6. Technical and
Financial
Support
Mechanisms
6.1 Coordination Better utilization of Increased levels and Extent and levels of IFI Quarterly reporting: EAD, donors’
and existing and planned effectiveness of international funding and disbursement for Beginning Q3 2009 consultative committee
implementation multilateral and bilateral assistance for energy energy efficiency programs
of donor technical assistance and efficiency projects, capacity
assistance funding of EE programs building, and technology Regular donor coordination Six-monthly: Beginning PC, EAD, multilateral and
in country, including assimilation meetings on energy efficiency Q1 2009 bilateral donor agencies
carbon financing under PC/EAD lead
Improved project design-to- PC, EAD, donors’
opportunities Consolidation of external Annually, beginning consultative committee
implementation procedures
and timelines financial and technical January 2010
assistance into annual
Better coordination and energy efficiency Action Plan
consolidation of common workplans and targets
activities and goals, and
reduced duplication and Institutionalized program
reporting, monitoring, impact
fragmentation of capacity
development analysis, and follow-on and
support requirements

6.2 Develop EE Ready access to EE Increased availability of local Level of commercial and Financing data Relevant EE financing
financing equipment, marketing, commercial, donor, and public public financing (loans, reporting: Beginning programs, funds, IFIs and
opportunities and consumer financing financing for EE-related grants, subsidies, etc.) and FY2010-11 LFIs
and instruments on par with other expenditures, equipment, lending for EE applications
commercially established projects and programs across
sectors end-user spectrum (large Numbers and sizes of EE MoE (DNA)
industries to domestic projects qualifying for carbon Annual reporting by
households) credits under CDM DNA: Beginning Year
2009
Establishment of performance-
based ESCO contracting and
SME and microfinancing for
small and individual energy
consumers
7. R&D,
technology
transfer and
commercializati
on
7.1 Market surveys Updated evaluation of Targeted assessment and Periodic surveys of industrial, Beginning 2010 PC (EEC), FBS, FPCCI,
and potential energy using stock, uses, geographical focus based on commercial, transportation, (updated every two to EDB, private sector,
assessment load profiles, quality and preliminary assessment of agriculture, buildings, and three years) relevant focal agencies
standards, prices, resource-wise potential households focusing on
commercial availability, energy use applications and
knowledge and patterns
perceptions for improved PC (EEC), HDIP, MoF
energy efficiency related Reporting of EE-relevant (Economic Survey), etc.
decision-making and information and data in Beginning with
planning by relevant relevant publications (e.g., FY2010-11 publication
stakeholders Energy Yearbook)
PC (EEC)
Generic energy audit
summaries and energy Annually, beginning
efficiency potential 2009

assessment studies DISCOs, SNGPL, SSGC
Consumption profile and DSM

activity information on utility Beginning 2010
websites (revised annually) PC (EEC), PSQCA,
PCSIR, relevant
Resource directories of EE manufacturer and trade
standards, benchmarks, Starting in 2010 associations, etc.
49
50
material and equipment (updated annually)
performance, vendors and
suppliers, services, prices,
and associated paybacks
7.2 Indigenous Improved and expanded Access of local energy users Technical collaboration Continuous, ongoing PC (EEC), EBD, FPCCI,
fabrication and local EE/RE products, to state-of-the-art EE agreements, technology relevant industry
marketing materials, fabrication, technology, upgrade and licenses, joint-ventures, etc., associations, etc.
manufacturing, and retrofit options, and best between local and
servicing international experience international industry partners

Targeted training programs in
product and process Continuous, ongoing PC (EEC), FPCCI, MoIP,
upgrades, standards with international TA
compliance, waste support programs
management, marketing, etc. (GEF/UNDP BRESL,
USAID CLASP, etc.)
7.3 R&D and Enhanced capacity to Improved and efficient Numbers and outputs of Reporting beginning PC (EEC), FPCCI, HDIP,
technical implement and service technology assimilation, energy efficiency-related 2009 (updated MoIP, with international
training efficiency improvements commercialization of certified technical training programs, annually) TA support programs
in all energy consumer EE products, and increased workshops, courses, etc. (GEF/UNDP BRESL,
categories numbers of trained manpower USAID CLASP, etc.)
in related technical skills Indigenously designed and
modified upgrades, materials
and retrofit options, improved
technical and performance
parameters and certification of
local products, new patents,
etc.
III. SECTOR INVESTMENT PLAN: APPROACH, ESTIMATES AND SCHEDULE
A. SUMMARY
139. An assessment of opportunities for improving energy efficiency and associated

investments was carried out for the energy sector in Pakistan. The plan covers a ten-year
investment period starting in FY2010 and ending in FY2019, and covers all sectors of the
economy. Analyses were conducted for the following sectors:
140. Energy Demand:
(i) Domestic
(ii) Commercial
(iii) Industry
(iv) Transportation
(v) Agriculture.
141. Energy Transformations and Transmission:
(i) Power Generation and Transmission
(ii) Gas Transmission
(iii) Oil Refining and Pipelines.
1. General Approach
142. Published sources, such as the Energy Yearbook and Power System Statistics were
consulted for aggregate data on energy consumption at the sectoral level by type of energy and
fuel. 16 The base year was taken as FY2008, the most recent period for which data have been
published. Further breakdown of energy demand was developed by end-use and at subsectoral
level to allow an assessment of energy efficiency potential. The subsectors and end-uses
analyzed are summarized below:
a. Domestic and Commercial

143. Electricity: Lighting, fans, air-conditioning, water pumping, other appliances.
144. Natural Gas and LPG: Cooking, space heating, water heating, other appliances.
b. Industry
145. Electricity, natural gas, oil, and coal use in fertilizer, cement, sugar, pulp and paper, iron
and steel, brick making, and other industries.
c. Transportation
146. Petroleum products, natural gas, and electricity use in vehicles, railways, and mass
transit systems. Fuel use in tractors was considered as a part of transportation, as figures are
not reported separately for the transportation and agriculture sectors
16
Energy Yearbook developed by Hydrocarbon Development Institute of Pakistan (HDIP), Power System Statistics
published by Planning (Power) Department, NTDC.

d. Agriculture
147. High speed diesel (HSD), light diesel oil (LDO), and electricity use in tractors and water
pumping systems (tubewells).
e. Energy Transformations and Transmission

148. Power Generation and Transmission: Natural gas and fuel oil use for power
generation.
149. Gas Transmission: Natural gas use in compression systems.
150. Oil Refining: Own use and losses.
151. Estimates for savings were developed on the basis of technical potential at the end-use
level, and the extent to which this potential can be realized over a ten-year period, taking into
account the financial attractiveness of investments as well as barriers and constraints to
implementation. The assessment was based mainly on secondary data and interviews with
sectoral and industry experts, with the exception of a household survey on lighting devices.
2. Calculation of Simple Payback Periods and Energy Prices
152. Simple payback periods were calculated for each of the investment opportunities
identified to assess attractiveness of the EE investments from financial and economic
viewpoints. Financial and economic energy prices were used to calculate the simple payback
periods.
153. Natural gas prices in Pakistan are generally well below the international prices of gas
and alternative fuels, other than coal. However, in most sectors, coal is not used as an
alternative to gas, making gas the preferred fuel for all customers. Consumer gas prices in
Pakistan are determined based on wellhead gas prices and the transmission and distribution
costs of the utilities. Although wellhead gas prices in the country are linked to international
crude oil prices, gas prices have remained low mainly due to the prevalence of old formulas in
producer gas pricing contracts, majority of which have caps on prices. With rising price of crude
oil in the international market, the corresponding increase in the price of gas has therefore
remained generally well below increases in international oil prices. The economic price of gas
for each sector is taken equal to the next best alternative fuel in the sector. Table 9 gives the
financial and economic price of natural gas for various sectors. Natural gas is priced at the
economic price of imported LNG in the domestic and commercial sectors, as in the absence of
natural gas, imported LNG would serve as the alternative. The economic price of LNG is
estimated at the existing price of crude oil ($50/bbl), using the latest pricing formula in use by
the government. In the case of the power and industrial sectors, the next best alternative is fuel
oil; therefore, the economic price of fuel oil is used as a proxy economic price for natural gas for
these sectors. For transportion, gasoline serves as the alternative to compressed natural gas,
and therefore the economic price of natural gas in the transportation sector is taken as the
economic price of gasoline.
154. Border prices of petroleum products in the country are linked directly with international
crude oil prices. However, presently the GoP is charging a Petroleum Development Levy (PDL)
on petroleum products, in addition to a general sales tax (GST) of 16%. To arrive at the
economic prices of gasoline, HSD, fuel oil and LDO, their market prices are corrected for PDL
and GST. In the case of HSD, an import tariff is additionally charged on the import parity price,
which is incorporated into the economic price as well.
155. The system-average cost of electricity service is taken as the economic price of
electricity, which is estimated at Rs 6.08/kWh.

156. The market price of indigenous and imported coal is adjusted for sales tax to arrive at
the economic price of coal.
Table 9: Energy Prices by Sector in Pakistan

Financial Economic Unit
Electricity
Domestic Sector 6.76 6.08 Rs/kWh
Commercial Sector 10.30 6.08 Rs/kWh
Industrial Sector 7.15 6.08 Rs/kWh
Agricultural Sector 5.10 6.08 Rs/KWh
Natural Gas
Domestic Sector (Mid-slab) 181.97 LNG priced at Rs/MMBtu
802.61 Rs/MMBtu
Commercial Sector 456.26 LNG priced at Rs/MMBtu
802.61 Rs/MMBtu
Industrial Sector 393.74 Fuel Oil priced at Rs/MMBtu
27,023.28 Rs/tonne
Power Plants 405.49 Fuel Oil priced at Rs/MMBtu
27,023.28 Rs/tonne
CNG 50.00 Gasoline priced at Rs/kg
34.35 Rs/liter
Petroleum Products
Gasoline 57.66 34.35 Rs/liter
HSD 57.14 30.24 Rs/liter
LDO 48.00 34.49 Rs/liter
FO 31,347.00 27,023.28 Rs/tonne
Coal
Indigenous 5,674.83 4,892.10 Rs/tonne
Imported 87.00 75.00 $/tonne
LNG
Price of Imported LNG for 931.03 802.61 Rs/MMBtu
Essential Sectors @ $50/bbl
Note: Essential sectors include domestic and commercial sectors.
3. Energy Efficiency Potential and Investments
157. Investments in energy efficiency and the corresponding energy savings that can be
achieved in the country are summarized in Table 10, Table 11 and Table 12 The tables provide
a breakdown of energy savings that can be realized in each of the sectors by type of energy,
and investments that would be required to achieve the savings. The energy savings potential in
the country in FY2008 is estimated at 8.4 MTOE (371,400 TJ), assuming no adjustment for
transmission and distribution losses and inclusive of savings in demand as well as in supply and

transformation. These savings correspond to 14.9% of the primary energy demand of 56.3
MTOE (2,489,200 TJ). Considering a ten-year investment program ending in FY2019 for
improving energy efficiency in the economy, achievable energy savings in FY2019 are
estimated at 9.5 MTOE (418,800 TJ), requiring an investment of $8.52 billion.
Table 10: Summary of Realizable Savings by Sector and Investment Requirements

Sector Energy Consumed, Realizable Energy Savings, Investment
FY2008 Savings as % FY2019 Required
of
(’000 TOE) (TJ) Consumption, (’000 (TJ) ($ Million)
FY2008 TOE)
Domestic 8,046 355,659 25.8% 2,074 91,696 1,288

Commercial 1,456 64,337 23.9% 347 15,348 84
Industry 16,804 742,776 11.1% 2,445 108,081 2,450
Agriculture 804 35,531 19.6% 331 14,623 472
Transportation 11,567 511,297 13.9% 1,906 84,224 685
Other Government 736 32,520 2.7% 42 1,851 -
Subtotal, Demand 39,413 1,742,119 15.4% 7,145 315,822 4,980
Side
Transformation – Oil Refining 61 2,676 81
Transmission – Gas Compression 132 5,853 130
Transmission – Gas Decompression 16 691 35
Subtotal, 16,903 747,131 13.8% 2,330 102,984 3,538
Transformation
Total 56,316 2,489,250 14.9% 9,475 418,806 8,518
Source: Pakistan Energy Yearbook, 2008.
Table 11: Summary of Realizable Savings in Energy Demand by Type of Energy

Sector Savings as % Energy Savings, Savings as Corresponding
of Total FY2019 % of Total Power
Consumption, Savings Generation
FY2008 Capacity
’000 TJ MW*
(TOE)
Electricity 23.3% 1,589 70,253 22.2% 3,713
Natural Gas 14.2% 2,732 120,773 38.2% 3,064
Petroleum Products and LPG 14.3% 1,916 84,687 26.8%
Coal 12.8% 907 40,109 12.7%
Total 15.4% 7,145 315,822 100% 6,777
* MW calculated by assuming a plant load factor of 60% and generation efficiency on gas at 48%.

Table 12: Sectoral Distribution of Realizable Energy Savings in Energy demand

Sub-Sector Gas Oil Coal Electricity
Domestic 54% 0% 0% 37%
Commercial 10% 0% 0% 5%
Industry 34% 0% 100% 38%
Agriculture 0% 3% 0% 17%
Transportation 2% 97% 0% 0%
Other Government 0% 0% 0% 3%
Total 100% 100% 100% 100%
a. Demand Side EE Potential and Investments

158. The energy savings potential in the main energy consuming (end-use) sectors in
FY2008 is estimated at 6.1 MTOE (268,400 TJ), which corresponds to 15.4% of the total energy
consumed in the country. Realizable energy savings in the domestic, transportation, and
industrial sectors account for 25.8%, 13.9%, and 11.1% of the sectoral energy consumption,
respectively, followed by 23.9% in the commercial and 19.6% in the agricultural sectors. Energy
savings that can be realized in FY2019 are estimated at 7.1 MTOE (315,800 TJ), accounting for
economic growth in the energy consuming sectors and the extent to which the savings can be
realized on the energy consuming equipment added in the sectors.
159. Investment requirements for realization of energy savings on demand side for a ten-year
period from FY2010 to FY2019 are estimated at $4.98 billion. Sectoral requirements are
estimated at $2.45 billion for industry, $1.29 billion for domestic, $0.69 billion for transportation,
$0.47 billion for agriculture, and $0.08 for the commercial sectors
b. Supply and Transformations

160. Energy savings that can be realized in the transformation, transmission, and distribution
of energy, are estimated at 2.33 MTOE (103,000 TJ) in FY2019. These savings constitute
24.6% of the total realizable savings, and require an investment of $3.54 billion. These include
$3.29 billion investment in thermal power generation that will result in energy savings of
2.1 MTOE (93,700 TJ) and installation of high-efficiency compressors in gas trunk networks
requiring an investment of $0.13 billion, respectively.
161. Phasing of energy efficiency investment by sectors, over a ten-year period is shown in
Table 13. The bulk of the investment will be required in the first five years to replace existing
low-efficiency equipment, followed by some additional investments to maintain energy efficiency
in the sectors where the induction of inefficient equipment is expected to continue into the
foreseeable future.

Table 13: Phasing of Investments by Sector

($ Million)
Domestic 28 83 27 356 410 384 - - - -
Commercial - 1 5 15 24 23 12 3 1 -
Industrial - 25 147 441 711 662 343 98 25 -
Agriculture - 5 28 85 137 127 66 19 5 -
Transportation - 7 41 123 199 185 96 27 7 -
Oil Refining - 1 5 15 23 22 11 3 1 -
GENCO Replacements - - 153 207 147 328 587 946 664 260
Gas T&D Upgrades - 16 44 50 38 10 5 1 - -
Total 28 138 450 1,292 1,689 1,740 1,120 1,099 702 260
Cumulative 28 166 615 1,908 3,597 5,337 6,457 7,556 8,258 8,518
c. Distribution of Savings by Type of Energy

162. Realizable energy savings in electricity demand are estimated at 23.3% of the electricity
consumed in the country in FY2008, and are projected to account for 22% of the total demand
side energy efficiency potential in FY2019. Savings in electricity demand in FY2019 are
projected at 1.6 MTOE (70,250 TJ) equivalent to a generation capacity of 3,710 MW, assuming
a plant factor of 60%. The residential sector accounts for about 37% of the electricity demand
savings potential that can be realized through replacement of incandescent light bulbs with
compact fluorescent lamps and inefficient home appliances with energy efficient ones. Industry
accounts for 6% of the savings potential and agriculture 17%. Savings in electricity in industry
can be realized through use of high efficiency motors and equipment, and in agriculture through
replacement of inefficient motors and pumps with efficient pump sets.
163. Realizable savings demand are estimated at 14.2% of the total gas consumed in the
country in FY2008, and are projected at 2.7 MTOE (120,800 TJ) in FY2019, accounting for 38%
of the total demand side energy efficiency potential. These savings could be utilized to fuel a
power generation capacity of 3,060 MW, assuming a generation efficiency of 48% for gas fired
combined-cycle units operating at a plant factor of 60%. The bulk (64%) of natural gas savings
identified reside in the domestic and commercial sectors, and are associated with replacement
of existing appliances, such as cook stoves, water heaters, and space heaters, with high
efficiency ones. Energy efficiency upgrades in industry account for 34% of the natural gas
savings potential, which can be realized through modifications in production and manufacturing
equipment, heat recovery, as well as efficiency improvements in utilities mainly in the cement,
pulp and paper, sugar, and the iron and steel industries. Realizable savings for coal account for
13% of the coal consumed by industry, and can be achieved through upgrading of brick kilns
and heat recovery in the cement industry.
164. Energy efficiency potential for oil exists mainly in the transportation sector, where 11% of
the petroleum products consumed can be saved though improved vehicle tune ups, and a shift
of freight movement from road to rail. Some additional savings in diesel fuel can also be
realized through replacement of low efficiency diesel engines and pumpsets in agriculture with
high efficiency equipment.

4. Conclusions
165. Taking into account the realizable potential for energy savings, attractiveness of the
investments, and the existing barriers and constraints to energy efficiency improvements, the
priority areas for an investment program under a ten-year investment program are:
(i) Energy efficient lighting and replacement of gas and electrical appliances in the
domestic and commercial sectors
(ii) Replacement of existing inefficient power generation units with new high efficiency
configurations
(iii) Replacement of inefficient compressors in gas transmission mains with high
efficiency compressors.
(iv) Energy efficiency upgrades in the industry sector focusing on the cement, pulp and
paper, sugar, and textile industries in particular.
166. A detailed discussion of available energy efficiency opportunities is included in the
following sections. It is recommended that analysis of the technical, economic, policy, and
institutional aspects of the opportunities identified be carried out on an on-going basis in the
future, in order to select suitable program areas that will result in the optimum utilization of
available investment funds.
B. INDUSTRIAL SECTOR
167. The industrial sector in Pakistan accounted for 19% of the GDP in FY2008, making it the
second largest contributor to the economy after agriculture. The potential for energy efficiency
and related investments was studied for the principal energy consuming subsectors—namely,
textiles, fertilizer, cement, sugar, iron and steel, paper and pulp, and brick kilns. The remaining
industrial enterprises are categorized as ‘Other Industry’. A discussion of energy efficiency
potential, issues and barriers, and investment requirements for each of the industrial subsectors
is provided in the following sections. This section provides an overview of the energy demand
in the industrial sector and summarizes the corresponding energy savings potential and
investment requirements.
168. Figure 2 shows total energy consumption by sector in Pakistan, amounting to
39.4 million TOE, 43% of which is accounted for by the industrial sector.

58 ADB TA 7060-PAK:
7 Pak
kistan Sustain
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E Dev
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ogram
Figure 2: Energy Consu

umption by Sector and
d Industrial Subsectors
S s, FY2008
To
otal Energy Co
onsumption: 39.4 MTOE Industrial Energy Consu
umption:
16.8 MTOE
Commercial
Domestic 4% Paper
Sugar 7% Others
20% 28%
2%
Other Go
ovt. Ind
dustrial Texxtile
2% 43% 17%
Iron and
Steeel Brickk Kiln
6%% 10
0%
Traansport
229% Aggriculture Fertilizer
2% 5% Cement
%
25%
169. A breakdown by type of energy

e for th
he industrial sector is sho
own in Figure 3.
1. E
Energy Cons
sumption
170. Data
D for enerrgy consump
ption by fuel type in eachh industrial subsector
s arre reported in
i the
Pakistan Energy Yeaarbook 20088 for the follo
owing industrries only:
(i) Ceme
ent
(ii) Fertiliz
zer
(iii) Brick
(ivv) Pakisttan Steel.
171. For the rema aining industtries, estimaates for fuel--wise energyy consumption are arrived at
by using
g data from previous sttudies and applyinga adjustments foor changes in productio on in
ears. 17 A fu
recent ye undamental assumption n in this app
proach is thaat no change in efficien
ncy of
energy use
u is assum med over the e correspond ding period, and change es in the subsectoral en
nergy
consump ption are enttirely attributed to outputt levels.
172.
173. Table
T 14 tab d Figure 3 illustrates, fuel-wise
bulates, and f en umption for each
nergy consu
industrial subsector.
17
Report on Demand Prrojection Mode
eling for RESPA
AK, Mathtech In
ncorporated, 1988.
Consultantts’ Final Reportt Asian Developmentt Bank

ADB TA 70
060-PAK: Pak
kistan Sustaina
able Energy Efficiency
E Development Pro
ogram 59
Fig
gure 3: Fue
el-Wise Energy Consum
mption in In
ndustrial Se
ector and Su
ubsectors
To
otal Energy Co
onsumption: 16.8 MTOE
Energy Co
onsumption by Type
Coal
32% Oil Subsector Gas Oil Co
oal Electtricity
7% Iron and
d
9.3% 3.7% - 6
6.4%
Steel
d
Pulp and
12.9% 4.6% - 3
3.0%
Paper
Textile 27.7% 5.1% - 27
7.6%
Electricityy Sugar 2.6% 6.2% - 0
0.8%
10%
Fertilizer
9.1% - - -
(Fuel)
Gas Cement 3.5% 13.8% 8.9%
68 -
51% Brick Kiln - - 31
1.1% -
Other
35.0% 66.5% - 2.2%
62
Industrie
es
Total 100% 100% 100% 10
00%
Table 14: Fuel-wise Energy Consumption in Industrrial Subsecttors

Subsecto
ors Gas O
Oil Coal E
Electricity
(TOE) (TO
OE) (TOE) (TOE
E) (GW
Wh)
Iron and Steel
S 804,276 4
40,387 107,,849 1,324
Pulp and Paper 1,112,443 5
50,037 50,,108 615
Textile 2,392,180 5
55,270 466,,267 5,725
Sugar 220,754 6
67,304 13,,151 161
Fertilizer 782,979
Cement 298,025 14
49,449 3,721,727
Brick Kiln 1,682,540
Other Industry 3,018,320 72
20,438 1,050,,795 12,902
Total 8,628,978 1,08
82,885 5,404,267 1,688,,171 20,729
a. E
Energy Effic
ciency Poten
ntial and Inv
vestment Requiremen
R ts
174. The
T energy efficiency potential and d investmen nt requireme ents for Pakkistan’s indu
ustrial
sector arre summarizzed in Table e 15, Table 16 and Tab atural gas and oil, electricity,
ble 17 for na
and coal, respectively, and princcipal observa
ations in thiss respect sum
mmarized be elow.
175. Natural
N Gas and
a Oil: The e realizable potential forr energy savving for natural gas and oil in
the indu
ustrial sector is estima ated at 4.8% % over a ten-year
t eriod for forecasted en
pe nergy
consumpption till FY Y2019, for which an investment of $291 million wou uld be requ uired.
Opportun proving enerrgy efficiencyy exist mainly in the texttile, pulp and
nities for imp d paper, and
d iron
and steel.
Asian Dev
velopment Ban
nk Conssultants’ Final Report
R
176. Coal: The realizable potential for coal savings in the industrial sector is estimated at 8.2
over a ten-year period for forecasted energy consumption till FY2019, for which an investment
of $309 million would be required. Opportunities for improving energy efficiency have mainly
been identified in the brick kiln and the cement industries, which are the principal coal-
consuming industries in the country.
177. Electricity: The realizable potential for electricity savings in the industrial sector is
estimated at 11.2% over a ten-year period for forecasted energy consumption till FY2019, for
which an investment of $1,850 million would be necessary. Opportunities for improving energy
efficiency are found mainly in the textile, iron and steel, and sugar. Energy efficiency
improvements in the sugar industry result from saving bagasse in heating, which can be used
as fuel for the generation and export of power instead.
178. There are a number of barriers and constraints in improving energy efficiency in the
industrial sector, particularly in iron and steel, sugar, and paper industries that primarily serve
local markets. The following are major constraints to the realization of energy efficiency
potential in industry, as indicated by owners and managers of various industries interviewed:
(i) Local capability in EE-related design, application and support is limited—and even
where management may be aware of savings possibilities, it is generally hesitant
to adopt these ‘untested’ or unfamiliar approaches. Relevant training materials
and application manuals developed in other countries often do not address
problems and issues specific to the industrial environment in Pakistan.
Furthermore, foreign technical support, when available, is expensive.
(ii) The industrial sector in Pakistan is not uniformly competitive, and the price of
energy tends to have a lower significance in operational decisions than other
commercial factors. The government also exercises control over input and product
pricing in some instances, such as fertilizer and sugar, which can also lower the
incentive for improving energy efficiency.
(iii) Due to the regulation of energy prices in the country, natural gas—and to some
extent electricity—which constitute a major share in the industrial energy mix, are
generally priced at a level below prevailing energy prices in the international
market. This lowers the incentive for energy efficiency investments the industry.


Table 15: Energy Consumption, Realizable Savings, and Investment Requirements for Natural Gas and Oil in Industry
Subsector Oil and Gas Oil and Gas Energy Efficiency Potential Realizable Investment Simple
Consumed, Consumption Forecast, Savings, Required Payback
FY2008 FY2019 FY2019 Period
’000 (TOE) ’000 (TOE)
Gas Oil Total Gas Oil Total Technical Realizable Effective (MMscf) ’000 ($ Million) Fin. Eco.
(TOE) (Yrs) (Yrs)
Iron and Steel 215 - 215 435 - 435 20% 50% 10% 947 21 8 1.8 1.1
Pulp and Paper 1,144 52 1,197 2,317 106 2,423 10% 70% 7% 7,480 170 70 2.0 1.2
Textile 2,461 58 2,519 4,983 117 5,100 22% 50% 11% 12,052 273 67 1.5 0.9
Other Industry 3,105 753 3,858 6,287 1,525 7,812 16% 35% 6% 20,780 471 146 1.5 0.9
Pakistan Steel 395 - 395 395 - 395 0% 0% 0% - - - - -
Fertilizer 783 - 783 1,585 - 1,585 0% 0% 0% - - - - -
Sugar 227 70 297 460 142 602 0% 0% 0% - - - - -
Cement 298 149 447 603 303 906 0% 0% 0% - - - - -
Total 8,628 1,082 9,712 17,065 2,193 19,258 41,259 936 291
Table 16: Energy Consumption, Realizable Savings, and Investment Requirements for Electricity in Industry
Subsector Electricity Electricity Energy Efficiency Potential Realizable Investment Simple
Consumed, Consumption Savings, Required Payback
FY2008 Forecast, FY2019 FY2019 Period
(GWh) (TOE) (GWh) (TOE) Technical Realizable Effective (GWh) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
Iron and Steel 2,704 220,218 5,475 445,895 12% 50% 6% 166 13,479 17 1.1 1.3
Textile 5,318 433,113 10,768 876,963 7% 50% 4% 186 15,159 42 2.5 2.9
Other Industry 11,985 976,078 24,267 1,976,351 10% 35% 3% 817 66,548 183 2.5 2.9
Sugar 150 12,216 304 24,735 0% 0% 0% - - - - -
Generation on - - - - 100% 100% 100% 3,547 506,994 1,609 5.1 6.0
Bagasse
Pulp and Paper 572 46,545 1,157 94,244 0% 0% 0% - - - - -
Total 572 46,545 1,157 94,244 3,547 506,994 1,850
61
62
Table 17: Energy Consumption, Realizable Savings, and Investment Requirements for Coal in Industry
Subsector Coal Consumed, Coal Consumption Energy Efficiency Potential Realizable Savings Investment Simple
FY2008 Forecast, FY2019 FY2019 Required Payback
Period
(Tonnes) (TOE) (Tonnes) (TOE) Technical Realizable Effective (Tonnes) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
Brick Kiln 3,760,707 1,682,540 7,614,632 3,406,786 49% 26% 13% 962,489 430,530 189 2.8 3.2
Cement 5,720,972 3,721,727 11,583,751 7,620,198 14% 87% 12% 724,935 476,887 120 1.9 2.2

Total 9,481,679 5,404,714 19,198,383 11,026,983 1,687,424 907,417 309
2. Cement Industry
179. There are 29 cement production units in Pakistan with a combined installed capacity of
about 37 million tonnes per annum. 18 Taking into account the planned addition of new
production facilities and expansion of existing production plants, installed capacity is expected
to reach approximately 49 million tonnes by the end of fiscal year 2011. 19 Total cement
production in FY2008 was 25,900 thousand tonnes,20 resulting in an average plant utilization
factor of 70%. Cement production in the country includes:
(i) Ordinary Portland cement (OPC)
(ii) Sulphate resisting cement (SRC)
(iii) Blast furnace slag cement (BFSC)
(iv) White cement.
180. The cement industry in Pakistan mainly uses the following three types of cement
production techiques:
(i) Wet process
(ii) Dry-process with single-stage preheating
(iii) Dry-process with multi-stage preheating.
181. Of these, the dry process with multi-stage preheating technology is the most energy
efficient, with the least energy requirements per tonne of cement produced. A process-wise
plant categorization is presented in Table 18.
Table 18: Plant Capacities and Production Processes in the Cement Industry
Production Process No. of Combined Installed
Plants Capacity
(Million Tonnes/Year)
Wet 5 5.84
Dry with single-stage preheating 10 7.43
Dry with multi-stage preheating 14 23.81
Total 29 37.09
a. Energy Consumption
182. Coal is the principal source of energy used in the Pakistan cement industry. About 86%
of the total energy requirements of the cement industry are currently being met through coal,
where it is used mainly for heating purposes. 21 The cement industry also has the largest share
(56.6%) in total coal demand in the county. 22 Coal consumption by industrial subsector in
18
Pakistan Economic Survey 2007-08.
19
Investment Information Guide, Cement Sector, Board of Investment, Government of Pakistan.
20
Pakistan Economic Survey 2007-08.
21
Based on actual energy consumption of Pakistan Cement.
22
Consumption of coal by sector, Pakistan Energy Year Book, 2008.

64 ADB TA 7060-PAK:
7 Pak
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E Dev
velopment Pro
ogram
Pakistan is presenteed in Figure 4. Natural gas accoun nts for the re

emaining fue
el consumptiion in
the cemeent industry. The policyy for the alloccation of gass adopted by the govern
nment place es the
cement industry on low priority, and as a re esult, the inddustry has gradually
g hifted to imported
sh
coal blen
nded with some local coa al of lower quality to meet its energyy requiremen
nts.
e 4: Coal Co
Figure onsumption
n by Industrrial Subsecttors (2007-0
08)
Total Consu
umption, FY2008:
10 Million Tonness
Cemeent
56.6%
%
Brick Kiln
37.2%
Po
ower Pak Steell
1..6% 4.6%
183. TheT simple payback

p perriod for enerrgy efficienccy investmen
nts in the ce
ement indusstry is
calculate
ed as 2.21 years at an n economicc price of Rs R 6,000/tonne of imported coal, which
w
reduces to 1.91 yearrs at the financial price of
o Rs 6,960/ttonne.
184. Coal
C consummption in the cement indu
ustry is expe
ected to incrrease to up to
t twice as much
m
as the current level of consumpption at a moderate
m GDDP growth rate
r of 5.5%% in the nexxt ten
years.
185. However,
H anyy capacity additions
a in the
t cement industry
i are assumed to o be state-off-the-
art technologies and, therefore no
n additionall energy savving potentia
al has been assumed
a forr new
capacity additions in the industryy.
b. E
Energy Saving Potentia
al in the Cem
ment Industtry
186. Based
B on inte
ernational energy consu umption bennchmarks pe er tonne of coal,
c the wet and
single-sta
age dry proccesses are more
m energyy intensive—
—consuming 40% and 20 0% more en nergy,
respectivvely, as commpared to th he multi-stag
ge dry proccess. The additional
a co
oal consume ed in
these twwo processes can be saved by rep placing the wet processs units with h multi-stage
e dry
process units, and up pgrading the
e single-stag
ge plants to multi-stage
m p
plants.
187. Assuming
A a 70% plan nt utilization
n factor, esstimates for cement production, coal
consump
ption and pottential savings for the FY
Y2008 are presented
p in Table 19.

Table 19: Process-Wise Cement Production, Coal Consumption, and Savings Potential
(Million Tonnes/Yr)
Production Process Total Coal Savings Potential Annual Coal
Production Consumption Technical Realizable Savings
Wet 4.08 1.26 40% 40% 0.50

Dry, single-stage preheating 5.18 1.37 20% 16% 0.22
Dry, multi-stage preheating 16.61 3.08 - -
Total 25.87 5.72 14% 13% 0.72
c. Issues, Barriers, and Investment Requirements

188. The cement industry in Pakistan is almost entirely privately-owned and operates in a
competitive environment. There are no subsidies on the coal used by the industry, and
manufacturers procure the fuel at market prices from local as well as international sources. In
the near term, individual production units may be constrained to convert to more efficient
configurations due to loss of production associated with downtime required for upgrading the
machinery and equipment. Older, inefficient units are also generally fully depreciated and enjoy
a lower capital cost per unit of capacity and output. In the long term, however, the units
operating at lower levels of efficiency will not be able to survive in an increasingly competitive
environment. Conversion investment requirements have therefore been estimated assuming
100% and 80% replacement of wet and single-stage dry process units, respectively, with the
most efficient available process over a period of ten years. Investment requirements,
investment schedule, and associated payback periods are given in Table 20.

66
Schedule for the Cement Industry
Technologies Coal Consumed, Coal Consumption Energy Efficiency Potential Realizable Savings, Investment Simple
FY2008 Forecast, FY2019 Required Payback
FY2019 Period
(Yrs) (Yrs)
Wet Kilns 1,261,976 820,967 2,555,234 1,680,922 40% 100% 40% 504,791 332,069 109 2.5 2.9

Dry Kilns- Single 1,375,900 895,080 2,785,906 1,832,667 20% 80% 16% 220,144 144,818 11 0.6 0.7
Pre-Heater
Dry Kilns- Multi 3,083,095 2,005,680 6,242,612 4,106,609 0% 0% 0% - - - - -
Pre-Heater
Total 5,720,972 3,721,727 11,583,751 7,620,198 14% 87% 12% 724,935 476,887 120 1.9 2.2
$ Million
Annual - 1 7 22 35 32 17 5 1 -
Cumulative - 1 8 30 65 97 114 119 120 120
ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 67
3. B
Brick Kilns
189. There
T are about 10,000 brick
b kilns op
perating in th
he country, mostly
m in Puunjab and NWWFP,
with an average
a monnthly brick production
p ca
apacity of 6550,000 brickks per kiln.23 Brick makiing in
Pakistan is an energgy intensive activity, with
h coal beingg the only fuel used in th he process. The
24
brick kiln
n industry ac
ccounts for 37.2% of th he total coaal consumption of the country.
c S
Sector
wise coaal consumptioon is presennted in the Figure 5.
Figurre 5: Coal Consumption
n by Industtrial Subsec
ctor (2007-08)
190. Bull
B Trench (BT) and Cla amp are the only technollogies being g used for brrick making in the
country. Of the total installed ca
apacity, 95% of the brickk kilns are Bu
ull Trench tyype, while the
e rest
are Clam mp type. Vertical
V Shafft Brick Kiln (VSBK) tecchnology off ffers a much h higher levvel of
efficiencyy and is bein
ng used exteensively in China
C and In
ndia. This te h recently been
echnology has
introduceed in Pakisttan as a su uccessful pilot project. However, VSBK V doess not yet ha ave a
significan
nt market shhare, and nee eds to be prromoted on a commercia al basis. 25
a. C
Coal Consum
mption
191. Total
T coal coonsumption in the brickk kiln indusstry for FY2008 was 3,,760,708 ton nnes,
which for the purpos se of this sttudy is distrributed betw
ween BT and d Clamps according
a to their
proportio perating capacity and fuel efficiencyy. Clamp tecchnology is less fuel effficient
on in total op
and requ uires 20% more energ gy as comp pared to BT technolog gy, thereforre constituting a
dominant share of th he coal conssumed by the e brick indusstry. Techno
ology-wise coal
c consum mption
in brick kilns
k is given in Table 21
1.
Table 21
1: Technolo
ogy Wise Co
oal Consum
mption in the
e Brick Indu
ustry
Fuel Cons
sumption (kg/Brick)
Bull Trenc
ch 0.19
Clamps 0.23
Vertical Sh
haft Brick Kiln 0.10
23
Energy Efficient Brick Production (EEBP), A Swisss Technology Transfer
T Projectt.
24
Pakista
an Energy Yearrbook 2008.
25
Energy Efficient Brick Production (EEBP), A Swisss Technology Transfer
T Projectt.
Asian Dev
velopment Ban
R
b. Energy Saving Potential

192. The potential for coal savings from the conversion of Bull Trench and Clamp technology
to VSBK is 48% and 57%, respectively. Based on current production, estimated coal savings
up to FY2019 are 962,489 tonnes, which correspond to savings of $59 million based on an
economic price of indigenous coal of Rs 4,892/tonne. At a financial price of Rs 5, 675/tonne,
these expected savings translate to $68 million. Details of coal consumption and annual
savings potential are presented in Table 22.
193. Considering the present structure of the industrial sector, operating patterns, and profit
margins, it is assumed that industry will continue to follow prevailing expansion patterns in the
near future, i.e., adhering to largely energy inefficient technologies.
194. This would increase coal consumption of the brick kiln industry by up to twice the current
levels, given a moderate GDP growth rate of 5.5%, assuming no change in the energy savings
potential up to FY2019.
195. At the economic price of coal, the estimated combined payback period for conversion of
the brick kilns to more efficient technologies is 3.21 years, which reduces to 2.77 years based
on the financial price of coal.
c. Barriers, Constraints, and Investment Potential

196. Brick manufacturing in Pakistan is a low technology and labor intensive industry. Kilns
are generally either located close to market centers in major urban areas, or in rural locations
where labor costs are lower. The practice of bonded and child labor is also common in this
cottage industry, and is a subject of concern highlighted by various human rights groups and
organizations. The management expertise of kiln owners and their capacity to utilize better
technologies therefore tends to be low. The industry is not familiar with the VSBK technology,
and brick kiln owners may therefore be reluctant to shift from their existing brick kilns to VSBKs.
Expertise available locally for the construction of VSBKs is also very limited. At current prices,
coal accounts for about 25% of the cost of production of bricks. Savings of the order of 10% in
the production costs therefore do not provide a very significant incentive to brick manufacturers
for shifting to energy efficient technologies.
197. Brick kiln replacement can be stimulated by conducting training and workshops to create
awareness of the different types of technologies available, their operation and efficiency levels.
198. Sulfur and particulate emissions from brick kilns are a major environmental concern,
particularly where the kilns are located in close proximity to urban areas. Introduction of VSBK
technology will result in reduced sulfur and particulate emissions as well. Enforcement of
environmental regulations could therefore expedite the shift from the low efficiency and high
emission technologies presently in use.
199. In view of the above-mentioned issues and constraints, investment requirements were
estimated assuming 25% and 40% replacement of Bull Trench and Clamp technologies,
respectively, with VSBK technology over a period of ten years. Investment requirements,
investment schedule, and estimated payback periods are given in Table 22.


Schedule for the Brick Industry
Energy Energy Consumed, Energy Energy Efficiency Potential Realizable Investment Simple
Type FY2008 Consumption Savings, FY2019 Required Payback
Forecast, FY2019 Period
(Yrs) (Yrs)
Bull Trench 3,535,065 1,581,588 7,233,900 3,236,446 48% 25% 12% 858,930 384,207 174 2.9 3.3
Clamps 225,642 100,952 380,732 170,339 57% 40% 23% 103,559 46,323 15 2.0 2.3
Total 3,760,707 1,682,540 7,614,632 3,406,786 49% 26% 13% 962,489 430,530 189 2.8 3.2
($ Million)
Annual - 2 11 34 55 51 26 8 2 -
Cumulative - 2 13 47 102 153 180 187 189 189
69
4. Iron and Steel Industry
200. The iron and steel industry in Pakistan consists of about 650 steel mills of different sizes,
with a total product output of 4.6 million tonnes. The annual demand for iron and steel products
in Pakistan has been in the range of 5 million tonnes recently, resulting in a gap between
demand and installed capacity that is met by imports. Of the installed capacity, Pakistan Steel
Mills in the public sector accounts for 1.1 million tonnes, with the remainder in the private sector.
a. Energy Efficiency Potential

201. Pakistan Steel Mills was established in 1973 near Karachi with assistance from the
former Soviet Union, and mainly produces pig iron and flat steel products, including, billets,
slabs, hot rolled coils, cold rolled coils, galvanized sheets and formed sections, and corrugated
sheets. The mill includes blast furnaces and has a very limited realizable energy savings
potential due to the outdated technology in use. Steel mills in the private sector mainly consist
of induction furnaces that utilize scrap metal and steel rerolling mills.
202. The most efficient production technology available in the iron and steel industry is the
direct reduced iron (DRI) technology, which is being introduced to the country by Tawarqi Steel
Mills presently under construction near Karachi. The steel industry in Pakistan utilizes energy in
the form of electricity, gas, and fuel oil, in which there is a savings potential mainly in gas and
electricity use. The consumption of electricity and gas by the country’s steel industry is
presented in Table 23.
203. Induction furnaces installed in the private sector use electricity as an energy source.
These furnaces have an average specific electricity consumption of 650 kWh/tonne. Based on
an analysis of a typical production unit provided by industry experts, there appears to be scope
for reducing this consumption by 8% to 600 kWh/tonne, with an $8.8 million investment for the
entire industry. Consumption of natural gas is mainly in the rerolling process that has an
efficiency improvement potential of 20%, requiring a total investment of $8.1 million for the
industry as a whole. Electricity is used in the rerolling process to drive the motors, blowers,
overhead cranes, and other equipment, and has a savings potential of 36% that can be
achieved with a total investment of $8.1 million.
b. Issues, Barriers, and Investment Requirements

204. Excluding Pakistan Steel in the public sector for reasons outlined above, the potential for
improving energy efficiency lies mainly in the private sector steel industry. The private sector
steel industry in Pakistan predominantly consists of small- and medium-scale production units,
where the penetration of energy efficient technologies is relatively low. Furthermore, their
businesses mainly depend on the procurement of raw materials, marketing of products, and
relatively high labor costs, particularly in the rerolling industry where the level of automation is
low. Energy does not account for more than 20% of the production costs. However, in view of
attractive returns on energy efficiency investments, it is estimated that 50% of savings identified
can be realized.
205. Table 24 shows electricity consumption and savings potential in this sector, followed by
Table 25 which provides the gas consumption and savings potential.

Table 23: Electricity and Gas Consumption by the Iron and Steel Industry
Iron and Steel Industry Electricity (GWh) Gas (MMscf)
Pakistan Steel - 16,901
Private Sector 2,704 9,472
Table 24: Process-Wise Electricity Consumption and

Savings Potential in the Private Sector
Iron and Steel Energy Consumption Energy Efficiency Potential
Processes
Electricity (GWh) Technical Realizable
Melting 2,275 8% 4%
Re-rolling 429 36% 18%
Table 25: Process-wise Gas Consumption and

Savings Potential in the Private Sector
Iron and Steel Energy Consumption Energy Efficiency Potential
Processes Gas
Technical Realizable
(MMscf)
Melting - 0% 0%
Re-rolling 9,472 20% 10%
206. Based on an evaluation of current plans, it can be assumed that future expansion in the
iron and steel sector will be based on more efficient technologies and therefore there will be no
realizable additional energy savings potential for new capacities added in the future. Table 26
and Table 27 present details of energy savings and investment schedules for electricity and
gas, respectively, in the private sector iron and steel industry of Pakistan.

72
Schedule for the Private Sector Steel Industry
Energy Energy Energy Consumption Energy Efficiency Potential Realizable Investment Simple
Type Consumed, Forecast, Savings FY2019 Required Payback
FY2008 FY2019 Period
(Yrs) (Yrs)
Melting 2,275 185,280 4,606 375,152 8% 50% 4% 88 7,126 8.8 1.1 1.3

Re-rolling 429 34,938 869 70,743 36% 50% 18% 78 6,352 8.1 1.2 1.4
Total 2,704 220,218 5,475 445,895 12% 50% 6% 166 13,479 17 1.1 1.3
($ Million)
Annual - 0 1 3 5 5 2 1 0 -
Cumulative - 0 1 4 9 14 16 17 17 17
Schedule for the Private Sector Steel Industry
Energy Energy Consumed, Energy Energy Efficiency Potential Realizable Savings Investment Simple
Type FY2008 Consumption FY2019 Required Payback
(MMScf) (TOE) (MMScf) (TOE) Technical Realizable Effective (MMScf) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
Natural 9,472 214,790 19,179 434,905 20% 50% 10% 947 21,479 8 1.8 1.1
Gas
($ Million)
Annual - 0 0 1 2 2 1 0 0 -
Cumulative - 0 1 2 4 7 8 8 8 8
5. Fertilizer
207. There are six fertilizer manufacturing companies in Pakistan. The annual production of
fertilizers, including urea and phosphate, both by the public and private sectors, was 6.24 million
tonnes in 2007-08. Since the soil in Pakistan is generally deficient in nitrogen, urea is the most
used fertilizer. Of the total fertilizer production, the output of urea in that year was 4.92 million
tonnes and diammonium phosphate (DAP) produced was 0.36 million tonnes. Domestic
production was about 83.6% of total fertilizer demand during 2007-08, and the gap between
demand and domestic production was met through imports. The government subsidizes the
gas supplied to the fertilizer sector in view of the significance of fertilizer prices in the agriculture
sector. The supply of gas to the fertilizer industry is accorded high priority, and the industry
enjoys uninterrupted gas supply through the winter peak demand period even when supply is
curtailed to the rest of industry and power sectors.
208. Natural gas is used in the fertilizer sector as feedstock as well as a fuel for process
requirements and for power generation. Energy efficiency upgrades in the fertilizer industry
would generally involve significant process upgrades and expansion of production capacities,
and it is therefore technically difficult to separate possible savings in energy from benefits
associated with capacity enhancement.
6. Textile Industry
209. Pakistan is the world’s fourth largest producer of cotton and the third largest cotton
consumer. Cotton-based textiles contribute over 60% to the country’s total merchandise
exports. The main products of the textile industry include cotton yarn, cotton cloth, cotton
products, garments, hosiery, blended and synthetic cloth. At present, 521 mills are operating in
the country, 26 the majority of which are located in the provinces of Sindh and Punjab. The
installed equipment includes: 27
• Spindles 12 million
• Shuttleless looms 24,000
• Airjet looms 6,000
• Auto-power looms 300,000
• Knitting machines 18,000
• Fabric processing capacity 4.6 billion sq. meters
• Stitching machines 450,000.
210. The textile industry accounts for a of 17% share in total industrial energy consumption,
utilizing electricity and natural gas as its main energy sources (Figure 6). Of the total energy
consumption of the sector, 82% is in the form of natural gas and 16% is electricity supplied by
public utilities. The remaining 2% is oil, which is utilized as a backup energy source to natural
gas. 70% of the total electricity requirement of the textile sector is met by natural gas-based
‘captive’ generation, and the remaining is supplied by the power utilities WAPDA and KESC.
End-use of energy varies, depending on the industrial processes involved.
26
Economic Survey 2007-08.
27
Textile Commissioner’s Organization.

74 ADB TA 7060-PAK:
7 Pak
kistan Sustain
E Dev
velopment Pro
ogram
Figure
F 6: En
nergy Consu
umption in the Textile Industry
Totaal Energy Co
onsumption:: 2.9 MTOE
Oil
Gass 2%
82%
%
Electriciity
16%
b. E
Energy Savings Potentiial in the Te
extile Industtry
211. Table
T ment in the textile
28 listts the areass with potenttial for enerrgy efficiency improvem
industry.
Table 28:
2 Areas with
w Energy Efficiency Improveme
ent Potentia
al in
the Te
extile Industtry
Thermal Energy Savings
i. Boiler replace
ement
ii. Boiler tune-up
ps and water treatment
iii. Improved dessign of steam distribution systems
s
iv. Insulation of bare
b steam lin
nes
v. Steam
S traps and
a condensa
ate recovery
vi. Improving effficiency of hea
aters
vii. Waste
W ecovery from stenter and oil
heat re o heater exh
haust
viii. Waste
W heat re
ecovery from wash water
Tota
al Thermal Sa
avings 22%
%
Electrical Energy Sav
vings
i. Improvementt of electrical distribution
d syystems
ii. Use of natura
al daylight
iii. Use of high efficiency
e refle
ectors in lightiing systems
iv. Replacementt of standard motors with high
h efficiencyy motors
v. Rewinding off electrical mo
otors using sta
andard speciffication wire
vi. Use of electro
onic motor co
ontrollers (‘sofft’ start)
Total Electricity Savings
S 7%
212. The
T thermal savings po otential of 22%
2 is appplied on thee total natu
ural gas annd oil
consump g savings only,
ption in the textile industtry, and therrmal savingss are shown as natural gas
since oil is being utiliized as backkup energy source
s to na
atural gas. The
T total savvings potentiial for

the textile sector is estimated at 281,868 TOE, 94% of which is natural gas and the rest is
electricity.

213. Most of the textile industry in the country is privately-owned, and operates in a
competitive local and international market environment. There are no public subsidies provided
on the energy used by the industry, and the industry procures fuel at market prices from local
sources. As a result, manufacturers focus on optimizing energy use. Almost a third of the
textile mills have been set up or modernized over the last seven years, and therefore, a
proportion of the installed equipment of the total industry is of recent vintage and efficient.
Energy savings are achievable for a realizable fraction of 50% on account of the constraints and
issues in achieving a higher technical energy saving potential discussed earlier.
214. Based on estimates available from industry surveys, investment requirements have been
estimated assuming a 1.5-year payback of the total investment required to upgrade gas-based
equipment, and a 2.5-year payback of the total investment required to upgrade electricity-based
equipment. Based on these payback periods, the average investment requirement per mill is
estimated at $0.4 million. It is assumed that future expansion and additions in the textile
industry will be based on efficient technology, and therefore there no additional savings potential
is assumed for the future
215. Investment requirements, investment schedule, and the estimated payback periods for
implementing energy efficiency in the textile industry are indicated in Table 29 and Table 30 for
natural gas and electricity, respectively. The total investment required for upgrading equipment
utilizing natural gas as fuel is about $67 million. Similarly, the total investment required for
upgrading equipment operating on electricity is about $42 million.

76
Schedule for the Textile Sector
Energy Energy Consumed, Energy Consumption Energy Efficiency Potential Realizable Savings Investment Simple
Type FY2008 Forecast, FY2019 Required Payback
FY2019 Period
(MMscf) (TOE) (MMscf) (TOE) Tech- Realizable Effective (MMscf) (TOE) ($ Million) Fin. Eco.
nical (Yrs) (Yrs)
Natural 108,530 2,518,768 219,750 5,099,970 22% 50% 11% 273,286 6,196,970 67 1.5 0.9

Gas
($ Million)
Annual - 1 4 12 20 18 9 3 1 -
Cumulative - 1 5 17 36 55 64 67 67 67

Schedule for the Textile Industry
Energy Energy Energy Consumption Energy Efficiency Potential Realizable Savings, Investment Simple
Type Consumed, Forecast, FY2019 Required Payback
(Yrs) (Yrs)
Electricity 5,318 433,113 10,768 876,963 7% 50% 4% 186 15,159 42 2.5 2.9
($ Million)
Annual - 0 2 7 12 11 6 2 0 -
Cumulative - 0 3 10 22 34 40 41 42 42
ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 77
7. S
Sugar Industry
216. Pakistan
P rank
ks fifth in the
e world in te
erms of area
a under sug gar cane culttivation, elevventh
by produ uction, and sixtieth
s in yie
eld. The sugar industryy of Pakistann is the secoond largest agro-
28
based industry in the e country, comprising of o 79 sugar mills,
m with an annual crushing
c cappacity
of over 6 million tones.29 As su ugarcane cannot easily be transporrted over lon ng distancess, the
sugar ind dustry is mosstly located in Punjab an nd Sindh pro
ovinces near areas where the sugarrcane
is cultivated. Sugarc cane farming g and sugar manufacturiing contributte significanttly to the nattional
excheque er in the form
m of various taxes and le evies.
217. Sugar
S produc ction is a seasonal activvity, due to which
w sugar mills operatte on averagge for
nths a year. Bagassse production
four mon p iss 29% by weeight of the total sugar cane crushe ed, of
which 70
0% is utilized
d as fuel in boilers.
b The d to other industries, succh as pulp paper
e rest is sold p
and boarrd manufactuurers as raww material.
a. E
Energy Cons
sumption
218. TheT sugar ind dustry has a share of 2% 2 in the tottal commerccial energy consumed
c b the
by
industrial sector in Pakistan,
P utilizing natura
al gas as its main energy source (Figure 7). Of O the
total ene
ergy consumption of the industry, 73 3% is in the form of natu ural gas and
d 5% is electtricity
supplied by public uttilities, while the remaininng 22% is fuueled by oil.
Figure
F 7: En
nergy Consumption in the Sugar Industry
I
T
Total Energy Consumptio
on: 0.3 MTO
OE
Oil
22%
Gas
%
73%
Electricity
5%
b. E
al in the Sug
gar Industry
y
219. The T savings potential forr commercia al energy utilized by thee sugar indusstry is neglig
gible.
Howeverr, there is a significant potential
p for upgrading the
t mills to saves the bagasse generated
as a byp product of thhe cane crusshing processs from beinng burnt as fuel for boilers, and insstead
utilizing it for the ge
eneration of power for export
e to th
he electricityy grid. As explained
e abbove,
approxim mately 70% ofo the bagassse produced is currently consumed d by the suggar industry itself.
Bagasse e consumptiion of sugar mills ca an be redu uced by 42 2% by intro oducing effficient
replacem ment fuels foor heating purposes. Therefore,
T th
he additional power gen neration poteential
28
Sourcee: Pakistan Sug
gar Mills Assocciation Annual Report,
R 2008.
29
Sourcee: “An Introduction to Pakisstan’s Sugar Industry”, officcial website off Investment Division
D & Boa
ard of
Investm
ment, Government of Pakistan n.
Asian Dev
velopment Ban
R
has been estimated on only 42% of the total bagasse consumed by the sugar industry at
present. Table 31 gives details of the potential for exporting baggase-based power to the
sugar industry.
Table 31: Power Generation Potential from Bagasse

Total cane crushed (FY2008)a 52,776,922 Tonnes
Total bagasse production 15,079,121 Tonnes
Bagasse consumed by the sugar industry 10,555,384 Tonnes
Bagasse available for power generation 4,433,261 Tonnes
Heat content of bagasse 9.6 MJ/kg
Efficiency 30%
Power generation 3,546,756 MWh
Plant load factor 60%
Equivalent installed capacity 675 MW
a
Pakistan Sugar Mills Association Annual Report, 2008.
220. The total electricity generation potential from bagasse is estimated at 3,547 GWh.

221. Policy incentives need to be provided to the sugar industry to encourage mill owners to
save bagasse and utilize it for additional generation and export of power. These can include
competitive electricity tariffs and the assurance of interrupted seasonal sales to the power
purchasing utiltiies.
222. The installable capacity of 675 MW was priced at $2,073/kW, corresponding to the
capital cost of a steam-cycle power plant operating on coal. Table 32 gives the investment
requirements, investment schedule and the estimated payback period of the power generated
from bagasse.
Table 32: Investment Requirements and Schedule for

Export of Baggase-Based Power by the Sugar Industry
Electricity Generated Investment Required Payback Period
(GWh) (TOE) ($ Million) (Years)
3,547 506,994 1,609 5.1
($ Million)
Annual - 16 97 290 467 434 225 64 16 -
Cumulative - 16 113 402 869 1,303 1,528 1,593 1,609 1,609
8. Paper Industry
223. The production of paper products in Pakistan is based mainly on local grass and wheat
straw, which constitute about 46% of the basic raw materials used for this purpose, followed by

ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 79
waste pa aper at 29%%. About 10% of the inp put consists of imported d pulp, which is used fo
or the
productioon of specialty grade pro oducts. Othher raw mate erials used are
a bagasse e, rice straw
w, and
nter.30 The Pakistani
cotton lin P pulp and papeer industry coonsists of ovver 44 manuufacturing un
nits of
31
various products
p andd capacities, ranging from
f 20 to 120
1 tonnes per p day. Th he paper inddustry
in Pakistaan is mainly located in th
he provincess of Punjab and NWFP.
a. E
Energy Cons
sumption
224. TheT paper ind dustry has a share of 7% % in total ind
dustrial enerrgy consump
ption in Pakiistan,
consisting mainly of electricity an
nd natural gas in terms of inputs (Fiigure 8). Off the total en
nergy
consump ption by the sector, 92% % is in the fo
orm of natural gas, 4% is electricity, and 4% is i oil-
fueled.
Figure
F nergy Consumption by
8: En y the Paper Industry
Totaal Energy Co
onsumption:: 1.2 MTOE
Gaas
92%%
Oil
%
4%
Electrricity
4%%
225. T
This energy is
s consumed
d in the follow
wing processses:
(i) Pulpin
ng
(ii) Bleaching
(iii) g.
Rolling
226. Pulping
P invollves the the
ermo-mecha anical conveersion of wo ood chips into pulp, and is
therefore e processes.. However, specific ene
e the most energy-intenssive of these ergy consummption
per tonnee of paper produced
p va
aries with th
he quality of paper being manufactu ured. There efore,
the end-uuse of energ
gy by process varies wiith the produ uct quality. With the exxception of a few
large paper produce ers, the inddustry does not utilize energy efficcient techno ologies, succh as
cogeneraation and en
nergy recove ery from wasste streams.
b. E
al in the Pap
per Industry
y
227. Table
T 33 lis
sts the area
as with pottential for energy
e efficciency impro
ovements in
n the
Pakistani paper industry.
30
e: ‘Energy Cons
Source servation Data
abase and Secttoral Energy Usse Diagnosis’, RCG/Hagler Bailly, Inc.
31
Source
e: Census Man ustry 2005-06, Federal Burea
nufacturing Indu au of Statistics.
Asian Dev
velopment Ban
R
Table 33: Areas with Energy Efficiency Improvement Potential in the

Paper Industry
Thermal Energy Savings
i Efficient use of natural light
ii Insulate bare steam and condensate lines
iii Recover flash steam from paper machines and use in pre-dryers
iv Improving efficiency of boilers and water treatment
v Recover blow steam from one digester to pressurize another
vi Cogeneration
Total Savings in Thermal Energy 10%
228. For the purposes of this report, savings in thermal energy are shown as savings in
natural gas, as oil is utilized only as a backup fuel when natural gas is not available. The total
energy savings potential for natural gas in the Pakistan paper industry is estimated to be
169,621 TOE in year FY2019.

229. Almost a third of the paper mills are operated in line with international standards and
benchmarks. The savings are therefore estimated at a realizable potential factor of 70%, which
accounts for the proportion of industry that is not currently operating at efficient levels.
230. Investment requirements have been estimated assuming a simple payback period of two
years for upgrades in the paper industry, as indicated by industry experts. The average
investment requirement per mill on this basis is estimated at $0.75 million. Considering the
small scale of much of the paper industry, it is assumed that future expansion patterns will likely
continue with existing inefficient technologies, therefore keeping realizable savings unchanged
till FY2019. Table 34 indicates investment requirements, investment schedule, and the
estimated payback periods for energy efficiency improvements in Pakistan’s paper industry.


Schedule for the Paper Industry
Energy Energy Consumed, Energy Energy Efficiency Potential Realizable Savings, Investment Simple
(Yrs) (Yrs)
Natural Gas 50,470 1,196,746 102,191 2,423,157 10% 70% 7% 7,480 169,621 70 2.0 1.2
($ Million)
Annual - 1 4 13 20 19 10 3 1 -
Cumulative - 1 5 17 38 57 66 69 70 70
81
82 ADB TA 7060-PAK:
7 Pak
kistan Sustain
E Dev
velopment Pro
ogram
9. O
Other Industtry
231. T
This category
y comprises of the follow
wing main ind
dustrial subssectors:
(i) Chem
micals
(ii) Leathe
er
(iii) Food and beverag
ges
(ivv) Other general sma
all- and med
dium-sized in
ndustry.
a. E
Energy Cons
sumption
232. Other
O industrry has a share of aroun nd 29% in the t total ind
dustrial enerrgy consump ption,
utilizing natural gas and electriccity as its main
m energyy sources (F Figure 9). Natural gass and
electricityy account fo
or 63% and 22%, respe ectively, of energy
e consumption by these indusstries.
The rema aining 15% isi accountedd for by oil, which
w is utilizzed as a bacckup fuel forr natural gass.
Figure 9: Energy
E Con
nsumption by
b Other Industry
b. E
al in Other Industry
233. TheT technical potential fo or saving theermal energy is estimate ed at 17%, corresponding to
average energy savings potentia al for gas-co
onsuming ind dustries, succh as textiles, iron and steel,
s
and pape er, for which
h an industryy-wise analysis was conducted. Ado opting a simmilar approacch for
ntial for savvings in elecctricity is esstimated at 10%. Realizable electricity
electricityy, the poten
savings area estimate ed at 66,548 8 TOE. The total saving gs potential for
f this subssector is 537 7,739
TOE.
c. ssues, Barriers, and Investment Requiremen

Is R nts
234. General
G issue
es and barriiers in achie
eving the tecchnical savin
ngs potentia
al in the indu
ustrial
sector haave already been discu ussed earlierr. Savings are achieva able at a rea
alizable pote
ential
factor of roughly 35% %, which accounts for all
a constraintts in achievin
ng a higher technical ennergy
saving pootential.
235. In nvestment reequirementss have been estimated assuming
a a 1.5-year payyback of the
e total
investmeent required to upgrade e gas-based d equipment, and a 2.5-year payb back of the total
investmeent requiredd to upgrade electriciity-based equipment.
e Investmennt requirem ments,
investmeent schedule
e, and the esstimated payyback period d are indicate
ed in Table 35 and Table 33
for natura
al gas and electricity,
e re
espectively. The total in
nvestment reequired for upgrading
u naatural

gas-based equipment is around $146 million. The total investment required for upgrading
electricity-based equipment is around $183 million.
236. Considering the small to medium scale of most enterprises classified as other industry
and their dependence primarily on locally manufactured inefficient technologies, it is assumed
that further expansion patterns will not change the existing scenario, therefore keeping the
realizable savings unchanged until FY2019.

84
Schedule for Other Industry
Energy Energy Consumed, Energy Energy Efficiency Potential Realizable Savings, Investment Simple
(Yrs) (Yrs)
Natural Gas 136,937 3,858,161 277,269 7,811,956 17% 35% 6% 20,780 471,191 146 1.5 0.9

($ Million)
Annual - 1 9 26 42 39 20 6 1 -
Cumulative - 1 10 36 79 118 138 144 146 146

Schedule for Other Industry
Energy Energy Energy Energy Efficiency Potential Realizable Savings, Investment Simple
Type Consumed, Consumption FY2019 Required Payback
FY2008 Forecast, FY2019 Period
(Yrs) (Yrs)
Electricity 11,985 976,078 24,267 1,976,351 10% 35% 3% 817 66,548 183 2.5 2.9
($ Million)
Annual - 2 11 33 53 49 26 7 2 -
Cumulative - 2 13 46 99 148 173 181 183 183
ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 85
C. T
TRANSPORT
TATION SECTOR
237. TheT transporttation sector in Pakistan n consumedd 11.6 MTOE E of petroleu

um productss and
natural gas
g in FY200 08—with hig gh speed die
esel (HSD) accounting
a fo
or 68%, natuural gas for 15%,
motor sppirit (gasoline
e) for 13%, and
a aviation fuel for 4% of the energ
gy consumed d (Figure 100).
238. In n 2008, Pak kistan becamme the largeest user of compressed d natural ga as (CNG) in road
transporttation with 1.7 million ve
ehicles, or a quarter of the
t total num mber on the e road, convverted
to this teechnology.32 There are currently mo ore than 1,7
700 CNG fue eling station
ns in the couuntry,
65% of which
w are de
edicated CNG stations, while
w 35% are
a co-locate ed with liquid
d fuel dispen
nsing
facilities. An additionnal 200 CNGG stations are under con nstruction and almost 4,000 new liccense
applicatio ons are pendding.
239. Heavy
H traffic vehicles (HT
TV) are the main consummers of HSD D, with a sm
mall amount being
b
consume
ed by passen nger cars annd 4 wheel-d nger vehicless. 33
drive passen
Fig
gure 10: En
nergy Consu
umption in the Transpo
ort Sector
EEnergy Consu
umption by Se
ector, FY2008
8: 39.4 E
Energy Consu mption in
MTOE Transp
portation Secctor: 11.6 MTO
OE
Agriculture
A
Indusstrial 2%
43%
Gas
15%
Tran
nsport
2
29%
Oil
85%
Commercial
4%
Other Govt.
Domesticc 2%
20%
1. R
Road Transp
portation
240. OfO the total HSDH consummed in the country,

c road transporta ponsible for 91%,
ation is resp
accountinng for a significant pa art of the country’s oil import bill. Initiatives to save e fuel
consump ption in the transportatio
on sector ha ave been ta
aken in the past,
p one off them being g the
‘Fuel Effiiciency in Ro
oad Transpoort Sector’ (FERTS) proogram, whichh was initiatted by the Global
G
Environmment Facility (GEF) in 19
994. The pro ogram focussed on a veh p effort on a large
hicle tune-up
scale.
32
Just ahead of Argentin
na with 1.65 million and Brazil with 1.425 million CNG vehicles, according to the Interna
ational
Associa
ation of Natural Gas Vehicles (IANGV).
33
Heavy transport vehicles (HTVs) include
i buses,, trucks, oil ta
ankers and deelivery vans with
w large passsenger
capacity.
Asian Dev
velopment Ban
R
241. Energy efficiency potential for HSD use in road transport is estimated based on savings
achieved under the FERTS program. According to the FERTS data, a 20% reduction in HSD
consumption is achievable after proper vehicle engine tuning. This factor was reduced to 10%
for present analysis to account for the addition of more technologically advanced and efficient
vehicles in the interim since the program ended. A 12% reduction in gasoline and natural gas
consumption was applied to estimate the total energy efficiency potential possible through
vehicle tune-ups. 34 The proportion of the energy savings realized is assumed to be 30% to
50% of this, to account for the number of vehicles that do not undergo proper tune-ups.
Furthermore, the effects of tuning, in terms of fuel performance, start to wear off after some time
unless engine condition is maintained through regular checks.
242. The cost of a vehicle tuning station for light traffic vehicles (LTV) is taken as
$0.09 million, with a capacity to tune 900 vehicles annually. 35 The capacity of a tuning station
for heavy traffic vehicles (HTV) is assumed as half that of the LTV tuning station and the cost of
setting up such a station is approximately $0.13 million. Based on these assumptions, the total
energy savings potential and associated costs to achieve this potential have been estimated.
Table 37 summarizes the results of these energy savings, corresponding investment
requirements, investment schedule, and the estimated payback period calculations.
34
Adjustment applied to the 15% factor reported by SNGPL.
35
Escalation applied to 2005-06 revised estimates of FERTS program.


Schedule for Vehicle Tune-Ups
Energy Energy Consumed, Energy Consumption Energy Efficiency Realizable Investment Simple
Type FY2008 Forecast, Potential Savings, Required Payback
(TOE) (GWh) (TOE) Technical Realizable Effective (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
CNG 72,018 1,685,232 137,425 3,116,203 12% 50% 6% 2,161 48,992 75 2.9 2.8
(MMscf)
HSD 7,369,705 7,747,768 14,062,853 14,784,542 10% 30% 3% 336,194 353,447 72 0.3 0.5
(Tonnes)
Gasoline 1,432,635 1,530,586 2,733,751 2,920,764 12% 30% 4% 25,787 27,552 9 0.3 0.6
(Tonnes)
Total 8,874,358 10,963,586 16,934,028 20,821,509 157
($ Million)
Annual - 1.6 9.4 28.2 45.4 42.3 21.9 6.3 1.6 -
Cumulative - 1.6 11.0 39.2 84.6 126.9 148.9 155.1 156.7 156.7
87
2. Railways
243. Pakistan Railway operates passenger and freight trains on a network extending over
7,791 km throughout the country, and is presently carrying 84 million passengers and
6.42 million tonnes of freight annually.36 The energy efficiency potential of rail transportation
can be exploited through the following measures:
(i) Maintenance measures in the existing rolling stock
(ii) Track electrification to switch from diesel electric to electric traction, combined with
modal shift in freight from road to rail.
a. Maintenance Measures
244. The batteries on a number of diesel railway locomotives in service are old and cannot be
used to start up the engine. Train drivers therefore have no choice but to leave their engines
running in an idle mode even when not stationary, which increases fuel consumption
unnecessarily. Replacement of filters and periodic maintenance is also not adequately carried
out on locomotives. Replacement of batteries and improving engine maintenance through
timely servicing and replacement of parts can result in up to 7.5% reduction in the overall HSD
consumption of the existing railway fleet. The cost of upgrading one locomotive is
approximately $0.75 million, which would be required for 520 of the existing 550 diesel electric
locomotives in operation with Pakistan Railway. Improved training of staff and technicians will
also be required to improve existing fleet maintenance practices.
245. Energy savings achievable through simple maintenance measures are not included in
the investment program as these do not qualify as capital measures, and can easily be
implemented by Pakistan Railway through improved operational measures.
b. Track Electrification and Freight Modal Shift

246. At present, the electrified railway section between Lahore and Khanewal is not in use as
only one line of the dual track is electrified, making a two-way operation impossible. Studies
show that electrification of the rail track can lead to fuel conservation, as electric locomotives
are more efficient than diesel-electric locomotives. Based on international experience, net fuel
(HSD) savings from track electrification are estimated at 18%. The cost for track electrification
is approximately $0.25 million per km track electrified. The length of the main freight corridor
from Karachi to Islamabad is approximately 1,716 km, and the total cost of electrification of this
track would come to $423 million.
247. Presently, Pakistan Railway is transporting only 4% of the total freight haulage across
the country. Transporting one tonne of freight by railways consumes 80% less fuel than doing
so by road. Investment in track electrification will therefore be economic only if it is combined
with proper utilization of available track capacity to gain full benefit of the additional investment.
It is assumed that following track electrification, the share of railways in freight can be increased
at a rate of 1% per year from the present level of 4% to 14% over a ten-year period. Such a
modal shift will result in significant avoided fuel consumption otherwise consumed in the
transportation of freight by road.
36
Source: GM, Pakistan Railway.

248. Table 38 summarizes the results of energy saving potential, investment requirements,
investment schedule, and the estimated payback period for railway track electrification in the
high-traffic freight corridor.
Table 38: Energy Consumption, Realizable Savings, Investment Requirements, and

Schedule for Railway Track Electrification and Modal Freight Shift
Energy Efficiency Realizable Savings Investment Simple Payback
Potential Required Period
Technical Realizable Effective (Tonnes) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
HSD 18% 100% 18% 782,090 822,226 423 0.6 1.2
($ Million)
Annual - 4.2 25.4 76.2 122.7 114.3 59.2 16.9 4.2 -
Cumulative - 4.2 29.6 105.8 228.5 342.8 402.0 419.0 423.2 423.2
3. Mass Transit
249. Mass transit allows economies of scale in comparison to private as well as public
transport. A shift to mass transit systems will result in fuel savings, saving in commuting time,
and lower emissions leading to better air quality in the urban areas.
250. The Government is already considering mass transit programs for Lahore, Karachi and
Islamabad. Detailed costs and specifications of the Lahore mass transit program are available,
and were used as a basis to develop cost estimates for mass transit systems in Karachi and
Islamabad by applying adjustment factors for the sizes and populations of the cities. Cost and
program specifications for the three cities are given in Table 39.
Table 39: Program Specifications and Costs for Mass Transit Programs
Cities Cost Priority Line Length Passengers per Day Annual Passengers
($ Million) (km) (No.) (No.)
Lahore 2,704 27.5 275,000 100,375,000
Islamabad 867 8.8 28,293 10,326,916
Karachi 1,169 37.1 499,316 182,250,480
251. The associated energy saving potential has been estimated by calculating fuel avoided
in road transportation through a shift of a proportion of passengers to mass transit systems. It is
assumed that 80% of passengers currently commuting by bus and 20% using private
transportation means will switch to mass transit facilities if these are made available. It was also
assumed that the average distance travelled by a passenger is half of the total length of the
trunk mass transit line. The average number of passengers per vehicle is assumed to be 1.5
and 20 for cars and buses, respectively. Total passenger-km were calculated on this basis and
the corresponding fuel consumption (CNG for cars and HSD for buses) was determined, using

average fuel economy of a car and bus on CNG and HSD, respectively—i.e., 22.5 km/liter for
cars and 7.2 km/liter for buses. Avoided fuel was assumed to be 80% of the total fuel
consumed by cars and buses.37
252. Table 40 summarizes the results of energy saving potential, investment requirements,
investment schedule, and the estimated payback period for introducing mass transit in three
major cities. A high simple payback period calculated for savings in energy alone indicates that
it will not be possible to justify the switch to mass transit systems based on energy use alone,
and other factors such as the value of time saved and environmental benefits will have to be
considered to justify the investment. Furthermore, due to the high payback period based on
energy savings alone, mass transit would not be viable exclusively on energy efficiency
grounds, and is therefore not included in the total EE investment requirement for the country.

Schedule for Mass Transit Programs
Technical Realizable Effective (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
HSD 18,088 19,016
Tonnes
100% 100% 100% 4,740 226 334
CNG 481 10,906
MMscf
($ Million)
Annual - 47 284 853 1,375 1,280 664 190 47 -
Cumulative - 47 332 1,185 2,560 3,840 4,503 4,693 4,740 4,740
D. RESIDENTIAL SECTOR
253. The residential sector in Pakistan consists of over 24 million households that account for
20% of the total commercial energy consumption in the country. Natural gas dominates the fuel
mix (Figure 11) for the residential sector with a 59% share in the total energy consumption.
About 20% of households in the country have access to piped natural gas. Electricity is
available to about 70% of the households, and accounts for 34% of the total energy
consumption in the residential sector. Oil, mainly kerosene, and LPG accounts for the
remaining 7% of residential energy use.
37
Same factor applied as in the case of railways. Refer to section ‘Track Electrification and Freight Modal Shift’
above.

ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 91
Fig
gure 11: Ene
ergy Consu
umption in the
t Residen
ntial Sector
Energy Consum
mption by Sector, FY2008:: Energgy Consumptiion in
39.4 MTOE Residenttial Sector: 8.0
05 MTOE
Transsport Oil
Electricity
29
9% 2%
Other Govt. 34%
2%
Agriculturee
2%
Dom
mestic
20%
LPG
5%
Commerciaal
4%
Ind
dustrial Gas
43% 59%
254. Table
T dicates fuelss consumed by end-use
41 ind e in the resiidential secttor. Electriccity is
predominnantly used for lighting, space coooling, and to operate other
o houseehold applian nces.
Natural gas
g is used for
f space an nd water hea
ating, and co
ooking.
Table
e 41: Fuel Uttilization by
y End-Use in the Resid
dential Secto
or
E Use
End Natural Ga
as Electric
city O
Oil Coal
L
Lighting 9
C
Cooking 9 9
9
S
Space heating
g 9 9
W
Water heating
g 9
O
Other appliances 9 9
1. E
Electricity Consumption
n
255. In n FY2008, electricity con nsumption in

n the residenntial sector was
w 33,704 GWh.
G Figurre 12
gives a breakdown n of final residential
r electricity consumption
c n by end-use. The main
assumptions used for f numberss of applian nces, their types, and electricity consumption
c n per
appliance
e in order to arrive at this breakdown are provided in the following sections.
Asian Dev
velopment Ban
R
92 ADB TA 7060-PAK:
7 Pak
kistan Sustain
E Dev
velopment Pro
ogram
Figure 12: Electricity Consumption by End-Use in the Residential

R Sector
Total Electriciy Co
onsumption: 33,704 GW
Wh
neral
Gen
Space Appliances
Cooling 299%
36%
Lightingg
35%
2. E
al in Lighting Appliance
es
256. There
T are approximatel
a y 17 million electrified
d residential customerss in Pakista an at
present. Table 42 gives
g a distrribution com
mpany (DISC CO)-wise breeakup of the
e total reside
ential
customerr base, with further divission by consumption cate egories.
257. There
T are preesently apprroximately 117.4 million residential light
l points in the countrry, as
reported by the Pakis stan EEIP Baseline
B Dommestic Lightiing Survey——36% of which are fitted d with
incandesscent bulbs (IBs), 42% with compa act fluoresceent lamps (CFLs), and 22% with linearl
fluoresceent tube lightts (FTL), as illustrated in
n Figure 133. Furthermo ore, survey results
r showw that
IB and CFL
C light poin nts are usedd for an avera age of 2.9 hours daily, and
a FTL ligh ht points are used
for an avverage of 3.3
3 hours dailyy.
Fiigure 13: To
otal Househ
hold Light Points
P by La
amp Type
Total Light Points: 117 Million
CFLs
41%
IBs
37%
FTLs
22%


Table 42: Total Residential Customer Base
Category LESCO GEPCO FESCO IESCO MEPCO PESCO TESCO HESCO QESCO PEPCO KESC Total
(kWh/Month) Total
Up to 50 667,788 719,772 891,631 582,955 1,528,326 760,814 38,016 446,521 122,120 5,757,943 370,365 6,128,308
51-100 546,008 551,466 681,884 372,223 896,475 562,278 8,268 256,710 137,537 4,012,849 340,738 4,353,587
101-300 1,051,772 652,697 699,315 596,537 793,153 690,013 56,592 414,893 85,221 5,040,193 659,135 5,699,328
301-1000 131,367 45,491 52,737 66,720 48,644 76,182 99,655 52,115 11,039 583,950 125,827 709,777
Above 1000 14,586 2,979 4,866 8,976 4,403 10,636 50,521 8,221 1,921 107,109 6,254 113,363
Temporary 6,061 372 93 991 702 217 1 32 6 8,475 - 8,475
Residential
A1 (TOD) 24 11 50 253 32 1 - 6 - 377 - 377
Total 2,417,606 1,972,788 2,330,576 1,628,655 3,271,735 2,100,141 253,053 1,178,498 357,844 15,510,896 1,502,319 17,013,215
93
c. Replacing Incandescent Bulbs with CFLs

258. Significant savings in electricity consumption can be achieved by replacing IBs in the
domestic sector with energy efficient CFLs that provide the same lumen output at lower wattage
levels and have a longer lifetime.38
d. Upgrading Fluorescent Tube Lights

259. Survey results show that presently 40W fluorescent tube lights with electromagnetic
ballasts are the most commonly used FTLs in Pakistan. Electricity savings can be achieved by
replacing these with 32W FTLs with more efficient electronic ballasts that have ballast losses of
1W, as compared to an average of 11W for electromagnetic ballasts.
260. Table 43 summarizes the energy saving potential, investment requirements, investment
schedule, and estimated payback period for replacing IBs and upgrading FTLs in the residential
sector. The investment requirements are based on the international bulk procurement rates for
CFLs and an assumed procurement rate of $4.0 for a 32W FTL. 39 Given the attractiveness of
this investment, it is assumed that as much as 80% of the technical savings potential can be
realized. Furthermore, it is assumed that new electrical lighting appliances introduced into the
residential sector in the future will generally be efficient, and therefore no further realizable
savings potential for such additions is factored in.
38
A quality CFL can have a life of up to 10,000 hours.
39
$1-1.5 for 13-15W CFLs and $1.37-1.85 for the 21-25W CFLs. Procurement rate for FTLs was assumed to be
$4.0 for a 32W FTL.


Schedule for Replacing and Upgrading Lighting Appliances
Energy Energy Energy Energy Efficiency Potential Realizable Investment Simple
Type Consumed, Consumption Savings, Required Payback
FY2008 Forecast, FY2019 FY2019 Period
(Yrs) (Yrs)
Lighting 5,641 459,433 13,156 1,071,410 54% 80% 44% 2,455 199,938 191 0.9 1.0
($ Million)
Annual - 1.9 11.5 34.4 55.4 51.6 26.7 7.6 1.9 -
Cumulative - 1.9 13.4 47.8 103.2 154.7 181.5 189.1 191.0 191.0
95
3. Electrical Appliances
261. Of the total electricity consumption in the residential sector, 47% can be attributed to
appliances used for space cooling. These include ceiling or pedestal fans that operate for about
seven months of the year in most parts of the country, and room coolers and air conditioners
that are utilized for approximately four months during the peak summer period. Other
appliances, such as refrigerators, water pumps, televisions, and computers account for the
remaining 36% of electricity used.
262. The energy savings potential in domestic refrigeration, water pumping, and air
conditioning has been assessed. Of the total residential sector electricity consumption, air
conditioning consumes around 17%, refrigeration 13% and water pumping 4%. Table 44
provides a summary of the main assumptions based on which the final savings potential and
associated costs have been estimated.
Table 44: Basis for Savings Potential and Investment Estimates for
Replacing Inefficient Electrical Appliances
Residential Electricity Customers (Households) 17.0 Million
Refrigeration
Electrified customers with refrigerators 38%
Improvement potential 67%
Replacement cost 250 $/refrigerator
Proportion of inefficient appliances 24%
Water Pumping
Electrified customers with pumping 38%
Replacement cost 100 $/pump
Air Conditioning
Electrified customers with air conditioners 15%
Replacement cost 250 $/air conditioner
263. Table 45 summarizes of the estimated energy saving potential, investment

requirements, investment schedule, and payback periods for replacing inefficient refrigerators,
pump motors, and air conditioners in the residential sector. It is assumed that all new electrical
appliances to be introduced into the residential sector in future will be relatively efficient, and
therefore no further additional realizable saving potential is considered for the future..


Schedule for Replacing Electrical Appliances
Energy Type Energy Energy Energy Efficiency Potential Realizable Savings, Investment Simple
Consumed, Consumption FY2019 Required Payback
(Yrs) (Yrs)
Refrigeration 4,524 368,424 10,550 859,176 67% 80% 54% 2,425 197,475 304 1.5 1.6
Water 1,258 102,422 2,933 238,852 50% 80% 40% 503 40,969 465 10.9 12.2
Pumping
Air 5,845 476,024 13,631 1,110,102 40% 80% 32% 1,870 152,328 149 0.9 1.0
Conditioning
Fans 10,105 822,950 23,565 1,919,143 0% 0% 0% - - - - -
Others 6,332 515,657 14,765 1,202,526 0% 0% 0% - - - - -
Total 28,064 2,285,477 65,444 5,329,799 4,798 390,772 918
($ Million)
Annual - 9.2 55.1 165.2 266.2 247.9 128.5 36.7 9.2 -
Cumulative - 9.2 64.3 229.5 495.7 743.6 872.1 908.9 918.0 918.0
97
98 ADB TA 7060-PAK:
7 Pak
kistan Sustain
E Dev
velopment Pro
ogram
4. N
Natural Gas Consumptiion
264. Figure 14 giv ves estimate

es for the proportion
p off heating and
d cooking in
n total reside
ential
natural gas consump
ption.
F
Figure 14: Natural
N Gas
s Consumpttion in the Residential
R Sector by End-Use
E
Total Natural Gass Consumption: 4.8 MTO
OE
W
Water
Heeating
2
21%
Cooking
63%
Spacce
Heating
%
16%
265. Estimates
E forr the domesstic end-uses of gas ha ave been de eveloped thrrough analyssis of
monthly demand pro ofiles for both national gas utilities (Figure 15). Gas dema and for cookiing is
uniform through the e year, whereas space and water heating bo oth contributte to peak loads
l
during th
he winter seaason. The minimum
m moonthly dema and in the su
ummer seasson is consid dered
as dema and for cooking, and the differencce from pea ak demand (demand duringd the winter
w
season) is attributed to space an nd water hea ating. To esstimate the proportion
p off water heatiing in
the total natural gas demand, th he difference
e in the miniimum month hly demand and the dem mand
during th
he months of o March, Ap pril, Octoberr and Novem mber is takeen as gas demand for water
w
heating. During thes se months, there is neg a the additional demand in
gligible spacce heating and
comparisson to the minimum
m monnthly demannd can there efore be conssidered due entirely to water
w
heating.
Figure 15
5: Utility-wis
se Monthly Residentiall Sector Gas
s Demand Profile
P
25,000
SNGPLL System
20,000
MM ft/M th
MMscft/Month
15,000 SSGC SSystem
10,000
5,000
0
Jul
J Aug Seep Oct No
ov Dec Jan
n Feb Marr Apr May Jun

266. Energy efficiency potential in gas used for domestic water heating is 30%,40 which can
be achieved by retrofitting water heating appliances. The gas utilities, SSGC and SNGPL, have
devised such retrofits for existing water heating appliances at a cost of approximately $12.5 per
water heater.
267. The potential for improving energy efficiency in space heating is estimated at 36%,
which can be achieved by replacing existing low quality space heaters with more efficient ones.
The typical cost of a new space heater is approximately $25 per heater. Similarly, the potential
for improving energy efficiency in cooking is estimated at 40%, which can be achieved by
replacing existing inefficient stoves with new ones costing approximately $10 each. Table 46
summarizes the results of the energy savings potential, investment requirements, investment
schedule, and the estimated payback period for replacing and upgrading water heaters, space
heaters, and cooking stoves in the residential sector. It is assumed that all future gas heating
and cooking appliances introduced into the residential sector will be more efficient, and
therefore future realizable saving potential is taken to be zero.
40
Estimates for savings potential in gas appliances from SNGPL.

100
Schedule for Replacing Gas Appliances
Energy Energy Consumed, Energy Consumption Energy Efficiency Potential Realizable Savings, Investment Simple
Type FY2008 Forecast, FY2019 Required Payback
FY2019 Period
(MMscf) (TOE) (MMscf) (TOE) Technical Realizable Effective (MMscf) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
Water 42,241 988,441 98,507 2,013,679 30% 80% 24% 10,138 237,226 28 1.3 0.3

Heating
Space 33,430 782,274 77,961 986,886 36% 80% 29% 9,628 225,295 99 4.8 1.1
Heating
Cooking 128,363 3,003,705 299,347 7,788,899 43% 80% 34% 43,644 1,021,260 52 0.5 0.1
Total 204,035 4,774,412 475,815 10,789,464 39% 80% 31% 63,409 1,483,780 179 1.3 0.3
($ Million)
Annual - 1.8 10.7 32.2 51.9 48.3 25.1 7.2 1.8 -
Cumulative - 1.8 12.5 44.8 96.7 145.0 170.1 177.2 179.0 179.0
5. Roof Insulation
268. Energy savings can be achieved by installing roof insulation in existing residential
buildings. This can result in reduced electricity demand for air conditioning by as much as 20%.
Total associated energy saving potential has been estimated for the proportion of the
population that uses air conditioning, which is 9% of the 17 million residential electricity
customers in the country. To calculate the energy savings afforded by roof insulation, it is
assumed that all households employ efficient air conditioning equipment. Under these
assumptions, the energy savings possible due to new roof insulation in residential buildings
across Pakistan are estimated to be 634,831 MWh per annum. Based on current market prices,
the cost of roof insulation is taken as $1,500 per household. Therefore, the required roof
insulation in residential buildings could be installed at a total cost of $2.2 billion. Table 47
summarizes the results of energy savings potential, investment requirements, investment
schedule, and estimated payback periods for roof insulation in the residential sector. Due to the
long payback period, roof insulation does not appear viable on energy efficiency grounds, and is
therefore not included in the total EE investment requirements calculated for the country.
Table 47: Realizable Savings, Investment Requirements and

Schedule for Installing Roof Insulation
Energy Efficiency Realizable Investment Simple Payback
Potential Savings Required Period
Technical Realizable Effective (GWh) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
Roof Insulation 20% 100% 20% 1,047 149,634 3,826 43 48
($ Million)
Annual - 38 230 689 1,110 1,033 536 153 38 -
Cumulative - 38 268 956 2,066 3,099 3,635 3,788 3,826 3,826
E. COMMERCIAL SECTOR
269. The commercial sector in Pakistan consists of government and private offices, shops,
markets, hotels, etc., which account for 4% of the total commercial energy consumption of the
country. Natural gas dominates the fuel mix (Figure 16) in the commercial sector, with a 55%
share in its total energy consumption. Electricity accounts for 31% of the energy consumed by
the commercial sector, while LPG makes up the remaining 14% of the fuel mix.

102 ADB TA 7060-PAK:
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kistan Sustain
E Dev
velopment Pro
ogram
Figure 16: Ene

ergy Consum
mption in th
he Commerrcial Sector
Energy Con
nsumption by SSector, Enerrgy Consumptio on in
FY2008: 39.4 MTOEE Commerrcial Sector: 1.4
46 MTOE
Other Govt.
2%
Transsport Domestic
29%% 20% Electricityy
31%
Agriculture
2% mercial
Comm
4%
%
LP
PG
Gas
G 14
4%
5
55%
Industrial
43%
1. E
Electricity Consumption
n
270. In n FY2008, electricity con nsumbed byy the comme ercial sector was 5,572 GWh.
G Figurre 17
gives a breakdown
b of
o the final ellectricity con
nsumed by end-use,
e estimates of whhich were arrrived
at using an end-use e approach. The main assumptionss used for numbers n of appliances, their
types, an
nd electricity
y consumptio on per applia ance are desscribed in the
e following sections.
s
Figure 17: Electricity Consumptio

C on by End-U
Use in the Commercial
C l Sector
Total Electricity C
Consumption
n: 5,572 GW
Wh
General
Appliancees Lighting
26% %
38%
Space
Cooling
C
36%
2. E
Energy Savings Potentiial in Lighting Appliances
271. There
T are appproximatelyy 2.8 million electrified commercial customers in Pakistan. To
calculate
e the total number
n of commercial light points in the coun ntry, an averrage of five light
points pe o customer is assumed,, giving a tottal of 13.8 million
er commercial location or m commeercial

light points in the country. 25% of the total light points are taken as IB light points, 55% as CFL
light points, and the remaining 20% are assumed to be fluorescent tube lights (FTLs).
a. Replacing Incandescent Bulbs with Compact Fluorescent Lamps

272. Of the total IB light points in the country, 90% are assumed to be 100W IBs and the
remaining 10% 200W IBs. Significant savings in the electricity consumed by the commercial
sector can be achieved by replacing the 100W and 200W IBs in commercial locations with
energy efficient CFLs that provide the same lumen output at lower wattage levels, and have a
longer lifetime, which further adds to their financial viability. For a 100W IB with a minimum
1,350-lumen output at an enhanced 60 lm/W efficacy standard, CFLs in the range of 23-25W
can be used as a replacement. For a 200W IB, a 46W CFL is taken as an efficient replacement.
b. Upgrading Fluorescent Tube Lights

273. Presently, 40W fluorescent tube lights with electromagnetic ballasts are being most
commonly used in Pakistan (80% of total FTL light points). Electricity savings can be achieved
by replacing them with 32W FTLs with more efficient electronic ballasts that have losses of 1W
as compared to average losses of 11W in electromagnetic ballasts.
274. Table 48 summarizes the results of the energy saving potential, investment
requirements, investment schedule, and estimated payback periods for replacing IBs and FTL
upgrades in the commercial sector. These investment requirements are based on international
bulk procurement rates for CFLs and an assumed procurement rate of $4.0 for a 32W FTL, with
an additional 5% of the procurement cost taken as program administration costs. Given the
attractiveness of this investment, it is assumed that 80% of the available technical potential can
be realized. Furthermore, it is assumed that all future lighting appliances introduced in the
commercial sector will be efficient, and therefore future realizable saving potential on this
account is taken as nil.
3. Electrical Appliances
275. Of the total electricity consumption in the commercial sector, 47% can be attributed to
appliances used for space cooling. These include ceiling or pedestal fans that typically operate
for about seven months of the year, and room coolers and air conditioners that are utilized for
approximately four to five months during peak summer periods. Other appliances, such as
refrigerators, water pumps, and office and general appliances utilize the remaining 25% of total
energy consumed.
276. The energy savings potential in refrigeration and air conditioning for this sector has been
assessed. Similar assumptions to those taken in the domestic sector are applied to estimate
the end-use share of refrigeration and air conditioning in the commercial sector as well. Of the
total commercial sector electricity consumption, air conditioning consumes approximately 17%
and refrigeration about 13%. Table 49 summarizes the results of energy savings potential,
investment requirements, investment schedule, and the estimated payback periods for replacing
inefficient refrigerators and air conditioners in the commercial sector. It is assumed that all new
electrical appliances introduced in the commercial sector in future will be efficient, and therefore
the additional realizable saving potential will be zero.

104
Schedule for Replacing and Upgrading Lighting Appliances
Energy Energy Consumed, Energy Consumption Energy Efficiency Potential Realizable Investment Simple Payback
Type FY2008 Forecast, FY2019 Savings FY2019 Required Period
(Yrs) (Yrs)
Lighting 1,537 125,171 5,373 437,596 25% 80% 20% 312 25,430 9 0.2 0.4

($ Million)
Annual - 0.1 0.5 1.6 2.6 2.4 1.2 0.4 0.1 -
Cumulative - 0.1 0.6 2.2 4.8 7.1 8.4 8.7 8.8 8.8

Schedule for Replacing Electrical Appliances
Energy Type Energy Energy Energy Efficiency Potential Realizable Savings Investment Simple
(Yrs) (Yrs)
Refrigeration 748 60,908 2,615 212,935 67% 80% 54% 401 32,647 40 0.8 1.3
Air Conditioning 966 78,697 3,378 275,124 40% 80% 32% 309 25,183 20 0.5 0.8
Fans 1,671 136,051 5,840 475,633 0% 0% 0% - - - - -
Others 650 52,965 2,274 185,164 0% 0% 0% - - - - -

Total 4,035 328,621 14,107 1,148,856 710 57,830 60
($ Million)
Annual - 0.6 3.6 10.8 17.4 16.2 8.4 2.4 0.6 -
Cumulative - 0.6 4.2 15.0 32.3 48.5 56.9 59.3 59.9 59.9
ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 105
4. N
Natural Gas Consumptiion
277. Natural
N gas consumption
c n in the com
mmercial secctor amounted to 0.8 MTOE
M in FY2
2008.
1 gives es
Figure 18 stimates for the proporrtion of natu
ural gas use
ed for heating and coo
oking
purposess in the secto
or.
F
Figure 18: Natural
N Gas Consumption by End--Use in the Commercia
al Sector
Total Natural Gass Consumption: 0.8 MTO
OE
W
Water
Heeating
6
6%
Cooking
92% Spaace
Heatting
2%%
278. Estimates
E forr end-uses of
o natural gaas in the commmercial secctor were de eveloped thrrough
an analyysis of monthly demand d profiles of
o the two national
n gass utilities (Fiigure 19). Gas
demand for cooking is taken as uniform thro oughout the year, where eas space and water he eating
contribute to the pea ak loads during the winnter season. The minim mum monthly demand in the
summer season is considered
c a demand for cooking, and the diifference fro
as om peak dem mand
(demand d during the winter seasson) is attrib
buted to spa ace and water heating. To estimate the
proportio
on of water heating in the total na atural gas demand,
d e difference in the miniimum
the
monthly demand an nd demand during the months
m of March,
M April, October and
a Novembber is
taken as gas deman nd for water heating. During
D these months, theere is no sp pace heating
g and
the addittional deman nd in compaarison to the
e minimum monthly
m demmand is entirrely due to water
w
heating.
gure 19: Utiility-wise Monthly Gas Demand Prrofile for the Commerc
Fig cial Sector
Asian Dev
velopment Ban
R
279. The energy efficiency potential in gas used in the commercial sector for water heating is
30%, which can be achieved by retrofitted upgrades to existing water heating appliances. 41 The
gas utilities, SSGC and SNGPL, have devised such retrofits for existing water heating
appliances which cost approximately $12.5 per water heater.
280. The potential for improvement of energy efficiency in gas-based commercial space
heating applications is estimated at 36%, which can be achieved by replacing existing space
heaters with more efficient ones. The cost of a new space heater is approximately $25 per
heater. Similarly, the potential for improving energy efficiency in cooking is estimated at 40%,
which can be achieved by replacing existing inefficient stoves with better designs. The cost of a
new stove is approximately $10.
281. Table 50 summarizes the results of energy savings potential, investment requirements,
investment schedule, and estimated payback periods for replacing and/or upgrading water
heaters, space heaters and cooking stoves in the commercial sector. It is assumed that all
future gas-fired appliances introduced in the commercial sector will be efficient, and therefore no
additional realizable saving potential is considered.
5. Roof Insulation
282. Energy savings can also be achieved by installing roof insulation in existing commercial
buildings in the country. This can result in energy savings by reducing electricity demand for air
conditioning by up to 20%.42 The energy saving potential is estimated for the proportion of
commercial electricity customers that utilize air conditioning, which is 60% of the total 2.7 million
commercial electricity subscribers in the country. In order to calculate energy savings resulting
from new roof insulation, it is assumed that all customers are already using efficient air
conditioning plants. With these assumptions, potential energy savings due to roof insulation in
commercial buildings are estimated to be 193 GWh per annum. Based on current market
prices, the average cost of roof insulation is estimated at $1,500 per building. Therefore, energy
savings through roof insulation in commercial buildings can be achieved at a total cost of $949
million. Table 51 summarizes the results of energy savings potential, investment requirements,
investment schedule, and the estimated payback periods for installing roof insulation in the
commercial sector. Due to the long payback period, the energy efficiency potential of installing
roof insulation is not considered viable, and has therefore not been included in the total
investment requirements for the country.
41
Estimates for savings potential in gas appliances from SNGPL.
42
In the absence of independent estimate for commercial buildings in Pakistan, the same factor as that for roof
insulation in domestic sector buildings was applied.


Schedule for Replacing Gas Appliances
Energy Type Energy Energy Energy Efficiency Potential Realizable Savings Investment Simple
(Yrs) (Yrs)
Water Heating 2,177 50,933 7,609 172,551 30% 80% 24% 522 12,224 1.5 0.5 0.3
Space Heating 563 13,169 1,967 44,613 36% 80% 29% 162 3,793 1.7 1.9 1.1
Cooking 31,166 729,275 108,954 2,470,618 43% 80% 34% 10,596 247,953 12.6 0.2 0.1
Total 33,905 793,367 118,531 2,687,782 42% 80% 33% 11,281 263,970 16 0.3 0.1
($ Million)
Annual - 0.2 0.9 2.8 4.6 4.2 2.2 0.6 0.2 -
Cumulative - 0.2 1.1 3.9 8.5 12.7 14.9 15.5 15.7 15.7
Table 51: Realizable Savings, Investment Requirements and Schedule for Installing Roof Insulation
Energy Efficiency Potential Realizable Savings Investment Required Simple Payback Period
(Yrs) (Yrs)
Roof Insulation 20% 100% 20% 193 27,626 949 38 65
($ Million)
Annual - 9 57 171 275 256 133 38 9 -
Cumulative - 9 66 237 512 769 901 939 949 949
107
F. AGRICULTURE
283. Agriculture is the largest sector of Pakistan’s economy, contributing about 21% of the
GDP.43 Average economic growth rate of the sector for the period 2004 to 2008, however, was
relatively low at 4.08% compared to an overall economic growth rate of 6.98%. This is reflective
of inefficient farm and cultivation practices that contribute to low levels of productivity. The
agricultural sector in Pakistan comprises of major crops, minor crops, livestock, fishing, and
forestry. Most of the energy consumed in agriculture is for the operation of water pumps for
irrigation and tractors for soil preparation and haulage of agricultural supplies and products.
Commercial energy use in the sector is gradually increasing, with increasing farm
mechanization and adoption of technologies and practices to improve productivity.
1. Energy Consumption
284. Energy used in the agriculture sector includes electricity, LDO and HSD.44 Electricity is
used only for the operation of tube wells (turbine pumps), whereas LDO and HSD are used to
operate both tube wells and tractors. Agriculture accounts for 11.5% of the demand for
electricity and 94.5% of the demand for LDO in the country. Published statistics combine HSD
consumption in the agriculture sector with transportation sector data; therefore, separate figures
for HSD consumption in agriculture are not available. Energy efficiency improvements related
to the use of tractors have therefore been accounted for here in the transportation sector.
However, to estimate the total energy consumption in tube well operations, HSD consumption is
worked out assuming an average load factor of 12%,45 which translates into an approximately
13.90% of the overall consumption of the fuel in the transportation sector. Fuel-wise
consumption in tube well operations is presented in Table 52.
Table 52: Fuel-wise Consumption in Tube Well Operations, 2008

(TOE)
Fuel Electricity LDO HSD
Country Consumption 5,977,697 120,012 7,907,464
Consumption in Pumping and Tube Wells 689,948 113,418 1,099,361
Consumption Share in Pumping and Tube Wells 11.54% 94.51% 13.90%
285. To estimate energy use in base year 2008, data for the number of tube wells installed for
the year 2004 are adjusted based on the average growth rate of the agriculture sector over the
subsequent four years. The data are also adjusted to account for non-operating tube wells.
Tube wells operating in Pakistan can be divided into three categories; electric, diesel engine-
operated, and others. The total number of tube wells, with respective horsepower ranges for
each category, is presented in Table 53.
43
Pakistan Economic Survey 2007-08, page 17.
44
LDO used only for tube well operations.
45
Based on information from various agriculture sector sources; needs further verification.

Table 53: Total Number of Tube Wells in 2008

Horsepower 8 12 18 22 24 30
Electric Motor-Operated 14,666 27,283 19,561 380 279 8,812
Diesel Engine-Operated 413 15,230 75,424 1,710 1,869 12,218
Others 96 32 173 10 - 1,073
Total 15,175 42,546 95,158 2,100 2,148 22,103
Source: Pakistan Agriculture Machinery Census, 2004.
286. Both diesel and electric pump sets are used in Pakistan for irrigation pumping
applications. The efficiency of these engines depends on their loading, speed, quality, design,
and fabrication. Centrifugal lift pumps are mostly used in the Indus plains to raise groundwater
for irrigation. The efficiency of the pump depends on its operating speed—for a given pump,
there is an optimum speed which yields maximum efficiency. Small and low-speed pumps
operate best at about 1,500 rpm.
287. For low-speed diesel engines that are generally coupled to run at about 500 rpm, a
transmission system is required; the simplest and cheapest method for this is by running a
transmission belt between two pulleys of different sizes. Belt transmission systems often cause
losses due to flapping and slippage of the pulley wheels. When belts are correctly fitted, the
efficiency of the transmission system should be 85 to 90 percent. With direct coupling systems,
the efficiency can be as high as 95 percent for high-speed engines and motors operating at
higher speeds, and can be coupled directly to the pumps. Operated in an appropriate manner,
the efficiency of the pumping system can exceed 80%, but can drop to 50% at incorrect and
partial loads. Engine manufacturers in Pakistan typically claim a diesel fuel consumption of
0.33 liters per kWh (0.25 liters per horsepower-hour) of shaft power, which is equivalent to
about 30% efficiency. These estimates are based on laboratory tests under field conditions.
The best efficiency expected of a poorly-loaded engine is approximately 25 percent; with a
poorly maintained engine, this could drop to as low as 10 to 15 percent.
288. As with diesel engines, the efficiency of electric motors used to derive pump sets also
depends on loading. Operating at the rated load, the motor’s efficiency should be between 80%
and 90%. This efficiency drops with the capacity of motors used. For high quality motors, at
75% of rated capacity, efficiency drops by about 10% from full load efficiency. For motors with
poor quality windings and incorrect insulation, the efficiency of the electric motor could be as low
as 54%. These poor quality motors are prevalent in Pakistan, especially among motors that
have been locally rewound and repaired. In addition, many of the locally manufactured motors
exhibit very poor power factor ratings throughout their operating range.
289. Direct energy use in irrigation can be influenced in two basic ways: increasing the
efficiency of pump systems used and reducing the quantity of water required for irrigation. The
irrigation pumping subsector has been analyzed on the basis of new and existing diesel and
electric pump sets. Energy savings are computed on the basis of increasing the efficiencies of
existing and new electric pumps from current estimated efficiency of 21.6 percent to a new of
35.7 percent, and from the current 5.4 percent to 10.1 percent. It should be noted that these
efficiency improvements represent a conservative estimate of the average achievable
improvements.
290. The economic price for electricity is assumed at Rs 6.08/kWh, whereas the economic
prices of LDO and HSD are taken at Rs 39,263/tonne and Rs 35,724/tone, respectively, with a
combined payback period of 0.90 years.

291. The financial price for electricity is assumed at Rs 5.10/kWh, whereas the financial
prices of LDO and HSD are taken at Rs 54,643/tonne and Rs 67,505/tone, respectively, with a
combined payback period of 0.66 years.
292. The electric motors and diesel pump market in the country is dominated by relatively
inexpensive, locally manufactured, inefficient equipment. Generally, since farmers are quite
price-conscious, it is expected that the current market share of locally-manufactured equipment
is unlikely to change, keeping additional energy savings potential in this respect unaffected to
2019.
2. Energy Savings Potential, Barriers and Constraints to Energy Efficiency, and

Investment Potential
293. According to agricultural experts and manufacturers of high efficiency pumps, motors,
and engines, approximately 38% of the electricity consumed by electric pumps in the agriculture
sector can be saved by replacing existing electric motors and pumps with more efficient ones
available locally. Similarly, LDO and HSD consumption can be reduced by up to 50% by
replacing the existing low efficiency pump sets used in the tube wells. Farmers in Pakistan,
however, have limited access to capital and are therefore severely constrained in making cash
investments required for the purchase of high efficiency tube wells. These barriers can be
removed by improving access to credit and promoting awareness on the benefits of high
efficiency pumping technologies. In view of the significant potential for saving energy and
recognizing the constraints faced by farmers, investment requirements for the replacement of
older inefficient tube wells with new, more efficient configurations have been estimated
assuming 50% replacement of the existing equipment over a period of ten years. Investment
requirements, investment schedule, and estimated payback periods for electric motors and
diesel engines are indicated in Table 54 and Table 55, respectively.


Schedule for Electrical Motor Replacement
Energy Energy Energy Consumption Energy Efficiency Potential Realizable Investment Simple
Type Consumed, Forecast, Savings, FY2019 Required Payback
(Yrs) (Yrs)
Electricity 8,472 689,948 17,791 1,448,946 38% 50% 19% 3,336 271,677 93 0.4 0.4
($ Million)
Annual - 0.9 5.6 16.8 27.1 25.2 13.1 3.7 0.9 -
Cumulative - 0.9 6.5 23.3 50.4 75.6 88.7 92.4 93.3 93.3

Schedule for Diesel Engine Replacement
Energy Energy Consumed, Energy Consumption Energy Efficiency Potential Realizable Investment Simple
Type FY2008 Forecast, Savings, Required Payback
(Yrs) (Yrs)
LDO 108,867 113,889 228,621 238,178 50% 50% 25% 57,155 59,547 379 0.8 1.4
HSD - - - - 50% 50% 25% 549,001 577,175
Note: HSD consumption by tractors and tube wells in the agriculture sector is not reported separately and is included in transportation sector data.
Annual - 3.8 22.7 68.2 109.9 102.4 53.1 15.2 3.8 -
Cumulative - 3.8 26.5 94.8 204.7 307.1 360.2 375.3 379.1 379.1
111
G. ENERGY TRANSFORMATION AND SUPPLY
294. Power generation and oil refining operations account for the bulk of energy consumption
related to energy transformation processes in Pakistan. Pakistan generates about two-thirds of
its electricity from thermal power plants using natural gas and fuel oil. About 36% of the
installed capacity is based on steam units generating electricity at 22-37% thermal efficiency
using natural gas and fuel oil as fuels. Combined-cycle units, operating mainly on natural gas
that generate power at 40-45% thermal efficiency, account for 22% of the total thermal power
generation capacity in the country. Nearly 70% of the installed capacity of the public sector
thermal generation companies (GENCOs) is now over 15 years old, which is a major reason for
a drop in the systemwide power generation efficiencies. New combined-cycle power plants can
generate electricity at thermal efficiencies of around 50% and 43% on natural gas and fuel oil,
respectively. There is therefore a compelling case for replacing old thermal generation units
with new combined-cycle plants.
295. Supply and transportion losses for natural gas occur as follows:46
(i) Auxiliary consumption: 2.0%
(ii) Transmission and distribution losses: 6.0%
296. Overall transmission and distribution losses in the country’s power system are currently
around 23.4%.
297. Savings potential in energy supply and transformation is discussed in detail in the
following sections.
1. Thermal Power Plant Loss Reduction
a. Upgrading Thermal Power Plant

298. Under the GoP’s ‘Power Sector Restructuring Plan’ of 1991, WAPDA’s thermal
generation assets were disaggregated into four separate generating companies (GENCOs).
The installed capacity of these GENCOs mainly consists of steam and combined-cycle
technology. All of the steam plants have the capability of operating on natural gas as well as
residual fuel oil (RFO). The combined-cycle/gas turbine (CC/GT) plants operate on natural gas
supplied by SNGPL, SSGC, and independent fields. Nearly 70% of the installed capacity of the
GENCOs is presently over 15 years old and has operated under harsh conditions. Moreover,
WAPDA has not been not able to allocate adequate funds for meeting much needed operational
and maintenance expenditures of these plants, primarily due to the utility’s poor financial health,
which has resulted in degradation of capacity, efficiency, and plant availability. Consequently,
the GENCOs are operating overall at nearly 25% reduced output due to derating over the
nameplate capacity of the plants. The average forced outage rate for the GENCOs has been
around 12%, compared with 6% for the IPPs. Nearly all GENCO power plants are operating at
much lower efficiency levels than industry-standard efficiencies for plants of similar age and
configuration. GENCO-wise details of plants, their installed and derated capacities, and thermal
efficiencies are provided in Table 56.
46
As indicated by the gas utilities.


Table 56: GENCO-Wise Installed and Derated Capacities, Rehabilitation Plan and Associated Costs
Plant Plant Configuration Year of Fuel Thermal Capacity Current Capability
(Units x MW) Commissioning Efficiency (MW) (MW)
GENCO I
Jamshoro Steam 1 x 250, 3 x 200 1990-1991 Natural Gas/RFO 29%-33% 850 700
Kotri CC 4 x 25,1 x 44 1978-81, 1994 Natural Gas 30%-34% 144 116
Kotri GT 2 x 15 1970 Natural Gas 20% 30 24
GENCO II
Guddu Steam 2 x 110, 2 x 210 1974, 1980-1986 Natural Gas/RFO 29%-33% 640 425
Guddu GT/CC 6 x 100, 2 x 135, 1 x 145 1985-88, 1993-94 Natural Gas 34% 1,015 730
Quetta TPS 1 x 35 2004 Natural Gas/RFO 21% 35 25
GENCO III
Muzaffargarh Steam 3 x 210, 2 x 200, 1 x 320 1993-97 Natural Gas/RFO 28%-33% 1,350 1,130
Faisalabad CC 4 x 25, 1 x 44 1975, 1994 Natural Gas 40% 144 124
Faisalabad GT 4 x 25 1975 Natural Gas 21% 100 86
Faisalabad Steam 2 x 66 1967 Natural Gas/RFO 24%-28% 132 100
Multan Steam 3 x 65 1963 Natural Gas/RFO 22% 195 60
Shahdara GTPS 1 x 59 2004 Natural Gas 12% 59 30
GENCO IV
Lakhra FBC 3 x 50 1995-96 Coal 22% 150 30
Total GENCOs 4,844 3,580
rd
Source: Power System, Statistics, 33 Edition, 2008.
Note: RFO is residual fuel oil (furnace oil).
113
b. Energy Saving Potential at GENCO Plants

299. It is not possible to completely restore the derated generation capacity and efficiency of
the GENCOs in view of the age of the plants. A number of these plants are dual-fuel units and
use natural gas, when it is available. GENCO II (Guddu) has gas allocated from a number of
medium-Btu gas fields located in the proximity of the plant. Gas used in the steam units can be
diverted to combined-cycle plants that operate at an efficiency of 48%, compared with around
30% for the existing steam units. Since site and allied infrastructure is already in place, the
replacement of generation equipment carries the advantage of lower installation costs as well as
faster plant commissioning times, compared with an equivalent green field plant. PEPCO has
already invited tenders for procurement of new plant machinery of 750 MW and received a bid
of $688 million based on GE machines. However, the funds for this procurement have yet to be
arranged and there is a possibility that the validity period for the bid may expire unless the funds
are provided soon. PEPCO has previously been in discussions with the World Bank for
potential financing of this plant under a public-private joint development option. However, no
agreement has reached thus far. More recently, in October 2009, the US Government
announced a grant assistance of $125 million for the upgrade and refurbishment of GENCO
units at Guddu, Jamshoro, and Muzzafargarh as part of the first phase of a ‘Signature Energy
Program (SEP)’ under an enhanced five-year $7.5 billion bilateral economic assistance
package.
300. A number of other GENCO plants are in a similar situation and in need of efficiency
upgrades. For instance, GENCO III, where the steam units of 132 MW SPS Faisalabad and
195 MW NGPS Multan are well past their economic lives, are currently operating at low thermal
efficiencies ranging between 22-28%. Due to the prevailing severe power shortages—that are
projected to continue for at least another five to six years—these GENCOs are forced to keep
all plants operational, precluding their closure for refurbishments. The generation equipment at
these plants could be replaced with modern high efficiency combined-cycle plants operating on
fuel oil at 43% thermal efficiency. As a result of this capacity replacement, the GENCOs will not
only get the benefit of low cost generation due to lower fuel consumption, but will also be able to
improve their environmental performance due to lower emissions. Table 57 presents options
for the replacement of existing steam units at various GENCOs with modern combined-cycle
plants, along with estimated savings if these options are implemented.


Table 57: GENCO-Wise Replacement Options, Associated Savings
Capacity Energy Load Existing Benchmark Existing New Energy Energy Savings
Generation Factor Thermal Efficiency Energy Consumption
Efficiency Consumption
(MW) (GWh) (TOE) (TOE) (TOE) RFO ($
(Tonnes) Million)
GENCO I
Jamshoro Steam 400 2,228 64% 31% 48% 585,329 378,025 207,304 212,910 83
Jamshoro Steam 300 1,671 64% 31% 43% 438,997 316,486 122,511 125,823 49
Kotri CC 116 670 66% 32% 48% 170,606 113,738 56,869 58,406 23
Kotri GT 24 140 66% 20% 48% 56,869 23,695 33,173 34,070 13
GENCO II
Guddu Steam 425 2,283 61% 31% 48% 599,779 270,868 328,911 337,805 132
Guddu 730 5,781 90% 34% 48% 1,384,748 759,378 625,370 642,280 252
Turbine/CC
Quetta TPS 25 68 31% 21% 48% 26,372 3,403 22,969 23,590 9
GENCO III
Muzaffargarh 1,130 5,981 60% 31% 43% 1,597,058 1,132,797 464,261 476,815 187
Steam
Faisalabad CC 124 315 29% 40% 48% 64,165 47,607 16,559 17,007 7
Faisalabad GT 86 219 29% 21% 48% 84,875 10,952 73,923 75,922 30
Faisalabad Steam 100 625 71% 26% 43% 195,773 118,375 77,399 79,492 31
Multan Steam 60 347 66% 22% 43% 128,657 65,722 62,935 64,637 25
Shahdara GTPS 30 10 4% 12% 48% 6,787 (1,095) 7,881 8,095 3
GENCO IV
Lakhra FBC 30 136 52% 22% 38% 50,346 29,148 21,198 21,771 9
rd
Source: Power System Statistics, 33 Edition, 2008.
115

301. Besides proposals for replacement of generation capacity at Guddu, PEPCO has also
considered installation of 450 MW natural gas/fuel oil based combined-cycle units at Multan and
Faisalabad. However, for the purpose of funding under the EEIP MFF, GENCO plant upgrade
options have been considered here on the basis of replacement of capacity equivalent to
existing output of the plants to be replaced to be able to estimate the associated fuel savings
from efficiency improvements alone. For this reason, the original proposal for installation of
750 MW generation capacity at Guddu was adjusted to match the existing production capacity
of 425 MW for the Guddu steam units. PEPCO will have to arrange financing from other
available resources for remaining 325 MW of additional power to be generated. The same
concept has been applied across the board to the similar proposals prepared by the other
GENCOs.
302. For capital investment requirements, a unit capital cost of $917/kW has been used,
based on bids received for the Guddu plant. Due to expected lower fuel consumption post-
replacement, investments on new plants demonstrate attractive payback periods, ranging
between 2.5 to 4 years at the prevailing economic price of $336 for fuel oil.47 There could be
addtional efficiency improvement opportunities for the 850 MW Jamshoro and 1,350 MW
Muzzafargarh power plants (GENCOs I and III) as well, but these may be considered at a later
stage as they are relatively new plants and therefore would have a longer payback period due to
the high stranded costs involved. However, the GENCOs are presently confronted with cash
shortfalls and face serious difficulties in securing the necessary funds from commercial
financing sources.
303. The investment requirements for GENCOs were estimated assuming 100% replacement
of the inefficient units at Guddu, Faisalabad, and Multan with the most efficient available
technologies over a period of ten years. Investment requirements, investment schedule, and
estimated savings and payback periods are indicated in Table 58.
47
Pakistan State Oil’s HSFO price of April 16, 2009 delivered in Multan region, converted to economic prices by
removing 16% sales tax from ex-depot prices.


Table 58: Energy Efficiency Investment Schedule and Payback for Upgrading GENCOs
Energy Consumed Energy Efficiency Potential Realizable Savings Investment Simple Payback
Fuel Oil Required Period
(GWh) (TOE) Technical Realizable Effective (Tonnes) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
GENCO I
Jamshoro Steam 2,228 585,329 35% 100% 35% 212,910 207,304 367 4.4 5.1
Jamshoro Steam 1,671 438,997 28% 100% 28% 125,823 122,511 275 5.6 6.5
Kotri CC 670 170,606 33% 100% 33% 58,406 56,869 106 4.6 5.4
Kotri GT 140 56,869 58% 100% 58% 34,070 33,173 22 1.7 1.9
GENCO II
Guddu Steam 2,283 599,779 55% 100% 55% 337,805 328,911 390 2.9 3.4
Guddu Turbine/CC 5,781 1,384,748 45% 100% 45% 642,280 625,370 670 2.7 3.1
Quetta TPS 68 26,372 87% 100% 87% 23,590 22,969 23 2.5 2.9
GENCO III
Muzaffar Garh Steam 5,981 1,597,058 29% 100% 29% 476,815 464,261 1,037 5.5 6.4
Faisalabad CC 315 64,165 26% 100% 26% 17,007 16,559 114 17.1 19.8
Faisalabad GT 219 84,875 87% 100% 87% 75,922 73,923 79 2.7 3.1
Faisalabad Steam 625 195,773 40% 100% 40% 79,492 77,399 92 2.9 3.4
Multan Steam 347 128,657 49% 100% 49% 64,637 62,935 55 2.2 2.5
Shahdara GTPS 10 6,787 116% 100% 116% 8,095 7,881 28 8.7 10.1
GENCO IV
Lakhra FBC 136 50,346 42% 100% 42% 21,771 21,198 28 3.2 3.7
Total 20,474 5,390,362 39% 100% 39% 2,178,622 2,121,264 3,284 3.8 4.5
($ Million)
Annual - 151 205 129 52 305 572 946 664 260
Cumulative - 151 356 485 537 842 1,414 2,360 3,024 3,284
117
d. Implementation Plan
304. Being the owner of the GENCOs, DISCOS and NTDC, PEPCO will be the
implementation agency for both the GENCOs for the plant replacement project. PEPCO also
functions as the managing agent on behalf of the Government of Pakistan with respect to these
entities. PEPCO is currently under severe financial strain for a number of reasons, including
mismatch in the cost of supply and consumer tariffs for DISCOs, the difference of which was to
be borne by the Government as subsidy but is seldom paid on time; rising prices of fuel for
thermal plants which were not concurrently passed on to consumer; and revenue shortfalls at
some DISCOs owing to their high losses and poor revenue collection capacities. Shortage of
revenue is resulting in the rise of circular debt between the main energy sector entities, adding
to their costs of operation due to the heavy short-term borrowings required to meet their
recurring needs. Some of these problems may be close to a solution as the Government has
announced the removal subsidies by June 30, 2009, subsequently deferred to December 31,
2009. However, efforts are required on inculcating best practices and better corporate
governance in the sector to reduce losses and improve revenue collection by the DISCOs. With
ADB’s ongoing assistance in the transmission and distribution sectors, the DISCOs’
performance is expected to improve in the coming years.
305. The National Electric Power Regulatory Authority (NEPRA) regulates the tariff for all the
power sector entities using a ‘cost plus’ approach, allowing an return on equity of 15% and
passing on operational costs based on benchmark efficiencies. Most of the GENCO plants are
appreciably depreciated and the current book value of assets, and consequently equity,
hampers the DISCOs’ ability to earn profits that could be reinvested in the plants. The GoP
therefore may have to inject more equity to enable these GENCOs to qualify for external
financing under normal market practices.
306. On the other hand, the GENCOs have extensive experience in procurement and
installation of power stations. Guddu 750 MW project can be started on a fast track as the bids
for generation equipment have already been received. The project can be implemented within
30-36 months from the date of finalization of the financing arrangements. The replacement of
steam units at Faisalabad and Multan power stations, however, may take longer as project
feasibility work is yet to be completed. Under best case assumptions, feasibility assessment
and internal approvals for these plants can be completed in six to nine months. PEPCO could
proceed with the financing arrangements in parallel with the feasibility assessment. The
tendering process, evaluation of bids, and finalization of EPC agreements can be done in
another nine to 12 months. Approval of generation tariffs is expected to be completed within six
months of finalization of EPC costs. The delivery of generation equipment by suppliers and
installation of a combined-cycle plant normally takes 24 to 30 months from the award of the
EPC contract. In most existing premises of the GENCO power plants, sufficient land is already
available for the construction of additional units, and therefore no further land acquisition is
anticipated for these projects.
2. Oil Refining
307. Currently, Pakistan’s total refining capacity is 13.0 million tonnes against a national
petroleum products consumption of 18.4 million tonnes. The existing refineries were originally
configured to maximize fuel oil and motor gasoline production. However, with the introduction of
CNG in the transportation sector, the demand for motor gasoline has dropped and refineries are
now forced to operate on lower capacities. Simultaneously, HSD and FO are now being

imported. In lieu of this, the government is planning to install refineries configured to producing
higher proportions of HSD and furnace oil by utilizing deep coking technology in the future.
308. Currently, seven oil refineries are operating in the country. Their average utilization and
respective capacity in FY2008 are presented in Figure 20.
Figure 20: Capacity Utilization of Oil Refineries for FY2008

5,000,000
4,500,000 Refining Capacity
83%
4,000,000 Capacity Utilization
3,500,000
Tonnes
84%
3,000,000
2,500,000
94% 101%
2,000,000
1,500,000
1,000,000 47%
500,000
84% 79%
-
PakArab National Pakistan Attock Bosicor Dhodak ENAR
309. Table 59 gives the crude oil processed by the refineries in FY2008.
Table 59: Crude Processed by Oil Refineries in FY2008

Refinery Crude Oil
(Tonnes)
ARL 1,926,779
Bosicor 817,739
Dhodak 64,164
ENAR Petrotech 99,797
NRL 2,733,798
PARCO 3,8,68,218
PRL 2,179,497
Total 11,689,992
310. Oil refineries mainly utilize oil (80% of total energy consumed) as their energy source for
the processing of crude oil in utility operations. Of the total energy consumption, 40% is utilized
in processing and the remaining 60% is utilized for power generation and for operating steam

boilers. The primary energy requirement of a typical refinery in the country is approximately
1.19 MMBtu per TOE and the electricity requirement is 18.64 kWh/TOE.48 These requirements
have been estimated by applying the proportions stated on the total crude oil processed
(Table 59). The primary energy requirement of refineries estimated in this manner was 340,847
TOE in FY2008.
b. Energy Savings Potential

311. The main areas with energy saving potential in oil refineries are:
(i) Reduction in electricity use through upgrading electric equipment (mainly motors),
with a 10% reduction in electricity requirements possible
(ii) Reduced natural gas and oil use through improved utility management, with a 20%
reduction in primary energy demand possible
(iii) Reduced natural gas and oil requirement by improving process technology, with a
15% reduction in primary energy demand possible.
312. Table 60 shows the energy efficiency potential, investment requirements, simple
payback period and phasing of investments for energy efficiency upgrades in oil refineries.

Schedule for Oil Refineries
Energy Consumed Energy Efficiency Realizable Savings Invest- Simple
Potential ment Payback
Required Period
(MMBtu) (TOE) Tech- Real- Effect- (MMBtu) (TOE) ($ Million) Fin. Eco.
nical izable ive (Yrs) (Yrs)
Utilities 8,453,679 7,088,207 20% 100% 20% 1,690,736 40,356 44 3.0 3.1
Process 5,635,786 4,725,471 15% 100% 15% 845,368 20,178 37 5.0 5.2
Total 14,089,465 11,813,678 18% 100% 18% 2,536,104 60,535 81 3.7 3.8
($ Million)
Annual - 0.8 4.8 14.5 23.4 21.8 11.3 3.2 0.8 -
Cumulative - 0.8 5.6 20.2 43.5 65.3 76.6 79.8 80.6 80.6
3. Transportation of Crude Oil and Petroleum Products
313. Of the total 18.6 million tonnes of crude oil and petroleum products transported across
the country annually, 49 72% is transported by road, 19% by pipeline, and the remaining 9% by
rail (Figure 21).
48
Source: Attock Refinery Limited.
49
Pakistan Oil Report 2007-08, Oil Companies Advisory Committee (OCAC).

ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 121
Figure 21: Modal Distribution of Oil Transpo

ortation
Total Oil Traansported An
nnually:
18.6 MMillion Tonne
es
Pipeline
Roaad %
19%
72%%
Rail
9%
a. E
Energy Savings Potentiial
314. Energy
E savin
ngs can be achieved by shifting oil transporrtation to piipelines, the
ereby
avoiding the fuel coonsumed in the movement of oil by road tankkers. Table e 61 provide es an
estimate of the fuel consumed
c in
n transportattion of oil by road.
Tab
ble 61: Fuel Consumed
d in Transpo
ortation of Oil
O by Road
Fuel Tran
nsported Av
verage Dista
ance Dis
stance Fuel
(Tonnes) Travelled Tra
avelled Consumedd
(km) (Ton
nnes-km) (TOE)
North
hern Region 3,103,027 500 1,551,513,500 19,524
Southern Region 8,3
329,528 400 3,331,811,200 41,927
Loca
al Distribution 2,0
001,198 100 200
0,119,800 2,518
Tota
al 13,4
433,753 1,000 5,083
3,444,500 63,970
315. Fuel consumed in oil transportation has been estimated assuming average road ta
anker
capacity of 33.8 tonn
nes and fuel requirement of 0.5 liter//km.
b. ssues, Barriers, and Investment Requiremen

Is R nts
316. Pipelines
P are
e not an economic altternative for the bulk transportatio on of petro oleum
products over short distances, asa pipeline operations
o tyypically requ
uire large quuantities of oil
o be
transportted over long distances. Thereforee, it is assum
med that nott all of the oil
o transporte ed by
road cann be shifted to pipelines. Based on industry esstimates, 30% % of the oil volume currrently
being tra
ansported by y road has been taken as econom mically vialblle for pipelin
ne transporttation
over a te
en year perio
od.
317. Energy
E savin
ngs, investmment requireements, simmple payback periods, and
a schedu
ule of
investme
ent for transp
portation of oil
o by pipelin
nes are indiccated in Tablle 62.
Asian Dev
velopment Ban
R
Table 62: Realizable Savings, Investment Requirements, and

Schedule for Transportation of Oil by Pipelines
Technical Realizable Effective (Tonnes) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
HSD 100% 30% 30% 73,0161 76,763 105 1.7 3.2
($ Million)
Annual - 1.1 6.3 18.9 30.5 28.4 14.7 4.2 1.1 -
Cumulative - 1.1 7.4 26.3 56.7 85.1 99.8 104.0 105.0 105.0
4. Compressor Replacement on Trunk Gas Network
318. Gas compressors play a vital role in maintaining continuity and quality of service for
consumers connected to the natural gas transmission and distribution system, especially when
demand is high and network capacity is constrained due to operating pressures reaching their
permissible lower limits. The current installed capacity at 11 compressor station locations on
the Sui Northern Gas Pipeline Company Ltd. (SNGPL) network, serving the northern segment
of the country, is approximately 200,000 hp, comprising of 1,100-6,100 hp gas turbines driving
centrifugal compressors. The gas used by these compressors is accounted for as ‘gas
internally consumed’, and is considered a ‘technical loss’ by the utilities. This internal
consumption depends mainly on the capacity and adiabatic efficiency of the compressor units
and their use. The net efficiency of a compressor unit is taken as a product of the turbine and
compressor efficiencies. Net efficiency of compressors in the SNGPL system has improved
significantly over the past decade due to installation of some new units based on advanced
technologies and materials. However, a number of compressors in the SNGPL system are
nevertheless nearly 30 to 40 years old, and therefore operate at very low efficiency compared to
the newer machines. In addition, these compressors incur high maintenance costs and offer
low availability due to frequent breakdowns.
319. Compared to SNGPL, compressors in the Sui Southern Gas Company Ltd. (SSGC)
system, operating in the southern regions of the country, are relatively new and have higher
efficiency ratings. Amongst these, the relatively inefficient machines are used only for short
periods by SSGC and therefore do not require replacement. Assessment of compression
capacity in the gas transmission networks of the country has therefore been limited to the
SNGPL system.
320. Although there are no specific standards for the gas internally consumed in the
transmission networks, regulators normally allow an upper bound for internal consumption with
reference to the system configuration, compression requirements, and the optimal operating
efficiency of the compression system itself. Historically, the SNGPL system has required
compression during winters only, when gas demand increases two- to three-folds on account of
domestic heating loads. However, since existing wellhead supply pressures are expected to
begin declining in the near future with the gradual depletion of gas fields, consequently the
compressors’ duty cycles will need to increase to cover the rest of the year as well, thereby
increasing internal consumption of gas per unit transmitted by the SNGPL system.

321. There is therefore a pressing requirement for replacing some of the old compression
equipment in the SNGPL system. SNGPL has recently replaced 13 inefficient Solar T1000
compressor units (1,100 hp each) having a combined capacity of 14,000 hp with six new Solar
T4700 compressors of 4,700 hp each. However, the utility still has 16 aging Solar T1000
compressors operating at turbine efficiencies in the range of 17-20% and a compressor
efficiency of 70%. Similarly, 14 compressors consisting of Solar T4000 machines with a
capacity of 3,800 hp each and efficiencies similar to that of Solar T1000 units are also
candidates for replacement. SNGPL has plans to replace both of these types of machines with
highly efficient Solar T4700 compressor units that can operate at 30% turbine efficiency and
85% compressor efficiency, almost doubling the combined overall efficiency of the machines.
The SNGPL Board of Directors have already approved the replacement of all of the 16
compressors (Solar T1000s) having a total capacity of 17,600 hp. Financing for the
replacement projects, however, is yet to be arranged by SNGPL. The other 14 compressors
(Solar T4000s) with a combined capacity of 53,620 hp are also in need of urgent replacement.
Details of the proposed replacement program are provided in Table 63.
Table 63: SNGPL’s Proposed Compressor Upgrade Program
Station Existing Configuration Proposed Configuration

Projects Already Approved by SNGPL Board
Manawala (BC1) 7 x Solar T1000 (1,100 hp each) 3 x Solar T4700 (4,700 hp each)
= 7,700 hp = 14,100 hp
Faisalabad (AC8) 6 x Solar T1000 (1,100 hp each) 2 x Solar T4700 (4,700 hp each)
= 6,600 hp = 9,400 hp
Dhullian (FC1) 3 x Solar T1000 (1,100 hp each) 2 x Solar T4700 (4,700 hp)
= 3,300 hp = 9,400 hp
Other Proposed Projects
Bhong (ACIX) 1 x Solar T4000 (3,830 hp each) 1 x Solar T4700 (4,700 hp each)
= 3,830 hp = 4,700 hp
Multan (AC6) 6 x Solar T4000 (3,830 hp each) 6 x Solar T4700 (4,700 hp each)
= 22,980 hp = 28,200 hp
Shorkot (AC7) 4 x Solar T4000 (3,830 hp each) 4 x Solar T4700 (4,700 hp each)
= 15,320 hp = 18,800 hp
= 11,490 hp = 14,100 hp
Source: SNGPL, Planning and Development Department.
322. Under the SNGPL’s proposed compressor upgrade program, total installed compression
capacity on the network will increase by 27,500 hp due to installation of bigger machines at all
stations, providing the much needed capacity expansion and redundancy at those locations.
However, for estimating potential savings and associated investments under the ADB’s EEIP
program, only capacity replacements equivalent to the existing installed capacity of 71,220 hp
on the network have been considered.

a. Energy Consumption and Savings Potential

323. The total gas demand on the SNGPL system in FY2008 was 561,226 billion Btu, and the
utility used 11,880 billion Btu for powering its compressors. 50 Thus, the estimated gas savings
potential of 3,500 billion Btu is 0.62% of total utility sales and 29% of the total gas used in
compressors, based on current average utilization of nine months in a year. In the future,
compressor utilization is likely to increase further as discussed earlier, and assuming a load
factor of 100%, savings of up to 5,455 billion Btu per annum can be anticipated.
b. Barriers, Constraints, and Investment Potential

324. An upgrade of compressor capacity on the SNGPL system can be implemented within
two to three years, and will result in immediate savings in the internal use of gas by the SNGPL
network, translating into more gas becoming available for sale to commercial and industrial
customers. The implementation of such a replacement program is well within SNGPL’s
capability. Investment requirements are estimated at $130 million, based on a unit cost of
$1,800/hp. 51 Annual revenues for calculating the payback period for the compressor
replacement program were estimated using a sales price of Rs 268/MMbtu earmarked for
commercial customers.
325. The corresponding investment schedule was estimated assuming 100% replacement of
inefficient compressor units over a period of ten years. Investment requirements, investment
schedule, and estimated payback periods are shown in Table 64.

Schedule for the SNGPL Compressor Replacement Program
($ Million)
Energy Energy Efficiency Energy Saved Investment Simple
Consumed Potential Required Payback
Period
(MMscf) (TOE) Technical Realizable Effective (MMscf) (TOE) ($ Million) Fin. Eco.
(Yrs) (Yrs)
Natural 11,680 264,853 50% 100% 50% 5,840 132,426 130 4.8 2.9
Gas
($ Million)
Annual 16 42 44 28 - - - - - -
Cumulative 16 58 102 130 130 130 130 130 130 130
c. Implementation Schedule
326. SNGPL will be the implementation agency for the compressor replacement program.
The utility is in good financial health as it enjoys a tariff based on 17.5% return on assets (ROA).
50
OGRA determination on final revenue requirement for SNGPL, FY2008.
51
Based on the equipment cost of $1,000/hp for compressors and $800/hp for ancillary equipment, such as piping,
valves, fittings and installation. Cost details were provided by SNGPL based on their latest procurement contracts
for similar facilities.

The utility has extensive experience of procurement and installation of gas compressors. In
terms of implementation of the actual program, the tendering process and evaluation of bids
would take around six months and delivery of compressor equipment by suppliers another 18
months under prevailing conditions. The SNGPL plans to install these new compressors while
keeping the existing machines operative. It would take another 12 to 18 months to complete the
installation of these units. SNGPL has sufficient land at all of these compressor stations and
does not anticipate any additional land procurement for these replacements.
5. Power Generation at Gas Decompression Facilities
327. The gas transmission system in Pakistan is designed for Class 600 operational
standard, under which pipeline pressures need to be regulated to no more than 1,400 psi.
However, due to aging and physical deterioration of pipelines, the maximum allowable operating
pressure (MAOP) in the SSGC transmission network is about 1,298 psi, whereas that in SNGPL
network is maintained at around 1,235 psi. Gas pressures vary from segment to segment in
both networks. The average upstream pressure at compression stations in the SNGPL and
SSGC networks is about 850 psi.
328. At the point of transfer from main trunk pipelines to the regional distribution network, gas
is decompressed by passing it through expansion valves. The average pressure at a city gate
station after decompression is about 150 to 200 psi, and this differential pressure can be utilized
for power generation by installing expansion turbines in place of the expansion valves. This is
an efficient way of recovering some of the compressor power supplied to the transmission
network to maintain flows.
a. Savings Potential
329. Expansion turbine technology for power generation has been used to good effect in
different parts of the world. To evaluate its viability in Pakistan, a basic calculation has been
made on the basis of following assumptions
(i) Conservative average annual demand and pressure numbers at each potential
generation site
(ii) Generation potential of at least 1 MW per site was considered
(iii) A common decompression pressure of 200 psi was assumed at each site
(iv) Information available on similar applications in other countries was employed to
calculate the potential at each site
(v) A load factor of 80% was assumed for estimating electricity production.
330. Table 65 shows power output calculations based on these assumptions at eligible
decompression locations in the SNGPL and SSGC networks.
331. The power generated at these locations could have several advantages besides
improving the operating efficiency of the network, as this would yield additional revenues for the
gas companies. The power would be generated right besides main load centers and could be
injected directly in to the 11 kV network of the power distribution companies (DISCOs), thereby
saving much of the nearly 20 to 25% of transmission and distribution losses typical for long
distance transmission.

Table 65: Potential Decompression Locations in the SNGPL and SSGC Networks
Capacity Generation Investment Required

(MW) (GWh) ($ Million)
SSGC
Karachi 8.76 61.4 10.6
Hyderabad 1.53 10.7 1.8
Jamshoro 1.53 10.7 1.8
Total SSGC 11.82 82.9 14.3
SNGPL
Multan 6.84 47.9 8.2
Faisalabad 4.11 28.8 4.9
Lahore 3.61 25.3 4.4
Islamabad 2.85 19.9 3.4
Total SNGPL 17.41 122.0 21.0
Total Generation 29.2 204.8 35.2
Potential
b. Barriers, Constraints, and Investment Potential

332. The amount of potential power generated and revenue earnings for the gas utilities from
such an application will, however, remain negligible compared to their gas sales. The two
utilities may have to add these operations in to their ‘articles of association’ and may require
Board approvals before embarking on such programs. Furthermore, both SNGPL and SSGC
will have to obtain generation licenses from the National Electric Power Regulatory Authority
(NEPRA) for setting up the power generation facilities, as well as electricity tariffs for sale of the
power to the DISCOs. Additionally, the gas utilities may be reluctant in exposing themselves to
two regulators which would require them to maintain the two businesses separate from each,
other thereby increasing their management overheads.
333. NEPRA has adopted the principal of ‘cost plus’ for bulk purchase tariffs across the power
market based on a 15% rate of return on investment for the producer. All generation plants are
required to file a tariff petition with NEPRA and obtain approval. On the other hand, the DISCOs
would be interested in buying this power only as long as this does not add to their supply costs.
Therefore, the revenue for the purpose of calculating the payback period for the gas utilities has
been estimated at a generation tariff equal to the average DISCO power sales rate minus the
distribution margin (DM) applied by the DISCOs. Presently, the average DM for the DISCOs is
around 15% of their average sales rate. Using an average sales rate of Rs 5.97/kWh, the
estimated net-back generation tariff for the gas utilities works out to be Rs 5.07/kWh, which sets
the basis for additional revenue estimates for the gas utilities. The corresponding investment
requirements were estimated assuming 100% installation of the estimated generation potential
at eligible decompression sites within a period of ten years. Investment requirements,
investment schedule, and estimated payback periods for the proposed installation of the
decompression facilities are indicated in Table 66.


Schedule for the Installation of Decompression Facilities Program
Energy Efficiency Energy Saved Investment Simple Payback
(Yrs) (Yrs)
100% 100% 100% 192 15,640 35 2.4 2.4
($ Million)
Annual - 0.4 2.1 6.3 10.2 9.5 4.9 1.4 0.4 -
Cumulative - 0.4 2.5 8.8 19.0 28.5 33.5 34.9 35.2 35.2
c. Implementation Schedule
334. SNGPL and SSGC will be the implementation agencies for the respective installation of
power generation facilities at their decompression facilities.
335. Both the utilities enjoy good financial health, as ratepayer tariffs based on 17.5% ROA
for SNGPL and 17% for SSGC are allowed under OGRA regulations. The utilities have
adequate experience of procurement and installation of gas compressors. In terms of
implementation of the installation program, detailed feasibility work and internal approvals would
take about six months, to be followed by the tendering process and evaluation of bids that may
require another six month. Electricity sales tariff and negotiations with DISCOs are expected to
be completed in six months. After closure of all agreements, the delivery of turbine and
generation equipment by suppliers would take approximately 12 to 18 months. Similarly, the
installation of the equipment and interconnection facilities could be completed in another 12
to18 months. The utilities have sufficient space at all decompression sites for the installation of
the generation equipment and would not require additional land procurement for this purpose.

IV. PAKISTAN BASELINE DOMESTIC LIGHTING SURVEY
336. The Pakistan EEIP Baseline Domestic Lighting Survey was conducted to support the
design of the National Compact Fluorescent Lamp (CFL) Project, involving the replacement of
incandescent bulbs (IBs) in residential light points with long-life, high-efficiency compact
fluorescent lamps (CFLs) under Tranche-1 of the Energy Efficiency Investment Program (EEIP).
The fieldwork for the baseline survey was performed by the contractor, Gallup Pakistan, from
March 18, 2009 to April 10, 2009 in 3,253 households across nine distribution utilities in
Pakistan. The survey aimed to determine the existing patterns of lighting device use and
lighting habits across different electricity consumption tiers in the residential sector of the
country, and to ensure the eligibility of the program for Clean Development Mechanism (CDM)
financing under the AMS II.J methodology for energy efficiency improvement projects.
337. Section A details the methodology and sample distribution of the baseline survey,
followed by the survey form in Section B. A summary of the survey results is presented in
Section C.
A. SURVEY METHODOLOGY
1. Background
338. Pakistan has a total population of about 172 million, 67% of which can be classified as
rural, and 33% as urban. Figure 22 shows the urban/rural population distribution in the country
as reported in the 1998 Census Report of Pakistan. The federal structure of Pakistanis divided
into four provinces – Punjab, Sindh, North-West Frontier Province (NWFP), and Balochistan.
The federal capital, Islamabad, does not fall under the jurisdiction of any province,52 however,
for marketing purposes its population can be treated as part of the Punjab market. In terms of
population size, Punjab is the largest market in terms of population size (58%), followed by
Sindh (24%), NWFP (14%) and Balochistan (5%).
Figure 22: Urban/Rural Population Distribution in Pakistan
12% Villages
Metropolitan*
67%
13% Cities*
Towns *
8%
.
* Details available separately from Gallup Pakistan
52
Administratively under the Islamabad Capital Territory (ICT)

2. Sample Size and Sampling Frame
339. The EEIP Baseline Domestic Lighting Survey involved 3,253 domestic customers in 58
major areas (districts, tehsils, 53 town committees, and cities) across the eight distribution
companies (DISCOs) and the Karachi Electric Supply Company (KESC). The survey sample
was distributed using pro-rated domestic customer distribution patterns of the nine utilities
across each electricity consumption tier.
3. Selection of Survey Areas
340. Gallup Pakistan identified the specific survey areas based on urban and rural
classification, electricity consumption patterns, and geographical accessibility. Their criterion
was to include the maximum number of districts, tehsils and town committees from the eight
DISCOs and KESC. Fieldwork was carried out in all districts of LESCO, FESCO, IESCO,
PESCO, and HESCO. 16 major areas were selected in GEPCO; however, due to the large
numbers of customers, this was narrowed down on the basis of geographical accessibility to 11
areas covering all districts, tehsils and town committees. Similarly, 19 areas were selected in
MEPCO, of which 15 areas were covered by the Gallup team on the basis of geographical
accessibility. QESCO, though having the largest covered area, has the smallest customer base
in the country. Therefore, based on the security situation, 4 locations were selected for the
survey to cover the sample size of 66 households. Five districts were selected in KESC, and
interviews were conducted on a random selection basis.
4. Sampling Procedure and Selection of Respondents
341. For each distribution utility, Gallup initially identified the potential areas where fieldwork
could be conducted based on various factors such as customer profiles and density,
accessibility, etc. Within the selected areas, several districts were randomly chosen, rural and
urban regions were demarcated, and the sample size was established using the actual domestic
customer profile base. In all, 45% of the interviews were conducted in urban areas and 55% in
rural areas.
342. While screening respondents, the interviewers were instructed to only interact with an
adult member and permanent resident of the household, as well as to ensure the availability of
the last 12 months’ electricity bill. An issue arised while surveying in KESC as their electricity
bills do not record the historical monthly consumption of the customer. To overcome this
problem, a slab/unit conversion calculation was carried out, and the sample quotas were set
according to billed amounts rather than units of electricity consumed.
343. To carry out the fieldwork, each target survey area was divided into four sections and a
central location was identified from where fieldwork could begin. Each house meeting the
survey criteria at that location was interviewed. In case a household did not satisfy the criteria,
it was rejected and the next house was considered until the sample size quota of that particular
area was exhausted. A proper introduction explaining the purpose of the survey was given to
each respondent to overcome any possible reluctance to participate.
344. A breakdown of the survey sample size according to electricity consumption categories
and location is given in Table 67.
53
Local administrative unit.

Table 67: Survey Sample Distribution

Distribution Area Electricity Consumption Category (kWh/Month)
Utility Up to 50 51 - 100 101 - 300 301 - 1,000 Above Total
1,000
9 Utilities Total 1,116 875 1,105 148 9 3,253
LESCO Lahore 65 42 93 21 3 224
Sheikhupura 2 29 40 2 73
Kasur 29 20 29 1 79
Okara 30 14 44 2 90
Subtotal 126 105 206 26 3 466
GEPCO Gujranwala 35 37 37 3 112
Wazirabad 10 10 10 30
Kamoke 12 8 10 30
Daska 4 5 11 20
Sialkot 13 12 12 2 39
Hafizabad 3 7 20 1 31
Gujrat 14 6 19 2 41
Mandi 28 10 10 48
Bahauddin
Sambrial 6 4 10
Narowal 4 5 1 10
Phalia 10 10
Subtotal 129 114 130 8 381
FESCO Faisalabad 32 91 17 140
Sargodha 64 36 34 1 1 136
Khushab 24 16 9 1 50
Jhang 27 18 6 51
TT Singh 29 21 50
Mianwali 20 19 1 40
Subtotal 164 142 141 19 1 467
IESCO Islamabad 33 24 57 6 3 123
Jhelum 23 18 18 2 61
Chakwal 24 16 18 2 60
Attock 23 17 18 2 60
Subtotal 103 75 111 12 3 304
MEPCO Multan 45 25 35 5 110
Khanewal 20 10 6 4 40
Shujaabad 14 11 5 30
Muzaffargarh 21 14 5 40
DG Khan 19 15 6 40
Rajanpur 15 6 12 33

Distribution Area Electricity Consumption Category (kWh/Month)

Utility Up to 50 51 - 100 101 - 300 301 - 1,000 Above Total
1,000
9 Utilities Total 1,116 875 1,105 148 9 3,253
Sahiwal 18 18 10 1 47
Pakpattan 17 11 12 40
Vehari 6 4 10 20
Burewala 13 7 10 30
Bahawalnagar 19 11 10 40
Bahawalpur 18 10 12 40
Rahim Yar 16 14 9 1 40
Khan
Sadiqabad 14 6 10 30
Lodhran 18 12 10 40
Subtotal 273 174 157 16 620
PESCO Peshawar 56 67 59 18 200
Mardan 28 22 37 3 90
Bannu 15 12 14 41
Abbatabad- 28 20 30 2 80
Hazara
Noshehra 20 20
Subtotal 147 121 140 23 431
HESCO Hyderabad 2 7 74 1 84
Nawabshah 15 11 1 27
Sukkar 33 24 8 2 67
Larkana 12 1 13
Dadu 20 9 29
Subtotal 82 52 75 9 2 220
QESCO Quetta 10 10 10 2 32
Mastang 5 5 10
Pashin 4 10 14
Jaffarabad 5 15 20
Subtotal 24 30 20 2 76
KESC Karachi 56 55 116 31 258
Lasbela 8 2 10
Gharo 6 4 10
Dhabige 6 3 1 10
Subtotal 68 62 125 33 288

5. Training of Interviewers
345. Training camps for the interviewers were arranged by Gallup Pakistan on 14, 15 and 16
March, 2009. ‘Master Trainers’ were trained at the Gallup head-office in Lahore, who then
trained the Field Supervisors (regional coordinators). The Field Interviewers received training
from their respective Field Supervisors at regional Gallup offices in Karachi, Hyderabad, Sukkur,
Jacobabad, Quetta, Bahawalpur, Multan, Sahiwal, Lahore, Gujranwala, Faisalabad, Sargodha,
Gujrat, Jehlum, Rawalpindi, Islamabad, Peshawar and Mardan. Written, as well as oral
instructions were given to the interviewers to ensure consistent survey techniques. The aim of
the trainings was to enhance the capabilities of the interviewers to conduct the survey, and to
instruct them on respondent and data handling. The interviewers were also sensitized to the
importance of strictly following instructions, and dealing with contingencies without
compromising survey quality and timelines.
6. Coding and Entry Verification
346. The data collected was verified using a combination of reliability and validity checks.
The Field Supervisors were provided with guidelines for carrying out spot checks and correcting
filled survey forms during the course of the fieldwork. 10% of the data editing and coding for
each survey team was rechecked. 10% of the work of the data entry operator was also cross-
checked and the data entered was referred to a data punching method. The interviews were
also back-checked by independent verifiers.

B. BASELINE DOMESTIC LIGHTING SURVEY FORM
347. An English version of the actual Urdu language questionnaire used for the Baseline
Domestic Lighting Survey is presented below. The original Urdu language form can also be
provided, if required.
1. English Language Translation of Survey Form
Code
Region Code Urban (U)/ M D D
S. No.
(Disco/Circle/Division/Sub-Division) Rural (R) Date
Pakistan Sustainable Energy Efficiency Development Program
BASELINE DOMESTIC LIGHTING SURVEY
General Instructions to Surveyors:

• Face-to-face interviews with a resident adult occupant of the household should be conducted. The
questionnaire should not be answered by a helper, person under 18 years of age, or a houseguest.
• The interviewee must be able to present a recent consumer bill with at least 12 months of billing history.
• The ‘head of household’ is defined as the main wage earner.
• Information elements in black are mandatory; those in grey are optional.
• Where multiple responses are provided, please check one box only unless specified otherwise.
1. HOUSEHOLD DETAILS
To be filled in consultation with the customer
1.1 Interview Language F Urdu F Pashto F Punjabi F Sindhi F Other

a. Reference
Number
1.2 Consumer (from electricity bill)
Information b. Consumer Name
(as per electricity ___
bill)
1.3 Monthly Electricity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Consumption (kWh)
a. Position F Head of household F Spouse F Other

1.4 Person Interviewed
b. Gender F Male F Female
F Government Salary F Private Salary F Daily Wage
a. Main Source(s)
F Own Business F Agriculture F Rentals
1.5 Employment and
Income b. Number of Wage
Earners

F Own F Rented F Paid for F

a. Property
Squatter
F Detached F Multiple detached
b. Building
1.6 Dwelling F Flat/Apartment F Other
c. Construction F Masonry F Adobe F Informal
d. Size Total number of rooms
e. Total occupants Adults (>18yrs) Children (<18yrs)
2. LIGHT POINT AND APPLIANCE DETAILS

2.1 Living Room(s) Lights
Type of Lamp Wattage Number of Lamps Type of Fitting Average use Lamps NOT in
54 (W) 55 (see fitting type (Hours/day) Working Condition
(see Lamp Type code below) (of each type)
56 (of number of lamps)
code below)
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.2 Dining Room(s) Lights
(W) (of each type) (Hours/day) Working Condition
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.3 Bedroom(s) Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
54
Lamp Type: I - Incandescent Bulb, C - Compact Fluorescent Lamp, F - Fluorescent Tube Light, O – Other.
55
The number of lamps that have the same type of fitting, the same lamp wattage, and similar average use.
56
Fitting Type: S – Screw/Edison or P – Pin/Bayonet. To be filled for I and C lamp types only.

2.4 Study(s) Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.5 Bathroom(s)/Toilet(s) Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.6 Kitchen(s) Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.7 Balconies/Veranda(s) Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.8 Outside/Garage/Yard Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O

2.9 Servant Quarter(s) Lights
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.10 Lights in Other Rooms, please specify:
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.11 Additional Lights in Rooms Above (continue below, if required)
Room Type(s) Type of Lamp Wattage Number of Type of Average Lamps NOT in
(e.g., 2.4 from above) (W) Lamps Fitting use Working
(of each type) (Hours/day) Condition
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
F I F C F F F O
2.12 Other Electrical and Gas Appliances
Item Quantity
1. Fans (ceiling, portable, exhaust, cooler, etc.)
2. Refrigerators
3. Deep Freezers (stand alone)
4. Air Conditioners
5. Televisions
6. Computers
7. Microwave Ovens
8. Electric Irons
9. Water Pumps

Item Quantity
10. Washing Machines
11. Electric Room Heaters
12. Gas Water Heaters (Geysers)
13. Gas Room Heaters
14. Gas Cooking Stoves/Ranges
3. CFL AWARENESS AND LAMP PURCHASE HABITS
3.1 Have you heard about energy saving compact fluorescent lamps (CFLs)/energy savers?
F Yes F No
3.2 Where did you first hear about them?

F Radio/TV advertisements
F Newspapers
F Educational institute/work place
F Retail stores
F Billboards
F Friends and acquaintances
F Other (specify)
3.3 Do you regularly purchase CFLs/ energy savers?

F Yes F No
a. If yes, how frequently do you purchase CFLs/Energy Savers
F 6 Monthly F Yearly F Infrequently
b. If yes, what is the main reason for purchasing CFLs/energy savers?
(check all that apply)
F To reduce electricity costs
F Better product quality/longer lifetime
F Better light quality
F They look good
F Readily available/proximity of source
F Recommendation from others
F Other (specify)
c. If no, what is the main reason for NOT purchasing CFLs/energy savers?
F High cost
F They don’t look good
F Don’t believe in life savings/longer lifetime
F Inappropriate light quality/tone
F Not suitable for fittings
F Not readily available/source too distant
F Voltage fluctuations prevent proper use
F Other (specify)

d. Would you be willing to buy a CFL/energy saver that is more expensive than an incandescent
bulb/GLS?
F Yes F No F Maybe
3.4 What type of lamp did you last purchase? Please specify the wattage and cost of the lamp.
F Incandescent Bulb (IB)/GLS Wattage Rs/unit
F Compact Fluorescent Lamp (CFL)/Energy Saver Wattage Rs/unit
F Fluorescent Tube Light (FTL)/Tube Light Wattage Rs/unit
F Halogen lamp Wattage Rs/unit
3.5 Where did you purchase it?

F Electrical/hardware supply store
F General/grocery store
F Other (specify)
3.6 Distance to the source

F Less than 2 km
F More than 2 km
3.7 How many times do you think a good CFL/energy saver will last compared to an incandescent
bulb/GLS?
F 2 times
F 4 times
F 6 times
F 10 times
F Don’t know
3.8 Which one of the following reasons will make you switch to CFLs/energy savers?
F Energy savings/reduced electricity costs
F Availability
F Light quality
F Look or size
F Environmental concern
F Other (specify)
3.9 What in your opinion is the most effective way of communicating these advantages to you?
F Radio/TV advertisements
F Newspapers
F Educational institute/work place
F Retail stores
F Billboards
F Other (specify)

3.10 Which of the following ways of exchanging your existing Incandescent light bulbs for CFLs would you
prefer?
(indicate order, with most likely ranked ‘1’ and least likely ‘4’)
Purchase CFL/energy saver and exchange incandescent bulb at:
F Customer service centers
F Retail stores
F Post office
F Home delivery
3.11 If you were offered to purchase high quality CFLs/energy savers (saving up to 80% of electricity
consumption for lighting) through easy monthly instalments payable through your electricity bill, would
you be willing to accept such an offer?
F Yes F No
C. SUMMARY OF THE SURVEY RESULTS
348. The results of the Baseline Domestic Lighting Survey are presented in this section.
Summarized survey results are given in Section 1, followed by additional summary tables in
Section 2. Raw data can be provided on request.
1. Summarized Survey Results
349. Summary tables corresponding to the questions on the survey form are given below.
a. Household Details
Q 1.1: Interview Language
Language Count Col %

Urdu 1,157 36%
Pashto 381 12%
Punjabi 1,319 41%
Sindhi 169 5%
Brahvi 10 0%
Saraiki 162 5%
Gujrati 1 0%
Hindko 31 1%
Bangali 6 0%
Lasi 1 0%
Baluchi 16 0%
Total 3,253 100%


Q 1.3 Average Monthly Electricity Consumption (kWh)
Electricity LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total Col %
Consumption (kWh)
Up to 50 126 129 164 103 273 147 82 24 68 1,116 34.3%
51-100 105 114 142 75 174 121 52 30 62 875 26.9%
101-300 206 130 141 111 157 140 75 20 125 1,105 34.0%
301-1,000 26 8 19 12 16 23 9 2 33 148 4.5%
Above 1,000 3 1 3 2 9 0.3%
Total 466 381 467 304 620 431 220 76 288 3,253 100.0%
141
Q 1.4a Person Interviewed (Position)
Position Count Col %

Head of household 2,050 63%
Wife 540 17%
Other 663 20%
Total 3,253 100%
Q 1.4b Person Interviewed (Gender)
Gender Count Col %

Male 2,701 83%
Female 552 17%
Total 3,253 100%
Q 1.5a Employment and Income (Main Sources)
Main Source of Income Count Col %

Govt. Salary 496 15%
Private Salary 570 18%
Daily Wage 1,110 34%
Own Business 620 19%
Agriculture 450 14%
Rentals 6 0%
Pension 1 0%
Total 3,253 100%
Q 1.5b Employment and Income (Number of Wage Earners)

Number of Count Col %
Wage Earners
0 1 0%
1 1,576 48%
2 1,248 38%
3 336 10%
4 68 2%
5 12 0%
6 4 0%
7 3 0%
8 2 0%
9 1 0%
10 2 0%
Total 3,253 100%

Q 1.6a Dwelling (Property)
Property Type Count Col %

Own 2,956 91%
Rented 291 9%
Paid for 2 0%
Squatter 3 0%
Without rent 1 0%
Total 3,253 100%
Q 1.6b Dwelling (Building)
Building Type Count Col %

Detached 3,061 94%
Multiple detached 113 3%
Flat/Apartment 64 2%
Other 15 0%
Total 3,253 100%
Q 1.6c Dwelling (Construction)
Construction Type Count Col %

Masonry 2,071 64%
Adobe 536 16%
Informal 646 20%
Total 3,253 100%

144
Q 1.6d Dwelling (Size)
Number of LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total Col %
Rooms
1 105 80 64 3 82 23 44 38 439 13.5%
2 202 166 173 96 258 161 105 13 114 1,288 39.6%
3 97 78 137 112 170 137 40 5 82 858 26.4%
4 36 31 58 89 72 82 23 7 31 429 13.2%

5 8 11 23 1 20 20 2 5 13 103 3.2%
6 11 8 8 1 13 8 2 11 5 67 2.1%
7 3 1 2 1 1 12 2 22 0.7%
8 1 2 1 1 2 13 1 21 0.6%
9 1 2 2 3 8 1 17 0.5%
10 2 2 2 1 7 0.2%
16 1 1 0.0%
20 1 1 0.0%
Total 466 381 467 304 620 431 220 76 288 3,253 100%
Q 1.6e Dwelling (Total Occupants - Adults > 18yrs)
Adults
1 8 3 2 1 4 7 2 2 29 0.9%
2 163 105 112 47 136 112 39 55 769 23.6%

3 88 89 94 109 174 78 32 6 48 718 22.1%
4 89 102 108 75 164 110 54 11 72 785 24.1%
5 53 49 65 43 52 67 29 7 42 407 12.5%
6 33 17 47 12 57 34 22 19 42 283 8.7%

Adults
7 16 6 15 13 17 8 10 8 15 108 3.3%
8 9 6 13 3 10 3 11 3 9 67 2.1%
9 4 1 3 1 5 5 6 7 1 33 1.0%
10 1 4 6 6 9 2 28 0.9%
11 1 1 2 1 4 2 11 0.3%
12 1 2 1 4 0.1%
13 1 1 2 0.1%
14 1 2 3 0.1%
15 2 1 3 0.1%
16 1 1 2 0.1%
21 1 1 0.0%
Total 466 381 467 304 620 431 220 76 288 3,253 100%
Q 1.6e Dwelling (Total Occupants – Children < 18yrs)
Children
0 39 19 65 18 38 13 12 61 265 8.1%
1 46 32 121 64 38 54 24 55 434 13.3%
2 103 85 102 105 121 115 37 6 65 739 22.7%
3 109 111 90 67 130 93 40 15 61 716 22.0%

4 108 65 51 33 151 63 33 16 23 543 16.7%
5 31 28 19 13 71 36 15 4 14 231 7.1%
6 19 22 10 2 42 26 20 13 6 160 4.9%
7 6 11 5 1 14 16 13 8 2 76 2.3%
145
146
Children
8 3 11 2 9 5 1 31 1.0%
9 2 1 3 1 2 10 5 4 28 0.9%
10 2 3 2 2 4 5 18 0.6%
11 1 1 1 3 0.1%
12 1 1 0.0%

13 1 2 3 0.1%
14 1 1 0.0%
16 1 1 0.0%
17 1 1 0.0%
18 1 1 0.0%
20 1 1 0.0%
Total 466 381 467 304 620 431 220 76 288 3,253 100%
b. Light Point and Appliance Details
i. Q 2.1: Living Room(s) Lights

Incandescent Bulbs (IBs) - Number of Lamps
Wattage Number LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total Total
(Watts) of Number
Lamps of
Lamps
5 1 2 1 66 69 69
2 5 2 7 14
3 2 2 6
10 1 1 1 2 2
25 1 2 2 2
40 1 2 1 7 27 1 3 1 2 3 47 47
2 1 2 3 6
60 1 15 11 30 13 27 4 11 111 111
2 1 4 3 1 9 18
3 1 1 3
100 1 20 30 15 3 21 18 10 8 34 159 159
2 2 2 1 8 6 2 20 2 43 86
3 2 3 5 15
4 2 1 7 10 40
200 2 1 1 2 4
Total number of 43 48 58 44 131 33 17 43 55 472 582
responses
Total number of 43 48 56 44 122 32 17 40 55 457
households

148
Incandescent Bulbs (IBs) - Type of Fitting
Wattage Type of Fitting LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts)
5 Screw/Edison 1 2 3
Pin/Bayonet 2 1 70 2 75
10 Pin/Bayonet 1 1 2
Screw/Edison 1 1

25 Screw/Edison 0
Pin/Bayonet 1 1
40 Screw/Edison 20 3 1 24
Pin/Bayonet 2 1 7 8 1 1 4 2 26
60 Screw/Edison 3 1 5 2 11
Pin/Bayonet 16 12 33 8 27 2 12 110
Pin/Bayonet 22 29 14 3 29 25 14 38 36 210
200 Screw/Edison 1 1
Pin/Bayonet 1 1
Total number of 43 48 58 44 131 33 17 43 55 472
responses
Total number of 43 48 56 44 122 32 17 40 55 457
households
Incandescent Bulbs (IBs) - Average Hours
Wattage Average Hours LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts)
5 0 to 4 hrs 33 4 37
4 to 8 hrs 2 35 37
8 to 12 hrs 1 3 4

(Watts)
10 0 to 4 hrs 1 1 2
25 0 to 4 hrs 2 2
40 0 to 4 hrs 1 1 7 8 1 1 19
4 to 8 hrs 20 3 3 1 27
8 to 12 hrs 1 1 1 1 4
60 0 to 4 hrs 14 11 19 12 26 1 6 89
4 to 8 hrs 2 3 15 1 3 5 29
8 to 12 hrs 1 1 1 3
100 0 to 4 hrs 19 13 12 3 19 16 13 1 9 105
4 to 8 hrs 1 19 3 10 8 2 31 27 101
8 to 12 hrs 2 1 2 6 11
200 0 to 4 hrs 1 1
8 to 12 hrs 1 1
Total number of responses 43 48 58 44 131 33 17 43 55 472
Total number of households 43 48 56 44 122 32 17 40 55 457
Incandescent Bulbs (IBs) - Lamps Not in Working Condition
Wattage Lamps Not in LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts) Working
Condition
5 0 2 1 66 4
73
1 5 5
10 0 1 1 2
25 0 2 2
40 0 2 1 7 28 1 3 1 4 3 50
149
150
(Watts) Working
Condition
60 0 16 14 34 18 22 4 12 120
1 1 1
100 0 22 31 16 3 26 26 15 37 36 212
1 1 3 4
2 1 1

200 0 1 1
1 1 1
Compact Fluorescent Lamps (CFLs) - Number of Lamps

Wattage Number of LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total Total
(Watts) Lamps Number
of Lamps
5 2 1 1 2
8 1 1 1 1
11 1 1 1 1 3 3
3 1 1 3
12 1 2 2 2
13 1 1 1 1
14 1 15 1 10 43 1 70 70
2 6 10 5 21 42
3 1 1 3
4 1 1 4
15 1 2 2 4 4
2 1 1 2 4

of Lamps
16 2 2 2 4
4 1 1 4
5 1 1 5
17 2 1 1 2
18 1 22 10 27 19 1 11 90 90
2 6 5 15 9 1 1 1 38 76
3 1 2 3 9
4 2 2 8
5 1 1 5
20 1 9 2 14 1 8 2 4 40 40
2 2 7 3 1 1 14 28
21 1 1 1 1
23 1 12 4 1 1 1 8 27 27
2 1 4 1 6 12
3 1 1 3
6 1 1 2 12
24 1 13 40 18 18 9 33 2 35 168 168
2 2 9 8 5 7 6 6 43 86
3 1 2 1 1 5 15
4 1 1 2 8
6 1 1 2 12
7 1 1 7
151
152
of Lamps
25 1 1 2 2 38 15 5 4 9 76 76
2 8 4 4 1 8 25 50
3 1 1 3
4 2 1 3 12
5 1 1 5

28 1 5 5 5
2 1 1 2
30 1 1 5 6 6
2 3 3 6
4 1 1 4
40 1 5 2 34 1 5 1 48 48
2 25 2 12 5 44 88
3 1 2 3 2 8 24
4 2 2 8
45 1 1 1 2 2
2 1 2 1 2 1 7 14
3 1 1 3
65 1 1 2 1 4 4
2 3 1 1 5 10 20
3 2 1 3 9
4 1 1 4
85 1 1 1 1
2 1 1 2 4
Total number of responses 101 91 112 117 133 62 54 34 110 814 1,159

Compact Fluorescent Lamps (CFLs) - Type of Fitting
(Watts)
5 Screw/Edison 1 1
8 Pin/Bayonet 1 1
11 Screw/Edison 1 1
Pin/Bayonet 1 1 1 3
12 Screw/Edison 2 2
13 Pin/Bayonet 1 1
14 Screw/Edison 3 1 3 4 1 12
Pin/Bayonet 18 18 45 81
15 Screw/Edison 2 2
Pin/Bayonet 2 1 1 4
16 Screw/Edison 1 1
Pin/Bayonet 3 3
17 Pin/Bayonet 1 1
18 Screw/Edison 6 7 5 9 1 7 35
Pin/Bayonet 23 10 38 21 1 1 5 99
Pin/Bayonet 4 9 11 1 11 2 1 1 40
21 Screw/Edison 1 1
Pin/Bayonet 12 8 1 1 7 29
24 Screw/Edison 7 6 1 5 8 13 1 6 47
Pin/Bayonet 9 43 17 22 10 29 7 37 174
25 Screw/Edison 1 46 5 1 6 59
Pin/Bayonet 2 3 19 1 8 2 12 47
28 Pin/Bayonet 6 6
153
154
(Watts)
30 Screw/Edison 1 1
Pin/Bayonet 1 8 9
40 Screw/Edison 3 61 1 20 5 1 91
Pin/Bayonet 1 2 1 4

Pin/Bayonet 1 7 8
Compact Fluorescent Lamps (CFLs) - Average Hours

(Watts)
5 4 to 8 hrs 1 1
8 8 to 12 hrs 1 1
11 0 to 4 hrs 1 1
4 to 8 hrs 1 1 1 3
12 4 to 8 hrs 2 2
13 0 to 4 hrs 1 1
14 0 to 4 hrs 9 17 27 1
54
4 to 8 hrs 12 1 4 19 36
8 to 12 hrs 3 3
15 0 to 4 hrs 1 1 2 4
4 to 8 hrs 1 1 2

(Watts)
16 0 to 4 hrs 1 1
4 to 8 hrs 3 3
17 0 to 4 hrs 1 1
18 0 to 4 hrs 15 11 24 19 1 1 7 78
4 to 8 hrs 13 6 19 11 1 4 54
8 to 12 hrs 1 1 2
20 0 to 4 hrs 4 6 9 1 8 2 1 31
4 to 8 hrs 7 3 5 1 4 20
8 to 12 hrs 3 3
21 12 to 16 hrs 1 1
23 0 to 4 hrs 7 7 1 2 1 4 22
4 to 8 hrs 5 1 1 5 12
8 to 12 hrs 1 1
12 to 16 hrs 1 1
24 0 to 4 hrs 7 27 3 13 4 10 1 7 72
4 to 8 hrs 7 20 12 14 5 26 7 33 124
8 to 12 hrs 2 2 3 7 6 3 23
12 to 16 hrs 2 2
25 0 to 4 hrs 1 2 10 12 2 3 30
4 to 8 hrs 1 1 36 7 6 6 1 14 72
8 to 12 hrs 1 2 1 4
28 0 to 4 hrs 1 1
4 to 8 hrs 5 5
30 0 to 4 hrs 4 4
4 to 8 hrs 1 4 5
8 to 12 hrs 1 1
155
156
(Watts)
40 0 to 4 hrs 2 3 15 2 7 1 30
4 to 8 hrs 3 46 1 12 5 67
8 to 12 hrs 1 4 5
45 4 to 8 hrs 1 2 2 2 7
8 to 12 hrs 3 3
65 0 to 4 hrs 3 3 6

4 to 8 hrs 3 1 7 11
8 to 12 hrs 1 1
85 4 to 8 hrs 1 1 2
8 to 12 hrs 1 1
Compact Fluorescent Lamps (CFLs) - Lamps Not in Working Condition
(Watts) Working
Condition
5 0 1 1
8 0 1 1
11 0 1 1 1 1 4
12 0 2 2
13 0 1 1
14 0 21 1 21 49 1 93
15 0 2 1 3 6
16 0 4 4
17 0 1 1

(Watts) Working
Condition
18 0 28 17 43 29 2 1 12 132
1 1 1 2
20 0 11 6 14 1 11 2 1 5 51
1 3 3
21 0 1 1
23 0 14 8 1 3 1 8 35
1 1 1
24 0 16 49 18 25 17 42 8 43 218
1 2 1 3
25 0 1 2 3 46 17 6 7 3 18 103
1 2 1 3
28 0 6 6
30 0 1 1 8 10
40 0 5 3 61 3 20 9 1 102
45 0 1 2 2 2 2 9
1 1 1
65 0 6 3 1 7 1 18
85 0 1 1 1 3
157
158
Fluorescent Tube Lights (FTLs) - Number of Lamps
Wattage Number of Lamps LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total Total
(Watts) Number
of Lamps
18 1 3 3 3
2 1 2 3 6
6 1 1 6

20 1 1 13 3 4 3 25 49 49
2 1 2 1 2 3 9 18
7 2 2 14
24 1 1 1 1
36 1 7 2 3 12 12
2 2 2 4
40 1 75 60 101 59 81 14 33 2 53 478 478
2 7 11 21 15 21 9 2 11 9 106 212
3 1 2 1 1 2 7 21
4 1 1 3 5 20
5 1 1 5
120 1 1 1 1
7 1 1 7
Total number of responses 86 72 145 87 108 31 37 16 99 681 857


Fluorescent Tube Lights (FTLs) - Average Hours
(Watts)
18 0 to 4 hrs 1 2 3
4 to 8 hrs 4 4
20 0 to 4 hrs 1 10 4 4 2 21
4 to 8 hrs 1 5 2 29 37
8 to 12 hrs 1 1 2
24 4 to 8 hrs 1 1
36 0 to 4 hrs 9 2 11
4 to 8 hrs 2 1 3
40 0 to 4 hrs 56 52 76 63 68 10 10 1 18 354
4 to 8 hrs 22 16 43 11 31 13 22 11 37 206
8 to 12 hrs 5 3 6 3 1 5 4 8 35
12 to 16 hrs 1 1 2
120 4 to 8 hrs 2 2
Fluorescent Tube Lights (FTLs) - Lamps Not in Working Condition
(Watts) Working
Condition
18 0 1 4 2 7
20 0 1 1 15 4 3 4 30 58
1 1 1 2
24 0 1 1
159
160
36 0 9 2 3 14
40 0 83 70 126 74 88 24 36 16 62 579
1 1 14 1 2 18
120 0 2 2
Others - Number of Lamps

Wattage Number of Lamps LESCO GEPCO FESCO MEPCO HESCO QESCO KESC Total Total
(Watts) Number
of Lamps
0 1 5 1 5 1 3 15 15
2 1 2 3 6
8 2 2 16
5 1 2 2 2
2 2 2 4
4 1 1 4
10 1 1 1 2 2
15 4 1 1 4
18 2 1 1 2
20 1 1 1 1
40 1 1 1 2 2
50 1 5 1 6 6
2 1 1 2
60 2 1 1 2 4
Total number of responses 16 1 6 7 2 2 7 41 70
Total number of households 16 1 6 7 2 2 7 41

Others - Average Hours
Wattage Average Hours LESCO GEPCO FESCO MEPCO HESCO QESCO KESC Total
(Watts)
0 0 to 4 hrs 3 2 1 2 8
4 to 8 hrs 2 1 5 1 2 11
8 to 12 hrs 1 1
5 0 to 4 hrs 2 2
4 to 8 hrs 3 3
10 4 to 8 hrs 1 1
8 to 12 hrs 1 1
15 0 to 4 hrs 1 1
18 0 to 4 hrs 1 1
20 4 to 8 hrs 1 1
40 0 to 4 hrs 1 1 2
50 0 to 4 hrs 1 1
4 to 8 hrs 3 1 4
8 to 12 hrs 1 1 2
60 0 to 4 hrs 1 1
8 to 12 hrs 1 1
Total number of responses 16 1 6 7 2 2 7 41
161
162
Others - Lamps Not in Working Condition
Wattage Lamps Not in LESCO GEPCO FESCO MEPCO HESCO QESCO KESC Total
(Watts) Working
Condition
0 0 5 1 5 3 1 5 20
5 0 5 5
10 0 1 1 2

15 0 1 1
18 0 1 1
20 0 1 1
40 0 1 1
1 1 1
50 0 5 1 1 7
60 0 1 1
2 1 1
ii. Q 2.2: Dining Room(s) Lights

(Watts) Number
of Lamps
5 1 17 17 17
2 1 1 2
25 2 1 1 2

40 1 7 35 1 43 43
2 1 3 1 5 10
60 1 4 10 23 18 37 2 4 98 98
2 1 3 1 2 7 14
100 1 18 27 12 1 12 12 2 5 17 106 106
2 1 2 4 19 1 27 54
3 1 5 6 18
4 3 3 12
5 1 1 5

(Watts)
5 Pin/Bayonet 18 18
25 Screw/Edison 1 1
60 Screw/Edison 1 2 1 2 1 7
Pin/Bayonet 4 11 22 18 36 4 3 98
100 Screw/Edison 1 1 1 1 2 1 1 8
Pin/Bayonet 18 26 11 1 13 15 2 32 17
135
163
164
(Watts)
5 0 to 4 hrs 18 18
25 4 to 8 hrs 1 1
40 0 to 4 hrs 7 37 1 1 46
4 to 8 hrs 1 1 2
60 0 to 4 hrs 5 10 18 18 38 4 2

95
4 to 8 hrs 3 4 2 9
8 to 12 hrs 1 1
100 0 to 4 hrs 16 10 10 1 14 13 1 2 4 71
4 to 8 hrs 2 17 2 4 1 23 14 63
8 to 12 hrs 1 8 9
(Watts) Working
Condition
5 0 16 16
1 2 2
25 0 1 1
40 0 8 38 1 1 48
60 0 5 14 23 18 35 4 4 103
1 2 2
100 0 19 27 12 1 14 17 2 33 18 143

(Watts) Number
of Lamps
5 1 1 1 1
4 1 1 4
10 1 1 1 1
11 1 2 1 3 3
12 2 1 1 2
13 4 1 1 4
14 1 13 9 18 4 44 44
2 1 7 3 11 22
4 1 1 4
15 1 1 1 1
2 2 2 4
3 1 1 3
16 1 1 1 1
17 1 2 2 2
18 1 8 9 13 12 1 43 43
2 2 7 8 5 22 44
3 1 1 2 6
4 2 2 8
165
166
(Watts) Number
of Lamps
20 1 3 7 4 5 2 21 21
2 1 3 1 1 6 12
3 1 1 3
4 1 1 4
6 1 1 6

7 1 1 7
8 1 1 8
23 1 6 3 5 14 14
2 1 1 1 3 6
6 1 1 6
24 1 7 26 14 9 3 20 1 27 107 107
2 1 1 1 5 4 8 9 2 31 62
4 1 1 4
6 1 1 6
25 1 1 3 1 2 6 3 7 23 23
2 2 2 2 7 13 26
3 1 1 3
4 1 1 4
28 1 1 1
1
2 1 1 2 4
30 1 8 8 8

(Watts) Number
of Lamps
40 1 2 1 1 8 1 2 1 16 16
2 1 17 1 11 2 32 64
4 1 1 4
5 1 1 5
45 1 1 1 1
2 2 1 3 6
65 1 4 1 5 5
2 3 3 4 10 20
3 1 1 2 6
4 3 3 12
85 3 1 1 3
(Watts)
5 Screw/Edison 1 1
Pin/Bayonet 1 1
10 Pin/Bayonet 1
1
11 Screw/Edison 1 1
Pin/Bayonet 1 1 2
12 Pin/Bayonet 1 1
13 Pin/Bayonet 1 1
167
168
(Watts)
14 Screw/Edison 1 1
Pin/Bayonet 13 1 16 21 4 55
16 Pin/Bayonet 1 1
17 Pin/Bayonet 2 2

18 Screw/Edison 3 3 3 4 1 14
24 Screw/Edison 4 1 2 3 1 2 13
Pin/Bayonet 5 26 15 14 6 25 9 27 127
Pin/Bayonet 1 3 3 6 5 3 10 31
30 Pin/Bayonet 8 8
40 Screw/Edison 1 1 22 8 3 35
Pin/Bayonet 1 1 1 3 2 3 3 1 15
Pin/Bayonet 1 1 2
Pin/Bayonet 7 1 8
85 Pin/Bayonet 1 1

(Watts)
(Watts)
5 0 to 4 hrs 1 1
4 to 8 hrs 1 1
10 0 to 4 hrs 1 1
11 0 to 4 hrs 2 1 3
12 0 to 4 hrs 1 1
13 0 to 4 hrs 1 1
14 0 to 4 hrs 11 1 10 19 4 45
4 to 8 hrs 2 6 2 10
8 to 12 hrs 1 1
15 0 to 4 hrs 3 3
8 to 12 hrs 1 1
16 0 to 4 hrs 1 1
17 4 to 8 hrs 2 2
18 0 to 4 hrs 5 10 17 11 43
4 to 8 hrs 4 6 5 7 1 23
8 to 12 hrs 1 2 3
20 0 to 4 hrs 2 9 4 1 4 20
4 to 8 hrs 2 2 1 1 4 1 11
8 to 12 hrs 1 1
169
170
(Watts)
23 0 to 4 hrs 6 3 1 2 12
4 to 8 hrs 1 3 4
8 to 12 hrs 2 2
24 0 to 4 hrs 8 18 7 13 1 15 7 69
4 to 8 hrs 1 9 7 1 3 13 10 22 66

8 to 12 hrs 1 4 5
25 0 to 4 hrs 2 1 1 5 1 8 18
4 to 8 hrs 1 3 1 3 2 4 14
8 to 12 hrs 1 1 2 2 6
28 0 to 4 hrs 1 1
4 to 8 hrs 2 2
30 0 to 4 hrs 4 4
4 to 8 hrs 4 4
40 0 to 4 hrs 2 1 1 23 2 10 1 40
4 to 8 hrs 2 1 5 8
8 to 12 hrs 1 1 2
45 0 to 4 hrs 1 1 2
4 to 8 hrs 2 2
65 0 to 4 hrs 4 7 11
4 to 8 hrs 7 1 8
8 to 12 hrs 1 1
85 4 to 8 hrs 1 1

(Watts) Working
Condition
5 0 1 1 2
10 0 1 1
11 0 2 1 3
12 0 1 1
13 0 1 1
14 0 14 1 16 20 4 55
1 1 1
15 0 1 3 4
16 0 1 1
17 0 2 2
18 0 10 16 24 18 1 69
20 0 4 11 5 1 6 4 1 32
23 0 7 3 1 6 17
1 1 1
24 0 9 27 15 13 7 28 10 29 138
1 1 1 2
25 0 1 3 1 3 6 5 3 14 36
1 1 1
2
28 0 1 2 3
30 0 8 8
40 0 2 1 2 25 2 11 6 1 50
45 0 2 1 1 4
171
65 0 4 7 8 1 20
172
(Watts) Working
Condition
85 0 1 1

(Watts) Number
of Lamps
20 1 6 2 2 20 30 30
2 1 1 2
25 1 1 1 1
36 1 7 7 7
40 1 23 24 58 20 29 2 27 3 9 195 195
2 4 5 11 4 8 2 2 8 5 49 98
3 2 1 1 2 1 7 21
4 1 1 4

(Watts)
20 0 to 4 hrs 6 2 1 3 12
4 to 8 hrs 1 17 18
8 to 12 hrs 1 1
25 0 to 4 hrs 1 1
36 0 to 4 hrs 7

7
40 0 to 4 hrs 19 25 46 25 25 1 10 6 157
4 to 8 hrs 6 4 24 12 2 17 8 8 81
8 to 12 hrs 2 2 2 2 5 1 14

(Watts) Working
Condition
20 0 1 6 1 2 20 30
1 1 1
25 0 1 1
36 0 7 7
40 0 24 27 72 25 31 4 28 13 12 236
1 3 2 6 1 1 3 16

Wattage Number of Lamps LESCO GEPCO FESCO IESCO QESCO KESC Total Total
(Watts) Number of
Lamps
0 1 1 1 4 6 6
7 1 1 7
40 1 1 1 1
4 1 1 4
50 1 2 2 2
Total number of households 3 1 4 1 1 1 11
173
174
Wattage Average Hours LESCO GEPCO FESCO IESCO QESCO KESC Total
(Watts)
0 0 to 4 hrs 1 1
4 to 8 hrs 1 3 1 5
12 to 16 1 1
hrs

40 0 to 4 hrs 1 1
4 to 8 hrs 1 1
50 0 to 4 hrs 1 1
4 to 8 hrs 1 1
Total number of responses 3 1 4 1 1 1 11
Wattage Lamps Not in LESCO GEPCO FESCO IESCO QESCO KESC Total
(Watts) Working
Condition
0 0 1 1 4 1 7
40 0 1 1 2
50 0 2 2

iii. Q 2.3: Bedroom(s) Lights

(Watts) Number
of Lamps
5 1 20 10 2 2 140 1 1 1 177 177
2 1 1 26 1 29 58
3 2 2 6
4 2 2 8
25 1 6 1 1 8 8
2 1 1 2 1 1 6 12
40 1 4 3 4 46 1 9 1 68 68
2 1 1 2 14 4 1 23 46
3 2 2 6
4 1 1 4
60 1 47 38 68 38 99 13 6 21 330 330
2 9 5 14 5 9 8 2 52 104
3 3 2 5 15
4 1 1 2 4 16
6 1 1 6
100 1 106 109 23 5 121 32 31 6 42 475 475
2
10 7 4 1 70 109 31 25 1 258 516

3 4 1 2 8 44 7 6 72 216
4 1 43 5 9 58 232
5 10 1 3 14 70
6 4 4 24
175
176
(Watts) Number
of Lamps
200 1 1 1 1 3 3
2 10 2 1 13 26
3 1 2 3 9
Total number of responses 222 175 127 111 484 287 83 52 69 1,610 2,435
Total number of households 204 171 122 110 421 273 81 52 68 1,502

(Watts)
Pin/Bayonet 21 10 3 1 167 2 1 1 206
Pin/Bayonet 5 4 6 2 1 1 2 1 22
60 Screw/Edison 4 3 1 14 6 3 1 1 33
Pin/Bayonet 53 40 84 29 105 20 5 23 359
100 Screw/Edison 6 6 1 4 6 45 1 1 70
Pin/Bayonet 114 111 28 2 194 197 74 49 42 811
Total number of responses 222 175 127 111 484 287 83 52 69 1,610

(Watts)
5 0 to 4 hrs 10 7 1 1 51 1 1 1 73
4 to 8 hrs 10 3 1 106 1 121
8 to 12 hrs 1 1 1 13 16
25 0 to 4 hrs 3 2 1 6
4 to 8 hrs 4 1 1 2 8
40 0 to 4 hrs 2 4 7 59 1 13 1 87
4 to 8 hrs 1 1 1 2 5
8 to 12 hrs 1 1
12 to 16 hrs 1 1
60 0 to 4 hrs 46 33 70 43 104 8 5 15 324
4 to 8 hrs 10 9 14 7 15 1 9 65
8 to 12 hrs 1 1 2
20 to 24 hrs 1 1
100 0 to 4 hrs 75 33 18 5 87 156 42 3 16 435
4 to 8 hrs 23 81 10 1 101 86 33 41 26 402
8 to 12 hrs 21 3 12 5 1 42
16 to 20 hrs 1 1
20 to 24 hrs 1 1
200 0 to 4 hrs 1 1 2
4 to 8 hrs 7 4 1 12
8 to 12 hrs 4 1 5
177
178
(Watts) Working
Condition
5 0 21 10 3 2 159 2 1 1 199
1 11 11
25 0 7 1 2 2 2 14
40 0 4 4 8 60 1 13 2 1 93

1 1 1
60 0 57 42 84 43 111 22 6 24 389
1 1 1 1 3
100 0 120 117 26 6 197 241 75 49 43 874
1 2 3 1 6
2 1 1
200 0 12 5 1 1 19

(Watts) Number
of Lamps
5 2 1 1 2
7 1 2 2 2
4 1 1 4
8 1 1 1 1
2 1 1 2
9 1 1 1 1

(Watts) Number
of Lamps
10 1 1 1 1
2 1 1 2
11 1 1 2 1 4 4
2 1 1 2
13 4 1 1 4
14 1 20 12 63 1 1 15 112 112
2 8 4 9 14 4 39 78
3 2 7 9 27
4 1 1 2 8
5 1 1 5
15 1 1 1 3 5 5
2 2 1 1 1 1 6 12
4 1 1 4
16 3 1 1 3
17 1 2 2 2
2 1 1 2
18 1 57 19 39 48 10 2 22 197 197
2 18 5 18 27 25 2 1 96 192
3 5 1 4 3 8 21 63
4 3 2 2 1 8 16 64
5 2 2 4 20
6 1 1 2 12
8 1 1 8
179
180
(Watts) Number
of Lamps
20 1 11 5 11 2 5 6 5 45 45
2 2 5 1 1 7 3 19 38
3 1 1 1 3 9
4 7 2 9 36
5 2 2 10

6 2 2 12
7 2 2 14
8 2 2 16
40 1 1 40
21 1 1 1 1
23 1 13 8 5 2 1 5 3 37 37
2 6 7 1 2 6 2 24 48
3 2 3 5 15
4 2 1 3 12
5 1 1 5
6 1 1 2 12
8 1 1 8
24 1 38 58 12 27 11 34 1 39 220 220
2 11 12 5 7 27 26 3 2 93 186
3 2 2 3 4 11 6 1 29 87
4 1 9 2 1 13 52
5 2 3 1 6 30
6 1 1 6
8 3 3 24
12 1 1 12

(Watts) Number
of Lamps
25 1 11 3 9 33 15 9 7 2 10 99 99
2 1 1 2 18 11 2 4 2 7 48 96
3 1 4 4 1 2 12 36
4 1 3 2 2 2 10 40
5 1 1 1 2 5 25
8 1 1 8
28 1 4 4 4
30 1 4 13 17 17
2 2 1 1 1 2 7 14
3 3 3 9
4 4 4 16
6 1 1 6
40 1 4 4 2 80 1 20 2 3 116 116
2 2 1 3 40 13 1 6 1 67 134
3 2 3 5 15
45 1 2 1 1 4 4
2 3 1 1 5 10
3 2 2 6
65 1 14 14 14
2 1 24 6 31 62
3 2 4 6 18
4 1 1 4
181
182
(Watts)
5 Screw/Edison 1 1
7 Pin/Bayonet 2 1 3
8 Pin/Bayonet 2 2
9 Pin/Bayonet 1 1

10 Screw/Edison 1 1
Pin/Bayonet 1 1
Pin/Bayonet 2 1 3
13 Pin/Bayonet 1 1
Pin/Bayonet 24 1 33 72 1 1 19 151
16 Pin/Bayonet 1 1
17 Pin/Bayonet 3 3
18 Screw/Edison 18 7 5 6 50 2 6 94
Pin/Bayonet 66 21 60 73 4 2 17 243
20 Screw/Edison 10 1 2 2 1 12 7 35
Pin/Bayonet 3 10 9 2 21 4 1 50
21 Pin/Bayonet 1 1
23 Screw/Edison 2 3 2 2 1 9 1 20
Pin/Bayonet 18 17 4 2 8 4 53

(Watts)
24 Screw/Edison 22 15 4 7 21 37 9 115
Pin/Bayonet 30 57 17 33 42 33 5 34 251
25 Screw/Edison 5 3 50 1 6 13 1 7 86
Pin/Bayonet 8 2 11 1 34 8 5 6 14 89
28 Pin/Bayonet 4 4
40 Screw/Edison 2 2 119 34 4 3 164
Pin/Bayonet 4 5 3 3 1 2 3 2 1 24
Pin/Bayonet 2 1 1 4
Pin/Bayonet 27 11 38

(Watts)
5 0 to 4 hrs 1 1
7 0 to 4 hrs 2 2
8 to 12 hrs 1 1
8 0 to 4 hrs 1 1
8 to 12 hrs 1 1
9 0 to 4 hrs 1 1
183
10 0 to 4 hrs 1 1 2
184
(Watts)
11 0 to 4 hrs 1 1
4 to 8 hrs 1 1 1 1 4
13 0 to 4 hrs 1 1
14 0 to 4 hrs 14 4 17 44 19 98
4 to 8 hrs 7 2 13 33 1 1 57
8 to 12 hrs 6 1 7

12 to 16 hrs 1 1
15 0 to 4 hrs 2 2 1 5
4 to 8 hrs 1 2 3 6
8 to 12 hrs 1 1
16 0 to 4 hrs 1 1
17 0 to 4 hrs 1 1
4 to 8 hrs 2 2
18 0 to 4 hrs 43 15 47 34 45 2 18 204
4 to 8 hrs 29 13 17 45 9 2 5 120
8 to 12 hrs 11 11
12 to 16 hrs 1 1 2
20 0 to 4 hrs 7 8 8 1 10 1 3 38
4 to 8 hrs 5 3 3 2 9 11 5 38
8 to 12 hrs 1 1 3 2 7
12 to 16 hrs 2 2
21 4 to 8 hrs 1 1
23 0 to 4 hrs 14 15 6 2 2 9 1 49
4 to 8 hrs 4 5 1 8 3 21
8 to 12 hrs 2 1 3

(Watts)
24 0 to 4 hrs 18 34 9 33 25 36 13 168
4 to 8 hrs 25 33 10 7 36 28 5 27 171
8 to 12 hrs 9 5 2 1 6 3 26
16 to 20 hrs 1 1
25 0 to 4 hrs 8 4 7 48 17 11 5 8 108
4 to 8 hrs 4 4 2 18 3 10 3 10 54
8 to 12 hrs 1 3 4 3 11
12 to 16 hrs 1 1 2
28 0 to 4 hrs 2 2
4 to 8 hrs 2 2
30 0 to 4 hrs 1 10 11
4 to 8 hrs 1 4 1 13 19
8 to 12 hrs 2 2
40 0 to 4 hrs 4 3 1 119 33 1 1 2 164
4 to 8 hrs 2 1 3 3 1 2 2 2 1 17
8 to 12 hrs 1 1 3 1 6
12 to 16 hrs 1 1
45 0 to 4 hrs 2 4 1 7
4 to 8 hrs 1 3 4
65 0 to 4 hrs 2 10
12
4 to 8 hrs 1 28 8 37
8 to 12 hrs 3 3
185
186
(Watts) Working
Condition
5 0 1 1
7 0 2 1 3
8 0 2 2
9 0 1 1

10 0 1 1 2
11 0 1 2 1 1 5
13 0 1 1
14 0 28 6 22 76 1 1 20 154
1 6 1 7
2 2 2
15 0 3 1 2 2 4 12
16 0 1 1
17 0 3 3
18 0 84 28 61 79 51 4 23 330
1 2 2
2 3 1 4
3 1 1
20 0 13 10 11 4 22 16 8 84
1 1 1
21 0 1 1
23 0 20 20 6 2 3 17 5 73
24 0 52 72 21 39 60 70 5 43 362
1 1 3 4

(Watts) Working
Condition
25 0 13 5 11 51 26 14 18 7 21 166
1 7 7
2 2 2
28 0 4 4
30 0 2 1 5 1 22 31
1 1 1
40 0 6 5 5 122 1 36 3 5 4 187
1 1 1
45 0 2 1 4 1 3 11
65 0 3 38 11 52
(Watts) Number
of Lamps
18 1 1 1 1 2 5 5
2 1 2 1 4 8
3 9 9 27
4 4 4 16
187
188
(Watts) Number
of Lamps
20 1 3 15 5 4 1 14 42 42
2 1 1 4 2 8 16
3 4 1 5 15
4 1 1 1 3 12
5 2 2 10

6 1 1 6
36 1 7 6 1 2 1 17 17
2 4 4 8
3 2 2 6
8 1 1 8
40 1 101 87 127 42 113 30 41 3 52 596 596
2 22 27 32 4 28 43 4 8 12 180 360
3 7 2 8 9 6 3 3 6 44 132
4 2 1 4 2 10 2 1 3 25 100
5 1 1 2 10
6 1 4 5 30
8 2 5 7 56
9 1 1 9
20 1 1
20

(Watts)
18 0 to 4 hrs 2 1 1 2 6
4 to 8 hrs 13 2 1 16
20 0 to 4 hrs 3 1 14 6 2 3 1 30
4 to 8 hrs 12 2 1 13 28
8 to 12 hrs 1 1 1 3
36 0 to 4 hrs 7 8 15
4 to 8 hrs 5 1 2 1 9
40 0 to 4 hrs 69 83 115 46 106 39 20 1 33 512
4 to 8 hrs 35 32 44 42 56 26 6 39 280
8 to 12 hrs 25 1 6 4 4 4 6 3 53
12 to 16 hrs 3 6 1 10
16 to 20 hrs 2 3 5
20 to 24 hrs 1 1

(Watts) Working Condition
18 0 3 3 1 1 2 10
1 5 5
2 7 7
20 0 4 1 19 6 5 3 14 52
1 4 1 5
2 3 1
189
4
190
36 0 7 12 1 2 1 23
1 1 1
40 0 134 116 174 46 140 98 50 13 75 846
1 1 12 1 1 15

Wattage Number of Lamps LESCO GEPCO FESCO MEPCO PESCO HESCO KESC Total Total
(Watts) Number
of Lamps
0 1 5 1 7 1 6 3 23 23
2 1 1 1 3 6
4 1 1 4
5 1 3 1 4 4
2 1 1 2
10 1 1 1 2 2
40 1 1 1 1
50 1 4 2 6 6
2 1 1 2


Wattage Average Hours LESCO GEPCO FESCO MEPCO PESCO HESCO KESC Total
(Watts)
0 0 to 4 hrs 2 1 1 1 5
4 to 8 hrs 1 1 7 1 1 5 3 19
8 to 12 hrs 2 1 3
5 0 to 4 hrs 1 1
4 to 8 hrs 3 1 4
10 0 to 4 hrs 1 1
4 to 8 hrs 1 1
40 4 to 8 hrs 1 1
50 0 to 4 hrs 1 1
4 to 8 hrs 4 2 6
Wattage Lamps Not in LESCO GEPCO FESCO MEPCO PESCO HESCO KESC Total
0 0 5 1 7 3 1 6 4 27
5 0 4 1 5
10 0 1 1 2
40 0 1 1
50 0 4 3 7
191
iv. Q 2.4: Study(s) Lights
192
(Watts) Number
of Lamps
5 1 14 1 15 15
25 1 2 2 2
40 1 1 3 1 5

5
2 1 1 2 4
4 1 1 4
60 1 1 7 1 13 7 1 3 33 33
2 1 4 1 6 12
100 1 8 23 3 9 6 2 4 3 58 58
2 1 1 2 5 9 18
3 1 3 4 12
4 3 3 12
(Watts)
25 Pin/Bayonet 2 2
Pin/Bayonet 2 1 3

(Watts)
60 Screw/Edison 4 4
Pin/Bayonet 1 8 1 13 7 1 1 3 35
100 Screw/Edison 2 1 1 3 1 8
Pin/Bayonet 6 22 3 6 8 3 15 3 66
(Watts)
5 0 to 4 hrs 11 11
4 to 8 hrs 2 1 3
8 to 12 hrs 1 1
25 0 to 4 hrs 1 1
4 to 8 hrs 1 1
40 0 to 4 hrs 1 4 1 1 7
4 to 8 hrs 1 1
60 0 to 4 hrs 1 6 1 17 7 1 1 3 37
4 to 8 hrs 2 2
100 0 to 4 hrs 7 6 3 9 6 4 5 1 41
4 to 8 hrs 17 1 2 10 2 32
8 to 12 hrs 1 1
193
194
5 0 12 1 13
1 2 2
25 0 2 2
40 0 1 4 1 1 1 8

60 0 1 8 1 17 7 1 1 3 39
100 0 8 23 4 9 8 4 15 3 74
(Watts) Number
of Lamps
11 2 1 1 2 4
6 1 1 6
14 1 2 7 9 9
2 1 1 1 1 4 8
15 1 1 1 1
3 1 1 3
16 1 1 1 1
18 1 5 3 5 3 1 17 17
2 1 4 4 1 1 11 22
4 1 1 4

(Watts) Number
of Lamps
20 1 3 2 2 2 1 1 11 11
2 6 2 8 16
22 1 1 1 1
23 1 4 4 4
2 1 2 3 6
24 1 4 16 1 5 1 1 8 36 36
2 1 5 2 1 1 10 20
3 1 1 3
4 1 2 1 4 16
5 1 1 5
6 1 1 6
25 1 2 1 10 2 4 2 4 25 25
2 15 2 3 20 40
3 1 1 2 6
4 1 1 4
28 1 2 2 2
30 1 1 1 1
40 1 1 1 19 1 4 26 26
2 1 83 17 1 2 104 208
3 1 1 2 6
45 1 1 1 1
2 2 2 4
195
196
(Watts) Number
of Lamps
65 2 3 1 6 10 20
3 3 3 9
4 1 1 4
85 1 1 1 1
4 1 1 4

(Watts)
11 Screw/Edison 1 1
Pin/Bayonet 1 1
Pin/Bayonet 3 6 9
16 Pin/Bayonet 1 1
18 Screw/Edison 1 3 4 2 1 11
Pin/Bayonet 1 8 3 1 1 1 15
22 Pin/Bayonet 1 1
Pin/Bayonet 1 1 3 5

(Watts)
24 Screw/Edison 3 7 2 2 4 18
Pin/Bayonet 3 15 1 7 3 1 1 4 35
28 Pin/Bayonet 2 2
30 Pin/Bayonet 1 1
40 Screw/Edison 1 101 19 1 122
Pin/Bayonet 2 1 1 1 2 1 2 10
45 Screw/Edison 2 2
Pin/Bayonet 1 1
Pin/Bayonet 10 10
85 Screw/Edison 1 1
Pin/Bayonet 1 1
(Watts)
11 0 to 4 hrs 1 1
4 to 8 hrs 1 1
14 0 to 4 hrs 2 1 6 1 10
4 to 8 hrs 1 2 3
197
198
(Watts)
15 0 to 4 hrs 1 1
4 to 8 hrs 1 1
16 4 to 8 hrs 1 1
18 0 to 4 hrs 3 3 3 5 1 15
4 to 8 hrs 3 7 2 1 1 14

20 0 to 4 hrs 2 6 3 2 13
4 to 8 hrs 1 2 2 1 6
8 to 12 hrs 1 1
22 8 to 12 hrs 1 1
23 0 to 4 hrs 1 2 1 4
4 to 8 hrs 3 3
24 0 to 4 hrs 2 13 3 2 2 22
4 to 8 hrs 4 9 4 2 1 3 6 29
8 to 12 hrs 1 1 2
25 0 to 4 hrs 25 3 4 4 36
4 to 8 hrs 1 2 2 2 2 9
8 to 12 hrs 1 1 1 3
28 0 to 4 hrs 1 1
4 to 8 hrs 1 1
30 4 to 8 hrs 1 1
40 0 to 4 hrs 97 20 1 1 119
4 to 8 hrs 1 2 5 1 9
8 to 12 hrs 1 2 3
12 to 16 hrs 1 1

(Watts)
45 4 to 8 hrs 1 1
8 to 12 hrs 2 2
65 0 to 4 hrs 3 1 6 10
4 to 8 hrs 3 3
8 to 12 hrs 1 1
85 0 to 4 hrs 1 1
8 to 12 hrs 1 1

11 0 1 1 2
14 0 3 1 8 1 13
15 0 1 1 2
16 0 1 1
18 0 6 3 10 7 2 1 29
20 0 3 8 5 2 1 1 20
22 0 1 1
23 0 1 2 4
7
24 0 5 22 1 7 5 1 3 8 52
2 1 1
25 0 2 1 25 4 4 2 2 6 46
1 1 1
2 1 1
199
200
28 0 2 2
30 0 1 1
40 0 1 2 1 102 1 21 1 3 132
45 0 1 2 3
65 0 3 1 10 14
85 0 1 1 2

(Watts) Number
of Lamps
18 1 1 1 1
20 1 2 2 2
36 1 9 3 12 12
2 1 1 2
3 1 1 3
40 1 7 20 21 36 54 7 6 2 8 161 161
2 1 5 9 2 1 1 4 1 24 48
3 1 1 1 1 4
12
4 1 2 3 12
5 1 1 5

(Watts)
18 0 to 4 hrs 1 1
20 0 to 4 hrs 2 2
36 0 to 4 hrs 9 1 3 1 14
40 0 to 4 hrs 5 19 10 35 46 7 4 1 4 131
4 to 8 hrs 3 7 17 9 1 3 4 4 48
8 to 12 hrs 1 4 1 2 1 4 1 14
18 0 1 1
20 0 2 2
36 0 9 1 3 1 14
40 0 9 25 31 36 55 9 6 9 9 189
1 1 1 1 3
2 1 1
201
202
Wattage Number of Lamps LESCO FESCO Total Total Number

(Watts) of Lamps
0 1 1 4 5 5
5 1 1 1 1
50 1 2 2 2
Total number of responses 4 4 8 8

Total number of households 4 4 8
Wattage Average Hours LESCO FESCO Total

(Watts)
0 0 to 4 hrs 1 1
4 to 8 hrs 4 4
5 4 to 8 hrs 1 1
50 4 to 8 hrs 2 2
Total number of responses 4 4 8
Wattage Lamps Not in LESCO FESCO Total

0 0 1 4 5
5 0 1 1
50 0 2 2
v. Q 2.5: Bathroom(s)/Toilet(s) Lights

(Watts) Number
of Lamps
5 1 70 43 15 7 90 16 1 242 242
2 1 4 5 2 12 24
10 1 3 3 3
25 1 4 3 6 1 14 14
2 1 1 1 1 4 8
40 1 13 15 21 90 10 8 3 3 2 165 165
2 1 1 5 1 1 9 18
3 1 1 3
60 1 44 34 69 8 87 27 27 2 48 346 346
2 1 7 5 2 1 3 19 38
3 1 1 2 6
5 1 1 5
100 1 19 6 18 5 64 150 34 23 67 386 386
2 1 1 2 33 2 13 5 57 114
3 3 5 3 1 12 36
4 1 9 4 14 56
5 1 1 5
200 1 1 1 1
203
204
(Watts)
5 Screw/Edison 6 1 6 1 3 1 18
Pin/Bayonet 64 42 16 1 93 18 1 1 236
10 Pin/Bayonet 3 3

Pin/Bayonet 12 16 21 38 10 10 2 4 1 114
60 Screw/Edison 6 6 7 4 1 2 1 1 28
Pin/Bayonet 40 28 69 4 93 27 27 2 50 340
100 Screw/Edison 3 2 3 2 2 39 5 56
Pin/Bayonet 19 5 15 3 67 158 36 43 68 414
200 Pin/Bayonet 1 1

(Watts)
5 0 to 4 hrs 70 41 9 7 69 19 1 2 218
4 to 8 hrs 2 4 15 2 23
8 to 12 hrs 3 10 13
10 0 to 4 hrs 1 1
8 to 12 hrs 2 2
25 0 to 4 hrs 5 3 7 1 1 1 18
40 0 to 4 hrs 13 16 18 93 10 10 3 1 164
4 to 8 hrs 1 3 2 4 1 11

(Watts)
60 0 to 4 hrs 42 29 56 8 82 24 26 1 45 313
4 to 8 hrs 3 3 17 5 5 2 1 5 41
8 to 12 hrs 1 2 3 7 1 14
100 0 to 4 hrs 19 4 18 5 52 175 30 24 61 388
4 to 8 hrs 3 3 11 22 6 19 12 76
8 to 12 hrs 6 6
200 0 to 4 hrs 1 1

(Watts) Working
Condition
5 0 70 43 16 7 92 21 1 2 252
1 2 2
10 0 3 3
25 0 5 3 7 1 1 1 18
40 0 14 16 21 95 10 10 3 4 2 175
60 0 46 34 75 8 93 29 28 2 51 366
1 1 1 2
100 0 23 6 18 5 69 197 36 43 73 470
200 0 1 1
205
206
(Watts) Number
of Lamps
5 1 2 2 2
2 1 1 2
7 1 1 1 2 2

2 1 1 2 4 8
8 1 1 1 2 2
9 1 1 1 1
10 1 1 1 1
11 1 2 2 10 1 4 19 19
2 1 1 2 4
5 1 1 5
12 1 1 1 2 2
2 1 1 2
13 1 2 2 4 4
2 2 2 4
14 1 26 6 9 3 60 16 3 2 125 125
2 4 2 6 3 15 30
3 1 1 3
5 1 1 5
15 1 1 2 1 4 4
2 2 1 3 6
16 1 1 1 1

(Watts) Number
of Lamps
18 1 23 30 19 17 15 8 38 150 150
2 1 3 3 3 1 1 1 13 26
3 1 1 3
4 1 1 4
5 1 1 5
20 1 9 11 11 3 3 5 2 44 44
2 9 1 2 3 15 30
3 3 1 4 12
4 1 1 2 8
20 1 1 20
23 1 1 3 2 1 1 4 12 12
2 2 2 4 8
3 1 1 3
24 1 8 20 13 9 15 29 1 9 104 104
2 2 2 4 9 1 1 19 38
3 1 1 3
25 1 3 1 3 147 2 24 8 10 198 198
2 1 12 4 1 1 2 21 42
4 1 1 4
28 1 3 3 3
30 1 1 4 5 5
2 1 1 2
40 1 1 2 17 10 1 1 5 37 37
2 3 3 6 12
207
208
(Watts) Number
of Lamps
45 1 2 1 1 4 4
3 2 2 6
65 1 3 1 1 3 8 8
2 2 2 4


(Watts)
5 Pin/Bayonet 3 3
7 Pin/Bayonet 1 1 1 3 6
8 Pin/Bayonet 1 1 2
9 Pin/Bayonet 1 1
10 Screw/Edison 1 1
12 Screw/Edison 1 1
Pin/Bayonet 1 1 2
13 Screw/Edison 1 1
Pin/Bayonet 3 2 5
14 Screw/Edison 7 5 2 3 7 15 1 1 41
Pin/Bayonet 19 5 9 60 1 5 2 101
15 Screw/Edison 2 2
Pin/Bayonet 1 2 2 5

(Watts)
16 Pin/Bayonet 1 1
18 Screw/Edison 7 2 2 13 8 1 7 40
Pin/Bayonet 17 32 20 21 4 32 126
20 Screw/Edison 5 4 3 5 5 22
Pin/Bayonet 4 20 8 1 9 2 44
Pin/Bayonet 5 5 10
24 Screw/Edison 5 2 1 3 9 14 4 38
Pin/Bayonet 4 18 14 8 10 24 1 7 86
25 Screw/Edison 1 157 26 3 1 7 195
Pin/Bayonet 2 1 4 2 2 2 6 6 25
28 Pin/Bayonet 3 3
30 Screw/Edison 1 1
Pin/Bayonet 5 5
40 Screw/Edison 1 20 13 1 1 36
Pin/Bayonet 2 1 4 7
Pin/Bayonet 2 1 3
Pin/Bayonet 3 3

209
210
(Watts)
5 0 to 4 hrs 1 1
4 to 8 hrs 2 2
7 0 to 4 hrs 1 2 3
4 to 8 hrs 1 1 2

20 to 24 hrs 1 1
8 0 to 4 hrs 1 1 2
9 4 to 8 hrs 1 1
10 0 to 4 hrs 1 1
11 0 to 4 hrs 3 2 5 1 5 16
4 to 8 hrs 1 5 6
12 0 to 4 hrs 2 2
8 to 12 hrs 1 1
13 0 to 4 hrs 4 2 6
14 0 to 4 hrs 21 4 10 3 59 16 4 2 119
4 to 8 hrs 4 6 1 5 2 1 19
8 to 12 hrs 1 3 4
15 0 to 4 hrs 1 2 1 2 6
4 to 8 hrs 1 1
16 0 to 4 hrs 1 1
18 0 to 4 hrs 22 32 19 16 16 3 1 31 140
4 to 8 hrs 1 2 2 3 1 5 7 21
8 to 12 hrs 1 1 2 1 5

(Watts)
20 0 to 4 hrs 8 18 12 4 8 2 2 54
4 to 8 hrs 1 2 5 3 11
12 to 16 hrs 1 1
23 0 to 4 hrs 1 5 2 1 1 2 12
4 to 8 hrs 1 2 3
8 to 12 hrs 2 2
24 0 to 4 hrs 9 18 9 9 17 29 8 99
4 to 8 hrs 1 4 2 1 7 1 2 18
8 to 12 hrs 2 1 2 1 6
20 to 24 hrs 1 1
25 0 to 4 hrs 3 1 4 159 2 27 6 1 12 215
4 to 8 hrs 1 3 1 5
28 0 to 4 hrs 2 2
4 to 8 hrs 1 1
30 0 to 4 hrs 1 5 6
40 0 to 4 hrs 1 2 19 13 1 5 41
4 to 8 hrs 1 1 2
45 0 to 4 hrs 1 1 3 5
20 to 24 hrs 1 1
65 0 to 4 hrs 5 1 1 3 10
211
212
(Watts) Working
Condition
5 0 3 3
7 0 1 1 1 3 6
8 0 1 1 2
9 0 1 1

10 0 1 1
11 0 4 2 10 1 5 22
12 0 2 1 3
13 0 4 2 6
14 0 26 10 11 3 65 16 6 3 140
1 2 2
15 0 1 2 2 2 7
16 0 1 1
18 0 24 34 22 21 17 8 1 39 166
20 0 9 20 12 4 9 7 5 66
23 0 1 5 3 1 1 6 17
24 0 9 20 15 11 19 38 1 11 124
25 0 3 1 4 159 2 28 9 1 13 220
28 0 3 3
30 0 1 4 5
1 1 1
40 0 1 2 20 13 1 1 5 43
45 0 2 1 3 6
65 0 5 1 1 3 10

(Watts) Number
of Lamps
18 1 10 2 1 6 19 19
2 5 5 10
20 1 6 1 22 22 3 1 2 57 57
2 1 1 2
3 1 1 2 6
36 1 2 1 3 3
2 1 1 2
40 1 7 14 34 1 3 5 8 6 13 91 91
2 3 3 2 5 3 1 17 34
3 1 2 3 9
5 1 1 5
(Watts)
18 0 to 4 hrs 1 2 6 1 10
4 to 8 hrs 9 1 4
14
20 0 to 4 hrs 6 2 22 22 3 1 2 58
4 to 8 hrs 1 1
8 to 12 hrs 1 1
36 0 to 4 hrs 3 3
213
4 to 8 hrs 1 1
214
(Watts)
40 0 to 4 hrs 11 13 32 1 4 12 5 1 11 90
4 to 8 hrs 1 1 5 1 3 8 3 22

18 0 10 2 1 6 5 24
20 0 7 2 22 23 3 1 2 60
36 0 3 1 4
40 0 12 14 36 1 5 12 8 9 14 111
1 1 1

Wattage Number of Lamps LESC GEPCO FESCO MEPCO HESCO Total Total
(Watts) O Number
of Lamps
0 1 8 3 6 2 3 22 22
5 1 1 1 1
2 1 1 2
50 1 6 7 2 15 15
2 1 1 2
60 1 1 1 1
Total number of households 18 3 6 9 5 41

Wattage Average Hours LESC GEPCO FESCO MEPCO HESCO Total
(Watts) O
0 0 to 4 hrs 7 2 4 1 3 17
4 to 8 hrs 1 1
8 to 12 hrs 1 2 1 4
5 0 to 4 hrs 1 1
20 to 24 hrs 1 1
50 0 to 4 hrs 4 6 2 12
4 to 8 hrs 2 1 3
8 to 12 hrs 1 1
60 12 to 16 hrs 1 1
Total number of responses 18 3 6 9 5 41
Wattage Lamps Not in LESCO GEPCO FESCO MEPCO HESCO Total

(Watts) Working
Condition
0 0 8 3 6 2 3 22
5 0 2 2
50 0 7 7 2 16
60 0 1 1

215
vi. Q 2.6: Kitchen(s) Lights
216
Wattage Number of LESC GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total Total
(Watts) Lamps O Number
of Lamps
5 1 5 2 2 9 18 18
3 1 1 3

10 1 1 1 2 2
25 1 1 1 7 1 1 11 11
40 1 2 5 19 56 4 7 1 2 1 97 97
2 29 1 30 60
4 1 1 4
60 1 32 31 60 17 82 23 17 33 295 295
2 1 2 1 4 8
4 1 1 4
100 1 36 13 20 3 46 180 26 28 54 406 406
2 2 25 2 14 1 44 88
3 2 2 6
4 6 6 24
7 1 1 7
200 1 1 1 2 2
2 1 1 2

(Watts)
10 Screw/Edison 1 1
Pin/Bayonet 1 1
Pin/Bayonet 2 5 18 28 5 4 1 3 66
60 Screw/Edison 3 5 6 1 2 2 1 20
Pin/Bayonet 29 26 54 17 81 23 16 1 33 280
100 Screw/Edison 1 1 2 40 1 1 46
Pin/Bayonet 36 13 19 2 46 165 27 50 55 413

(Watts)
5 0 to 4 hrs 2 2 2 10 16
4 to 8 hrs 2 2
8 to 12 hrs 1
1
10 0 to 4 hrs 1 1 2
25 0 to 4 hrs 1 1 7 1 1 11
40 0 to 4 hrs 1 5 19 85 5 6 1 1 123
4 to 8 hrs 1 1 2 4
8 to 12 hrs 1 1
217
218
(Watts)
60 0 to 4 hrs 29 20 45 18 83 21 15 30 261
4 to 8 hrs 3 11 14 4 2 1 3 38
8 to 12 hrs 1 1
100 0 to 4 hrs 20 10 9 3 41 181 24 20 40 348
4 to 8 hrs 16 3 11 7 23 4 29 15 108
8 to 12 hrs 1 1 1 3

200 0 to 4 hrs 1 1 2
4 to 8 hrs 1 1
5 0 5 2 2 10 19
10 0 1 1 2
25 0 1 1 7 1 1 11
40 0 2 5 19 85 5 7 1 3 1 128
60 0 32 31 60 18 81 25 17 1 33 298
1 2 2
100 0 36 13 20 3 48 205 28 50 56 459
200 0 1 2 3

(Watts) Number
of Lamps
5 1 2 1 1 4 4
2 1 1 2
7 1 1 1 1
8 1 1 1 2 2
11 1 2 1 1 1 5 5
2 1 1 2 4
12 2 1 1 2
13 1 1 1 2 2
14 1 23 7 17 4 58 18 1 14 142 142
2 2 2 9 4 3 20 40
15 1 3 1 3 7 7
2 3 3 6
16 1 3 3 3
17 1 1 1 1
18 1 32 17 23 13 25 13 39 162 162
2 1 2 6 1 10 20
20 1 10 7 9 2 4 5 7 44 44
2 9 2 1 1 13 26
4 1 1 4
23 1 4 5 19 10 7 45 45
2 1 1 2 4
24 1 8 18 4 24 25 40 23 142 142
2 2 1 1 1 9 14 28
4 1 1 2 8
219
220
(Watts) Number
of Lamps
25 1 3 3 2 124 13 23 5 12 185 185
2 4 2 3 9 18
3 1 1 3
28 1 3 3 3
30 1 10 10 10

40 1 2 1 2 20 2 10 1 1 9 48 48
2 3 3 1 7 14
4 1 1 4
45 1 2 2 2
65 1 2 2 4 4
2 2 1 5 8 16
3 1 1 2 6
4 1 1 4
Wattage Type of Fitting LESC GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts) O
5 Pin/Bayonet 2 2 1 5
7 Pin/Bayonet 1 1
8 Pin/Bayonet 1 1 2
12 Pin/Bayonet 1 1

(Watts) O
14 Screw/Edison 1 2 2 4 5 17 2 33
Pin/Bayonet 24 7 24 57 1 2 14 129
Pin/Bayonet 3 2 5
16 Pin/Bayonet 3 3
17 Pin/Bayonet 1 1
18 Screw/Edison 11 3 5 1 17 13 5 55
Pin/Bayonet 22 16 24 12 8 35 117
20 Screw/Edison 9 4 1 5 5 24
Pin/Bayonet 1 16 7 1 4 2 3 34
23 Screw/Edison 2 1 20 10 2 35
24 Screw/Edison 6 2 1 6 12 14 6 47
Pin/Bayonet 3 18 4 19 14 36 17 111
25 Screw/Edison 129 1 23 1 4 158
Pin/Bayonet 3 3 2 12 6 11 37
28 Pin/Bayonet 3 3
30 Screw/Edison 1 1
Pin/Bayonet 9 9
40 Screw/Edison 2 23 13 2 2 42
Pin/Bayonet 1 2 2 1 1 7 14
45 Screw/Edison 1 1
Pin/Bayonet 1 1
221
222
(Watts) O
Pin/Bayonet 7 7

(Watts)
5 0 to 4 hrs 2 2 1 5
7 0 to 4 hrs 1 1
8 0 to 4 hrs 1 1
4 to 8 hrs 1 1
11 0 to 4 hrs 2 1 2 5
4 to 8 hrs 1 1 2
12 8 to 12 hrs 1 1
13 0 to 4 hrs 1 1
4 to 8 hrs 1 1
14 0 to 4 hrs 13 3 23 4 47 18 1 13 122
4 to 8 hrs 10 6 3 13 3 1 36
8 to 12 hrs 1 1 2
12 to 16 hrs 1 1
2
15 0 to 4 hrs 2 1 1 2 6
4 to 8 hrs 1 1 1 3
8 to 12 hrs 1 1
16 0 to 4 hrs 3 3
17 4 to 8 hrs 1 1

(Watts)
18 0 to 4 hrs 23 14 24 11 25 7 24 128
4 to 8 hrs 8 5 5 1 3 13 35
8 to 12 hrs 2 1 3 3 9
20 0 to 4 hrs 5 7 9 1 2 4 4 32
4 to 8 hrs 4 9 2 1 2 1 4 23
8 to 12 hrs 1 1
12 to 16 hrs 1 1
16 to 20 hrs 1 1
23 0 to 4 hrs 2 5 20 10 4 41
4 to 8 hrs 2 3 5
8 to 12 hrs 1 1
24 0 to 4 hrs 5 14 2 20 22 40 12 115
4 to 8 hrs 3 6 3 4 2 9 7 34
8 to 12 hrs 1 2 1 4 8
12 to 16 hrs 1 1
25 0 to 4 hrs 2 3 2 127 13 23 5 7 182
4 to 8 hrs 1 2 2 7 12
20 to 24 hrs 1 1
28 0 to 4 hrs 2 2
4 to 8 hrs 1 1
30 0 to 4 hrs 9 9
4 to 8 hrs 1 1
40 0 to 4 hrs 2 2 21 2 13 1 1 6 48
4 to 8 hrs 1 1 2 3 7
20 to 24 hrs 1 1
45 4 to 8 hrs 2 2
223
224
(Watts)
65 0 to 4 hrs 5 3 8
4 to 8 hrs 7 7

(Watts) Working
Condition
5 0 2 2 1 5
7 0 1 1
8 0 1 1 2
11 0 3 1 2 1 7
12 1 1 1
13 0 1 1 2
14 0 25 9 24 4 61 18 4 14 159
1 2 1 3
15 0 3 1 3 3 10
16 0 3 3
17 0 1 1
18 0 33 19 29 13 25 13 40 172
20 0 10 16 11 2 4 7 8 58
23 0 4 5 20 10 8 47
24 0 9 20 5 24 26 50 23 157
1 1 1
25 0 3 3 2 129 13 23 7 15 195
28 0 3 3
30 0 10 10

(Watts) Working
Condition
40 0 2 1 2 23 2 13 1 3 9 56
45 0 2 2
65 0 5 3 7 15
of Lamps
18 1 14 7 5 26 26
2 5 1 6 12
3 1 1 3
20 1 7 20 4 10 5 1 8 55 55
2 1 1 2
36 1 1 1 1 3 3
40 1 48 38 73 21 39 17 10 2 24 272 272
2 1 2 9 1 1 3 2 19 38
3 1 1 3
50 1 1 1 1

225
226
(Watts)
18 0 to 4 hrs 11 7 5 1 1 25
4 to 8 hrs 3 5 8
20 0 to 4 hrs 5 20 4 10 3 1 5 48
4 to 8 hrs 2 1 1 3 7

8 to 12 hrs 1 1
36 0 to 4 hrs 1 1 1 3
40 0 to 4 hrs 30 34 49 21 33 18 5 1 12 203
4 to 8 hrs 17 6 27 7 1 2 3 13 76
8 to 12 hrs 1 6 2 1 1 11
12 to 16 hrs 1 1
16 to 20 hrs 1 1
50 0 to 4 hrs 1 1

(Watts) Working
Condition
18 0 14 7 5 6 1 33
20 0 7 21 4 10 5 1 8 56
36 0 1 1 1 3
40 0 49 40 82 21 40 19 10 5 26 292
50 0 1 1

Wattage Number of MEPCO HESCO Total Total

of Lamps
0 1 2 4 6 6
50 1 3 3 3
Wattage Average Hours MEPCO HESCO Total

(Watts)
0 0 to 4 hrs 2 4 6
50 0 to 4 hrs 3 3
Wattage Lamps Not in MEPCO HESCO Total

(Watts) Working
Condition
0 0 2 4 6
50 0 3 3

227
vii. Q 2.7: Balconies/Veranda(s) Lights
228
(Watts) Number
of Lamps
5 1 1 6 1 8 8
2 1 1 2

3 1 3 4 12
4 3 3 12
5 1 1 5
25 1 2 1 1 4 4
4 1 1 4
40 1 4 1 1 10 1 6 1 24 24
2 2 2 4
60 1 5 10 7 2 27 7 14 72 72
2 1 1 2
4 1 1 4
100 1 11 12 5 1 20 86 30 5 28 198 198
2 2 2 1 1 49 1 15 71 142
3 9 2 11 33
4 5 5 20
200 1 1 1 2 2
2 1 1 2 4

(Watts)
25 Screw/Edison 1 1
Pin/Bayonet 3 1 4
Pin/Bayonet 4 1 1 9 1 8 24
Pin/Bayonet 6 10 7 27 6 14 70
100 Screw/Edison 2 1 1 26 3 1 34
Pin/Bayonet 11 13 6 21 118 28 27 27 251
Pin/Bayonet 1 1 1 3

(Watts)
5 0 to 4 hrs 2 10 1 13
4 to 8 hrs 4 4
25 0 to 4 hrs 3 1 4
4 to 8 hrs 1 1
40 0 to 4 hrs 3 1 9 1 8 22
4 to 8 hrs 1 1 1 3
8 to 12 hrs 1 1
60 0 to 4 hrs 5 6 4 2 26 7 8 58
4 to 8 hrs 1 4 2 2 6 15
229
230
(Watts)
12 to 16 hrs 1 1
100 0 to 4 hrs 9 10 3 1 14 81 29 4 12 163
4 to 8 hrs 3 4 2 7 62 2 13 13 106
8 to 12 hrs 1 1 1 10 3 16
200 0 to 4 hrs 1 1 2
4 to 8 hrs 1 1 2

5 0 2 7 1 10
2 4 4
3 2 2
4 1 1
25 0 3 1 1 5
40 0 4 1 1 10 1 8 1 26
60 0 5 10 7 2 27 7 14 72
1 1 1 2
100 0 13 12 6 1 21 144 31 27 28 283

1 2 2
200 0 2 1 1 4

of
Lamps
5 1 1 1 1
5 1 1 5
7 2 1 1 2
4 1 1 4
8 1 1 1 1
2 1 1 2
10 1 1 1 2 2
12 1 1 1 2 2
13 2 1 1 2
14 1 9 7 16 5 1 3 41 41
2 1 1 3 1 6 12
8 1 1 8
15 1 2 2 2
2 1 1 2 4
16 1 1 1 1
2 1 1 2
17 1 1 1 1
18 1 10 5 9 7 23 9 63 63
2 3 2 8 1 14 28
3 1 1 3
20 1 4 4 4 1 2 15 15
2 4 7 11 22
3 1 4 5 15
8 1 1 8
10 1 1 10
231
232
of
Lamps
23 1 3 4 6 1 14 14
2 1 3 4 8
24 1 6 9 4 7 39 18 7 90 90
2 1 2 4 6 2 3 18 36
3 1 1 3

4 1 2 3 12
5 2 2 10
25 1 2 3 8 11 3 3 2 9 41 41
2 2 1 3 6
4 1 1 4
28 1 1 1 1
30 1 1 1 1
2 1 1 2
40 1 2 4 106 1 16 2 131 131
2 9 2 2 13 26
45 1 1 1 2 2
65 1 3 1 4 4
2 1 1 2 4
85 4 1 1 4
100 1 3 3 3

Total number of 43 33 43 124 58 126 27 14 39 507
households

(Watts)
5 Screw/Edison 2 2
8 Screw/Edison 1 1
Pin/Bayonet 1 1
7 Screw/Edison 1 1
Pin/Bayonet 1 1
10 Screw/Edison 1 1
Pin/Bayonet 1 1
13 Screw/Edison 1 1
Pin/Bayonet 10 1 11 15 1 1 3 42
16 Screw/Edison 1 1
Pin/Bayonet 1 1
17 Pin/Bayonet 1 1
18 Screw/Edison 2 2 1 22 3 30
Pin/Bayonet 8 6 11 14 1 8 48
24 Screw/Edison 3 3 1 2 23 9 3 44
Pin/Bayonet 5 8 3 9 27 11 3 4 70
Pin/Bayonet 2 3 11 1 3 4 7 31
28 Pin/Bayonet 1 1
233
234
(Watts)
30 Screw/Edison 1 1
Pin/Bayonet 1 1
40 Screw/Edison 1 114 17 1 133
Pin/Bayonet 1 4 1 1 1 1 2 11

Pin/Bayonet 1 2 3
85 Pin/Bayonet 1 1
Pin/Bayonet 2 2

(Watts)
5 0 to 4 hrs 2 2
7 0 to 4 hrs 1 1
4 to 8 hrs 1 1
8 0 to 4 hrs 1 1
4 to 8 hrs 1 1
10 4 to 8 hrs 1 1
8 to 12 hrs 1 1
12 4 to 8 hrs 1 1
8 to 12 hrs 1 1
13 0 to 4 hrs 1 1

(Watts)
14 0 to 4 hrs 7 1 13 5 3 29
4 to 8 hrs 3 1 10 3 1 18
8 to 12 hrs 1 1
15 0 to 4 hrs 2 1 3
4 to 8 hrs 1 1
16 4 to 8 hrs 2 2
17 4 to 8 hrs 1 1
18 0 to 4 hrs 4 4 6 13 13 9 49
4 to 8 hrs 3 4 5 2 9 23
8 to 12 hrs 3 2 5
12 to 16 hrs 1 1
20 0 to 4 hrs 1 8 3 12 2 26
4 to 8 hrs 2 1 1 4
8 to 12 hrs 1 1 2
12 to 16 hrs 1 1
23 0 to 4 hrs 4 1 6 11
4 to 8 hrs 3 3 1 7
24 0 to 4 hrs 3 5 5 8 9 4 34
4 to 8 hrs 4 6 2 6 40 5 3 2 68
8 to 12 hrs 1 2 1 6 10
12 to 16 hrs 1 1 2
25 0 to 4 hrs 1 7 7 2 3 1 5 26
4 to 8 hrs 2 2 1 4 1 1 3 14
8 to 12 hrs 3 2 5
28 4 to 8 hrs 1 1
30 4 to 8 hrs 1 1 2
235
236
(Watts)
40 0 to 4 hrs 1 2 33 1 10 2 49
4 to 8 hrs 1 2 82 8 1 94
8 to 12 hrs 1 1
45 0 to 4 hrs 1 1 2
65 0 to 4 hrs 1 2 3
4 to 8 hrs 1 1

8 to 12 hrs 2 2
85 0 to 4 hrs 1 1
100 0 to 4 hrs 1 1
4 to 8 hrs 2 2

Wattage Lamps Not in LESC GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts) Working O
Condition
5 0 2 2
7 0 1 1 2
8 0 1 1 2
10 0 1 1 2
12 0 1 1 2
13 0 1 1
14 0 10 1 11 17 5 1 3 48
15 0 2 1 1 4
16 0 2 2
17 0 1 1
18 0 10 8 11 15 23 11 78

Wattage Lamps Not in LESC GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts) Working O
Condition
20 0 4 9 4 12 4 33
23 0 3 4 1 9 1 18
24 0 8 11 4 9 50 20 3 7 112
1 2 2
25 0 2 3 8 11 3 3 5 10 45
28 0 1 1
30 0 1 1 2
40 0 2 4 115 1 18 2 2 144
45 0 1 1 2
65 0 1 3 2 6
85 0 1 1
100 0 3 3
(Watts) Number
of Lamps
5 1 1 1 1
11 1 1 1 1
18 1 10 2 3 1 1 17 17
20 1 1 3 1 1 12 18 18
2 1 4 5 10
24 1 1 1 1
28 2 1 1 2
237
238
(Watts) Number
of Lamps
36 1 1 1 4 6 6
2 2 2 4
40 1 24 15 25 2 61 29 13 7 176 176
2 2 4 4 2 16 2 6 3 39 78
3 2 2 8 2 14 42

4 1 1 2 8
5 1 1 5
50 1 1 1 1
(Watts)
5 0 to 4 hrs 1 1
11 4 to 8 hrs 1 1
18 0 to 4 hrs 1 2 3 6
4 to 8 hrs 9 1 1 11
20 0 to 4 hrs 1 1 2 2 1 2 9
4 to 8 hrs 1 3 10 14
24 4 to 8 hrs 1 1
28 4 to 8 hrs 1 1
36 0 to 4 hrs 1 1 2 4
4 to 8 hrs 4 4

(Watts)
40 0 to 4 hrs 13 15 12 2 37 15 2 2 8 106
4 to 8 hrs 10 3 13 24 36 4 2 2 94
8 to 12 hrs 2 7 4 3 9 5 30
12 to 16 hrs 1 1 2
50 4 to 8 hrs 1 1
(Watts) Working
Condition
5 0 1 1
11 0 1 1
18 0 10 2 3 1 1 17
20 0 1 1 3 5 1 12 23
24 0 1 1
28 0 1 1
36 0 1 1 6 8
40 0 26 19 31 2 64 54 15 9 9 229
1 1 1 1 3
50 0 1 1
239
240
Wattage Number of Lamps LESCO MEPCO PESCO Total Total
(Watts) Number
of Lamps
20 1 1 1 1
40 1 1 1 1
2 1 1 2
50 1 1 1 2 2

Total number of responses 1 1 3 5 6
Total number of households 1 1 3 5

Wattage Average Hours LESCO MEPCO PESCO Total
(Watts)
20 4 to 8 hrs 1 1
40 4 to 8 hrs 2 2
50 0 to 4 hrs 1 1
4 to 8 hrs 1 1
Wattage Lamps Not in LESCO MEPCO PESCO Total

(Watts) Working
Condition
20 0 1 1
40 0 2 2
50 0 1 1 2
viii. Q 2.8: Outside/Garage/Yard Lights

(Watts) Number of
Lamps
5 1 6 8 3 1 18 18
3 1 4 5 15
5 1 1 2 10
6 1 1 6
10 1 3 2 5 5
2 1 1 2
25 1 1 1 1 3 3
2 1 1 2
40 1 4 14 21 27 2 1 2 71 71
2 2 1 3 6
4 1 1 4
60 1 51 45 79 3 94 8 22 7 309 309
2 3 2 2 7 14
4 1 1 4
100 1 86 78 15 29 143 57 68 25 27 528 528
2 2 1 1 17 24 7 9 1 62 124
3 1 1 1 3 9
4 1 1 2 8
5 2 2 10
7 2 2 14
200 1 2 5 7 7
241
242
(Watts)
5 Screw/Edison 1 1

Pin/Bayonet 3 14 21 16 2 2 1 59
60 Screw/Edison 4 2 2 1 1 1 1 12
Pin/Bayonet 47 44 80 2 95 9 22 6 305
100 Screw/Edison 3 3 2 9 8 3 1 29
Pin/Bayonet 85 76 13 30 152 74 72 38 30 570
Pin/Bayonet 1 4 5
(Watts)
5 0 to 4 hrs 4 6 9 1 20
4 to 8 hrs 2 2 1 5
8 to 12 hrs 1 1
10 0 to 4 hrs 3 3 6
25 0 to 4 hrs 1 1 2
4 to 8 hrs 1 1 2

(Watts)
40 0 to 4 hrs 3 14 16 25 1 1 2 62
4 to 8 hrs 1 5 4 1 1 12
8 to 12 hrs 1 1
60 0 to 4 hrs 43 30 59 3 88 9 18 3 253
4 to 8 hrs 8 16 22 5 1 4 3 59
8 to 12 hrs 1 3 1 5
100 0 to 4 hrs 41 21 9 30 88 65 45 6 7 312
4 to 8 hrs 43 57 4 57 16 29 25 23 254
8 to 12 hrs 4 1 2 16 1 1 7 1 33
200 0 to 4 hrs 1 1 2
4 to 8 hrs 1 2 3
8 to 12 hrs 2 2
Total number of responses 150 150
(Watts) Working
Condition
5 0 7 8 1 5 1 22
1 3 3
5 1 1
10 0 3 3 6
25 0 1 1 1 1 4
40 0 4 14 21 29 2 1 2 2 75
243
244
(Watts) Working
Condition
60 0 51 46 81 3 95 10 22 7 315
1 1 1 2
100 0 88 79 15 30 159 82 74 38 31 596
1 2 1 3
200 0 2 5 7

of Lamps
8 1 1 1 1
11 1 1 2 1 1 5 5
2 1 1 2
14 1 19 24 26 5 3 77 77
2 2 3 11 1 17 34
4 1 1 4
15 1 1 1 1 5 8 8
16 1 3 3 3
2 1 1 2
18 1 30 11 29 38 6 4 5 123 123
2 1 5 11 1 18 36
3 1 1 3

of Lamps
20 1 1 4 4 2 1 4 1 2 19 19
2 1 1 2 1 2 7 14
3 2 1 3 9
8 1 1 8
12 1 1 12
23 1 2 5 2 3 12 12
2 1 1 2
24 1 14 29 8 23 7 10 2 11 104 104
2 4 1 1 3 2 11 22
3 1 1 3
4 2 1 3 12
5 1 1 5
25 1 3 2 6 9 6 5 31 31
2 1 1 2
3 1 1 3
4 1 1 4
6 1 1 6
26 1 1 1 1
28 1 3 3 3
30 1 1 6 7 7
2 1 3 4 8
40 1 2 1 2 30 2 13 50 50
2 7 1 3 11 22
4 1 1 4
245
246
of Lamps
61 2 1 1 2
65 1 1 3 4 4
2 1 2 2 5 10
4 1 1 4
85 1 1 1 1

4 1 1 4
Total number of 81 59 107 39 117 48 27 14 50 542
households
(Watts)
8 Pin/Bayonet 1 1
11 Screw/Edison 2 2
Pin/Bayonet 2 1 1 4
Pin/Bayonet 21 2 35 26 3 87
15 Screw/Edison 5 5
Pin/Bayonet 1 1 1
3
16 Pin/Bayonet 4 4
18 Screw/Edison 5 3 3 7 6 4 1 1 30
Pin/Bayonet 25 9 31 43 4 112
20 Screw/Edison 1 5 1 3 3 13
Pin/Bayonet 1 7 2 1 2 3 1 1 18

(Watts)
Pin/Bayonet 2 3 2 7
24 Screw/Edison 6 4 1 6 1 5 2 3 28
Pin/Bayonet 12 26 8 17 12 5 2 10 92
Pin/Bayonet 2 2 7 9 4 5 29
26 Pin/Bayonet 1 1
28 Pin/Bayonet 3 3
Pin/Bayonet 1 7 8
40 Screw/Edison 1 35 13 2 51
Pin/Bayonet 1 1 2 2 2 1 2 11
61 Screw/Edison 1 1
Pin/Bayonet 1 1 3 5
85 Screw/Edison 1 1
Pin/Bayonet 1 1

(Watts)
8 0 to 4 hrs 1 1
11 0 to 4 hrs 2 2 1 5
247
4 to 8 hrs 1 1
248
(Watts)
14 0 to 4 hrs 7 15 12 5 1 40
4 to 8 hrs 13 3 20 12 2 50
8 to 12 hrs 1 3 4
12 to 16 hrs 1 1
15 0 to 4 hrs 1 1 1 3
4 to 8 hrs 1 2 3

8 to 12 hrs 2 2
16 0 to 4 hrs 1 1
4 to 8 hrs 1 1
8 to 12 hrs 2 2
18 0 to 4 hrs 13 6 19 14 6 3 61
4 to 8 hrs 14 6 14 36 1 1 3 75
8 to 12 hrs 2 1 2 5
12 to 16 hrs 1 1
20 0 to 4 hrs 5 5 2 2 1 2 17
4 to 8 hrs 1 2 2 2 1 1 9
8 to 12 hrs 1 2 1 4
12 to 16 hrs 1 1
23 0 to 4 hrs 2 4 3 3 12
4 to 8 hrs 1 1
24 0 to 4 hrs 7 11 3 18 7 7 1 6 60
4 to 8 hrs 6 19 4 5 6 2 3 7 52
8 to 12 hrs 5 2 1 8
25 0 to 4 hrs 2 2 3 7 3 1 3 21
4 to 8 hrs 1 3 2 3 1 3 13
8 to 12 hrs 1 1
26 0 to 4 hrs 1 1

(Watts)
28 4 to 8 hrs 2 2
8 to 12 hrs 1 1
30 0 to 4 hrs 4 4
4 to 8 hrs 1 1 2 4
8 to 12 hrs 3 3
40 0 to 4 hrs 1 1 1 4 2 4 13
4 to 8 hrs 33 10 1 44
8 to 12 hrs 1 1 3 5
61 4 to 8 hrs 1 1
65 0 to 4 hrs 1 1 5 1 8
8 to 12 hrs 2 2
85 0 to 4 hrs 1 1 2

(Watts) Working
Condition
8 0 1 1 2
11 0 2 2 1 1 6
14 0 22 3 32 27 5 3 92
1 3 3
15 0 1 1 1 5 8
16 0 4 4
18 0 30 12 33 50 6 4 1 5 141
20 0 2 7 7 2 2 6 1 4 31
23 0 2 5 3 3 13
249
250
(Watts) Working
Condition
24 0 18 30 9 23 13 10 4 13 120
25 0 3 2 7 9 6 1 6 34
1 1 1
26 0 1 1
28 0 3 3

30 0 1 1 9 11
40 0 2 1 2 37 2 14 4 62
61 0 1 1
65 0 1 1 5 3 10
85 0 1 1 2

of Lamps
0 1 1 1 1
14 1 1 1 1
18 1 14 7 21 21
2 1 1 2
20 1 6 2 16 5 2 13 44 44
2 2 2 4
3 1 1 3
7 1 1 7
36 1 1 4 5 5

of Lamps
40 1 39 34 66 4 157 18 18 3 20 359 359
2 4 2 5 1 3 18 1 5 4 43 86
3 5 1 1 1 8 24
4 1 1 2 8
8 1 1 8
50 1 3 3 3
120 1 10 10 10
Total number of 49 39 107 5 167 54 19 10 51 501
households
Wattage Average Hours LESC GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts) O
0 0 to 4 hrs 1 1
14 0 to 4 hrs 1 1
18 0 to 4 hrs 2 7 9
4 to 8 hrs 10 10
8 to 12 hrs 3 3
20 0 to 4 hrs 3 2 11 4 1 2 23
4 to 8 hrs 2 4 1 4 11 22
8 to 12 hrs 1 1 2
12 to 16 hrs 1 1
36 0 to 4 hrs 1 2 3
4 to 8 hrs 2 2
251
252
Wattage Average Hours LESC GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
(Watts) O
40 0 to 4 hrs 24 29 37 4 112 11 3 4 224
4 to 8 hrs 12 6 36 1 43 26 16 5 15 160
8 to 12 hrs 7 1 4 6 1 5 5 29
50 4 to 8 hrs 3 3
120 0 to 4 hrs 1 1

4 to 8 hrs 9 9
(Watts) Working
Condition
0 0 1 1
14 0 1 1
18 0 15 7 22
20 0 6 2 16 5 5 14 48
36 0 1 4 5
40 0 41 36 75 5 158 38 19 10 24 406
1 2 2 3 7
50 0 3 3
120 0 10 10

Wattage Number of Lamps LESCO MEPCO PESCO KESC Total Total
(Watts) Number
of Lamps
0 1 1 1 2 2
5 2 1 1 2
20 1 1 1 1
120 1 1 1 1
Total number of households 2 1 1 1 5
Wattage Average Hours LESCO MEPCO PESCO KESC Total

(Watts)
0 0 to 4 hrs 1 1
4 to 8 hrs 1 1
5 8 to 12 hrs 1 1
20 0 to 4 hrs 1 1
12 4 to 8 hrs 1 1
0
253
254
Wattage Lamps Not in LESCO MEPCO PESCO KESC Total

(Watts) Working
Condition
0 0 1 1 2
5 0 1 1
20 0 1 1

120 0 1 1
ix. Q 2.9: Servant Quarter(s) Lights

Wattage Number of Lamps MEPCO QESCO Total Total

(Watts) Number
of Lamps
5 4 1 1 4
2 1 1 2
25 1 1 1 1
60 1 1 1 1
100 2 2 2 4


Wattage Type of Fitting MEPC QESCO Total

(Watts) O
5 Pin/Bayonet 2 2
25 Pin/Bayonet 1 1
60 Pin/Bayonet 1 1
100 Pin/Bayonet 2 2
Wattage Average Hours MEPCO QESCO Total

(Watts)
5 0 to 4 hrs 2 2
25 0 to 4 hrs 1 1
60 0 to 4 hrs 1 1
100 0 to 4 hrs 1 1
8 to 12 hrs 1 1
255
256
Wattage Lamps Not in MEPCO QESCO Total

(Watts) Working
Condition
5 2 1 1
3 1 1
25 0 1 1

60 0 1 1
100 0 2 2
Wattage Number of Lamps LESCO FESCO IESCO MEPCO PESCO HESCO QESCO Total Total
(Watts) Number of
Lamps
11 1 1 1 1
18 1 1 1 2 2
20 2 2 2 4
24 1 1 1 2 2
25 1 2 2 2
4 1 1 4
40 1 2 2 2

Wattage Type of Fitting LESCO FESCO IESCO MEPCO PESCO HESCO QESCO Total
(Watts)
11 Screw/Edison 1 1
18 Screw/Edison 1 1
Pin/Bayonet 1 1
20 Pin/Bayonet 2 2
24 Screw/Edison 1 1
Pin/Bayonet 1 1
40 Screw/Edison 2 2

Wattage Average Hours LESCO FESCO IESCO MEPCO PESCO HESCO QESCO Total
(Watts)
11 0 to 4 hrs 1 1
18 0 to 4 hrs 1 1
4 to 8 hrs 1 1
20 8 to 12 hrs 2 2
24 0 to 4 hrs 1 1
4 to 8 hrs 1 1
25 0 to 4 hrs 1 1
4 to 8 hrs 1 1 2
40 4 to 8 hrs 2 2
257
258
Wattage Lamps Not in LESCO FESCO IESCO MEPCO PESCO HESCO QESCO Total
(Watts) Working
Condition
11 0 1 1
18 0 1 1 2
20 0 2 2
24 0 1 1 2

25 0 2 1 3
40 0 2 2
Wattage Number of Lamps LESC FESCO MEPCO HESCO Total Total

(Watts) O Number
of Lamps
40 1 1 1 1
3 1 1 1 3 9
4 1 1 4

Wattage Average Hours LESCO FESCO MEPCO HESCO Total

(Watts)
40 0 to 4 hrs 1 1 1 3
4 to 8 hrs 1 1
8 to 12 hrs 1 1
Wattage Lamps Not in LESCO FESCO MEPCO HESCO Total

40 0 2 1 1 1 5
x. Q 2.10: Lights in Other Rooms

(Watts) Number
of Lamps
5 1 1 6 7 7
6 1 1 6
10 1 1 1 1
25 1 1 1 1
40 1 2 6 8 8
2 2 1 3 6
259
3 1 1 2 6
260
(Watts) Number
of Lamps
60 1 10 10 30 55 10 2 3 120 120
2 5 2 7 14
3 1 1 3
4 1 1 4
100 1 6 5 5 26 19 14 4 1 3 83 83

2 1 1 4 3 1 8 18 36
3 1 1 1 3 9
4 5 5 20
5 1 1 5
Total number of 17 17 38 96 42 22 6 17 7 262
households

(Watts)
5 Pin/Bayonet 1 7 8
10 Pin/Bayonet 1 1
25 Pin/Bayonet 1 1
40 Screw/Edison 5 5
Pin/Bayonet 10 10 29 8 9 4 4 74
Pin/Bayonet 6 5 6 7 21 9 6 16 3 79

(Watts)
5 0 to 4 hrs 6 6
4 to 8 hrs 1 1 2
10 0 to 4 hrs 1 1
25 0 to 4 hrs 1 1
40 0 to 4 hrs 1 2 8 1 1 13
60 0 to 4 hrs 10 10 27 61 10 3 4 125
4 to 8 hrs 3 1 4
100 0 to 4 hrs 2 2 5 27 17 15 6 13 3 90
4 to 8 hrs 1 3 1 4 2 3 14
8 to 12 hrs 3 3 6
(Watts) Working
Condition
5 0 1 6 7
5 1 1
10 0 1 1
25 0 1 1
40 0 1 2 8 1 1 13
60 0 10 10 29 61 10 4 4 128
1 1 1
261
262
(Watts) Working
Condition
100 0 6 5 6 27 23 17 6 16 3 109
1 1 1

(Watts) Number
of Lamps
5 1 1 1 1
8 1 1 1 1
11 1 1 1 1
14 1 1 1 3 8 1 14 14
2 4 1 1 6 12
3 1 1 3
4 2 2 8
15 1 1 1 1
16 1 1 1 1
2 1 1 2
4 1 1 4
18 1 1 6 8 8 3 26 26
2 1 2 1 2 6 12
3 2 2 6
4 1 1 4
20 1 1 1 6 1 9 9
2 1 2 1 4 8
4 1 1 4

(Watts) Number
of Lamps
23 1 1 1 2 11 2 17 17
2 1 1 2 4
24 1 4 2 1 5 1 2 15 15
2 1 1 1 1 1 5 10
3 1 1 2 6
4 1 1 2 8
25 1 1 21 2 4 2 30 30
2 6 1 1 8 16
4 1 1 4
28 1 1 1 1
40 1 22 15 1 2 40 40
2 1 93 14 2 110 220
3 1 1 3
45 2 1 1 2
4 1 1 4
65 1 2 2 2
2 2 7 1 10 20
3 1 1 2 6
5 2 2 10
(Watts)
5 Pin/Bayonet 1 1
8 Pin/Bayonet 1 1
263
264
(Watts)
11 Pin/Bayonet 1 1
15 Pin/Bayonet 1 1
16 Pin/Bayonet 3 3

20 Screw/Edison 5 5
Pin/Bayonet 1 1 2 4
Pin/Bayonet 3 2 1 6 2 2 1 17
28 Pin/Bayonet 1 1
40 Screw/Edison 114 28 3 145
45 Screw/Edison 1 1
Pin/Bayonet 1 1
Pin/Bayonet 4 4

(Watts)
5 0 to 4 hrs 1 1
8 0 to 4 hrs 1 1
11 0 to 4 hrs 1 1
14 0 to 4 hrs 1 1 7 1 9 1 20
4 to 8 hrs 3 3
15 0 to 4 hrs 1 1
16 0 to 4 hrs 1 1
4 to 8 hrs 2 2
18 0 to 4 hrs 1 6 8 12 1 5 33
4 to 8 hrs 1 1
12 to 16 hrs 1 1
20 0 to 4 hrs 2 2 8 1 13
4 to 8 hrs 1 1
23 0 to 4 hrs 1 1 3 12 2 19
24 0 to 4 hrs 3 3 1 4 2 1 14
4 to 8 hrs 1 1 1 1 2 2 8
8 to 12 hrs 1 1 2
25 0 to 4 hrs 1 26 2 4 1 1 35
4 to 8 hrs 1 1 2 4
28 0 to 4 hrs 1 1
40 0 to 4 hrs 1 113 29 1 1 145
4 to 8 hrs 2 4 6
45 4 to 8 hrs 1 1
8 to 12 hrs 1 1
65 0 to 4 hrs 3 9 4 16
265
266
(Watts) Working
Condition
5 0 1 1
8 0 1 1
11 0 1 1
14 0 1 1 10 1 8 1 22

1 1 1
15 0 1 1
16 0 3 3
18 0 1 6 10 12 1 5 35
20 0 2 3 8 1 14
23 0 1 1 3 12 2 19
24 0 5 3 1 6 3 1 2 3 24
25 0 1 27 2 4 2 2 1 39
28 0 1 1
40 0 1 110 29 1 5 146
1 5 5
45 0 2 2
65 0 3 9 4 16


of Lamps
18 4 1 1 4
20 1 11 2 2 2 17 17
25 1 1 1 1
30 1 1 1 1
36 1 3 1 4 4
2 1 1 2
40 1 3 2 32 58 17 18 3 5 12 150 150
2 7 6 1 6 3 23 46
3 1 2 1 1 1 6 18
4 5 5 20
5 1 1 5
6 1 1 6
Total number of 3 3 58 70 21 23 3 10 17 208
households
267
268
(Watts)
18 0 to 4 hrs 1 1
20 0 to 4 hrs 10 2 2 2 16
4 to 8 hrs 1 1
25 0 to 4 hrs 1 1
30 0 to 4 hrs 1 1

36 0 to 4 hrs 4 1 5
40 0 to 4 hrs 1 3 37 63 17 20 3 4 16 164
4 to 8 hrs 1 10 1 1 4 2 19
8 to 12 hrs 1 2 3

(Watts) Working
Condition
18 0 1 1
20 0 11 2 1 2 16
1 1 1
25 0 1 1
30 0 1 1
36 0 4 1 5
40 0 3 3 46 62 17 20 3 10 18 182
1 2 1 3
2 1 1

Wattage Number of Lamps FESCO QESCO KESC Total Total

(Watts) Number
of Lamps
0 1 1 1 1
2 1 1 2
3 1 1 3
20 1 1 1 1
2 1 1 2
8 2 2 16
120 1 2 2 2
Wattage Average Hours FESCO QESCO KESC Total

(Watts)
0 0 to 4 hrs 1 1
4 to 8 hrs 1 1
8 to 12 hrs 1 1
20 0 to 4 hrs 4 4
120 0 to 4 hrs 2 2

269
270
Wattage Lamps Not in FESCO QESCO KESC Total

(Watts) Working
Condition
0 0 1 2 3
20 0 4 4
120 0 2 2

xi. Q 2.12: Other Electrical and Gas Appliances in all Rooms
Appliance 0 1 2 3 4 5 6 7 8 9 10 11 12 15 17 Total
Fans 0.0% 20.7% 32.0% 23.3% 10.7% 5.3% 3.9% 1.8% 1.0% 0.3% 0.5% 0.2% 0.1% 0.1% 0.0% 100%
Fridge 56.7% 42.0% 1.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Deep Freezer 93.2% 6.5% 0.2% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Air Conditioners 91.6% 7.7% 0.4% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Television 23.7% 72.1% 3.7% 0.3% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Computer 85.7% 13.9% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Microwave 89.6% 10.2% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Istri (Iron) 11.4% 85.2% 3.0% 0.3% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Water Pump 45.2% 54.0% 0.7% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Washing Machine 43.9% 54.1% 1.8% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Electric Heater 91.1% 7.5% 0.9% 0.2% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Geezer 89.5% 9.9% 0.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Gas Heater 82.5% 12.6% 4.1% 0.6% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Cooking Range 74.1% 24.2% 1.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%
Figures are row %age
c. CFL Awareness and Lamp Purchase Habits

Q3.1: Have you heard about energy saving compact fluorescent lamps (CFLs)/energy
savers?
Count Column %
Yes 2,893 89%
No 360 11%
Total 3,253 100%
Q3.2: Where did you first hear about CFLs/energy savers?
Count Column %
Radio/TV advertisements 1,490 52%
Newspapers 206 7%
Educational institute 57 2%
Retail stores 273 9%
Billboards 112 4%
Friends and acquaintances 738 26%
Energy saver team came home 1 0%
Electrician 3 0%
Husband 3 0%
Electricity bill 9 0%
Seen at other houses 1 0%
Total 2,893 100%
Q3.3: Do you regularly purchase CFLs/energy savers?
Count Column %
Yes 2,087 64%
No 1,166 36%
Total 3,253 100%
Q3.3a: If yes, how frequently do you purchase CFLs/energy savers?
Count Column %
6 monthly 653 31%
Yearly 786 38%
Infrequently 648 31%
Total 2,087 100%

Q3.3b: If yes, what is the main reason for purchasing CFLs/energy savers?
Count Column %
To reduce electricity costs 1,875 90%
Better product quality/longer lifetime 1,083 52%
Better light quality 878 42%
They look good 626 30%
Readily available/proximity of source 251 12%
Recommendation from others 254 12%
Guarantee 4 0%
Husband likes it 1 0%
Need of the day 1 0%
Total number of households 2,087 100%
Q3.3c: If no, what is the main reason for not purchasing CFLs/energy savers?
Count Column %
High cost 1,038 89%
They don't look good 142 12%
Don't believe in longer lifetime 177 15%
Inappropriate light quality/tone 80 7%
Not suitable for fittings 113 10%
Not readily available 103 9%
Voltage fluctuations prevent proper use 32 3%
Not satisfied 1 0%
Don't feel need 21 2%
Unfamiliar 12 1%
Sensitive 1 0%
Don't know 2 0%
Q3.3d: Would you be willing to purchase a CFL/energy saver that is more expensive than
an incandescent bulb?
Count Column %
Yes 1,878 58%
No 518 16%
Maybe 857 26%
Total 3,253 100%

Q3.4a: Last purchased incandescent bulb (IB) (wattage and cost)?
Wattage Cost Count Column %

0 Rs 10 to Rs 15 77 4.2%
Rs 16 to Rs 20 4 0.2%
Rs 26 to Rs 30 1 0.1%
25 Rs 10 to Rs 15 2 0.1%
Rs 16 to Rs 20 4 0.2%
40 Rs 10 to Rs 15 62 3.4%
Rs 16 to Rs 20 26 1.4%
Rs 21 to Rs 25 14 0.8%
Rs 26 to Rs 30 9 0.5%
Above Rs 30 1 0.1%
60 Rs 10 to Rs 15 357 19.4%
Rs 16 to Rs 20 144 7.8%
Rs 21 to Rs 25 31 1.7%
Rs 26 to Rs 30 34 1.9%
Above Rs 30 2 0.1%
100 Rs 10 to Rs 15 785 42.8%
Rs 16 to Rs 20 232 12.6%
Rs 21 to Rs 25 24 1.3%
Rs 26 to Rs 30 19 1.0%
Above Rs 30 2 0.1%
200 Rs 10 to Rs 15 1 0.1%
Rs 16 to Rs 20 1 0.1%
Rs 21 to Rs 25 2 0.1%
Rs 26 to Rs 30 1 0.1%
Above Rs 30 1 0.1%
Total 1,836 100.0%

Q3.4b: Last purchased CFL/energy saver (wattage and cost)?

5 Rs 31 to Rs 60 1 0.1%
Rs 91 to Rs 120 1 0.1%
Rs 121 to Rs 150 1 0.1%
7 Rs 61 to Rs 90 2 0.1%
11 Rs 61 to Rs 90 2 0.1%
Rs 91 to Rs 120 4 0.2%
Rs 121 to Rs 150 3 0.2%
13 Rs 61 to Rs 90 1 0.1%
Rs 121 to Rs 150 3 0.2%
14 Rs 31 to Rs 60 16 1.0%
Rs 61 to Rs 90 26 1.6%
Rs 91 to Rs 120 98 5.9%
Rs 121 to Rs 150 101 6.0%
Rs 151 to Rs 180 7 0.4%
15 Rs 61 to Rs 90 1 0.1%
Rs 91 to Rs 120 9 0.5%
Rs 121 to Rs 150 5 0.3%
Rs 151 to Rs 180 1 0.1%
18 Rs 61 to Rs 90 13 0.8%
Rs 91 to Rs 120 102 6.1%
Rs 121 to Rs 150 183 10.9%
Rs 151 to Rs 180 36 2.2%
Above Rs 180 2 0.1%
20 Rs 61 to Rs 90 2 0.1%
Rs 91 to Rs 120 32 1.9%
Rs 121 to Rs 150 51 3.1%
Rs 151 to Rs 180 19 1.1%
Above Rs 180 1 0.1%
23 Rs 61 to Rs 90 3 0.2%
Rs 91 to Rs 120 1 0.1%
Rs 121 to Rs 150 23 1.4%
Rs 151 to Rs 180 27 1.6%
Above Rs 180 5 0.3%


24 Rs 61 to Rs 90 3 0.2%
Rs 91 to Rs 120 63 3.8%
Rs 121 to Rs 150 234 14.0%
Rs 151 to Rs 180 83 5.0%
Above Rs 180 13 0.8%
25 Rs 61 to Rs 90 3 0.2%
Rs 91 to Rs 120 9 0.5%
Rs 121 to Rs 150 80 4.8%
Rs 151 to Rs 180 77 4.6%
28 Rs 61 to Rs 90 3 0.2%
Rs 91 to Rs 120 1 0.1%
Rs 151 to Rs 180 1 0.1%
30 Rs 61 to Rs 90 1 0.1%
Rs 91 to Rs 120 4 0.2%
Rs 121 to Rs 150 6 0.4%
Rs 151 to Rs 180 8 0.5%
40 Rs 31 to Rs 60 4 0.2%
Rs 61 to Rs 90 2 0.1%
Rs 91 to Rs 120 30 1.8%
Rs 121 to Rs 150 140 8.4%
Rs 151 to Rs 180 43 2.6%
Above Rs 180 8 0.5%
45 Rs 31 to Rs 60 1 0.1%
Rs 91 to Rs 120 1 0.1%
Rs 121 to Rs 150 7 0.4%
Rs 151 to Rs 180 2 0.1%
65 Rs 61 to Rs 90 11 0.7%
Rs 91 to Rs 120 33 2.0%
Rs 121 to Rs 150 16 1.0%
Rs 151 to Rs 180 2 0.1%
85 Rs 151 to Rs 180 1 0.1%
Total 1,672 100.0%

Q3.4c: Last purchased fluorescent tube light (FTL) (wattage and cost)?

18 Rs 40 or below 1 0.1%
Rs 41 to Rs 50 2 0.2%
Rs 51 to Rs 60 14 1.7%
Rs 61 to Rs 70 5 0.6%
20 Rs 40 or below 8 1.0%
Rs 41 to Rs 50 10 1.2%
Rs 51 to Rs 60 15 1.8%
Rs 61 to Rs 70 16 1.9%
Rs 71 to Rs 80 5 0.6%
36 Rs 51 to Rs 60 3 0.4%
Rs 61 to Rs 70 15 1.8%
40 Rs 40 or below 7 0.8%
Rs 41 to Rs 50 68 8.1%
Rs 51 to Rs 60 340 40.5%
Rs 61 to Rs 70 292 34.8%
Rs 71 to Rs 80 24 2.9%
Rs 81 to Rs 90 10 1.2%
Rs 100 or above 5 0.6%
Total 840 100.0%
Q3.4d: Last purchased halogen lamp (wattage and cost)?

0 Rs 22 1 16.7%
20 Rs 20 1 16.7%
50 Rs 15 2 33.3%
60 Rs 10 1 16.7%
Rs 20 1 16.7%
Total 6 100.0%

Q3.5: Where did you purchase these lamps?

Count Col %
Electrical/hardware supply store 1,793 55%
General/grocery store 1,455 45%
Energy saver team came to home 1 0%
From rehri/street vendor 1 0%
Purchased by brother in law 1 0%
Wholesale market 2 0%
Total 3,253 100%
Q3.6: Distance to the source from home?

Count Col %
Less than 2km 2,588 80%
More than 2km 665 20%
Total 3,253 100%
Q3.7: How many times do you think a good CFL/energy

saver will last compared to an incandescent bulb?
Count Col %
2 times 1,239 38%
4 times 660 20%
6 times 304 9%
10 times 285 9%
Don't know 765 24%
Total 3,253 100%
Q3.8: Which of the following reasons will make you switch to

CFLs/energy savers?
Count Column %
Energy saving/reduced electricity bill 2,826 87%
Easily available 1,351 42%
Light quality 1,391 43%
Look or size 463 14%
Environmental concern 196 6%
Low price 256 8%
Long life 1 0%
Free supply 1 0%
Durable/guarantee 3 0%
No response 3 0%
Don't know 13 0%

Q3.9: What in your opinion is the most effective way of communicating these advantages
to you?
Count Column %
Radio/TV advertisements 2,713 83%
Newspapers 1,569 48%
Educational institute/work place 717 22%
Retail stores 851 26%
Billboards 842 26%
People 2 0%
Friends/relatives 6 0%
Advertisement 2 0%
Through electricity bill 4 0%
Through banners 1 0%
No response 1 0%
Don't know 16 0%
Q3.9: What in your opinion is the most effective way of communicating these advantages
to you?
(indicate order, with most likely ranked '1' and least likely '4')
1 2 3 4 Total
Customer 622 19% 534 16% 1,363 42% 734 23% 3,253 100%
service centers
Retail stores 111 3% 561 17% 875 27% 1,706 52% 3,253 100%
Post office 781 24% 1,359 42% 672 21% 441 14% 3,253 100%
Home delivery 1,739 53% 799 25% 343 11% 372 11% 3,253 100%
Q3.11: If you were offered to purchase high quality CFLs/energy savers (saving upto 80%
electricity consumption) through easy monthly installments payable through your
electricity bill, would you be willing to accept such an offer?
Count Col %
Yes 2,746 84%
No 507 16%
Total 3,253 100%
2. Additional Summary Tables

350. Additional summary tables containing information regarding lamp penetration, light
points, average usage, type of fittings, and working condition are presented below.


a. Household Incidence of Lamp Usage
Type of Lamps Used by Households - by Electricity Consumption Category
Total Electricity Consumption (kWh/month)
Up to 50 51-100 101-300 301-1,000 Above 1,000
Total households 3,253 1,116 875 1,105 148 9
IBs 76.9% 80.6% 81.3% 71.2% 66.2% 44.4%
CFLs 63.9% 51.8% 56.3% 79.1% 85.1% 100.0%
FTLs 48.6% 35.1% 42.7% 64.2% 66.9% 88.9%
Others 3.6% 2.2% 2.1% 5.3% 10.8% 0.0%
Type of Lamps Used by Households - by DISCO

Total DISCO
LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC
Total households 3,253 466 381 467 304 620 431 220 76 288
IBs 76.9% 76.8% 69.8% 71.9% 63.5% 87.9% 86.3% 77.3% 100.0% 63.9%
CFLs 63.9% 55.6% 51.7% 61.7% 86.2% 58.5% 68.4% 61.4% 72.4% 78.5%
FTLs 48.6% 44.6% 42.8% 62.7% 45.4% 49.8% 39.2% 39.1% 60.5% 59.0%
Others 3.6% 8.4% 1.3% 3.0% 0.3% 3.1% 1.2% 5.5% 6.6% 5.9%
b. Total Light Points

Light points in total number of surveyed households - by Electricity Consumption Category
Up to 50 51-100 101-300 301-1,000 Above 1,000

Total light points 22,164 5,412 4,906 9,571 1,888 387
IBs 36.7% 48.8% 48.0% 27.9% 23.7% 5.9%
CFLs 40.2% 34.0% 33.1% 45.1% 46.8% 63.6%
FTLs 22.0% 16.6% 18.4% 25.7% 26.9% 30.5%
Others 1.1% 0.7% 0.5% 1.3% 2.6% 0.0%
279
280
Light points in total number of surveyed households - by DISCO
Total DISCO
Total light points 22,164 2,287 1,955 2,925 2,639 3,825 3,806 1,381 1,400 1,946
IBs 36.7% 35.1% 34.7% 24.5% 27.1% 46.7% 46.6% 32.5% 49.6% 27.0%
CFLs 40.2% 39.7% 42.3% 35.2% 58.5% 30.6% 36.7% 48.8% 33.3% 45.7%

FTLs 22.0% 22.4% 22.6% 39.3% 14.4% 21.3% 16.6% 17.1% 16.2% 25.0%
Others 1.1% 2.9% 0.4% 1.0% 0.0% 1.3% 0.2% 1.6% 0.9% 2.3%
Light points in total number of surveyed households - by Room Type
Total Living Dining Bedroo Study Bathroo Kitchen Balcony Outside Servant Other
Room Room m m /Verand / Quarter
a Garage/ s
Yard
Total light points 22,164 2,668 1,433 6,561 1,001 2,778 2,482 1,586 2,447 43 1,165
IBs 36.7% 21.8% 26.6% 37.1% 17.5% 52.9% 41.8% 34.8% 47.8% 27.9% 28.2%
CFLs 40.2% 43.4% 47.0% 39.1% 55.9% 37.0% 41.1% 41.5% 28.0% 39.5% 45.9%
FTLs 22.0% 32.1% 25.0% 23.0% 25.8% 8.6% 16.7% 23.3% 23.9% 32.6% 23.5%
Others 1.1% 2.6% 1.4% 0.8% 0.8% 1.5% 0.4% 0.4% 0.2% 0.0% 2.3%
c. Incandescent Bulbs (IBs)

IB Lamp Wattage - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 8,142 2,641 2,357 2,674 447 23
5W 9.4% 9.2% 8.4% 10.6% 8.5% 21.7%
10W 0.2% 0.3% 0.0% 0.2% 0.2% 0.0%
25W 0.9% 0.6% 0.6% 1.5% 1.1% 0.0%

Up to 50 51-100 101-300 301-1,000 Above 1,000
40W 8.8% 9.7% 7.2% 9.1% 9.6% 34.8%
60W 24.7% 29.1% 25.4% 20.5% 20.6% 17.4%
100W 55.3% 50.8% 57.7% 57.7% 55.5% 26.1%
200W 0.7% 0.4% 0.7% 0.5% 4.5% 0.0%
IB Lamp Wattage - by DISCO
Total DISCO
Total 8,142 802 679 718 714 1,787 1,773 449 694 526
5W 9.4% 13.7% 10.0% 3.8% 1.3% 28.1% 1.7% 0.7% 0.0% 3.0%
10W 0.2% 0.0% 0.0% 0.8% 0.1% 0.4% 0.0% 0.2% 0.0% 0.0%
25W 0.9% 2.7% 1.0% 2.6% 0.3% 0.6% 0.3% 0.4% 0.4% 0.4%
40W 8.8% 4.2% 6.8% 13.1% 58.0% 1.3% 3.0% 1.1% 4.5% 3.4%
60W 24.7% 30.2% 33.3% 60.3% 28.0% 29.7% 7.4% 16.7% 0.6% 31.6%
100W 55.3% 45.8% 48.9% 19.2% 12.3% 39.8% 86.4% 79.3% 93.7% 61.6%
200W 0.7% 3.4% 0.0% 0.1% 0.0% 0.0% 1.1% 1.6% 0.9% 0.0%
IB Lamp Wattage - by Room Type
Total Living Dining Bedroom Study Bathroom Kitchen Balcony Outside/ Servant Other
Room Room /Veranda Garage/Yard Quarters
Total 8,142 582 381 2,435 175 1,470 1,037 552 1,169 12 329
5W 9.4% 15.3% 5.0% 10.2% 8.6% 18.1% 2.0% 7.1% 4.2% 50.0% 4.0%
10W 0.2% 0.3% 0.0% 0.0% 0.0% 0.2% 0.2% 0.0% 0.6% 0.0% 0.3%
25W 0.9% 0.3% 0.5% 0.8% 1.1% 1.5% 1.1% 1.4% 0.4% 8.3% 0.3%
40W 8.8% 9.1% 13.9% 5.1% 7.4% 12.7% 15.5% 5.1% 6.9% 0.0% 6.1%
281
282
Total Living Dining Bedroom Study Bathroom Kitchen Balcony Outside/ Servant Other
Room Room /Veranda Garage/Yard Quarters
60W 24.7% 22.7% 29.4% 19.3% 25.7% 26.9% 29.6% 14.1% 28.0% 8.3% 42.9%
100W 55.3% 51.5% 51.2% 63.0% 57.1% 40.6% 51.2% 71.2% 59.3% 33.3% 46.5%
200W 0.7% 0.7% 0.0% 1.6% 0.0% 0.1% 0.4% 1.1% 0.6% 0.0% 0.0%
IB Type of Fitting - by Electricity Consumption Category


Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 8,142 2,641 2,357 2,674 447 23
Screw/Edison 12.5% 8.6% 10.5% 17.8% 11.9% 43.5%
Pin/Bayonet 87.5% 91.4% 89.5% 82.2% 88.1% 56.5%
IB Type of Fitting - by DISCO
Total DISCO
Total 8142 802 679 718 714 1787 1773 449 694 526
Screw/Edison 12.5% 6.7% 6.8% 5.3% 60.5% 3.3% 19.0% 3.6% 0.4% 5.7%
Pin/Bayonet 87.5% 93.3% 93.2% 94.7% 39.5% 96.7% 81.0% 96.4% 99.6% 94.3%
IB Average Usage - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000

Total 8,142 2,641 2,357 2,674 447 23
0-4 hours 66.5% 72.1% 66.4% 62.1% 61.5% 47.8%
5-8 hours 29.7% 24.8% 30.4% 32.9% 35.3% 30.4%
9-12 hours 3.7% 3.0% 3.2% 4.9% 2.9% 21.7%
Above 12 hours 0.1% 0.0% 0.0% 0.1% 0.2% 0.0%

IB Average Usage - by DISCO
Total DISCO
Total 8,142 802 679 718 714 1,787 1,773 449 694 526
0-4 hours 66.5% 71.2% 58.0% 74.1% 95.1% 67.3% 70.3% 69.5% 23.2% 60.5%
5-8 hours 29.7% 21.6% 40.8% 23.1% 4.8% 27.0% 29.3% 29.8% 62.8% 37.1%
9-12 hours 3.7% 6.9% 1.2% 2.5% 0.1% 5.7% 0.5% 0.7% 14.0% 2.5%
Above 12 hours 0.1% 0.4% 0.0% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
IB Average Usage - by Room Type
Total Living Dining Bedroom Study Bathroom Kitchen Balcony/ Outside/ Servant Other
Room Room Veranda Garage/Yard Quarters
Total 8,142 582 381 2,435 175 1,470 1,037 552 1,169 12 329
0-4 hours 66.5% 49.7% 65.4% 55.2% 65.1% 84.6% 79.7% 58.2% 61.8% 83.3% 90.3
%
5-8 hours 29.7% 43.8% 29.7% 40.5% 33.7% 12.7% 19.4% 36.1% 33.4% 0.0% 7.9%
9-12 hours 3.7% 6.5% 5.0% 4.1% 1.1% 2.7% 1.0% 5.6% 4.9% 16.7% 1.8%
Above 12 hours 0.1% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0%
IB Working Condition - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 8,142 2,641 2,357 2,674 447 23
Working 98.8% 99.2% 99.1% 98.1% 99.8% 100.0%

Not Working 1.2% 0.8% 0.9% 1.9% 0.2% 0.0%
283
284
IB Working Condition - by DISCO
Total DISCO
Total 8,142 802 679 718 714 1,787 1,773 449 694 526
Working 98.8% 99.6% 99.3% 98.9% 100.0% 95.9% 99.9% 99.8% 99.7% 100.0%
Not Working 1.2% 0.4% 0.7% 1.1% 0.0% 4.1% 0.1% 0.2% 0.3% 0.0%
IB Working Condition - by Room Type

Total 8,142 582 381 2,435 175 1,470 1,037 552 1,169 12 329
Working 98.8% 97.8% 99.0% 99.1% 98.9% 99.7% 99.8% 96.0% 98.9% 58.3% 97.9%
Not Working 1.2% 2.2% 1.0% 0.9% 1.1% 0.3% 0.2% 4.0% 1.1% 41.7% 2.1%
d. CFLs
CFL Lamp Wattage - by Electricity Consumption Category
Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 8,904 1,838 1,624 4,313 883 246
5-16W 14.4% 13.9% 14.8% 15.4% 12.7% 4.9%
17-25W 63.8% 62.7% 65.1% 61.1% 70.0% 87.4%
26-40W 17.1% 17.4% 18.1% 18.4% 11.2% 7.7%
Above 40W 4.7% 6.0% 1.9% 5.1% 6.1% 0.0%

CFL Lamp Wattage - by DISCO
Total DISCO
Total 8,904 907 827 1,030 1,543 1,172 1,396 674 466 889
5-16W 14.4% 26.1% 8.1% 34.2% 0.9% 34.3% 3.9% 0.9% 8.8% 12.4%
17-25W 63.8% 70.8% 88.6% 61.1% 34.7% 64.0% 69.1% 97.2% 34.3% 68.6%
26-40W 17.1% 3.0% 2.3% 2.9% 59.6% 1.5% 18.8% 1.5% 20.4% 16.5%
Above 40W 4.7% 0.1% 1.0% 1.8% 4.9% 0.3% 8.2% 0.4% 36.5% 2.5%
CFL Lamp Wattage - by Room Type

Total 8,904 1,159 674 2,567 560 1,027 1,021 658 686 17 535
5-16W 14.4% 13.1% 13.9% 10.9% 5.4% 22.6% 21.5% 13.8% 19.8% 5.9% 9.0%
17-25W 63.8% 65.1% 63.1% 71.6% 43.6% 69.5% 67.6% 59.1% 62.7% 82.4% 33.5%
26-40W 17.1% 16.5% 15.1% 12.9% 43.4% 5.7% 7.7% 24.5% 13.8% 11.8% 49.3%
Above 40W 4.7% 5.3% 7.9% 4.6% 7.7% 2.1% 3.1% 2.6% 3.6% 0.0% 8.2%
CFL Type of Fitting - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 8,904 1,838 1,624 4,313 883 246
Screw/Edison 41.9% 52.6% 49.6% 34.9% 43.1% 27.2%

Pin/Bayonet 58.1% 47.4% 50.4% 65.1% 56.9% 72.8%
285
286
CFL Type of Fitting - by DISCO
Total DISCO
Total 8,904 907 827 1,030 1,543 1,172 1,396 674 466 889
Screw/Edison 41.9% 34.5% 18.1% 14.1% 98.4% 17.0% 55.4% 37.2% 25.3% 29.4%
Pin/Bayonet 58.1% 65.5% 81.9% 85.9% 1.6% 83.0% 44.6% 62.8% 74.7% 70.6%

CFL Average Usage - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above
1,000
Total 8,904 1,838 1,624 4,313 883 246
0-4 hours 59.5% 67.6% 63.2% 58.2% 53.1% 22.4%
5-8 hours 34.2% 27.7% 33.1% 36.7% 38.5% 31.3%
9-12 hours 5.1% 4.5% 3.3% 4.6% 7.8% 18.3%
13-16 hours 1.1% 0.2% 0.1% 0.4% 0.5% 27.2%
Above 16 hours 0.1% 0.0% 0.2% 0.0% 0.1% 0.8%
CFL Average Usage - by DISCO

Total DISCO
Total 8,904 907 827 1,030 1,543 1,172 1,396 674 466 889
0-4 hours 59.5% 52.3% 62.3% 58.7% 81.9% 64.1% 62.6% 42.3% 18.7% 50.3%
5-8 hours 34.2% 36.4% 35.7% 37.7% 17.9% 34.1% 33.1% 37.2% 57.7% 42.3%
9-12 hours 5.1% 10.0% 1.7% 3.2% 0.1% 1.7% 3.4% 10.4% 23.6% 7.2%
13-16 hours 1.1% 1.2% 0.1% 0.4% 0.0% 0.1% 0.8% 9.8% 0.0% 0.1%
Above 16 hours 0.1% 0.1% 0.2% 0.0% 0.1% 0.0% 0.1% 0.3% 0.0% 0.1%

CFL Average Usage - by Room Type
Total 8,904 1,159 674 2,567 560 1,027 1,021 658 686 17 535
0-4 hours 59.5% 39.9% 59.2% 51.6% 69.1% 84.6% 76.2% 46.0% 43.6% 23.5% 88.8%
5-8 hours 34.2% 52.2% 35.0% 40.9% 25.4% 12.7% 20.1% 45.4% 46.5% 52.9% 9.9%
9-12 hours 5.1% 7.4% 5.8% 5.4% 5.2% 2.2% 2.6% 6.7% 7.9% 23.5% 1.1%
13-16 hours 1.1% 0.4% 0.0% 2.0% 0.4% 0.2% 0.7% 1.8% 2.0% 0.0% 0.2%
Above 16 hours 0.1% 0.0% 0.0% 0.1% 0.0% 0.3% 0.4% 0.0% 0.0% 0.0% 0.0%
CFL Working Condition - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above
1,000
Total 8,904 1,838 1,624 4,313 883 246
Working 99.0% 99.7% 99.2% 98.7% 98.6% 99.2%
Not Working 1.0% 0.3% 0.8% 1.3% 1.4% 0.8%
CFL Working Condition - by DISCO
Total DISCO
Total 8,904 907 827 1,030 1,543 1,172 1,396 674 466 889
Working 99.0% 99.7% 99.5% 97.7% 99.7% 97.4% 99.4% 99.9% 99.1% 99.3%
Not Working 1.0% 0.3% 0.5% 2.3% 0.3% 2.6% 0.6% 0.1% 0.9% 0.7%
287
288
CFL Working Condition - by Room Type
Total 8,904 1,159 674 2,567 560 1,027 1,021 658 686 17 535
Working 99.0% 98.9% 99.1% 98.4% 99.1% 99.7% 99.5% 99.7% 99.4% 100.0% 98.9%
Not Working 1.0% 1.1% 0.9% 1.6% 0.9% 0.3% 0.5% 0.3% 0.6% 0.0% 1.1%
e. Fluorescent Tube Lights (FTLs)

FTL Lamp Wattage - by Electricity Consumption Category
Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 4,879 897 901 2,455 508 118
Below 18W 0.1% 0.0% 0.0% 0.1% 0.4% 0.0%
18W 3.8% 4.3% 7.4% 2.6% 3.0% 0.8%
20W 9.0% 9.1% 12.3% 9.5% 3.0% 0.0%
21-39W 2.4% 2.1% 1.7% 2.3% 4.3% 1.7%
40W 84.2% 83.1% 78.1% 85.2% 89.4% 97.5%
Above 40W 0.5% 1.3% 0.4% 0.3% 0.0% 0.0%
FTL Lamp Wattage - by DISCO

Total DISCO
Total 4,879 512 442 1,149 381 816 630 236 227 486
Below 18W 0.1% 0.4% 0.0% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0%
18W 3.8% 0.4% 0.0% 9.1% 2.9% 1.3% 3.5% 0.4% 11.0% 1.9%
20W 9.0% 5.5% 3.2% 12.5% 6.3% 7.1% 7.1% 1.3% 0.0% 25.7%
21-39W 2.4% 0.6% 1.4% 0.0% 10.5% 0.6% 7.5% 0.4% 2.2% 1.6%
40W 84.2% 93.2% 95.5% 78.2% 80.3% 90.8% 81.7% 97.9% 86.8% 66.3%
Above 40W 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 4.5%

FTL Lamp Wattage - by Room Type
Total 4,879 857 358 1,509 258 238 415 370 586 14 274
Below 18W 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.3% 0.0% 0.0%
18W 3.8% 1.8% 0.0% 3.7% 0.4% 12.2% 9.9% 4.6% 3.9% 0.0% 1.5%
20W 9.0% 9.5% 8.9% 6.7% 0.8% 27.3% 13.7% 7.6% 9.9% 0.0% 6.2%
21-39W 2.4% 2.0% 2.2% 2.6% 6.6% 2.1% 0.7% 3.5% 0.9% 0.0% 2.9%
40W 84.2% 85.9% 88.8% 87.0% 92.2% 58.4% 75.4% 83.5% 82.8% 100.0% 89.4%
Above 40W 0.5% 0.9% 0.0% 0.0% 0.0% 0.0% 0.2% 0.3% 2.2% 0.0% 0.0%
FTL Average Usage - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 4,879 897 901 2,455 508 118
0-4 hours 55.7% 71.2% 57.3% 52.4% 45.7% 35.6%
5-8 hours 36.5% 23.5% 36.5% 40.2% 44.3% 23.7%
9-12 hours 6.7% 5.0% 6.1% 6.4% 7.3% 28.0%
13-16 hours 0.7% 0.2% 0.0% 0.6% 1.2% 11.0%
Above 16 hours 0.4% 0.0% 0.1% 0.4% 1.6% 1.7%
FTL Average Usage - by DISCO

Total DISCO
Total 4,879 512 442 1,149 381 816 630 236 227 486
0-4 hours 55.7% 58.4% 74.4% 53.6% 96.1% 67.5% 43.8% 32.6% 13.7% 35.2%
5-8 hours 36.5% 26.0% 23.5% 38.0% 3.7% 29.2% 53.3% 46.2% 53.7% 58.8%
9-12 hours 6.7% 12.1% 1.6% 5.7% 0.3% 3.3% 2.9% 19.1% 32.6% 5.8%
13-16 hours 0.7% 2.7% 0.2% 1.4% 0.0% 0.0% 0.0% 1.7% 0.0% 0.2%
Above 16 hours 0.4% 0.8% 0.2% 1.2% 0.0% 0.0% 0.0% 0.4% 0.0% 0.0%
289
290
FTL Average Usage - by Room Type
Total 4,879 857 358 1,509 258 238 415 370 586 14 274
0-4 hours 55.7% 53.9% 58.9% 48.0% 64.7% 80.3% 70.1% 42.2% 47.8% 57.1% 82.1%
5-8 hours 36.5% 39.2% 34.6% 41.1% 27.1% 19.3% 26.3% 44.9% 45.1% 21.4% 15.0%
9-12 hours 6.7% 6.5% 6.4% 7.7% 8.1% 0.4% 3.1% 12.4% 7.0% 21.4% 2.9%
13-16 hours 0.7% 0.4% 0.0% 1.9% 0.0% 0.0% 0.2% 0.5% 0.2% 0.0% 0.0%

Above 16 hours 0.4% 0.0% 0.0% 1.3% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0%
FTL Working Condition - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 4,879 897 901 2,455 508 118
Working 97.8% 98.3% 97.3% 97.4% 99.0% 100.0%
Not Working 2.2% 1.7% 2.7% 2.6% 1.0% 0.0%
FTL Working Condition - by DISCO

Total DISCO
Total 4,879 512 442 1,149 381 816 630 236 227 486
Working 97.8% 99.0% 98.9% 97.0% 99.5% 94.6% 99.2% 98.3% 100.0% 98.4%
Not Working 2.2% 1.0% 1.1% 3.0% 0.5% 5.4% 0.8% 1.7% 0.0% 1.6%
FTL Working Condition - by Room Type

Total 4,879 857 358 1,509 258 238 415 370 586 14 274
Working 97.8% 97.7% 95.0% 96.8% 98.1% 99.6% 100.0% 99.2% 98.8% 100.0% 97.8%
Not Working 2.2% 2.3% 5.0% 3.2% 1.9% 0.4% 0.0% 0.8% 1.2% 0.0% 2.2%

f. Average Usage
Average Usage per Light Point (number of hours)
Type of Lamp Average Hours per
Light Point
All 2.97
IBs 2.86
CFLs 2.94
FTLs 3.34
Others 3.87
g. Average Number of Light Points

Average number of light points - By Electricity Consumption Category
Population
Up to 50 51-100 101-300 301-1,000 Above 1,000
Average number of light points 6.81 4.85 5.61 8.66 12.76 43.00
IBs 2.50 2.37 2.69 2.42 3.02 2.56
CFLs 2.74 1.65 1.86 3.90 5.97 27.33
FTLs 1.50 0.80 1.03 2.22 3.43 13.11
Others 0.07 0.03 0.03 0.12 0.34 -
Average number of light points - By DISCO

Total DISCO
Population LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC
Average number of light points 6.81 4.91 5.13 6.26 8.68 6.17 8.83 6.28 18.42 6.76
IBs 2.50 1.72 1.78 1.54 2.35 2.88 4.11 2.04 9.13 1.83
CFLs 2.74 1.95 2.17 2.21 5.08 1.89 3.24 3.06 6.13 3.09
FTLs 1.50 1.10 1.16 2.46 1.25 1.32 1.46 1.07 2.99 1.69
Others 0.07 0.14 0.02 0.06 0.00 0.08 0.02 0.10 0.17 0.16
291
292
h. Other Appliances
Electrical Appliance Holding - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 21,741 5,193 4,897 9,848 1,615 188
Fans 42.1% 45.9% 43.9% 39.6% 40.0% 35.6%
Refrigerators 6.7% 4.0% 5.5% 8.5% 8.8% 5.9%

Deep Freezers 1.1% 0.3% 0.4% 1.6% 2.3% 4.3%
Air Conditioners 1.4% 0.5% 0.5% 1.8% 3.5% 11.2%
Televisions 12.2% 13.8% 13.5% 11.1% 10.3% 9.6%
Computers 2.3% 0.8% 0.9% 3.2% 4.8% 5.3%
Microwaves 1.6% 0.8% 0.9% 2.1% 3.3% 4.8%
Irons 13.8% 17.3% 16.1% 11.6% 10.4% 8.0%
Water Pumps 8.4% 8.0% 8.7% 8.7% 7.2% 4.3%
Washing Machines 8.7% 7.2% 8.6% 9.7% 8.4% 5.9%
Electric Heaters 1.7% 1.4% 1.1% 2.1% 1.1% 5.3%
Gas Appliance Holding - by Electricity Consumption Category

Up to 50 51-100 101-300 301-1,000 Above 1,000
Total 2,024 444 333 1,000 200 47
Water Heaters 17.9% 8.1% 8.7% 23.4% 25.5% 25.5%

Space Heaters 37.6% 30.2% 29.1% 42.0% 44.0% 48.9%
Cooking Stoves 44.5% 61.7% 62.2% 34.6% 30.5% 25.5%
Appendix 1
DESIGN AND MONITORING FRAMEWORK FOR
THE INVESTMENT PROGRAM AND TRANCHE-1
Table A1.1: Sustainable Energy Efficiency Investment Program

Design Performance Targets/ Data Sources/ Assumptions and
Summary Indicators Reporting Risks
Mechanisms
Impact Energy mix optimized by 2018, Assumptions
Pakistan's energy sustainable oil use achieved Annual national • Stable
security achieved and statistics and macroeconomic
GHG emissions reduced by
demand and supply economic conditions
30% from 2009 levels by 2018
balanced publications • Additions in
Oil imports reduced by 22% by supply capacity
2018 (indigenous and
Energy sector
yearbook import) come
9.5 MTOE (418,806 TJ) of online
energy saved from 2009 to Energy utility reports • Sector financial
2018 and operational
Industry reports performance
improves
Industrial production grows by • GOP follows
10% annually from 2012 through with policy
actions
Customers receive reliable and
quality energy services from
2013
Outcome Assumptions
Energy efficient and 1.6 MTOE (70,250 TJ) of National Energy • Rational energy
energy productive electricity saved by 2018 Efficiency Roadmap pricing achieved
Pakistan. Implementation • Industries have
2.7 MTOE (120,800 TJ) of gas Progress Reports continued access
saved by 2018 to financing and
National budget invest in clean
2 MTOE (84,687 TJ) of oil saved reports technology and
by 2018 practice
Energy utility reports • Efficient equipment
1 MTOE (40,109 TJ) of coal and appliances are
saved by 2018 Industrial association available in the
survey and reports retail market
Energy bills lowered by 20% for
industrial customer from 2011
Improved financial and

operational performance of
sector utilities from 2011
Households achieve lower

energy bills from 2010, $800
million saved in total household
electricity savings by 2018
Energy efficiency
mainstreamed into planning
and investments by 2011

Appendix 1
Design Performance Targets/ Data Sources/ Assumptions and

Summary Indicators Reporting Risks
Mechanisms
Outputs Assumptions
Energy efficiency Reduced electricity use in the • Projects
GOP policy decisions
market transformed. industrial, residential and public implemented
Energy savings sectors amounting to 2,670 Project PC-1s efficiently and
realized in critical GWh, per year starting 2012 effectively
energy consuming PSQCA Pakistan • Government
sectors. A national energy efficiency National Standards agrees to borrow
standards testing and Book and onlend at
certification regime established favorable rates
by 2014. Project implementation • ADB approves
progress reports financing and
Utility demand side management cofinancing is
Contract awards and available
capacity established by 2013.
disbursements
Commercial ESCO businesses Risk
established by 2011. • Government and
ADB delays project
preparation and
Industrial energy efficiency
approvals
investments increase by 20% per
year starting 2010. • Utilities face
implementation
delays (i.e.
procurement,
execution, cost-
overruns)
• Counterpart
funding gap
• Lack of energy
audit and other
associated service
capacity
Activities with Milestones Inputs
ADB
1. Roadmap and Investment Plan approved April 2009
RETA $400,000
2. FFA signed by the Government and ADB by August 2009
PPTA $600,000
3. Investment Program Support Project (2009-2017)
4. National Compact Fluorescent Lamp Project (2009-2011)
MFF
5. Industrial Energy Efficiency Financing Pilot Project (2010-2011)
ADB: $780 mln
6. Thermal Power Plant Loss Reduction Projects (2010-2016)
AFD: €150 mln
7. Transmission and Distribution Loss Reduction Projects (2011-2016)
8. Industrial Energy Efficiency Financing Project (2011-2015)
GOP: $200 mln
9. Buildings Retrofit Projects (2012-2016)
10. Appliance Replacement Project (2012-2015)
ADB = Asian Development Bank, AFD = Agence Francaise de Developpement, CFL = Compact fluorescent lamp,
EE = Energy Efficiency, ESCO = energy service company, FFA = Framework Financing Agreement,
GoP = Government of Pakistan, MFF = Multitranche financing facility, MTOE = Million tons of oil equivalent,
PPTA = Project preparatory technical assistance, RETA = Regional technical assistance, TJ = Terajoule.

Appendix 1
Table A1.2: Tranche - 1

Design Summary Performance Data Assumptions and
Targets/Indicators Sources/Reporting Risks
Mechanisms
Impact Assumptions
Enhanced energy security by Energy mix Daily load profiles • Customers willingly
reducing supply-demand optimized by 2018, from National Power replace operable
gaps in the power sector sustainable oil use Control Centre incandescent bulbs
achieved (IBs) with compact
Load factor data from fluorescent lamps
GHG emissions DISCOs (CFLs)
reduced
by 30% from 2009 Project monitoring • At least two-thirds of
levels data from project CFLs are used
by 2018 consultants at the same peak hour
(coincidence factor of
$800 million saved 0.66 for all CFL light
in points)
household electricity
expenditure by 2018 Risks
• Poor or slow
distribution of CFLs to
households
• Low substitution of
high-use incandescent
with CFLs by
consumers
Outcome Assumptions
Immediate reduction of Customers receive PEPCO/DISCOs • Timely completion of
electricity peak demand and reliable and quality Power System CFL procurement and
consumption through the energy services Statistics, electricity distribution to all
massive replacement of IB from 2013 consumption data, eligible households by
light points with energy- and national monthly PEPCO/DISCOs
efficient CFLs load profiles
By end of 2011, total
avoided peak • Consumer acceptance
generation DISCOs monthly of standardized CFLs
requirements sales data, customer distributed as
amounting billing records, and replacement for
to 1,6 GW CFL voucher working incandescent
By end of 2011, redemption analysis bulbs
average annual
consumer Consumer surveys • Consumers continue
electricity savings of by project M&E to use replaced light
77 kWh per light consultants points at baseline duty
point by use of of 3.69 hours per day
efficient CFLs Utility customer sales despite lower CFL-
Starting in 2012, data, billing profiles, induced electricity bills
total and DISCOs’ monthly

Appendix 1

Mechanisms
annual net financial statements • No substantial change
consumer in subsidized tariffs for
subsidy savings of Domestic lower-tier domestic
$63.9 manufacturing, consumers
million due to import, and sales
reduced data for IB and CFL
household electricity products
consumption
Sustained transition Market surveys by
towards use of high- project M&E
quality CFLs instead
consultants
of inefficient IBs by
consumers and
phase-out of the
latter by
local manufacturers
and
retailers
Market surveys by • Additional incentives
project M&E and regulations
consultants implemented for
lighting MEPs and IB
phase out
Risks
• Low penetration of
CLFs in target
households due to
distribution logistics or
acceptance issues
• Increased distribution
and management
burden on existing
DISCO staff and
resources
• ‘Leakage’ of CFLs
distributed into
commercial or other
markets
• Resistance by local
manufacturers and
retailers to ‘free’ CFL
disbursement
• Potential stranded
inventories of unsold
IBs

Appendix 1

Mechanisms
Outputs Assumptions
National CFL Project • PEPCO/DISCOs, in
Estimated 75% Overall annual National energy use collaboration with
replacement of energy savings of statistics and M&E SEED PMU, will be
2,132 GWh in the reports by project able to monitor and
remaining IBs in grid-
domestic sector consultants evaluate program
connected households by 30
starting 2012 benefits
million CFLs by end of 2011
Annual CO2 • CFLs will be

emission reduction distributed to all
by 984,000 tons eligible households
CO2/yr starting 2012 effectively
PEPCO/DISCOs
Power System
Overall system peak Statistics, electricity • Lifeline households
load reduction of consumption data, have good access to
1,094 MW during and national monthly communication
A comprehensive evenings by end of load profiles campaign media
communication campaign to 2011
run concurrently with both • UNFCCC CDM
CFL voucher
CFL distribution rounds to Households respond Executive Board
redemption analysis
make all electricity to the project with registers project as
and consumer
consumers aware of benefits the replacement of CDM-eligible
surveys by project
and participation details 30 million IBs with M&E consultants
CFLs Risks
• Inadequate collection
Communication of IBs
campaign would
have increased
awareness of its • Delays in CFL
project messages to procurement and
at least 25% among leakages in distribution
target households
• Delay in developing
CFL Project becomes eligible Completion of UNFCCC reports and implementing the
to earn certified emission validation, and notices of CDM lamp waste
reduction (CER) revenues registration and registered projects management
under the clean development verification of project regulatory framework
mechanism (CDM) through the CDM and disposal
process mechanism
Program Management
• Resistance by existing
Support Phase-out of IBs GoP policy and manufacturers,
Transition of domestic market initiated in 2011, as regulatory provisions importers, and/or
towards efficient lighting per Roadmap and notifications retailers of lighting
products through policy and products to ‘free’
regulatory measures giveaways
Adoption of national MEPS Promulgation of MEPS for lighting
for CFLs standards for CFLs devices adopted by • Unemployment and
and FTLs by 2011 PSQCA unsold inventory
Expansion of national testing

Appendix 1

Mechanisms
and certification facilities for All domestically sold Lighting product impacts on existing IB
lighting devices CFLs to carry labeling market
certification mark by requirements
2011 established by • Low consumer
PSQCA acceptance or use of
Establishment of a lamp Fully-equipped and Establishment of standardized CFL
waste management program internationally- accredited testing lamps distributed
accredited facilities at Karachi,
Implementation of a independent testing Lahore, and • Awareness campaign
communication and social and certification Peshawar fails to reach key
mobilization program laboratories for target populations,
lighting devices by Establishment of such as rural and low-
2011 lamp waste collection income consumers
charges and
Functional regional recycling facilities • Consumers revert to
lamp waste through public- inexpensive IBs for
collection, recycling, private partnership in subsequent or
and mercury each provincial additional lighting
extraction facilities capital needs
by 2015
Promulgation of • CDM methodology
Creation of relevant disposal does not allow optimal
appropriate requirements for CER revenues
regulatory mercury-laced
environment for products by Pak EPA
hazardous materials by 2015
handling
Program progress
reports and outreach
survey results
Activities with Milestones Inputs
1. Preparatory Activities National CFL Project
1.1 Recruitment of Project Management Consultant by Q4 2009 ADB:$40,000,000 loan
1.2 Preparation and Approval of PC-1 by Q4 2009 AFD: $25,000,00 loan
1.3 Recruitment of M&E Consultants by Q4 2009 GoP: $20,000,000
1.4 Procurement of Communications Services by Q4 2009 Total: $85,000,000
2. CFL Procurement: Round 1

Program Management
2.1 Finalization of CFL Bidding Documents by Q3 2009 Support Project
2.2 CFL Tendering and Evaluation by Q4 2009 ADB: $20,000,000 loan
2.3 CFL Procurement, Shipment, and Inspection by Q1 2010 GoP: $5,000,000
3. CFL Distribution: Round 1
3.1 Preparatory Distribution Activities and Contracting by Q4 2009
3.2 CFL Delivery to Bulk Distribution Points by Q1 2010
3.3 CFL Distribution to Customers by Q2 2010

Appendix 1

Mechanisms
4. Promotion and Marketing: Round 1
4.1 CFL Packaging and Promotional Materials by Q3 2009
4.2 Voucher Printing and Distribution by Q1 2010
4.3 CFL Communication Campaign by Q2 2010
5. Program Evaluation: Round 1
5.1 Voucher Redemption Analysis by Q3 2010
5.2 Consumer Surveys by Q3 2010
6. Round 1 CFL Disbursement Completed by Q3 2010
7. CFL Procurement: Round 2
7.1 Finalization of CFL Bidding Documents by Q3 2010
7.2 CFL Tendering and Evaluation by Q4 2010
7.3 CFL Procurement, Shipment, and Inspection by Q1 2011
8. CFL Distribution: Round 2
8.1 Preparatory Distribution Activities and Contracting by Q1 2011
8.2 CFL Delivery to Bulk Distribution Points by Q2 2011
8.3 CFL Distribution to Customers by Q3 2011
9. Promotion and Marketing: Round 2
9.1 Voucher Printing and Distribution by Q2 2011
9.2 CFL Communication Campaign by Q2 2011
10. Program Evaluation: Round 2
10.1 Voucher Redemption Analysis by Q32011
10.2 Consumer Surveys by Q4 2011
11. Round 2 CFL Disbursement Completed by Q4 2011
12. Project M&E
ADB = Asian Development Bank, AFD = Agence Francaise de Developpement, CDM = Clean Development
Mechanism, CER = Certified Emissions Reduction, CFL = Compact fluorescent lamp, DISCOs = Distribution companies, FTL =
Fluorescent tube lamps, , GoP = Government of Pakistan, GWh = Gigawatt hour, IB = Incandescent bulb, kWh= Kilowatt-hour,
MEPS = Minimum energy performance standards, M&E = Monitoring and evaluation, MW = Megawatt, PC = Procurement
Committee, PEPCO = Pakistan Electric Power Company, PMU = Project Management Unit, SEED = Sustainable energy efficiency
development, PSQCA = Pakistan Standards and Quality Control Authority.

Appendix 1
Appendix 2
PROBLEM ANALYSIS

Appendix 2

Appendix 2
Appendix 3
TRANCHE 1 NATIONAL COMPACT FLUORESCENT LAMP (CFL) PROJECT
A. EXECUTIVE SUMMARY
351. The initial tranche of the Energy Efficiency Investment Program (EEIP) will involve the
replacement of incandescent bulbs (IBs) in 30 million residential light points with long-life, high-
efficiency compact fluorescent lamps (CFLs) within the license areas of nine distribution utilities
in Pakistan. The Government of Pakistan is sponsoring this project. It will be implemented
jointly by the eight power distribution companies (DISCOs) and the Karachi Electric Supply
Company (KESC) over a 28-month period and two procurement and distribution rounds. The
$85 million Tranche-1 project will reduce peak demand by 1,094 MW, avoid 1,602 MW in
generating capacity additions, corresponding to $1.84 billion in new generation investments,
save $800 million in household electricity expenses, result in 2,132 GWh in annual electricity
consumption reductions, avoid 5.37 million tons of CO2 emissions by end of 2018, and
accelerate the transformation of the IB market toward high-quality CFLs. A $25 million support
component will enable IB phase-out, as well as build institutional capacities for the adoption of
energy performance standards, testing of CFLs and other appliances, and lamp waste
management.
B. BACKGROUND
352. Since 2006, electricity demand in Pakistan has greatly outstripped available generation
capacity. The resulting load shedding and power outages have caused street protests in many
cities in early 2009. Businesses have gone on strike to protest the worsening electricity supply
problem. The country is currently facing power shortages of approximately 4,000 to 4,500 MW.
It is expected that demand will exceed supply by over 5,500 MW in the year 2010. The present
electricity supply shortfall, coupled with consistent growth in demand (7-8% per annum), clearly
indicates the critical need for enhancing the country’s current power generation capability as
well as curtailing unnecessary consumption.
353. The August 2008 and January 2009 average daily load curves below show peak
demand starting at 1700 hours in winter and 1900 hours in summer and lasting approximately
five hours in both cases. Household lighting represents a significant portion of this evening
peak. An energy-efficient lighting project could have a significant impact on bringing down the
peak and avoiding load shedding.
354. International experience shows that amongst all potential energy efficiency projects, one
of the most effective short-term approaches is the scaled-up replacement of IBs with CFLs in
the residential sector. In the longer term, the project should seek to transform the domestic
lighting market so that IBs and other low-efficiency lighting technologies are no longer used.
C. ANALYSIS OF KEY PROBLEMS AND OPPORTUNITIES
355. A baseline survey involving 3,253 domestic customers of 8 DISCOs and KESC was
performed in April 2009 to support the design of this project.57 Using the domestic customer
57
ADB. 2008. Technical Assistance to Pakistan for Preparing the Sustainable Energy Efficiency Development
Program (TA7060-PAK). Manila.

Appendix 3
distribution patterns of the 9 utilities across the different consumption tiers, it was estimated that
domestic customers’ 37.1 million IB light points in the 40W-100W range contribute at least 2,028
MW to the system peak during evening hours. These IB light points in households are
consuming as much as 3,952 GWh annually.
356. As Table A3.1 below shows, 76.9 % of electrified households in Pakistan still have at
least one IB. The table also shows a significant market penetration of CFLs in this sector.
Table A3.1: Household Penetration of Lighting Technologies

Lighting Technology Penetration
Incandescent Bulb 76.9%
Compact Fluorescent Lamp 63.9%
Fluorescent Tube Lamp 48.6%
Other 3.6%
Source: Asian Development Bank and PPTA consultants’ estimates.
357. Current CFL and IB utilization vary by consumer category. As part of the market survey,
data was collected to verify customer choices of lighting technology. Data from the baseline
survey generated Figure A3.1 below to illustrate IB and CFL use across five monthly
consumption categories: Up to 50 kWh, from 51 to 100 kWh, from 101 to 300 kWh, from 301 to
1000 kWh and, above 1000 kWh.
Figure A3.1: IB and CFL Penetration in Pakistan by Domestic Customer Category, 2009
CFL = Compact fluorescent lamp, IB = Incandescent bulb, kWh = Kilowatt-hour.
358. The curve above shows that consumers with lower monthly consumption use more IBs.
Alternatively, the lower the kWh usage, the lower the percentage of CFL light points. In other
words, lifeliners (customers using less than 50 kWh per month) have the highest percentage of

Appendix 3
IB incidence and use, while consumers at above 1,000 kWh use the lowest percentage. Thus,
a CFL project will help proportionately more customers in the lower income brackets to acquire
energy-saving CFLs.
359. The project is designed to replace the maximum number of IBs in the residential market
by replacing 40W, 60W and 100W IBs with 21 to 23W CFLs. Table A3.2 provides details of the
potential and targeted IB light point replacements.
Table A3.2: CFL Project Potential and Project Size (by Light Points)
Above
51 – 100 101 – 300 301 – 1000
Up to 50 kWh/mo 1000 Total
kWh/mo kWh/mo kWh/mo
kWh/mo
No. of Households per

6,090,292 4,345,319 5,642,736 610,122 62,842 16,751,311
Category (Source: PEPCO)
Average No. of Light Points

per Household (Source: 4.85 5.61 8.66 12.76 43
ADB survey)
Total Light Points

29,534,642 24,363,583 48,874,775 7,783,178 2,702,206 113,258,384
(Calculated)
No. of IB Light Points, 5W-

14,412,600 11,705,048 13,654,910 1,842,733 160,596 41,775,888
200W (Calculated)
Total Project Available IBs

12,906,398 10,572,782 11,908,471 1,578,897 125,684 37,092,232
(40W+ 60W +100W)
Target IBs to be Replaced

11,800,000 8,000,000 9,200,000 940,000 60,000 30,000,000
Rounds 1 and 2 (Estimate)
Target IBs – Round 1 (Est.) 4,000,000 3,000,000 2,680,000 300,000 20,000 10,000,000
Target IBs – Round 2 (Est.) 7,800,000 5,000,000 6,520,000 640,000 40,000 20,000,000
Source: Asian Development Bank and Pakistan Electric Power Company (PEPCO) estimates.
360. As a contingency, remaining CFL quantities from Rounds 1 and 2 that were not
disbursed can be distributed through a possible third round (with no additional CFL
procurement), which can include commercial and industrial buildings. Any remaining CFLs not
distributed after that can also be used to upgrade lighting in government buildings, distributed to
customers connected to other bulk redistributors of electricity or to off-grid consumers.
D. IMPACT, OUTCOME, AND OUTPUTS
361. The Tranche-1 project will contribute immensely to the EEIP objective of closing the
current energy demand and supply imbalance by reducing peak demand through the massive
replacement of 30 million light points in grid-connected households with a more energy-efficient
lighting technology. The bulk distribution of CFLs will defer new investments for peaking
generating capacities, generate electricity savings, avoid CO2 emissions and advance CFL
market transformation in the domestic sector. The design and monitoring framework of the
Tranche-1 project is given in Appendix 1.

Appendix 3
362. Peak Demand Reduction and Avoided Peak Generation Capacities. Average daily and
hourly electricity demand in Pakistan varies by season. Lighting demand is affected by the time
of sunset. With darkness coming earlier in the day during winter months, the evening lighting
load is higher than in summer months. Mainly due to lighting load, the National Transmission
and Despatch Company’s (NTDC) system peak starts at around 2000 hrs during summers and
1700 hrs during winters. The peak lasts for an average of five hours in all seasons,
corresponding to the peak time of typical household activities.
363. In order to assess the impact of CFL replacement, data for two peak months was
analyzed, with August representing the summer season and January representing winter. The
average daily load curves for August 2008 and January 2009 were used. Based on these data,
the average peak rising above the day-round base demand is projected to be 2,468 MW and
2,027 MW during summer and winter, respectively, during FY2010, mainly contributed by
lighting loads. The projected peak demand rise for FY2011 is 2,662 MW for the summer and
2,178 MW for the winter season.
364. The domestic sector connected to the grid is estimated to have about 41.78 million light
points presently fitted with IBs. Under this project, 10 million IBs in the 40W-100W range will be
replaced in 2010 (Round 1) and another 20 million in 2011 (Round 2). The total peak demand
of IBs is estimated to be 3,166 MW in the country, across all wattages and assuming 100%
peak use coincidence. Conservatively, this reduces to 2,029 MW for IBs in the 40W-100W
range, at 66% peak coincidence. The replacement of 30 million IBs with CFLs, having an
average consumption of 21.5W per lamp, will result in an estimated reduction of peak demand
by about 1,094 MW (at 66% peak coincidence). The peak demand reduction for Rounds 1 and
2 are thus estimated to be 365 MW and 729 MW, respectively. This translates into a 53.9%
peak demand reduction from the total IB load of 2,028 MW after Round 2. Considering
upstream losses and reserve margin requirements, the project is capable of avoiding
$1.84 billion in investments for 1,602 MW in new installed peak generation capacities. Figure
A3.2 below shows the impact of the CFL replacement project on the daily peak (dashed line)
after Round 2 of the project.
Figure A3.2: Impact of CFL Distribution on National Daily Load Curve
CFL = Compact fluorescent lamp, KESC = Karachi Electric Supply Corporation, MW = Megawatt, NTDC = National Transmission
and Dispatch Company.
Sources: Asian Development Bank (dashed curve) and National Transmission and Dispatch Company (solid curve) estimates.

Appendix 3
365. Annual Electricity Savings and Avoided CO2 Emissions. The baseline survey shows that
1,094 MW of demand reduction resulting from 30 million IB replacements in the 40W-100W
range applied through surveyed daily duties (varying per DISCO, averaging 3.6919 hours/day)
can yield annual avoided generation savings amounting to 2,497 GWh/yr.
366. Using accepted Pakistan electricity grid emission factors and considering CDM
adjustment factors, this translates to annual CO2 emissions of 5.37 million tCO2e/yr through the
estimated 7.78-year CFL life (or until 2018). The potential Certified Emissions Reduction (CER)
revenues associated with such avoided emissions could amount to $12.6 million up to 2012 and
another $20.5 million during the period 2012-2018. From the end-use households, as much as
$800 million could be saved by participating domestic customers over the life of the CFLs. This
translates to an average Rs 293 in annual electricity cost savings per IB-CFL replacement.
Furthermore, the Tranche-1 project is able to reduce cross-subsidies across domestic
consumption tiers by approximately $60 million annually. The project also allows the distribution
utilities to sell the available electricity to higher-earning tariff tiers at a conservative minimum of
$29 million per year.
367. Acceleration of CFL Market Transformation. The two graphs below (Figures A3.3 and
A3.4) illustrate the proposed project’s impact on CFL uptake and market transformation. The
first graph shows current CFL usage and IB usage by customer class; and the second shows
projected usage after Round 2. Taken together, the curves show a gradual increase in CFL use
by customers across all consumption categories. For example, the use of CFLs by lifeliners
(consumers using less than 50 kWh/month), expressed as a percentage of the total lighting
points used, is expected to increase from the current 34% of households to 70% after Round 2.
Figure A3.3: Relative Penetration of IBs and CFLs in Pakistan by Domestic Customer
Categories in 2009

Source: Asian Development Bank survey, April 2009.

Appendix 3
Figure A3.4: Relative Penetration of IBs and CFLs in Pakistan by Domestic

Customer Categories After Round 1

Source: Asian Development Bank survey, April 2009.
368. The impact on all customer categories is further detailed in Table A3.3 below, which
shows CFL penetration increasing over time in each consumption class.
Table A3.3: Baseline and Post-project Domestic Sector CFL Penetration in Pakistan
CFL Use Up to 50 51-100 101-300 301-1000 Above
kWh/mth. kWh/mth. kWh/mth. kWh/mth. 1000
kWh/mth
Baseline 34% 33% 45% 47% 64%
Situation
After Project 46% 45% 52% 52% 65%
Round 1
After Project 70% 68% 65% 63% 67%
Round 2
CFL = Compact fluorescent lamp, kWh = Kilowatt-hour.
Source: Asian Development Bank estimates.
E. PROJECT DESIGN FEATURES
369. The two most critical features of the CFL project design are: (i) the technical
specifications for the bulk procurement of the CFLs; and, (ii) CFL distribution and IB recovery

Appendix 3
mechanism. The monitoring and verification process will be covered under a separate section
of this Appendix.
370. CFL Specifications. For the purpose of the bulk procurement of 20W-23W CFLs, current
Efficient Lighting Initiative (ELI) technical specifications will be adopted as the international
energy performance standard, with the exception of increasing the life rating of the procured
CFLs from 6,000 hours to 10,000 hours. As a result of the extended life rating, the participating
manufacturers will be required to extend the warranty on the product from one year (as per ELI
requirement) to two years.
371. The key reasons for the enhancement of the life specification are:
(i) A 10,000 hour life specification allows project implementing entities to increase
the CFL warranty period to 24 months. Public perception of the project is
enhanced through reduced complaints of defective CFLs during the
implementation period.
(ii) The 10,000-hr specification, likewise, increases potential Clean Development
Mechanism (CDM) revenues by extending the crediting period of CER revenues
(in this case it will be beyond 2012) to at least seven years versus the typical
three to four years for 6,000-hr CFLs.
(iii) Longer-life CFLs also reduce hazardous mercury waste by decreasing the
frequency of CFL replacements at each light point.
372. The recommended minimum efficacy for the bulk-procured CFLs shall also follow ELI
standards (57 lumens/W) for lamps rated 15W and higher. The light output of a 1,350-lumen
20W-23W CFL is expected to match or exceed the total rated luminous flux for a typical 100W
IB in Pakistan (vs. 1,240 lumens market average IB luminous flux).
373. Based on the baseline household survey, approximately 90% of the IBs in domestic light
points were found to be fitted with bayonet B22 caps (locally referred to as ‘pin-type’), while the
small balance of IBs were fitted with Edison screw E27 (and E14) caps. To address the broader
and immediate IB replacement needs of the domestic sector, CFLs to be procured for Round 1
will be fitted with B22 caps only. The feasibility of replacing E27-capped IBs (for specific high-
incidence areas, such as Islamabad) will be studied during the evaluation of Round 1.
374. Also, bulk-procured CFLs will continue to use the international voluntary minimum power
factor (PF) specification of 0.5, which is still adopted by ELI, the US Energy Star and the EU
Quality Charter for CFLs and even the proposed Asia CFL Quality Charter. Completed CFL
projects in other countries show no clear evidence of adverse impacts of bulk distribution of
normal PF (i.e., at least 0.5 PF) CFLs on utility operations. While agencies in at least two
countries are starting to require high-PF CFLs for their programs, the minimal and still unverified
benefits to the distribution system cannot justify the estimated 45% increase in CFL production
cost to raise the PF to 0.8-0.9 levels. Furthermore, it is feared that high-PF CFLs will make
them more vulnerable to wide voltage variations, thereby reducing the CFL capacity to optimize
its rated life. Furthermore, CDM approved small-scale methodology AMS-II.J does not require
high-PF CFLs.
375. CFL Distribution Mechanism. The Tranche-1 project is aimed at the replacement of
30 million IBs in the 40W-100W range with 20W-23W CFLs. If successful, the two rounds of
free CFL distribution will largely eliminate the use of IBs from the Pakistani residential market.
376. The CFLs will be provided to domestic customers of eight DISCOs and KESC free of -
charge over a two-year period. Typically, CFL give-away projects do not recover their costs
directly. However, this project is projected to recover its costs through reduced subsidies to

Appendix 3
low-income ‘lifeline’ customers. The higher tariffs paid by higher electricity-consuming

households to support low-income consumers, plus the direct government subsidies paid to
support low-income consumers, will together generate a revenue surplus because low-income
consumers will be consuming less electricity by using CFLs instead of incandescent bulbs. That
surplus is projected to cover the costs of the CFLs and project administration. Hence, the
project, despite purchasing and giving away CFLs, will recover its costs in a year or so.
377. In general, demand-side management (DSM) programs can be broadly divided into two
types: ‘opt-out’ programs and ‘opt-in’ programs. Opt-out programs are those wherein the
customer does not need to initiate a transaction to participate in the program, while opt-in
programs are where the customer has to initiate a certain activity in order to participate. The
proposed Tranche-1 project is of the opt-out program type. Opt-out programs typically have
higher participation rates, a key factor toward the swift creation of virtual generating capacities
in the grid. Although opt-out programs are more costly and need more coordination, the critical
energy security objectives of the Tranche-1 project cannot afford the slower market response
from a pure opt-in program.
378. PEPCO will handle activities related to the bulk procurement of the CFLs through the
two rounds on behalf of the Ministry of Water and Power, while the DISCOs and KESC
expressed confidence that, bolstered with supplemental logistics in isolated cases, they could
handle the distribution of the CFLs and the collection of IBs and eligibility vouchers. Should
some of the DISCOs decide to subcontract the delivery to third-party service providers, the cost
is estimated to be in the range of Rs 30 to 40 per delivered CFL. This estimated cost includes
the recovery and shipment of IBs.
379. In either case, the DISCO remains the responsible party for distribution. Completed
utility-led DSM programs in other countries demonstrate the advantages of enhancing the image
of the utility with respect to its customers as well as optimizing program impacts and
sustainability by guarding the product from potential fraud or diversion to other market channels.
380. More specific features of the distribution mechanism include:
(i) The project will be coordinated by PEPCO, which will conduct a bulk purchase of
CFLs that are compliant with predetermined specifications. Bulk purchase of the
CFLs will be performed on two rounds, the first one for 10 million CFLs and the
second round to purchase 20 million CFLs, and will help lower the per-unit cost
of the lamps.
PEPCO will distribute the CFLs to DISCOs and KESC. For each round, PEPCO
will assign the quantity of CFLs to be delivered to each utility based on the
relative number of residential customers and the projected number of 40W-100W
IB light points in each utility. A preliminary estimate of the CFL allocations and
their corresponding peak reduction and energy saving impacts are tabulated in
Table A3.4 below.
(ii) DISCOs and KESC will mail or deliver the vouchers to all of their active
residential customers along with, and as a detachable portion, of the monthly
utility bill;
(iii) DISCOs and KESC shall be responsible to distribute the CFLs to residential
customers door-to-door, where the customer will trade working 40W-100W IBs
together with the previously mailed voucher with high-quality CFLs on a one-to-
one swap basis;

Appendix 3
(iv) Depending on logistics and capacity of each utility, the DISCOs or KESC can
choose to use their own personnel or hire delivery subcontractors;
(v) Recovered IBs will be collected in utility sites for third-party verification before
disposal and recycling. To prevent leakage of recovered IBs back into the
market, it is recommended that utility personnel be required to deform the metal
bayonet cap at point-of-collection with special care not to damage the glass
portion of the IB. (The wattage marking on the glass portion provides future
auditable basis of the baseline power rating of the IB). Only after third party
verification of IB inventories, DISCOs and KESC may destroy IBs, send IB waste
to existing material recyclers, and collect proceeds of the ‘sale’ of scrap
materials; and
(vi) DISCOs and KESC will perform an analysis of the redeemed vouchers at the end
of each round.
Table A3.4: Preliminary Estimates of CFL Allocations and

Peak Demand and Electricity Savings by DISCO
Utility No. of Domestic CFL Allocation (million) Peak demand Annual Energy
Customers reduction Savings*
Round 1 Round 2 Total (MW) (GWh/yr)
(million)
LESCO 2.41 1.4 2.9 4.3 162.5 324.7
GEPCO 1.97 1.2 2.3 3.5 129.4 281.7
FESCO 2.33 1.4 2.8 4.2 115.8 211.2
IESCO 1.63 1.0 1.9 2.9 57.7 71.0
MEPCO 3.27 1.9 4.0 5.9 224.3 458.6
PESCO 2.1 1.3 2.5 3.8 175.2 325.2
HESCO 1.18 0.7 1.4 2.1 93.4 175.6
QESCO 0.36 0.2 0.4 0.6 28.4 53.8
KESC 1.50 0.9 1.8 2.7 107.2 229.9
Total 16.75 10.0 20.0 30.0 1,093.9 2,131.6
CFL = Compact fluorescent lamp, DISCO = Distribution company, FESCO = Faisalabad Electric Supply Company, GEPCO =
Gujranwala Electric Power Company, GWh = Gigawatt-hour, HESCO = Hyderabad Electric Supply Company, IESCO = Islamabad
Electric Supply Company, KESC = Karachi Electric Supply Corporation,
LESCO = Lahore Electric Supply Company, MEPCO = Multan Electric Power Company, MW = Megawatt,
PESCO = Peshawar Electric Supply Company, QESCO = Quetta Electric Supply Company
* Energy savings are shown in terms of demand reduction; equivalent supply savings would be higher on account of T&D losses
and reserve margin requirements.
381. Figure A3.5 illustrates the general distribution mechanism of the Tranche-1 project.
This distribution scheme, devised by the DISCOs in consultation with each other and PEPCO,
optimally utilizes their existing resources in order to minimize costs, while at the same time
ensuring that normal DISCO functions are not affected in any way by the additional CFL
distribution responsibilities.
382. The distribution mechanism calls for supply of bulk consignments of CFLs allocated to
each DISCO (Table A3.5) in containers to designated regional storage points operated by the

Appendix 3
DISCO. The number of these main supply storages and the corresponding CFL allocations will
be specified in the CFL bidding documents and determined on CDM PoA requirements. From
these storage sites, CFLs will be delivered on a daily basis to the respective DISCO’s field
stores at the subdivisional level, utilizing mini trucks specifically procured by the DISCOs for this
purpose. Field distribution teams, each consisting of one DISCO employee and one contracted
hire, will then be provided with batch-wise customer address lists for undertaking door-to-door
delivery of the CFLs in adjoining areas using motorbikes (with modified carrier boxes)
purchased by the DISCOs for each team. The teams will exchange the CFLs for working IBs (in
the 40-60W range) and customer vouchers (provided with their electricity bills) on a one-to-one
basis, and return the IBs and vouchers collected through the subdivisional collection points up
to the regional storage sites. At this point, on a regular basis and in the presence of third-party
inspectors, the IB and voucher counts shall be verified and the IBs destroyed. The collated
vouchers will then be dispatched to the respective DISCO’s customer data center for analysis.
The DISCO’s existing stores and inventory system shall be utilized for maintaining proper
accounting of the transactions and material movements involved at all stages.
383. PEPCO shall seek and obtain Government consent for hiring of the contract staff
required to implement the distribution by each DISCO, waive standard 20% storage and
transportation charges, and seek Government approval of the $20 million PC-1 required to
implement the CFL distribution by the DISCOs. A breakdown of the DISCO-wise distribution
cost and resource requirements is shown in Table A3.5.
384. During and after the implementation of the first round, third parties will perform an
evaluation of the project. Before the beginning of the second round, project evaluation reports
will be evaluated by PEPCO and ADB to understand the lessons learnt from the first round and
make any necessary changes for the procurement and distribution mechanism in the second
round. Third party verification will need to be performed by independent organizations.

Appendix 3
Figure A3.5: CFL Distribution and IB Recovery Scheme
AFD = Agence Française de Développement, CDM = Clean Development Mechanism, CFL = Compact fluorescent
lamp, DISCOs = Distribution companies, ICB = International competitive bidding, PEPCO = Pakistan Electric Power
Company, PDD = Project Design Document, IB = Incandescent bulb.

Appendix 3
Table A3.5: Estimated CFL Distribution Cost and Resource Requirements

LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
Labor
Utility staff 0.18 0.19 0.12 0.06 0.23 0.25 0.12 0.03 0.17 1.35
Contracted staff 0.67 0.68 0.91 0.62 1.65 0.62 0.92 0.17 0.62 6.85
Drivers 0.06 0.04 0.04 0.06 0.08 0.06 0.07 0.02 0.06 0.47
vehicles
Mini Trucks 0.40 0.28 0.24 0.38 0.50 0.38 0.44 0.14 0.40 3.14
Motorbikes 0.31 0.21 0.10 0.09 0.38 0.14 0.21 0.04 0.28 1.75
(modified)
Maintenance 0.06 0.04 0.03 0.04 0.08 0.04 0.05 0.01 0.06 0.41
Fuel (POL) 0.57 0.39 0.24 0.29 0.70 0.35 0.47 0.11 0.54 3.67
CFL and IB 0.05 0.04 0.05 0.03 0.07 0.05 0.02 0.01 0.03 0.36
packaging
material
Voucher 0.01 0.01 0.01 0.01 0.02 0.01 0.01 0.00 0.01 0.09
printing
Contingencies 0.23 0.19 0.17 0.16 0.37 0.19 0.23 0.05 0.22 1.81
Total 2.55 2.06 1.91 1.73 4.06 2.08 2.53 0.58 2.38 19.89
Distribution 0.62 0.62 0.48 0.63 0.72 0.58 1.27 1.02 0.93
Cost ($/CFL)
CFL = Compact fluorescent lamp, FESCO = Faisalabad Electric Supply Company, GEPCO = Gujranwala Electric Power Company,
HESCO = Hyderabad Electric Supply Company, IESCO = Islamabad Electric Supply Company, KESC = Karachi Electric Supply
Corporation, LESCO = Lahore Electric Supply Company, MEPCO = Multan Electric Power Company, PESCO = Peshawar Electric
Supply Company, QESCO = Quetta Electric Supply Company.
F. COST ESTIMATE
385. The estimated costs of key investments and support components are estimated at
$85 million. Components of this cost are detailed in Table A3.6.

Appendix 3
Table A3.6: Cost Estimates

($ ’000)
Items Amount
A. Goods
CFL Procurement 56,000
Subtotal, Goods 56,000
B. Services
CFL Distribution by DISCOs 20,000
CFL communication campaign 2,500
Subtotal, services 22,500
C. Taxes and Duties 0
D. Contingencies 3,000
E. Financing charges during implementation 3,500
Total, Tranche-1 85,000
CFL = Compact fluorescent lamp, DISCOs = Distribution companies.
G. PROJECT FINANCING PLAN
386. The Tranche-1 investments will be financed from three funding sources, as detailed in
Table A3.7 below.
Table A3.7: Tentative Tranche-1 Financing Plan

($ ’000)
Source Total %
Asian Development Bank (OCR) 40,000 47.1%
Other Cofinanciers* 25,000 29.4%
GOP 20,000 23.5%
Total 85,000 100.0%
GOP = Government of Pakistan, OCR = Ordinary Capital Resources.
* Agence Française de Développement.
Source: Asian Development Bank PPTA consultants’ report.
H. IMPLEMENTATION ARRANGEMENTS
387. The Ministry of Water and Power will be the executing agency (EA), with PEPCO
providing procurement support for bulk purchase of CFLs and public awareness campaign, and
nine distribution utilities will be the implementing agencies (IAs) of the Tranche-1 project.
388. Project implementation consultants will be hired under the existing project management
units (PMU) in PEPCO and eight DISCOs for the ADB-assisted Power Distribution
Enhancement Multi-tranche Facility. An estimated ten person-months of an international
consultant, and 122 person-months of domestic consultants will be contracted for the entire

Appendix 3
Tranche-1 implementation period under that other project. Additionally, project monitoring and
evaluation (M&E) consultants will be recruited by the EEIP Program Management Office (PMO)
to lead in the monitoring, verification and evaluation of both project distribution rounds. The
Tranche-1 M&E services will be supported by a separate M&E budget under the support
component of EEIP. An estimated eight person-months of an international consultant and 118
person-months of domestic consultants will be required to provide M&E services for both
rounds. The only consulting services to be recruited specifically under Tranche-1 will be those
proposed to support the Clean Development Mechanism (CDM) registration process of this CFL
project. All international and domestic consultants will be recruited in accordance with ADB
Guidelines for the Hiring of Consultants (as amended, 2007).
389. Under the oversight provided by PMU established for the Tranche-1 project, Project
Implementation Cells (PICs) will be established at each DISCO to coordinate and manage their
respective project activities and to liaise with the project consultants, EA, and the EEIP PMU.
390. The EEIP PMO at the Planning Commission will oversee project execution and
coordinate with the project monitoring and evaluation consultants, who will be hired specifically
for this purpose. 58 The role of the monitoring and evaluation (M&E) consultants will commence
with the initiation of the CFL procurement activities and continue until the end of the project.
391. Both rounds of CFL procurement shall be carried out under international competitive
bidding (ICB) method by PEPCO, on behalf of the Ministry of Water and Power, in accordance
with ADB’s Procurement Guidelines. For purposes of procurement, shipment inspection and
distribution to the distribution utilities, a separate Procurement Committee (PC) shall be formed,
headed by PEPCO and with representatives from all DISCOs, Pakistan Standards and Quality
Control Authority (PSQCA), and EEIP M&E staff. Endorsement by the PC shall be required for
the design of bidding documents and specifications, award of supply contracts, pre and post-
shipment inspection and quality tests, and allocation of CFL consignments to various DISCOs’
regional distribution points. Spot checks on the CFLs delivered at the port shall be conducted
by an independent accredited agency, such as the Pakistan Council for Scientific and Industrial
Research (PCSIR), contracted specifically for this purpose under predetermined sampling
protocols.
392. The utility-based PICs will be responsible for the design and implementation of their
respective CFL distribution strategies, mechanisms, and facilities, including measures for the
recovery of IBs, vouchers, and their accounting and transportation to regional collection centers.
The numbers of vouchers and IBs collected by the utilities shall be verified by PEPCO and
project M&E staff before their destruction and disposal at predetermined locations. The printing,
distribution, and redemption of vouchers shall be handled in a uniform manner by all utilities, as
agreed upon at the project outset between PEPCO, DISCOs, KESC and the EEIP PMO.
Voucher redemption analysis shall be carried out by each utility under supervision of PEPCO,
project consultants, and M&E staff and consolidated into a central database accessible to all
concerned entities.
393. Also, PEPCO shall separately contract with one or more prequalified communications
firms for the development and implementation of the Tranche-1 communication (national tri-
media publicity and social mobilization) campaigns. These contracts will be executed
separately for each round of CFL distribution, and will commence in advance of the distribution
58
LESCO, GEPCO, FESCO, HESCO, PESCO, MEPCO, QESCO, IESCO, and KESC. The project will not include
TESCO, the Northern Areas, or Azad Jammu and Kashmir (AJK).

Appendix 3
and continue until its completion by each DISCO. The effectiveness of the communications
strategy shall be gauged during and after each round by the project M&E personnel via
consumer surveys.
394. Because of the significant macroeconomic impacts anticipated from the CFL project, it is
proposed that all Tranche-1 recruitments and procurements flow down from GOP to their
respective implementing agencies on a grant basis.
I. ASSESSMENT OF CLEAN DEVELOPMENT MECHANISM POTENTIAL
395. Clean development mechanism (CDM) projects are expected to establish a baseline
scenario, which would have prevailed had the CDM project not been undertaken. To do this,
the CDM Executive Board (EB) has approved a range of approved methodologies from which
the project participants should select the most appropriate one for the scope of the proposed
project. In case there is no approved methodology that is directly applicable to the project, the
project participants may propose either a new methodology or request the revision of an existing
approved methodology, which with some modifications could be applied to the scope of the
proposed project. The proposed Tranche-1 CFL project falls under the sectoral scope ‘3:
Energy Demand’ as defined under the CDM Modalities and Procedures. There is one approved
large-scale CDM methodology [AM0046 Distribution of efficient light bulbs to households
(Version 2)] and two small-scale CDM methodologies [AMS-II.C Demand-side energy efficiency
activities for specific technologies (Version 11) and AMS-II.J Demand-side activities for efficient
lighting technologies (Version 3)]. Due to complexity of monitoring requirements and limitation
of applicability conditions, the small-scale methodology AMS-II.J is considered as a best
suitable approved methodology for this project.
396. Applicability conditions and other requirements of the AMS-II.J are checked against the
proposed mechanism of CFL distribution. The AMS-II.J requires verification of recovered IB
wattages, and documentation of the recovery/destruction process and post-project CFL
installations, but does not require verification of actual CFL usage hours. Major CDM
requirements of AMS-II.J are as follows:
(i) The CFL distribution shall be limited to residential customers;
(ii) CFLs utilized under the project shall, in addition to the standard lamp
specifications, be marked for clear unique identification for the project;
(iii) IBs shall be returned, stored and destroyed;
(iv) The project shall undertake at least one of the following measures;
(a) Directly installing CFLs;
(b) Charging at least a minimal price for a CFL; and
(c) Restricting the number of CFLs per household distributed to six.
(v) Whether the CFLs are directly installed or not directly installed, the PDD shall
define the actions to be taken to encourage CFLs being installed in locations
within the residences where the utilization hours are relatively high, for example
common areas. For CFLs not directly installed, these actions can include
educating the recipients of the CFLs.
397. A CDM project is expected to result in real measurable emission reductions that are
additional to any that may occur in its absence. In other words, the project participants have to
demonstrate that a baseline scenario would have occurred in the absence of the project with
CDM benefits. In general, this is done by applying a tool for demonstration and assessment of

Appendix 3
additionality that has been approved by the CDM Executive Board (EB). The tool provides two
alternate approaches; investment analysis and barrier analysis.
398. For this program, additionality can be demonstrated by means of barrier analysis. For
example, while the project establishes a new business model of large-scale adoption of CFLs,
PEPCO has no prior experience in massive CFL distribution and lacks in human capacities of
doing such DSM project. The project of this scale is first of its kind anywhere in the world.
PEPCO inevitably perceive a greater risk in pioneering a business model which has
performance uncertainty. This ‘lack of prevailing practice’ barrier makes the project unattractive
to implement in the absence of the CDM. In terms of technology, the project represents the first
case of employing the 10,000-hr CFLs, while there are no 10,000-hr CFLs currently available in
the Pakistani market.
399. There is no mandatory law and regulation which prohibits the production and use of IBs
in Pakistan. Currently, the World Bank is also planning to implement a 3 million CFL distribution
project in four DISCOs. However, unlike the proposed project, the proposed WB project will
distribute CFLs without the recovery of IBs, and with fees charged to customers to recover CFL
costs. Since the WB project is still at a planning stage and is expected to commence
distribution in 2011, it does not need to be considered for the additionality argument of this
project.
400. The project participants are expected to have considered CDM seriously while taking the
investment decisions on the project. This must be demonstrated with documentary evidence.
Projects with starting dates after 02 August 2008 must inform the Designated National Authority
(DNA) and/or UNFCCC Secretariat within six months of the project start date, with precise
geographical location of the project. For project activities that started before 02 August 2008,
the project documentation must indicate awareness of the CDM prior to the project activity start
date, and must show that the anticipated benefits of CDM were a decisive factor in the decision
to proceed with the project. Evidence to support this would include, inter alia, minutes and/or
notes related to the consideration of the decision by the Board of Directors, or equivalent, of the
project participant, to undertake the project as a CDM project activity.
401. Under recently-elaborated rules, in case the starting date is prior to beginning of
validation of the project, 59 the project participants have to provide documentary evidence to
show that they were aware of CDM and seriously considered CDM registration necessary for
implementing the project. The starting date of the Tranche-1 project will be 3 March 2010,
which the contract will be awarded according to the proposed schedule.
402. Based on the application of the above mentioned methodology, the Tranche-1 project is
likely to result in emission reductions of approximately 5,370,000 tCO2e for the whole crediting
period. The project would generate approx. 1,260,000 tCO2 up to 31 December 2012.
403. CDM is a performance-based mechanism, which means that Certified Emission
Reductions (CERs) will only be issued which are properly monitored, verified and certified by an
independent agency called designated operational entity (DOE). In this sense, the CDM can
provide a good incentive to PEPCO/DISCOs for keeping track of CFL distribution, IB collection
59
As per the CDM Glossary of Terms, ‘starting date’ is defined as the earliest date at which either the
implementation or construction or real action of a project activity begins. It is the date on which the project
participant has committed to expenditures related to the implementation or related to the construction of the
project activity. This, for example, can be the date on which contracts have been signed for equipment or
construction/operation services required for the project activity [Paragraph 67, EB 41 report].

Appendix 3
and scrapping and also for keeping proper records, ensuring that no theft or leakage occurs in
the course of CFL distribution. The project will have to establish an operation and monitoring
plan, as required by the approved methodology applied. This operation and monitoring plan will
be defined in the project design document (PDD), which will need to be validated by the DOE.
404. The Program of Activity (PoA) will be coordinated and managed by PEPCO. Nine or
more small-scale CDM program activities (SSC-CPAs) will be implemented in geographically
distinct areas across Pakistan by different distribution utilities. The total number of CPAs will be
optimally determined in line with the specified ceiling of 60GWh/year electricity savings eligible
for CERs in each PoA, in order to maximize potential CDM revenues. PEPCO as the
coordinating/managing entity will be in charge of the overall planning and management of the
project, including monitoring. CFL distribution will be a joint exercise with PEPCO, DISCOs,
and possibly other downstream distributors. A CDM project management unit (CDM-PMU) will
be created under a chairperson from PEPCO and representatives from DISCOs. Complete
conformance to PDDs’ monitoring plan will be maintained and monitored by the CDM-PMU.
PEPCO will also ensure establishment of all procedures, databases, and infrastructure for the
smooth rollout of the CFL distribution in exchange of eligible IBs. PEPCO will also ensure high
conformance to all procedures for monitoring, to ensure the integrity of data and quality of
verification reports. Furthermore, PEPCO will provide support during the entire program by way
of consumer database sharing, sample group formation of ex-post survey, and other means.
405. The management systems and procedures to be implemented by PEPCO upon project
implementation will be done in order to ensure consistent project procedures as well as
monitoring, processing, and reporting of data required for the calculation of emission reductions
(ERs). In addition to the monitoring plan a project database will be established. All
datacollected shall be fed into the database. All required calculations will be performed within
the project database. PEPCO will organize all requirements and supervise all involved bodies.
PEPCO shall determine the start date as well as the end date of each monitoring interval. The
power rating of the replaced IBs, derived from the lamp marking, has to be recorded.
406. To ensure reliable and transparent data collection, PEPCO shall prepare a Project
Implementation Handbook before the start of the distribution, including detailed procedures,
instructions, and data forms that are to be used to document all procedures undertaken and
required for project implementation and data collection and protocols which are to be applied to
ensure a high level of quality assurance.
407. CDM development has transaction costs at various stages, starting with PDD
preparation which requires consultant time. In some countries, the DNA charges fees for
according host country approval. In Pakistan, the fees are zero. For validation of the project
the third-party designated operational entity (DOE) charges fees, which vary according to the
complexities in the project. The Tranche-1 project will require about $300,000 to 600,000 for
validation. Depending on quantum of CERs generated by a CDM project annually, registration
fees have to be paid to the UNFCCC Secretariat. Based on the CER potential of the Tranche-1
project, a registration fee of $2,500 is expected to be levied.
408. Once implemented, the project participants would have to monitor the parameters as
required by the CDM methodology that is being utilized. The monitoring cost will depend on the
required level of instrumentation and the level of skill of the people undertaking the monitoring.
The Tranche-1 project would internalize the cost of monitoring or hiring an independent agency
for monitoring the project. The project operation and the monitoring report prepared by the
project entity will be verified by either the same DOE who validated the project (for small-scale
CDM projects) or by another DOE (for normal-scale CDM project) before being certified. The
DOE will charge a fee for each verification.

Appendix 3
Table A3.8: Schedule of Estimated Costs for CDM Process

Budgetary Cost Assumptions
PDD Preparation for PoA – $400,000-500.000 Including PDD preparation, consultancy
PDD, standard CPA-PDD and services during CDM process, CDM
approximately 38 CPA-PDDs training, support of CDM database
construction, etc.
Host Country Approval Zero -
Validation $300,000-600,000 -
Registration $2,500 Based on 20,000 tCO2
Monitoring Internalized -
Verification and Certification $400,000-800,000 $50,000 to 100,000 per year x 8 years
Share of Proceeds (SOP) – $1,070,000 Based on 5,350,000 tCO2
Administration
SOP – Adaptation 2% of issued CERs
Total Approx. $2-3 million
409. The Implementing Agency (or the project participant) will generally enter into a CER
Purchase Agreement (CERPA) with a buyer at an appropriate stage of processing. The price of
CERs contracted will normally be stated in the CERPA or could be set by spot market CER
prices. CER prices vary depending market conditions, but for example at $10 per CER, the
Tranche-1 has potential to generate approximately $12.6 million up to 2012. In addition, the
project could generate approximately $20.5 million after 2012 and through 2018.
410. The Ministry of Environment, Government of Pakistan, is the Designated National
Authority (DNA) for CDM in Pakistan. The CDM Secretariat is headed by the Director General
(Environment), Ministry of Environment, who is also the National Focal Person for DNA-
Pakistan. A CDM Cell is established and attached to the Secretariat. The Secretariat acts as
the National Focal Point for the CDM project and issues host country approval to CDM projects
on behalf of the Government of Pakistan.
411. In order to obtain host country approval, completed PDDs must be submitted to the
Director General (Environment) with a detailed Public Consultation Report and an
Environmental Impact Assessment (EIA) Report or, if not required, a Letter of no-
objection/endorsement from concerned authorities.
412. Despite the huge potential, Pakistan is yet to take full benefit from the CDM. Even
though the first CDM project from Pakistan was registered with the CDM Executive Board in
November 2006, the second one made it after gap of more than two years in January 2009 only.
There are about ten projects under validation now.
J. MONITORING AND EVALUATION
413. Impact Evaluation. Two impact evaluation exercises are proposed in the context of
EEIP. The first exercise is the evaluation of the impact of the Tranche-1 project in terms of
households’ energy consumption and bills. Instead of the usual procedure of comparing the
situation before and after the project, a counterfactual (control group), consisting of a relatively

Appendix 3
small number of households that would receive the benefits of the project within the time frame
of the project but four months later than the rest of the domestic sector, would be employed.
414. Given that the impact of the project may not be homogenous across different types of
households, the design must be able to measure the impact of the project according to pre-
intervention energy consumption levels (which is itself a proxy variable for household income).
415. The second exercise is independent of the first one. It aims to identify the optimal
implementation policy for CFLs projects in terms of:
(i) The minimum amount of subsidy, by type of household, that would achieve
universal take-up rates of CFLs;
(ii) The most effective distribution mechanism to achieve universal CFL take-up
(iii) Take-up rates by type of household for a project that distributes the CFLs;
(iv) The role of the communication campaign on increasing take-up of CFLs; and
(v) The impact on households’ consumption and energy bills.
416. This second exercise is expected to strengthen the subsidy scheme, distribution
mechanism and communication strategy used in the Tranche-1 project.
417. Both impact evaluation exercises will be conducted at the end of each distribution round.
The evaluation results will provide useful (re)design bases for the succeeding round and for
replication in other developing member country markets.
418. Project Monitoring – will be provided by the Tranche-1 PMU through its M&E team. The
following M&E activities are envisioned for the project:
(i) Inspection and verification of CFL shipments received from contracted suppliers,
including compliance with third-party testing and certification requirements for
release of payments;
(ii) Oversight of allotment of CFL consignments to the DISCOs and receipt at their
respective regional distribution points, based on predetermined allocations and
delivery schedules agreed upon;
(iii) Evaluation of each DISCO accounting, delivery, resource allocation, and internal
auditing arrangements for CFL delivery, IB recovery, and voucher handling
requirements;
(iv) Spot-checking of voucher distribution, CFL delivery, and IB recovery at the
household level based on representative sampling of urban, rural, bulk, income
and remote customer stratification;
(v) Undertaking post-delivery surveys of sample representative households to gauge

actual CFL penetration and use, customer satisfaction, and feedback on delivery
mechanism and communications campaign;
(vi) Assistance to the EA and IAs in designing and conducting voucher redemption
analysis at the end of each CFL distribution round to assess project impact,
customer take-up profiles, and associate load and peak electricity savings
attributable to the project;
(vii) Verification of numbers and types of IBs recovered and oversee their destruction
and disposal by PEPCO/DISCOs;

Appendix 3
(viii) Ensure that the project communication campaign component is effective in

delivering its intended message to all target populations by conducting limited
consumer awareness assessment surveys and compiling performance indicators
(television and radio air time, press advertisements, packaging and marketing
materials developed, etc.);
(ix) Prepare, in collaboration with the IAs, an overarching and nine separate DISCOs’
detailed project implementation schedules and work plans (using MS Project or
similar software) identifying timelines, milestones, resources, and dependencies
for each DISCOs implementation of each round of CFL, voucher, and IB
transactions and associated tasks that will serve as the reference benchmark for
progress monitoring; and
(x) Prepare monthly M&E reports to communicate project progress, issues,
milestone deviations, and performance appraisal to the EEIP PMO M&E cell and
other project stakeholders (Planning Commission, ADB, AFD, EA, etc.).
K. Economic Analysis
419. The Tranche-1 project will distribute 30 million CFLs throughout the country. By
procuring the CFLs at wholesale price, the price per lamp will reduce by almost 50% of the retail
price. A survey conducted during the project design phase determined the wattage of
incandescent bulbs (IBs) in use. Around 62% of the electrified households use 100W and the
rest use either 60W or 40W IBs. Single wattage CFLs will be procured (20W-23W), equivalent
to at least 100W IBs. Each replacement results in a saving of 17 to 80 watts, depending on the
IB wattage replaced. With 3.52 hours of use per day, each replacement saves about 77
kilowatt-hours (kWh) annually, contributing to total annual energy savings of 2,132 GWh per
year. This will result in load and generation capacity savings of 1,094 MW and 1,602 MW,
respectively, worked at a lamp use coincidence factor of 66%. The EIRR of this subproject was
calculated at 145%, reflective of a relatively short period in which investment in a CFL can be
recovered.
L. Financial Analysis
420. The financial analysis of the proposed Tranche-1 (Appendix 10) has been carried out in
accordance with ADB’s Financial Management and Analysis of Projects.60 Financial viability
was gauged by comparing the incremental costs and benefits of with-project and without-project
investment scenarios over FY2009-FY2024. All financial costs and benefits have been
expressed at a constant 2009 price level. Cost streams used for the purposes of financial
internal rate of return (FIRR) determination, i.e., capital investment, and operations and
maintenance, reflect costs of delivering the estimated financial benefits. The current tariff,
determined by NEPRA and notified by the Government for each of the DISCOs, in February
2009, was used to calculate the savings from less electricity being sold at below cost to
subsidized retail customers and benefits gained by selling a part of the energy saved to retail
customers above cost. The combined preliminary FIRR estimate of 110% compares favorably
with the estimated weighted average cost of capital (WACC) of 11.8%, indicating financial
viability of the Tranche-1 project.
60
ADB. 2005. Financial Management and Analysis of Projects. Manila.

Appendix 3
M. Environmental Assessment
421. An Environmental Assessment and Review Framework (EARF) has been agreed by the
Government and ADB. The framework complies with the Pakistan Environmental Protection Act
1997 and associated rules, regulations and guidelines, and is in conformity with ADB’s
Environment Policy (2002) and Environmental Assessment Guidelines (2003). The Tranche-1
project has been determined to fall under Category B and an initial environmental examination
(IEE) report has been prepared. No significant adverse impact of the national CFL project has
been identified that warrants environmental monitoring. No activities in the CFL project are
planned in an environmentally sensitive or protected area.
N. Social Safeguards
422. The national CFL project will not entail land acquisition nor economic or physical
resettlement. Therefore, ADB’s Involuntary Resettlement policy will not be triggered by the First
Tranche. The EARF provides the assessment framework in case the ADB’s Resettlement
Policy is triggered. No component of the Tranche-1 project is planned for the tribal areas of the
northwest frontier, which is the only area with formally identified indigenous people.

Appendix 3
Appendix 4
BIDDING DOCUMENT FOR SUPPLY OF COMPACT FLUORESCENT LAMPS (CFLs)
Islamic Republic of Pakistan:

Energy Efficiency Investment Program
(EEIP)
BIDDING DOCUMENT
for
Supply of Compact Fluorescent Lamps (CFLs)

Package 1
(Single-Stage: Two-Envelope Bidding Procedure)
Issued on: 15 September 2009
Invitation for Bids No.: ADB-PEPCO-EEIP-2009-01
ICB No.: ADB-PEPCO-EEIP-2009-01
Employer: Ministry of Water and Power
Country: Pakistan

Appendix 4
Preface
This Bidding Document for Procurement of Goods was prepared by the Pakistan Electric
Power Company (PEPCO) of Pakistan in coordination with the Asian Development Bank and is
based on the Standard Bidding Document for the Procurement of Goods issued by the Asian
Development Bank in October 2006.
This document reflects the structure and the provisions of the Master Procurement
Document for the Procurement of Goods, except where specific considerations within the Asian
Development Bank have required a change.

Appendix 4
Table of Contents
PART 1 – Bidding Procedures

Section I. Instructions to Bidders .........................................................................................329
Section II. Bid Data Sheet .....................................................................................................353
Section III. Evaluation and Qualification Criteria ..................................................................357
Section IV. Bidding Forms .....................................................................................................363
Section V. Eligible Countries ................................................................................................375
PART 2 – Supply Requirements

Section VI. Schedule of Supply ..............................................................................................377
PART 3 – Conditions of Contract and Contract Forms

Section VII. General Conditions of Contract ...........................................................................389
Section VIII. Special Conditions of Contract ............................................................................405
Section IX. Contract Forms.....................................................................................................409

Appendix 4
Section I. Instructions to Bidders
Table of Clauses
A. General ........................................................................................................ 331
1. Scope of Bid .....................................................................................................................331
2. Source of Funds ...............................................................................................................331
3. Corrupt Practices..............................................................................................................331
4. Eligible Bidders ...............................................................................................................332
5. Eligible Goods and Related Services ...............................................................................334
B. Contents of Bidding Document ................................................................ 334

6. Sections of the Bidding Document ..................................................................................334
7. Clarification of Bidding Document .................................................................................335
8. Amendment of Bidding Document ..................................................................................335
C. Preparation of Bids .................................................................................... 336

9. Cost of Bidding ................................................................................................................336
10. Language of Bid ...............................................................................................................336
11. Documents Comprising the Bid .......................................................................................336
12. Bid Submission Sheets and Price Schedules ...................................................................337
13. Alternative Bids ...............................................................................................................337
14. Bid Prices and Discounts .................................................................................................337
15. Currencies of Bid .............................................................................................................339
16. Documents Establishing the Eligibility of the Bidder .....................................................339
17. Documents Establishing the Eligibility of Goods and Related Services .........................340
18. Documents Establishing the Conformity of the Goods and Related Services to the
Bidding Document ...........................................................................................................340
19. Documents Establishing the Qualifications of the Bidder ...............................................340
20. Period of Validity of Bids ................................................................................................340
21. Bid Security .....................................................................................................................341
22. Format and Signing of Bid ...............................................................................................342

Appendix 4
D. Submission and Opening of Bids.............................................................. 342

23. Sealing and Marking of Bids ...........................................................................................342
24. Deadline for Submission of Bids .....................................................................................343
25. Late Bids ..........................................................................................................................343
26. Withdrawal, Substitution, and Modification of Bids ......................................................343
27. Bid Opening .....................................................................................................................344
E. Evaluation and Comparison of Bids ........................................................ 346

28. Confidentiality .................................................................................................................346
29. Clarification of Bids .........................................................................................................347
30. Responsiveness of Technical Proposal ............................................................................347
31. Nonconformi-ties, Errors, and Omissions .......................................................................347
32. Preliminary Examination of Bids....................................................................................348
33. Examination of Terms and Conditions; Technical Evaluation ........................................349
34. Conversion to Single Currency ........................................................................................349
35. Margin of Preference .......................................................................................................349
36. Evaluation of Bids............................................................................................................349
37. Comparison of Bids .........................................................................................................350
38. Postqualifi-cation of the Bidder .......................................................................................350
39. Purchaser’s Right to Accept Any Bid, and to Reject Any or All Bids ............................351
F. Award of Contract ..................................................................................... 351

40. Award Criteria .................................................................................................................351
41. Purchaser’s Right to Vary Quantities at Time of Award .................................................351
42. Notification of Award ......................................................................................................351
43. Signing of Contract ..........................................................................................................352
44. Performance Security .......................................................................................................352

Appendix 4
A. General
1. Scope of Bid 1.1 In support of the Invitation for Bids indicated in the Bid Data
Sheet (BDS), the Purchaser, as indicated in the BDS, issues this
Bidding Document for the supply of Goods and Related Services
incidental thereto as specified in Section VI (Schedule of Supply).
The name, identification, and number of lots of the International
Competitive Bidding (ICB) are provided in the BDS.
1.2 Throughout this Bidding Document :
(a) the term “in writing” means communicated in written form
with proof of receipt;
(b) if the context so requires, singular means plural and vice
versa; and
(c) “day” means calendar day.
2. Source of 2.1 The Borrower or Recipient (hereinafter called “Borrower”)
Funds indicated in the BDS has applied for or received financing
(hereinafter called “funds”) from the Asian Development Bank
(hereinafter called “the ADB”) toward the cost of the project
named in the BDS. The Borrower intends to apply a portion of
the funds to eligible payments under the contract for which this
Bidding Document is issued.
2.2 Payments by the ADB will be made only at the request of the
Borrower and upon approval by the ADB in accordance with the
terms and conditions of the financing agreement between the
Borrower and the ADB (hereinafter called the Loan Agreement),
and will be subject in all respects to the terms and conditions of
that Loan Agreement. No party other than the Borrower shall
derive any rights from the Loan Agreement or have any claim to
the funds.
3. Corrupt 3.1 ADB’s Anticorruption Policy requires borrowers (including
Practices beneficiaries of ADB-financed activity), as well as bidders,
suppliers, and contractors under ADB-financed contracts, observe
the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy, the
ADB:
(a) defines, for the purposes of this provision, the terms set forth
below as follows:
(i) “corrupt practice” means the offering, giving, receiving,
or soliciting, directly or indirectly, anything of value to
influence improperly the actions of another party;
(ii) “fraudulent practice” means any act or omission,
including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to

Appendix 4
obtain a financial or other benefit or to avoid an

obligation;
(iii) “coercive practice” means impairing or harming, or
threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence improperly
the actions of a party;
(iv) “collusive practice” means an arrangement between two
or more parties designed to achieve an improper
purpose, including influencing improperly the actions of
another party.
(b) will reject a proposal for award if it determines that the
bidder recommended for award has, directly or through an
agent, engaged in corrupt, fraudulent, collusive, or coercive
practices in competing for the Contract; and
(c) will sanction a party or its successor, including declaring
ineligible, either indefinitely or for a stated period of time, to
participate in ADB-financed activities if it at any time
determines that the firm has, directly or through an agent,
engaged in corrupt, fraudulent, collusive, or coercive
practices in competing for, or in executing, an ADB-financed
contract.
3.2 Furthermore, Bidders shall be aware of the provision stated in
Sub-Clause 3.2 and Sub-Clause 35.1 (c) of the General
Conditions of Contract in Section VII.
4. Eligible 4.1 A Bidder may be a natural person, private entity, government-
Bidders owned entity (subject to ITB Sub-Clause 4.5) or any combination
of them with a formal intent to enter into an agreement or under
an existing agreement in the form of a Joint Venture (JV). In the
case of a JV:
(a) all parties to the JV shall be jointly and severally liable; and
(b) a JV shall nominate a Representative who shall have the
authority to conduct all businesses for and on behalf of any
and all the parties of the JV during the bidding process and,
in the event the JV is awarded the Contract, during contract
execution.
4.2 A Bidder, and all parties constituting the Bidder, shall have the
nationality of an eligible country, in accordance with Section V
(Eligible Countries). A Bidder shall be deemed to have the
nationality of a country if the Bidder is a citizen or is constituted,
or incorporated, and operates in conformity with the provisions of
the laws of that country. This criterion shall also apply to the
determination of the nationality of proposed subcontractors or
suppliers for any part of the Contract including related services.

Appendix 4
4.3 ADB considers a conflict of interest to be a situation in which a

party has interests that could improperly influence that party’s
performance of official duties or responsibilities, contractual
obligations, or compliance with applicable laws and regulations,
and that such conflict of interest may contribute to or constitute a
prohibited practice under ADB's Anticorruption Policy. In
pursuance of ADB's Anticorruption Policy’s requirement that
Borrowers (including beneficiaries of Bank-financed activity), as
well as bidders, suppliers, and contractors under Bank-financed
contracts, observe the highest standard of ethics. ADB will take
appropriate actions, which include not financing of the contract, if
it determines that a conflict of interest has flawed the integrity of
any procurement process. Consequently all Bidders found to have
a conflict of interest shall be disqualified. A Bidder may be
considered to be in a conflict of interest with one or more parties
in this bidding process if, including but not limited to:
(a) have controlling shareholders in common; or
(b) receive or have received any direct or indirect subsidy from
any of them; or
(c) have the same legal representative for purposes of this Bid;
or
(d) have a relationship with each other, directly or through
common third parties, that puts them in a position to have
access to information about or influence on the Bid of
another Bidder, or influence the decisions of the Purchaser
regarding this bidding process; or
(e) a Bidder participates in more than one bid in this bidding
process. Participation by a Bidder in more than one Bid will
result in the disqualification of all Bids in which it is
involved. However, this does not limit the inclusion of the
same subcontractor, not otherwise participating as a Bidder,
in more than one bid; or
(f) a Bidder or any of its affiliates participated as a consultant in
the preparation of the design or technical specifications of the
goods and services that are the subject of the bid.
4.4 A firm that is under a declaration of ineligibility by the ADB in
accordance with ITB Clause 3, at the date of the deadline for bid
submission or thereafter, shall be disqualified.
4.5 Government-owned enterprises in the Purchaser’s country shall
be eligible only if they can establish that they are legally and
financially autonomous and operate under commercial law, and
that they are not a dependent agency of the Purchaser.

Appendix 4
4.6 Bidders shall provide such evidence of their continued eligibility

satisfactory to the Purchaser, as the Purchaser shall reasonably
request.
4.7 Firms shall be excluded if by an act of compliance with a decision
of the United Nations Security Council taken under Chapter VII
of the Charter of the United Nations, the Borrower’s country
prohibits any import of goods or contracting of works or services
from that country or any payments to persons or entities in that
country.
5. Eligible Goods 5.1 All goods and related services to be supplied under the Contract
and Related and financed by the ADB, shall have as their country of origin an
Services eligible country of the ADB (see Section V (Eligible Countries)).
5.2 For purposes of this Clause, the term “goods” includes
commodities, raw material, machinery, equipment, and industrial
plants; and “related services” includes services such as insurance,
installation, training, and initial maintenance.
5.3 The term “country of origin” means the country where the goods
have been mined, grown, cultivated, produced, manufactured, or
processed; or through manufacture, processing, or assembly,
another commercially recognized article results that differs
substantially in its basic characteristics from its imported
components.
5.4 The nationality of the firm that produces, assembles, distributes,
or sells the goods shall not determine their origin.
5.5 If so required in the BDS, a Bidder that does not manufacture or
produce the Goods it offers to supply shall submit the
Manufacturer’s Authorization using the form included in Section
IV (Bidding Forms) to demonstrate that it has been duly
authorized by the manufacturer or producer of the Goods to
supply these Goods in the Purchaser’s country.
B. Contents of Bidding Document

6. Sections of the 6.1 The Bidding Document consist of Parts 1, 2, and 3, which include
Bidding all the Sections indicated below, and should be read in
Document conjunction with any Addenda issued in accordance with ITB
Clause 8.
PART 1 Bidding Procedures
• Section I. Instructions to Bidders (ITB)
• Section II. Bid Data Sheet (BDS)
• Section III. Evaluation and Qualification Criteria
• Section IV. Bidding Forms

Appendix 4
• Section V. Eligible Countries

PART 2 Supply Requirements
• Section VI. Schedule of Supply
PART 3 Contract
• Section VII. General Conditions of Contract (GCC)
• Section VIII. Special Conditions of Contract (SCC)
• Section IX. Contract Forms
6.2 The Invitation for Bids issued by the Purchaser is not part of the
Bidding Document.
6.3 The Purchaser is not responsible for the completeness of the
Bidding Document and its addenda, if they were not obtained
directly from the Purchaser.
6.4 The Bidder is expected to examine all instructions, forms, terms,
and specifications in the Bidding Document. Failure to furnish all
information or documentation required by the Bidding Document,
may result in the rejection of the Bid.
7. Clarification of 7.1 A prospective Bidder requiring any clarification of the Bidding
Bidding Document shall contact the Purchaser in writing at the
Document Purchaser’s address indicated in the BDS. The Purchaser will
respond in writing to any request for clarification, provided that
such request is received no later than twenty-one (21) days prior
to the deadline for submission of Bids. The Purchaser shall
forward copies of its response to all Bidders who have acquired
the Bidding Document directly from it, including a description of
the inquiry but without identifying its source. Should the
Purchaser deem it necessary to amend the Bidding Document as a
result of a clarification, it shall do so following the procedure
under ITB Clause 8 and Sub-Clause 24.2.
8. Amendment of 8.1 At any time prior to the deadline for submission of the Bids, the
Bidding Purchaser may amend the Bidding Document by issuing addenda.
Document
8.2 Any addendum issued shall be part of the Bidding Document and
shall be communicated in writing to all who have obtained the
Bidding Document directly from the Purchaser.
8.3 To give prospective Bidders reasonable time in which to take an
addendum into account in preparing their Bids, the Purchaser
may, at its discretion, extend the deadline for the submission of
the Bids, pursuant to ITB Sub-Clause 24.2

Appendix 4
C. Preparation of Bids
9. Cost of Bidding 9.1 The Bidder shall bear all costs associated with the preparation and
submission of its Bid, and the Purchaser shall not be responsible
or liable for those costs, regardless of the conduct or outcome of
the bidding process.
10. Language of 10.1 The Bid, as well as all correspondence and documents relating to
Bid the Bid exchanged by the Bidder and the Purchaser, shall be
written in the language specified in the BDS. Supporting
documents and printed literature that are part of the Bid may be in
another language provided they are accompanied by an accurate
translation of the relevant passages in the language specified in
the BDS, in which case, for purposes of interpretation of the Bid,
such translation shall govern.
11. Documents 11.1 The Bid shall comprise two envelopes submitted simultaneously,
Comprising the one containing the Technical Proposal and the other the Price
Bid Proposal, enclosed together in an outer single envelope.
11.2 Initially, only the Technical Proposals are opened at the address,
date and time specified in ITB Sub-Clause 27.1. The Price
Proposals remain sealed and are held in custody by the Purchaser.
The Technical Proposals are evaluated by the Purchaser. No
amendments or changes to the Technical Proposals are permitted.
Bids with Technical Proposals which do not conform to the
specified requirements will be rejected as deficient Bids.
11.3 Price Proposals of technically compliant Bids are opened in
public at a date and time advised by the Purchaser. The Price
Proposals are evaluated and the Contract is awarded to the Bidder
whose Bid has been determined to be the lowest evaluated
substantially responsive Bid.
11.4 The Technical Proposal shall contain the following :
(a) Technical Proposal Submission Sheet;
(b) Bid Security, in accordance with ITB Clause 21;
(c) alternative Technical Proposal, if permissible, in accordance
with ITB Clause 13;
(d) written confirmation authorizing the signatory of the Bid to
commit the Bidder, in accordance with ITB Clause 22;
(e) documentary evidence in accordance with ITB Clause 16
establishing the Bidder’s eligibility to bid;
(f) documentary evidence in accordance with ITB Clause 17,
that the Goods and Related Services to be supplied by the
Bidder are of eligible origin;

Appendix 4
(g) documentary evidence in accordance with ITB Clauses 18

and 30, that the Goods and Related Services conform to the
Bidding Document;
(h) documentary evidence in accordance with ITB Clause 19
establishing the Bidder’s qualifications to perform the
contract if its Bid is accepted; and
(i) any other document required in the BDS.
11.5 The Price Proposal shall contain the following :
(a) Price Proposal Submission Sheet and the applicable Price
Schedules, in accordance with ITB Clauses 12, 14, and 15;
(b) alternative Price Proposal corresponding to the alternative
Technical Proposal, if permissible, in accordance with ITB
Clause 13; and
(c) any other document required in the BDS.
12. Bid Submission 12.1 The Bidder shall submit the Technical Proposal and the Price
Sheets and Proposal using the appropriate Submission Sheets furnished in
Price Schedules Section IV (Bidding Forms). These forms must be completed
without any alterations to their format, and no substitutes shall be
accepted. All blank spaces shall be filled in with the information
requested.
12.2 The Bidder shall submit, as part of the Price Proposal, the Price
Schedules for Goods and Related Services, according to their
origin as appropriate, using the forms furnished in Section IV
(Bidding Forms).
13. Alternative 13.1 Unless otherwise indicated in the BDS, alternative bids shall not
Bids be considered.
14. Bid Prices and 14.1 The prices and discounts quoted by the Bidder in the Price
Discounts Proposal Submission Sheet and in the Price Schedules shall
conform to the requirements specified below.
14.2 All items in the Schedule of Supply must be listed and priced
separately in the Price Schedules. If a Price Schedule shows
items listed but not priced, their prices shall be assumed to be
included in the prices of other items. Items not listed in the Price
Schedule shall be assumed not to be included in the Bid, and
provided that the Bid is substantially responsive, the
corresponding adjustment shall be applied in accordance with ITB
Sub-Clause 31.3
14.3 The price to be quoted in the Price Proposal Submission Sheet
excluding any discounts offered.

Appendix 4
14.4 The Bidder shall quote any unconditional discounts and the
methodology for their application in the Price Proposal
Submission Sheet.
14.5 The terms EXW, CIF, CIP, and other similar terms shall be
governed by the rules prescribed in the current edition of
Incoterms, published by The International Chamber of
Commerce, at the date of the Invitation for Bids or as specified in
the BDS.
14.6 Prices proposed in the Price Schedule Forms for Goods and
Related Services, shall be disaggregated, when appropriate, as
indicated in this sub-clause. This disaggregation shall be solely
for the purpose of facilitating the comparison of Bids by the
Purchaser. This shall not in any way limit the Purchaser’s right to
contract on any of the terms offered:
(a) For Goods offered from within the Purchaser’s country:
(i) the price of the goods quoted EXW (ex works, ex
factory, ex warehouse, ex showroom, or off-the-shelf,
as applicable), including all customs duties and sales
and other taxes already paid or payable on the
components and raw material used in the manufacture
or assembly of goods quoted ex works or ex factory, or
on the previously imported goods of foreign origin
quoted ex warehouse, ex showroom, or off-the-shelf;
(ii) sales tax and all other taxes applicable in the
Purchaser’s country and payable on the Goods if the
Contract is awarded to the Bidder; and
(iii) the total price for the item.
(b) For Goods offered from outside the Purchaser’s country:
(i) the price of the goods quoted CIF (named port of
destination), or CIP (border point), or CIP (named place
of destination), in the Purchaser’s country, as specified
in the BDS;
(ii) the price of the goods quoted FOB port of shipment (or
FCA, as the case may be), if specified in the BDS.
(iii) the total price for the item.
(c) For Related Services:
(i) the local currency cost component of each item
comprising the Related Services; and
(ii) the foreign currency cost component of each item
comprising the Related Services,

Appendix 4
(iii) inclusive of all custom duties, sales and other similar

taxes applicable in the Purchaser’s country, payable on
the Related Services, if the Contract is awarded to the
Bidder.
14.7 Prices quoted by the Bidder shall be fixed during the Bidder’s
performance of the Contract and not subject to variation on any
account, unless otherwise specified in the BDS. A Bid submitted
with an adjustable price quotation shall be treated as non
responsive and shall be rejected, pursuant to ITB Clause 30.
However, if in accordance with the BDS, prices quoted by the
Bidder shall be subject to adjustment during the performance of
the Contract, a Bid submitted with a fixed price quotation shall
not be rejected, but the price adjustment shall be treated as zero.
14.8 If so indicated in ITB Sub-Clause 1.1, Bids are being invited for
individual contracts (lots) or for any combination of contracts
(packages), Bidders wishing to offer any price reduction for the
award of more than one Contract shall specify in their Price
Proposals the price reductions applicable to each package, or
alternatively, to individual Contracts within the package. Price
reductions or discounts shall be submitted in accordance with ITB
Sub-Clause 14.4, provided the Price Proposals for all lots are
submitted and opened at the same time.
15. Currencies of 15.1 Bid prices shall be quoted in the following currencies:
Bid (a) Bidders may express their bid price in any fully convertible
currency as further specified in the BDS. If a Bidder wishes
to be paid in a combination of amounts in different
currencies, it may quote its price accordingly but shall use no
more than three currencies in addition to the currency of the
Purchaser’s country.
(b) If some of the expenditures for the Related Services are to be
incurred in the borrowing country, such expenditures should
be expressed in the Bid and will be payable in the
Purchaser’s currency.
16. Documents 16.1 To establish their eligibility in accordance with ITB Clause 4,
Establishing Bidders shall:
the Eligibility (a) complete the eligibility declarations in the Bid Submission
of the Bidder Sheet, included in Section IV (Bidding Forms); and
(b) if the Bidder is an existing or intended JV in accordance with
ITB Sub-Clause 4.1, submit a copy of the JV Agreement, or a
letter of intent to enter into such an Agreement. The
respective document shall be signed by all legally authorized
signatories of all the parties to the existing or intended JV, as
appropriate.

Appendix 4
17. Documents 17.1 To establish the eligibility of the Goods and Related Services, in
Establishing accordance with ITB Clause 5, Bidders shall complete the country
the Eligibility of origin declarations in the Price Schedule Forms, included in
of Goods and Section IV (Bidding Forms).
Related
Services
18. Documents 18.1 To establish the conformity of the Goods and Related Services to
Establishing the Bidding Document, the Bidder shall furnish as part of its
the Conformity Technical Proposal the documentary evidence specified in Section
of the Goods VI (Schedule of Supply).
and Related 18.2 The documentary evidence may be in the form of literature,
Services to the drawings or data, and shall consist of a detailed description of the
Bidding essential technical and performance characteristics of the Goods
Document and Related Services, demonstrating substantial responsiveness of
the Goods and Related Services to those requirements, and if
applicable, a statement of deviations and exceptions to the
provisions of Section VI (Schedule of Supply).
18.3 Standards for workmanship, process, material, and equipment, as
well as references to brand names or catalogue numbers specified
by the Purchaser in the Schedule of Supply, are intended to be
descriptive only and not restrictive. The Bidder may offer other
standards of quality, brand names, and/or catalogue numbers,
provided that it demonstrates, to the Purchaser’s satisfaction, that
the substitutions ensure substantial equivalence or are superior to
those specified in the Schedule of Supply.
19. Documents 19.1 To establish its qualifications to perform the Contract, the Bidder
Establishing shall submit as part of its Technical Proposal the evidence
the indicated for each qualification criteria specified in Section III
Qualifications (Evaluation and Qualification Criteria).
of the Bidder
20. Period of 20.1 Bids shall remain valid for the period specified in the BDS after
Validity of Bids the bid submission deadline date prescribed by the Purchaser. A
Bid valid for a shorter period shall be rejected by the Purchaser as
non responsive.
20.2 In exceptional circumstances, prior to the expiration of the bid
validity period, the Purchaser may request Bidders to extend the
period of validity of their Bids. The request and the responses
shall be made in writing. If a Bid Security is requested in
accordance with ITB Clause 21, it shall also be extended for a
corresponding period. A Bidder may refuse the request without
forfeiting its Bid Security. A Bidder granting the request shall not
be required or permitted to modify its Bid.

Appendix 4
21. Bid Security 21.1 Unless otherwise specified in the BDS, the Bidder shall furnish as
part of its Technical Proposal, a Bid Security in original form and
in the amount and currency specified in the BDS.
21.2 The Bid Security shall be, at the Bidder’s option, in any of the
following forms:
(a) a bank guarantee;
(b) an irrevocable letter of credit; or
(c) a cashier’s or certified check;
all from a reputable bank from an eligible country. In case of a a
bank guarantee, the Bid Security shall be submitted using the Bid
Security Form included in Section IV (Bidding Forms) or another
form acceptable to the Purchaser. The form must include the
complete name of the Bidder. The Bid Security shall be valid for
twenty-eight days (28) beyond the end of the validity period of
the bid. This shall also apply if the period for bid validity is
extended.
21.3 If a bid Security is required in accordance with ITB Sub-Clause
21.1, any Bid not accompanied by a substantially responsive Bid
Security in accordance with ITB Sub-Clause 21.2, shall be
rejected by the Purchaser as non responsive.
21.4 The Bid Security of unsuccessful Bidders shall be returned as
promptly as possible upon the successful Bidder furnishing the
Performance Security pursuant to ITB Clause 44.
21.5 The Bid Security of the successful Bidder shall be returned as
promptly as possible once the successful Bidder has signed the
Contract and furnished the required Performance Security.
21.6 The Bid Security may be forfeited :
(a) if a Bidder withdraws its Bid during the period of bid validity
as specified in ITB Clause 20.1, except as provided in ITB
Sub-Clause 20.2; or
(b) if the successful Bidder fails to :
(i) sign the Contract in accordance with ITB Clause 43;
(ii) furnish a Performance Security in accordance with ITB
Clause 44; or
(iii) accept the correction of its Bid Price pursuant to ITB
Sub-Clause 31.5.

Appendix 4
21.7 The Bid Security of a JV must be in the name of the JV that

submits the bid. If the JV has not been legally constituted at the
time of bidding, the Bid Security shall be in the names of all
future partners as named in the letter of intent mentioned in ITB
Sub-Clause 16.1.
22. Format and 22.1 The Bidder shall prepare one original of the Technical Proposal
Signing of Bid and one original of the Price Proposal as described in ITB Clause
11 and clearly mark each “ORIGINAL - TECHNICAL
PROPOSAL” and “ORIGINAL - PRICE PROPOSAL”. In
addition, the Bidder shall submit four copies of the Technical
Proposal and the Price Proposal, in the number specified in the
BDS and clearly mark them “COPY NO… - TECHNICAL
PROPOSAL” and “COPY NO…. - PRICE PROPOSAL”. In the
event of any discrepancy between the original and the copies, the
original shall prevail.
22.2 The original and all copies of the Bid shall be typed or written in
indelible ink and shall be signed by a person duly authorized to
sign on behalf of the Bidder. This authorization shall consist of a
written confirmation as specified in the BDS and shall be attached
to the Bid. The name and position held by each person signing
the authorization must be typed or printed below the signature.
All pages of the Bid, except for un-amended printed literature,
shall be signed or initialled by the person signing the Bid.
2.1 Any interlineations, erasures, or overwriting shall be valid only if

they are signed or initialled by the person signing the Bid.
D. Submission and Opening of Bids

23. Sealing and 23.1 The Bidder shall enclose the original of the Technical Proposal,
Marking of the original of the Price Proposal, and each copy of the Technical
Bids Proposal and each copy of the Price Proposal, including
alternative bids, if permitted in accordance with ITB Clause 13, in
separate sealed envelopes, duly marking the envelopes as
“ORIGINAL - TECHNICAL PROPOSAL”, “ORIGINAL -
PRICE PROPOSAL” and “COPY NO… - TECHNICAL
PROPOSAL” and “COPY NO…. - PRICE PROPOSAL”, as
appropriate. These envelopes containing the original and the
copies shall then be enclosed in one single envelope.

Appendix 4
23.2 The inner and outer envelopes shall:

(a) bear the name and address of the Bidder;
(b) be addressed to the Purchaser in accordance with ITB Sub-
Clause 24.1; and
(c) bear the specific identification of this bidding process
indicated in the BDS.
23.3 The outer envelopes and the inner envelopes containing the
Technical Proposals shall bear a warning not to open before the
time and date for the opening of Technical Proposals, in
accordance with ITB Sub-Clause 27.1.
23.4 The inner envelopes containing the Price Proposals shall bear a
warning not to open until advised by the Purchaser in accordance
with ITB Sub-Clause 27.2.
23.5 If all envelopes are not sealed and marked as required, the
Purchaser will assume no responsibility for the misplacement or
premature opening of the bid.
23.6 Alternative Bids, if permissible in accordance with ITB Clause
13, shall be prepared, sealed, marked, and delivered in
accordance with the provisions of ITB Clauses 22 and 23, with
the inner envelopes marked in addition “ALTERNATIVE NO….”
as appropriate
24. Deadline for 24.1 Bids must be received by the Purchaser at the address and no later
Submission of than the date and time indicated in the BDS.
Bids 2.2 The Purchaser may, at its discretion, extend the deadline for the
submission of Bids by amending the Bidding Document in
accordance with ITB Clause 8, in which case all rights and
obligations of the Purchaser and Bidders previously subject to the
deadline shall thereafter be subject to the deadline as extended.
25. Late Bids 25.1 The Purchaser shall not consider any Bid that arrives after the
deadline for submission of Bids, in accordance with ITB Clause
24. Any Bid received by the Purchaser after the deadline for
submission of Bids shall be declared late, rejected, and returned
unopened to the Bidder.
26. Withdrawal, 26.1 A Bidder may withdraw, substitute, or modify its Bid after it has
Substitution, been submitted by sending a written Notice, duly signed by an
and authorized representative, and shall include a copy of the
Modification of authorization in accordance with ITB Sub-Clause 22.2 (except
Bids that withdrawal notices do not require copies). The corresponding
substitution or modification of the bid must accompany the
respective written notice. All Notices must be:

Appendix 4
(a) submitted in accordance with ITB Clauses 22 and 23 (except

that Withdrawal Notices do not require copies), and in
addition, the respective inner and outer envelopes shall be
clearly marked “Withdrawal,” “Substitution,”
“Modification”; and
(b) received by the Purchaser prior to the deadline prescribed for
submission of bids, in accordance with ITB Clause 24.
26.2 Bids requested to be withdrawn in accordance with ITB Sub-
Clause 26.1 shall be returned unopened to the Bidders.
26.3 No Bid shall be withdrawn, substituted, or modified in the interval
between the deadline for submission of bids and the expiration of
the period of bid validity specified in ITB Clause 20.1 or any
extension thereof.
27. Bid Opening 27.1 The Purchaser shall conduct the opening of Technical Proposals
in the presence of Bidders’ representatives who choose to attend,
at the address, date and time specified in the BDS.
27.2 The Price Proposals will remain unopened and will be held in
custody of the Purchaser until the time of opening of the Price
Proposals. The date, time, and location of the opening of Price
Proposals will be advised in writing by the Purchaser.
27.3 First, envelopes marked “WITHDRAWAL” shall be opened, read
out, and recorded, and the envelope containing the corresponding
Bid shall not be opened, but returned to the Bidder. No Bid shall
be withdrawn unless the corresponding Withdrawal Notice
contains a valid authorization to request the withdrawal and is
read out and recorded at bid opening.
27.4 Next, outer envelopes marked “SUBSTITUTION” shall be
opened. The inner envelopes containing the Substitution
Technical Proposal and/or Substitution Price Proposal shall be
exchanged for the corresponding envelopes being substituted,
which are to be returned to the Bidder unopened. Only the
Substitution Technical Proposal, if any, shall be opened, read out,
and recorded. Substitution Price Proposals will remain unopened
in accordance with ITB Sub-Clause 27.2. No envelope shall be
substituted unless the corresponding Substitution Notice contains
a valid authorization to request the substitution and is read out and
recorded at bid opening.

Appendix 4
27.5 Next, outer envelopes marked “MODIFICATION” shall be

opened. No Technical Proposal and/or Price Proposal shall be
modified unless the corresponding Modification Notice contains a
valid authorization to request the modification and is read out and
recorded at the opening of Technical Proposals. Only the
Technical Proposals, both Original as well as Modification, are to
be opened, read out, and recorded at the opening. Price
Proposals, both Original as well as Modification, will remain
unopened in accordance with ITB Sub-Clause 27.2.
27.6 All other envelopes holding the Technical Proposals shall be
opened one at a time, and the following read out and recorded :
(a) the name of the Bidder;
(b) whether there is a modification or substitution;
(c) the presence of a Bid Security, if required; and
(d) any other details as the Purchaser may consider appropriate.
Only Technical Proposals and alternative Technical Proposals

read out and recorded at bid opening shall be considered for
evaluation. No Bid shall be rejected at the opening of Technical
Proposals except for late bids, in accordance with ITB Sub-Clause
25.1.
27.7 The Purchaser shall prepare a record of the opening of Technical
Proposals that shall include, as a minimum: the name of the
Bidder and whether there is a withdrawal, substitution,
modification, or alternative offer; and the presence or absence of a
Bid Security, if one was required. The Bidders’ representatives
who are present shall be requested to sign the record. The
omission of a Bidder’s signature on the record shall not invalidate
the contents and effect of the record. A copy of the record shall
be distributed to all Bidders.
27.8 At the end of the evaluation of the Technical Proposals, the
Purchaser will invite bidders who have submitted substantially
responsive Technical Proposals and who have been determined as
being qualified for award to attend the opening of the Price
Proposals. The date, time, and location of the opening of Price
Proposals will be advised in writing by the Purchaser. Bidders
shall be given reasonable notice of the opening of Price Proposals.
27.9 The Purchaser will notify Bidders in writing who have been
rejected on the grounds of being substantially non-responsive to
the requirements of the Bidding Document and return their Price
Proposals unopened.

Appendix 4
27.10 The Purchaser shall conduct the opening of Price Proposals of all
Bidders who submitted substantially responsive Technical
Proposals, in the presence of Bidders` representatives who choose
to attend at the address, date and time specified by the Purchaser.
The Bidder’s representatives who are present shall be requested to
sign a register evidencing their attendance.
27.11 All envelopes containing Price Proposals shall be opened one at a
time and the following read out and recorded :
(a) the name of the Bidder
(b) whether there is a modification or substitution;
(c) the Bid Prices, including any discounts and alternative offers;
and
(d) any other details as the Purchaser may consider appropriate.
(e) Only Price Proposals, discounts, and alternative offers
read out and recorded during the opening of Price Proposals shall
be considered for evaluation. No Bid shall be rejected at the
opening of Price Proposals.
27.12 The Purchaser shall prepare a record of the opening of Price
Proposals that shall include, as a minimum: the name of the
Bidder, the Bid Price (per lot if applicable), any discounts, and
alternative offers. The Bidders’ representatives who are present
shall be requested to sign the record. The omission of a Bidder’s
signature on the record shall not invalidate the contents and effect
of the record. A copy of the record shall be distributed to all
Bidders.
E. Evaluation and Comparison of Bids

28. Confidentiality 2.3 Information relating to the examination, evaluation, comparison,
and post qualification of Bids, and recommendation of contract
award, shall not be disclosed to Bidders or any other persons not
officially concerned with such process until information on
Contract award is communicated to all Bidders.
28.1 Any attempt by a Bidder to influence the Purchaser in the
examination, evaluation, comparison, and post qualification of the
Bids or Contract award decisions may result in the rejection of its
Bid.
28.2 Notwithstanding ITB Sub-Clause 28.2, from the time of opening
the Technical Proposals to the time of Contract award, if any
Bidder wishes to contact the Purchaser on any matter related to
the bidding process, it should do so in writing.

Appendix 4
29. Clarification of 29.1 To assist in the examination, evaluation, comparison and post-
Bids qualification of the Bids, the Purchaser may, at its discretion, ask
any Bidder for a clarification of its Bid. Any clarification
submitted by a Bidder that is not in response to a request by the
Purchaser shall not be considered. The Purchaser’s request for
clarification and the response shall be in writing. No change in
the prices or substance of the Bid shall be sought, offered, or
permitted, except to confirm the correction of arithmetic errors
discovered by the Purchaser in the evaluation of the Price
Proposals , in accordance with ITB Clause 31.
30. Responsiveness 30.1 The Purchaser’s determination of the responsiveness of a
of Technical Technical Proposal is to be based on the contents of the Technical
Proposal Proposal itself.
30.2 A substantially responsive Technical Proposal is one that
conforms to all the terms, conditions, and specifications of the
Bidding Document without material deviation, reservation, or
omission. A material deviation, reservation, or omission is one
that:
(a) affects in any substantial way the scope, quality, or
performance of the Goods and Related Services specified in
the Contract; or
(b) limits in any substantial way, inconsistent with the Bidding
Document, the Purchaser’s rights or the Bidder’s obligations
under the Contract; or
(c) if rectified would unfairly affect the competitive position of
other Bidders presenting substantially responsive Technical
Proposals.
30.3 If a Technical Proposal is not substantially responsive to the
Bidding Document, it shall be rejected by the Purchaser and may
not subsequently be made responsive by the Bidder by correction
of the material deviation, reservation, or omission.
31. Nonconformi- 31.1 Provided that a Technical Proposal is substantially responsive, the
ties, Errors, Purchaser may waive any non-conformity or omission in the Bid
and Omissions that does not constitute a material deviation.
31.2 Provided that a Technical Proposal is substantially responsive, the
Purchaser may request that the Bidder submit the necessary
information or documentation, within a reasonable period of time,
to rectify nonmaterial, nonconformities or omissions in the
Technical Proposal related to documentation requirements. Such
omission shall not be related to any aspect of the Price Proposal of
the Bid. Failure of the Bidder to comply with the request may
result in the rejection of its Bid.

Appendix 4
31.3 Provided that a Technical Proposal is substantially responsive, the

Purchaser will rectify nonmaterial nonconformities or omissions.
To this effect, the Bid Price shall be adjusted during evaluation of
Price Proposals, for comparison purposes only, to reflect the price
of the missing or non-conforming item or component. The
adjustment shall be made using the method indicated in Section
III (Evaluation and Qualification Criteria).
31.4 Provided that the Technical Proposal is substantially responsive,
the Purchaser will correct arithmetical errors during evaluation of
Price Proposals on the following basis:
(a) if there is a discrepancy between the unit price and the total
price that is obtained by multiplying the unit price and
quantity, the unit price shall prevail and the total price shall
be corrected, unless in the opinion of the Purchaser there is
an obvious misplacement of the decimal point in the unit
price, in which case the total price as quoted shall govern and
the unit price shall be corrected;
(b) if there is an error in a total corresponding to the addition or
subtraction of subtotals, the subtotals shall prevail and the
total shall be corrected; and
(c) if there is a discrepancy between words and figures, the
amount in words shall prevail, unless the amount expressed
in words is related to an arithmetic error, in which case the
amount in figures shall prevail subject to (a) and (b) above.
31.5 If the Bidder that submitted the lowest evaluated Bid does not
accept the correction of errors, its Bid shall be disqualified and its
Bid Security may be forfeited.
32. Preliminary 32.1 The Purchaser shall examine the Technical Proposal to confirm
Examination that all documents and technical documentation requested in ITB
of Bids Sub-Clause 11.4 have been provided, and to determine the
completeness of each document submitted.
32.2 The Purchaser shall confirm that the following documents and
information have been provided in the Technical Proposal. If any
of these documents or information is missing, the offer shall be
rejected.
(a) Technical Proposal Submission Sheet in accordance with ITB
Sub-Clause 12.1;
(b) written confirmation of authorization to commit the Bidder;
(c) Bid Security, if applicable; and
(d) Manufacturer’s Authorization, if applicable.

Appendix 4
32.3 Likewise, following the opening of Price Proposals, the Purchaser

shall examine the Price Proposals to confirm that all documents
and financial documentation requested in ITB Sub-Clause 11.5
have been provided, and to determine the completeness of each
document submitted.
32.4 The Purchaser shall confirm that the following documents and
information have been provided in the Price Proposal. If any of
these documents or information is missing, the offer shall be
rejected.
(a) Price Proposal Submission Sheet in accordance with ITB
Sub-Clause 12.1; and
(b) Price Schedules, in accordance with ITB Clauses 12, 14, and
15.
33. Examination of 33.1 The Purchaser shall examine the Bids to confirm that all terms
Terms and and conditions specified in the GCC and the SCC have been
Conditions; accepted by the Bidder without any material deviation or
Technical reservation.
Evaluation
33.2 The Purchaser shall evaluate the technical aspects of the Bid
submitted in accordance with ITB Clause 18, to confirm that all
requirements specified in Section VI (Schedule of Supply) of the
Bidding Document have been met without any material deviation
or reservation.
33.3 If, after the examination of the terms and conditions and the
technical evaluation, the Purchaser determines that the Technical
Proposal is not substantially responsive in accordance with ITB
Clause 30, it shall reject the Bid.
34. Conversion to 34.1 For evaluation and comparison of Price Proposals, the Purchaser
Single shall convert all bid prices expressed in the amounts in various
Currency currencies into a single currency, using the selling exchange rates
established by the source and on the date specified in the BDS.
35. Margin of 35.1 Unless otherwise specified in the BDS, a margin of preference
Preference shall not apply.
36. Evaluation of 36.1 The Purchaser shall evaluate Price Proposals of each Bid for
Bids which the Technical Proposal has been determined to be
substantially responsive.
36.2 To evaluate a Price Proposal, the Purchaser shall only use all the
criteria and methodologies defined in this Clause and in Section
III (Evaluation and Qualification Criteria). No other criteria or
methodology shall be permitted.
36.3 To evaluate a Price Proposal, the Purchaser shall consider the
following:
(a) the Bid Price;

Appendix 4
(b) price adjustment for correction of arithmetic errors in

accordance with ITB Sub-Clause 31.4;
(c) price adjustment due to discounts offered in accordance with
ITB Sub-Clause 14.4;
(d) application of all the evaluation factors indicated in Section
III (Evaluation and Qualification Criteria).
36.4 In the calculation of the evaluated cost of the Bids, the Purchaser
shall exclude and not take into account:
(a) in the case of Goods and Related Services offered from
within the Purchaser’s country, all sales tax and all other
taxes, applicable in the Purchaser’s country and payable on
the Goods if the Contract is awarded to the Bidder;
(b) in the case of Goods and Related Services offered from
outside the Purchaser’s country, all customs duties, sales tax,
and other taxes, applicable in the Purchaser’s country and
payable on the Goods if the Contract is awarded to the
Bidder; and
(c) any allowance for price adjustment during the period of
performance of the Contract, if provided in the Bid.
36.5 The Purchaser’s cost evaluation of a Bid may require the
consideration of other factors, in addition to the Bid Price quoted
in accordance with ITB Clause 14. These factors may be related
to the characteristics, performance, and terms and conditions of
purchase of the Goods and Related Services. The factors selected,
if any, shall be expressed in monetary terms to facilitate
comparison of the Bids, unless otherwise specified in Section III
(Evaluation and Qualification Criteria). The factors to be used
and the methodology of application shall be as indicated in
Section III (Evaluation and Qualification Criteria).
36.6 If this Bidding Document allows Bidders to quote separate prices
for different lots, and the award to a single Bidder of multiple lots,
the methodology of evaluation to determine the lowest evaluated
lot combinations, including any discounts offered in the Bid
Submission Sheet, is as specified in Section III (Evaluation and
Qualification Criteria).
37. Comparison of 37.1 The Purchaser shall compare all substantially responsive bids to
Bids determine the lowest-evaluated bid, in accordance with ITB
Clause 36.
38. Postqualifi- 38.1 The Purchaser shall determine to its satisfaction during the
cation of the evaluation of Technical Proposals whether Bidders are qualified
Bidder to perform the Contract satisfactorily.

Appendix 4
38.2 The determination shall be based upon an examination of the

documentary evidence of the Bidder’s qualifications submitted by
the Bidder, pursuant to ITB Clause 19, to clarifications in
accordance with ITB Clause 29 and the qualification criteria
indicated in Section III (Evaluation and Qualification Criteria).
Factors not included in Section III (Evaluation and Qualification
Criteria) shall not be used in the evaluation of the Bidder’s
qualification.
38.3 An affirmative determination shall be a prerequisite for the
opening and evaluation of a Bidder’s Price Proposal. A negative
determination shall result into the disqualification of the Bid, in
which event the Purchaser shall return the unopened Price
Proposal to the Bidder.
39. Purchaser’s 39.1 The Purchaser reserves the right to accept or reject any Bid, and
Right to Accept to annul the bidding process and reject all Bids at any time prior
Any Bid, and to to Contract award, without thereby incurring any liability to the
Reject Any or Bidders.
All Bids
F. Award of Contract
40. Award Criteria 40.1 The Purchaser shall award the Contract to the Bidder whose offer
has been determined to be the lowest evaluated Bid and is
substantially responsive to the Bidding Document, provided
further that the Bidder has remained qualified to perform the
Contract satisfactorily.
40.2 A Bid shall be rejected if the qualification criteria as specified in
Section III (Evaluation and Qualification Criteria) are no longer
met by the Bidder whose offer has been determined to be the
lowest evaluated Bid. In this event the Purchaser shall proceed to
the next lowest evaluated Bid to make a similar reassessment of
that Bidder’s capabilities to perform satisfactorily.
41. Purchaser’s 41.1 At the time the Contract is awarded, the Purchaser reserves the
Right to Vary right to increase or decrease the quantity of Goods and Related
Quantities at Services originally specified in Section VI (Schedule of Supply),
Time of Award provided this does not exceed the percentages indicated in the
BDS, and without any change in the unit prices or other terms and
conditions of the Bid and the Bidding Document.
42. Notification of 42.1 Prior to the expiration of the period of bid validity, the Purchaser
Award shall notify the successful Bidder, in writing, that its Bid has been
accepted. At the same time, the Purchaser shall also notify all
other Bidders of the results of the bidding.
42.2 Until a formal Contract is prepared and executed, the notification
of award shall constitute a binding Contract.

Appendix 4
42.3 The Purchaser will publish in an English language newspaper or

well-known freely accessible website the results identifying the
bid and lot numbers and the following information: (i) name of
each Bidder who submitted a Bid; (ii) bid prices as read out at bid
opening; (iii) name and evaluated prices of each Bid that was
evaluated; (iv) name of bidders whose bids were rejected and the
reasons for their rejection; and (v) name of the winning Bidder,
and the price it offered, as well as the duration and summary
scope of the contract awarded. After publication of the award,
unsuccessful bidders may request in writing to the Purchaser for a
debriefing seeking explanations on the grounds on which their
bids were not selected. The Purchaser shall promptly respond in
writing to any unsuccessful Bidder who, after Publication of
contract award, requests a debriefing.
43. Signing of 43.1 Promptly after notification, the Purchaser shall send to the
Contract successful Bidder the Agreement and the Special Conditions of
Contract.
43.2 Within twenty-eight (28) days of receipt of the Agreement, the
successful Bidder shall sign, date, and return it to the Purchaser.
44. Performance 44.1 Within twenty-eight (28) days of the receipt of notification of
Security award from the Purchaser, the successful Bidder shall furnish the
Performance Security in accordance with the GCC, using for that
purpose the Performance Security Form included in Section IX
(Contract Forms), or another form acceptable to the Purchaser.
44.2 Failure of the successful Bidder to submit the above-mentioned
Performance Security or sign the Contract shall constitute
sufficient grounds for the annulment of the award and forfeiture
of the Bid Security. In that event the Purchaser may award the
Contract to the next lowest evaluated Bidder whose offer is
substantially responsive and is determined by the Purchaser to be
qualified to perform the Contract satisfactorily.

Appendix 4
Section II. Bid Data Sheet
A. Introduction
ITB 1.1 The number of the Invitation for Bids is:
ADB-PEPCO-EEIP-2009-01
ITB 1.1 The Purchaser is: Ministry of Water and Power
ITB 1.1 The name of the ICB is:

Procurement of CFLs Using Single-Stage Two-Envelope Procedure
__________________________________________________________
The identification number of the ICB is:
The number and identification of lots comprising this ICB is: Nil.
ITB 2.1 The Borrower is:

Islamic Republic of Pakistan
ITB 2.1 The name of the Project is:

Pakistan EEIP National CFL Project
ITB 5.5 The Bidder, if not the manufacturer, is required to include with its Bid a
manufacturer’s authorization to supply the Goods indicated in its Bid in the
Borrower’s country.
B. Bidding Document
ITB 7.1 For clarification purposes only, the address is:
Attention: Chief Engineer (Purchase & Disposal)
PEPCO
B-33 WAPDA House
City: Lahore
Country: Pakistan
Telephone: +92 42 920 2080
Facsimile: +92 42 920 2495

Appendix 4
ITB 7.1 To obtain first-hand information on the supply and distribution of CFLs, the
Bidder is encouraged to attend the Pre-Bid Conference. However, any
amendments resulting from the Conference shall be documented and circulated
to all the bidders who purchased bidding documents. For this purpose, the
Purchaser invites the Bidder to the Pre-Bid Conference on:
Date: 31 October 2009
Time: 10:00 AM PST
Venue: Lahore, Pakistan
Address: 418 PEPCO Committee Room
WAPDA House
City: Lahore
Country: Pakistan
Telephone: +92 42 920 2080
Facsimile: +92 42 920 2495
C. Preparation of Bids
ITB 10.1 The language of the Bid is: English.
ITB 11.4 (i) The Bidder shall submit, along with its Technical Proposal, product quality
certification test data (type test report) in accordance with Technical
Specifications (Section VI.3).
ITB 11.5 (c) Evidence of representation by an Agent in the country of the Purchaser at the
time of bidding will not be required; however, such evidence shall be deemed
mandatory as a condition of award of Contract.
ITB 13.1 Alternative Bids are not permitted.
ITB 14.5 The Incoterms 2000 edition is the current edition as published by the
International Chamber of Commerce at the date of the Invitation for Bids.
ITB 14.6 (a) Ex-Works, plus Packing, Delivery and Insurance inclusive of all risks, cargo,
strikes, and warehouse to warehouse.
ITB 14.6 (b) For goods offered from outside the Purchaser’s country, the Bidder shall quote
(i) prices using the following Incoterms:
(i) the price of the goods quoted CIP (designated locations as specified in
Section VI (Schedule of Supply)).

Appendix 4
ITB 14.6 (b) In addition to the above, the Bidder shall quote prices for Goods offered from
(ii) outside the Purchaser’s country using the following Incoterms:
(ii) the price of the goods quoted CIP Karachi.
ITB 14.7 The prices quoted by the Bidder shall be fixed during the Bidder’s performance
of the Contract.
ITB 15.1 (a) The currency of the Bid shall be in any freely convertible currency.
ITB 20.1 The bid validity period shall be one hundred twenty (120) days.
ITB 21.1 The Bidder shall include a Bid Security issued by bank using the form included
in Section IV (Bidding Forms). The amount and currency of the bid security
shall be: $ 300,000.
D. Submission and Opening of Bids

ITB 22.1 The Bidder shall prepare two (2) additional copies each for the Technical
Proposal and Price Proposal.
ITB 22.2 The written confirmation of Authorization to sign on behalf of the Bidder shall
consist of:
a) Special Power of Attorney demonstrating the authority of the signatory
to sign the bid
b) Bids submitted by an existing or intended JV shall include an
undertaking signed by all parties (i) stating that all parties shall be
jointly and severally liable, and (ii) nominating a Representative who
shall have the authority to conduct all business for and on behalf of
any and all the parties the JV during the bidding process and,
in the event the JV is awarded the Contract, during contract execution.
ITB 23.2 (c) The identification of this bidding process is:

ITB 24.1 For bid submission purposes only, the address is

PEPCO
B-33 WAPDA House
City: Lahore
Country: Pakistan
Telephone: +92 42 920 2080
Facsimile: +92 42 920 2495

Appendix 4
ITB 24.1 The deadline for bid submission is:

Date: 11 November 2009
Time: 10:00 AM PST
ITB 27.1 The bid opening shall take place at:
WAPDA Auditorium
WAPDA House
City: Lahore
Country: Pakistan
Date: 11 November 2009
Time: 11:00 AM PST
E. Evaluation and Comparison of Bids

ITB 34.1 The currency that shall be used for bid evaluation and comparison purposes to
convert all bid prices expressed in various currencies into a single currency is:
Pakistani Rupee
The source of exchange rate shall be: TT/OD published by the State Bank of
Pakistan.
The date for the exchange rate shall be: Date of opening of Bids
ITB 35.1 A margin of preference shall apply.
F. Award of Contract
ITB 41.1 The percentage by which quantities may be increased is: 15%
The percentage by which quantities may be decreased is: 15%

Appendix 4
Section III. Evaluation and Qualification Criteria

1. Scope
The proposals will be evaluated based on compliance to the technical specifications for the CFLs
and the Bidder’s capacity to undertake a contract of this magnitude and its ability to meet the
warranty obligations after the delivery of goods.
2. Technical Criteria
The Bidders Proposal will be evaluated against the following technical criteria:
Parameter Technical Specifications (Note 1)
Lamp Components
Lamp Type Self-ballasted compact fluorescent lamp (CFL)
Wattage 20 to 23W. The initial wattage dissipated by the lamp shall
not deviate by more than ± 15% of the rated wattage, as per
IEC Standards
Ballast Electronic
Base Bayonet cap B22
Tube Type Bare U-tube or spiral
Adaptability Max ambient temperature: 40oC, RH: 85%
Performance Testing
Accreditation and Certification ISO 17025 certified or equivalent standard for lighting tests
of Testing Laboratory
Efficiency
Efficiency ≥ 57 lm/W
Power Characteristics
Power Factor As per IEC 61000 or equivalent. PF of 0.5 or greater at
maximum power
Voltage Tolerance 200V to 250V, without a reduction in rated life as defined in
Clause 2.4 in Section VI (Schedule of Supply)
Harmonics Harmonic current limits set by IEC 61000-3-2
Electromagnetic Compatibility As per IEC 61547, or equivalent
Immunity
Transient Protection As per IEC 61547, or equivalent

Appendix 4
Parameter Technical Specifications (Note 1)

Operating Characteristics
Lamp Life Minimum of 10,000 hours measured in accordance with IEC
60969 or equivalent at voltage variation range from 200 to
250 V
Starting Time The lamp must continuously illuminate within 1.5 seconds of
being switched on at 25 ± 1 oC and 92% of rated voltage, as
per IEC Standards
Run Up Time As per relevant IEC Standards
Light Characteristics
Luminous Flux Luminous flux ≥ 1,350 lumens measured in accordance with
IEC 60969 or equivalent measured at 100 hours of operation
Correlated Color Temperature ‘Daylight’ color temperature (5,500 K to 6,500 K) within 5
SDCM from target values, as per IEC 60969
Color Rendering Index CRI of at least 80, as measured in accordance with CIE13.3
Lumen Maintenance The luminous flux of the lamp must be ≥ 80% of initial levels
at 40% of the lamp’s rated lifetime. Luminous flux shall be
measured according to IEC 60969
Other
Lamp Packaging As specified under Technical Specifications in Section VI
(Schedule of Supply)
Lamp length (L) ≤ 175 millimeters from base to tip of lamp
Safety As per IEC 60968, or equivalent
Warranty Minimum 24 months
Note 1: Compliance to the technical specifications is mandatory. Bidders not complying with the above will be
declared non-responsive and no further evaluation shall be carried out.
3. Qualification Criteria
Business Registration and Nature of Business

The Bidder shall have a formal business registration in country of operation for a minimum period
of three (3) years. This shall be supported by a copy of a duly consularized business registration
certificate to be included in the Proposal. The Purchaser shall have the discretion to waive, on
meritorious grounds, the consularization of the business registration certificate or to require that the
original copy of the consularized business registration certificate be submitted, at the latest, prior to
the award of the contract. The nature of business should include production and/or trading of
lighting and/or electrical products.
Average Annual Turnover

Minimum average annual turnover of $ 10 million calculated as total certified payments received
by the Bidder for contracts in progress or completed, within the last three (3) years.

Appendix 4
Financial Resources
The Bidder must demonstrate access to, or availability of, financial resources such as liquid
assets, unencumbered real estate, lines of credit, and other financial means, other than any
contractual advance payments to meet the overall cash flow requirements for this contract.
Contractual Experience
The number of CFL supply contracts with a total of at least five (5) million units that has been
successfully completed with the Bidder as the main supplier in the last three (3) years shall be
assessed. The information to be provided by the Bidder shall include contract value, nature of
contract and year.
Representation by an Agent
The delivery of goods (CFLs) will be at designated locations as specified in Section VI
(Schedule of Supply). The Bidder’s proposed distribution plan, including the provisions of
replacement of damaged goods in transit and the procedure for meeting the warranty obligations
will be assessed. Speedy replacement of failed CFLs during the two-year warranty period is
essential; hence, the Bidder’s proposal shall include the plan for speedy replacement. The
Bidder shall nominate, prior to award of Contract, a contact person in each city for addressing
warranty queries. A Bidder that does not conduct business within the Purchaser’s Country shall
submit evidence that it will be represented by an Agent in the country equipped and able to carry
out the Supplier’s maintenance, repair and spare parts-stocking obligations prescribed in the
Conditions of Contract and/or Technical Specifications.
Local Handling and Inland Transport

Costs for inland transportation, insurance, and other incidental costs for delivery of goods from
the port of entry, or border point to Project Site as defined in Section VI (Schedule of Supply),
shall be quoted in the PRICE SCHEDULE FOR RELATED SERVICES TO BE OFFERED
FROM OUTSIDE AND WITHIN THE PURCHASER’S COUNTRY provided in Section IV
(Bidding Forms). These costs will be taken into account during bid evaluation. If a Bidder fails
to include such costs in its Bid, then these costs will be estimated by the Purchaser on the basis
of Published tariffs by the rail or road transport agencies, insurance companies, or other
appropriate sources, and added to CIF or CIP price.
Delivery Schedule and Mechanism

Bidders not complying with the delivery schedule specified in Section VI (Schedule of Supply)
and the following mechanism will be declared non responsive and will not be evaluated any
further.
Mechanism: The location wise delivery of allocated CFLs against each delivery point, as
specified in the Schedule of Supply (Section VI), will be further subdivided by the bidders into
three equal consignments (based on equal division/number of CFLs/containers). The first
consignment of CFLs (i.e. approximately one third of the total allocation against each location)
should be delivered within 12 weeks of signing of contracts, to the various places of destination
as specified in the Section VI (Schedule of Supply). The delivery of the second and third
consignment should not reach the designated stores before 45 calendar days from the date of last

Appendix 4
consignment delivery to that store and should not be later than 60 calendar days from the date of
last consignment delivered to that store. In total the bidders will be required to deliver the
10,000,000 CFLs in 35 different locations in Pakistan. Detailed delivery points and in
accordance with the above delivery mechanism.
Minor Omissions or Missing Items

Pursuant to Clause 32.3 of the Instructions to Bidders, the cost of all quantifiable nonmaterial
nonconformities or omissions from the contractual and commercial conditions shall be evaluated.
The purchaser will make its own assessment of the cost of any nonmaterial nonconformities and
omissions for the purpose of ensuring fair comparison of bids. The price adjustment on account
of the missing items shall be based on a reasonable estimate of the cost by the bid evaluation
committee, taking into consideration the corresponding quoted prices from other conforming
bids i.e. the fare price of the omitted item quoted by the highest bidder.
Manufacturing Capacity
The aggregate production/supply capacity of the proposed manufacturing facilities shall be at
least fifteen (15) million units per year and their locations and quality assurance procedures will
be assessed against the proposed delivery schedule. The manufacturers shall have ISO 9001 or
equivalent quality assurance certificate. Information of the proposed manufacturing facilities
(including number of CFLs sold by the manufacturer in the last 3 years) shall be provided by the
Bidder.
Financial Position
The soundness of the Bidder’s financial position shall be evaluated using the audited financial
reports for the last two years to be provided by the Bidder.
Margin of Preference
1. In comparison of evaluated bids, Purchaser will grant a margin of preference to goods
manufactured in Pakistan. For this purpose, responsive bids shall be classified in one of
the following three groups:
(a) Group A: Bids exclusively offering goods manufactured in the country of the
borrower if the bidder establishes to the satisfaction of the
borrower and ADB that (i) labor, raw material, and component
from within the country of the borrower will account for 30
percent or more of the EXW price of the product offered, and (ii)
the production facility in which those goods will be manufactured
or assembled has been engaged in manufacturing/assembling such
goods at least since the time of bid submission.
(b) Group B: All other bids offering goods manufactured in the country of the
borrower.
(c) Group C: Bids offering goods manufactured abroad that have been already
imported or that will be directly imported.
2. The price quoted for goods in bids of groups A and B shall include all duties and taxes
paid or payable on the basic materials or component purchased in the domestic market or

Appendix 4
imported, but shall exclude the sales and similar taxes on the finished product. The price
quoted for goods in bids of group C shall be on CIF or CIP (place of destination), which
is exclusive of customs duties and other import taxes already paid or to be paid.
3. In the first step, all evaluated bids in each group shall be compared to determine the
lowest bid in each group. Such lowest evaluated bids shall be compared with each other
and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall
be selected for the award.
4. If as a result of the comparison under paragraph three above, the lowest evaluated bid is a
bid from group C, the lowest evaluated bid from group C shall be further compared with
the lowest evaluated bid from group A after adding to the evaluated price of goods
offered in the bid from group C, for the purpose of this further comparison only, an
amount equal to 15 percent of the CIF or CIP bid price. The lowest evaluated bid
determined from this last comparison shall be selected.
5. In the case of single responsibility, supply and installation or turnkey1 contracts in which
a number of discrete items of equipment is grouped into one contract package or in a bid
package involving multiple items, the preference margin shall not be applied to the whole
package, but only to the locally manufactured equipment within the package. Equipment
offered from abroad shall be quoted CIF or CIP, and equipment offered locally EXW
(free of sales and similar taxes); and all other components, such as design, works,
installation, and supervision, shall be quoted separately. Bids should not be classified
into groups A, B, or C.
6. In the comparison of bids, only the CIF or CIP price in each bid of the equipment offered
from outside the borrower’s country should be increased by 15 percent. No preference
shall be applied for any associated services or works included in the package.

Appendix 4
Bid Evaluation Form

Section IV. Bidding Forms
(These will be used for evaluation and do not form part of the bidding
document.)
Table of Forms
Technical Proposal Submission Sheet ................................................................ 364

Price Proposal Submission Sheet ........................................................................ 365
Price Schedule for Goods to be Offered from Within the Purchaser's
Country ................................................................................................................. 366
Price Schedule for Goods to be Offered from Outside the Purchaser's
Country ................................................................................................................. 368
Price Schedule for Related Services to be Offered from Outside and
Within the Purchaser's Country ........................................................................ 370
Bid Security .......................................................................................................... 371
Manufacturer’s Authorization ........................................................................... 373

Appendix 4
Technical Proposal Submission Sheet

Date:
ICB No.:
Invitation for Bid No.:
Alternative No.:
To: _______________________________________________________________________
We, the undersigned, declare that:
(a) We have examined and have no reservations to the Bidding Document, including Addenda
No.:
(b) We offer to supply in conformity with the Bidding Document and in accordance with the
delivery schedule specified in Section VI (Schedule of Supply), the following Goods and
Related Services:
(c) Our Bid shall be valid for a period of 120 days from the date fixed for the bid submission
deadline in accordance with the Bidding Document, and it shall remain binding upon us and
may be accepted at any time before the expiration of that period;
(d) If our Bid is accepted, we commit to obtain a Performance Security in the amount of ten
percent (10%) of the Contract Price for the due performance of the Contract;
(e) Our firm, including any subcontractors or suppliers for any part of the Contract, have
nationalities from the following eligible countries ;
(f) We are not participating, as Bidders, in more than one Bid in this bidding process, other
than alternative offers in accordance with the Bidding Document;
(g) Our firm, its affiliates or subsidiaries, including any subcontractors or suppliers for any part
of the Contract, has not been declared ineligible by the ADB;
(h) We understand that this Bid, together with your written acceptance thereof included in your
notification of award, shall constitute a binding contract between us, until a formal Contract
is prepared and executed.
(i) We understand that you are not bound to accept the lowest evaluated bid or any other bid
that you may receive.
Name
In the capacity of
Signed
Duly authorized to sign the Bid for and on behalf of
Date

Appendix 4
Price Proposal Submission Sheet

Date:
ICB No.:
Alternative No.:
To: _______________________________________________________________________
We, the undersigned, declare that:
(a) We have examined and have no reservations to the Bidding Document, including Addenda
No.:
(b) We offer to supply in conformity with the Bidding Document and in accordance with the
delivery schedule specified in Section VI (Schedule of Supply), the following Goods and
Related Services:
(c) The total price of our Bid, excluding any discounts offered in item (d) below is:
(d) The discounts offered and the methodology for their application are:
(e) The following commissions, gratuities, or fees have been paid or are to be paid with respect
to the bidding process or execution of the Contract:
Name of Recipient Address Reason Amount
(If none has been paid or is to be paid, indicate “none.”)
Name
In the capacity of
Signed
Date

Appendix 4
PRICE SCHEDULE FOR GOODS

TO BE OFFERED FROM WITHIN THE PURCHASER'S COUNTRY
Name of Bidder _____________________ IFB Number ______________ Page ___ of ___
1 2 3 4 5 6 7 8 9
Item Description Country Domestic Quantity Unit Total Sales and Total Price
of Value and Unit of Price EXW Other Per Item
Origin Added in Measurement EXW Price Per Taxes Including
Percent Item Per Item Taxes
5x6 7+8
1. Self-ballasted 10,000,000
compact units
fluorescent
(‘energy
saver’) lamps
(CFLs), pin
type, 20 to 23
W
(200-250 V,
50 Hz) with
minimum
1,350 lumens
and 10,000
hours life
along with
containers*
Total Amount
* Please include the cost of the containers as the client will retain them as his property.

Appendix 4
Notes:
Column 4: In accordance with margin of preference ITB Clause 35, if applicable.

Domestic Value Added comprises domestic labor, the domestic content of materials, domestic
overheads and profits from the stage of mining the raw material until final assembly.
Column 6: Incoterm in accordance with ITB Clause 14

Currency in accordance with ITB Clause 15
Price shall include all customs duties and sales and other taxes already paid or payable on the
components and raw materials used in the manufacture or assembly of the item or the custom duties
and sales and other taxes already paid on previously imported items.
Column 8: Payable in the Purchaser’s country if Contract is awarded
Name
In the capacity of
Signed
Date

Appendix 4
PRICE SCHEDULE FOR GOODS

TO BE OFFERED FROM OUTSIDE THE PURCHASER'S COUNTRY
1 2 3 4 5 6 7 8
Item Description Country Quantity Unit Price Unit Price Total Price Total Price
of CIP Per Item FCA
Origin CIP FCA (...) Per Item
(designated
locations as
specified in
Section VI
(Schedule of
Supply))
4x5 4x6
1 Self- 10,000,000
ballasted units
compact
fluorescent
(‘energy
saver’)
lamps
(CFLs), pin
type, 20 to
23 W
(200-250 V,
50 Hz) with
minimum
1,350
lumens and
10,000
hours life
along with
containers*
Total Amount
Note: * Please include the cost of the containers as the client will retain them as his property.
Notes:
Column 5 and 6 : Incoterm in accordance with ITB Clause 14

Appendix 4
Currency in accordance with ITB Clause 15
Column 6: Only to be used if the Purchaser wishes to reserve transportation and insurance to domestic
companies or other designated sources. Identification of the lowest evaluated bid must be on
the basis of the CIF or CIP price, but the Purchaser may sign the contract on FOB or FCA terms
and make its own arrangement for transportation and/or insurance.
Name
In the capacity of
Signed
Date

Appendix 4
PRICE SCHEDULE FOR RELATED SERVICES

TO BE OFFERED
FROM OUTSIDE AND WITHIN THE PURCHASER'S COUNTRY
1 2 3 4 5 6
Quantity Unit Price Total Price Per Item

Item Country and Unit of (a) (b) (a) (b)
Description
No. of Origin Measure-
Foreign Local Foreign Local
ment Currency Currency Currency Currency
4 x 5(a) 4 x 5(b)
Inland transportation,
insurance and other
costs incidental to
delivery of goods from
the port of origion to
the various places of
destination as specified
in Section VI (Schedule
of Supply).
Total Amount
Notes :
Column 5 and 6: Currencies in accordance with ITB Clause 15
Prices are to be quoted inclusive of all custom duties, sales and other similar taxes applicable
in the Purchaser’s country and payable on the Related Services, if the Contract is awarded to
the Bidder
Name
In the capacity of
Signed
Date

Appendix 4
Bid Security
Date: ________________________
ICB No.: _____________________
Invitation for Bid No.: __________
To: _____________________________________________________________________
Whereas ______________________________________________________________________
______________________________________________________________________________
(hereinafter “the Bidder”) has submitted its Bid dated ____________________________ for ICB
No. ___________ for the supply of ______________________________________
__________________________________________________________________hereinafter
called “the Bid.”
KNOW ALL PEOPLE by these presents that WE _________________________________ of

___________________________________________________ having our registered office at
_________________________________________________ (hereinafter “the Guarantor”), are
bound unto ___________________________________________________
_________________________________________________________________ (hereinafter
“the Purchaser”) in the sum of ________________________________________________ for
which payment well and truly to be made to the aforementioned Purchaser, the Guarantor binds
itself, its successors, or assignees by these presents. Sealed with the Common Seal of this
Guarantor this ______________________day of ____________________________, ________.
THE CONDITIONS of this obligation are the following:
1. If the Bidder withdraws its Bid during the period of bid validity specified by the Bidder
in the Bid Submission Sheet, except as provided in ITB Sub-Clause 20.2; or
2. If the Bidder, having been notified of the acceptance of its Bid by the Purchaser, during
the period of bid validity, fails or refuses to:
(a) execute the Contract; or
(b) furnish the Performance Security, in accordance with the ITB Clause 44; or
(c) accept the correction of its Bid by the Purchaser, pursuant to ITB Clause 31.
We undertake to pay the Purchaser up to the above amount upon receipt of its first written
demand, without the Purchaser having to substantiate its demand, provided that in its demand the
Purchaser states that the amount claimed by it is due to it, owing to the occurrence of one or
more of the above conditions, specifying the occurred conditions.

Appendix 4
This security shall remain in force up to and including twenty-eight (28) days after the period of
bid validity, and any demand in respect thereof should be received by the Guarantor no later than
the above date.
Name
In the capacity of
Signed
Duly authorized to sign the Bid Security for and on behalf of
Date

Appendix 4
Manufacturer’s Authorization
Date:
ICB No.:
Alternative No.:
To:
WHEREAS___________________________________________________ who are official

manufacturers of ____________________________________________________ having
factories at _______________________________________________________________ do
hereby authorize ____________________________________________________ to submit a
Bid in relation to the Invitation for Bids indicated above, the purpose of which is to provide the
following Goods, manufactured by us ______________________________ and to subsequently
negotiate and sign the Contract.
We hereby extend our full guarantee and warranty in accordance with Clause 28 of the General
Conditions of Contract, with respect to the Goods offered by the above firm in reply to this
Invitation for Bids.
Name
In the capacity of:
Signed
Duly authorized to sign the Authorization for and on behalf of
Date

Appendix 4
Section V. Eligible Countries

List of ADB Member Countries
Micronesia, Federal States
1. AFG Afghanistan 35. FSM of
2. ARM Armenia 36. MON Mongolia
3. AUS Australia 37. MYA Myanmar
4. AUT Austria 38. NAU Nauru, Republic of
5. AZE Azerbaijan 39. NEP Nepal
6. BAN Bangladesh 40. NET Netherlands
7. BEL Belgium 41. NZL New Zealand
8. BHU Bhutan 42. NOR Norway
9. BRU Brunei Darussalam 43. PAK Pakistan
10. CAM Cambodia 44. PAL Palau
11. CAN Canada 45. PNG Papua New Guinea
12. PRC China, People’s Republic of 46. PHI Philippines
13. COO Cook Islands 47. POR Portugal
14. DEN Denmark 48. SAM Samoa
15. FIJ Fiji Islands, Republic of 49. SIN Singapore
16. FIN Finland 50. SOL Solomon Islands
17. FRA France 51. SPA Spain
18. GEO Georgia 52. SRI Sri Lanka
19. GER Germany 53. SWE Sweden
20. HKG Hong Kong, China 54. SWI Switzerland
21. IND India 55. TAJ Tajikistan
22. INO Indonesia 56. TAP Taipei, China
23. IRE Ireland 57. THA Thailand
Timor-Leste, Democratic
24. ITA Italy 58. TIM Republic of
25. JPN Japan 59. TON Tonga
26. KAZ Kazakhstan 60. TUR Turkey
27. KIR Kiribati 61. TKM Turkmenistan
28. KOR Korea 62. TUV Tuvalu
29. KGZ Kyrgyz 63. UKG United Kingdom
30. LAO Lao People’s Democratic Rep. 64. USA United States of America
31. LUX Luxembourg 65. UZB Uzbekistan
32. MAL Malaysia 66. VAN Vanuatu
33. MLD Maldives 67. VIE Viet Nam
34. RMI Marshall Islands

Appendix 4
Section VI. Schedule of Supply
Contents
1. List of Goods and Related Services .......................................................... 378

2. Delivery and Completion Schedule .......................................................... 379
3. Technical Specifications ............................................................................ 381
4. Packaging.................................................................................................... 385

Appendix 4
1. List of Goods and Related Services
This international procurement refers to the supply and delivery of 10 million units of Compact
Fluorescent Lamps (CFLs) under conditions specified below:
Lot No. : Not Applicable

Lot Name : Procurement of CFLs
Item No. Name of Goods or Description Unit of Quantity

Related Services Measurement
1 Supply and delivery of Supply of CFLs as per Unit 10,000,000

Compact Fluorescent specifications provided
Lamps (CFLs) including in Section VI (Schedule
Inland Transportation, of Supply) packed in
Insurance & other Cost weather proof containers
incidental to delivery of (in accordance with
goods from the port of container specification
origion to the various specified in Section VI)
places of destination as delivered to various
specified in Section VI locations as provided in
(Schedule of Supply). the Schedule of Supply
(Section VI).

Appendix 4
2. Delivery and Completion Schedule
The location wise delivery of allocated CFLs against each delivery point, as specified in the table
below, will be further subdivided by the bidders into three equal consignments (based on equal
division/number of CFLs/containers). The delivery of the first consignment of CFLs (i.e.
approximately one third of the total allocation against each location) should be done within 12
weeks of signing of contracts, to the various places of destination as specified in the table below.
The delivery of the second and third consignment should not reach the designated stores before
45 calendar days from the date of last consignment delivery to that store and should not be later
than 60 calendar days from the date of last consignment delivered to that store. In total the
bidders will be required to deliver the 10,000,000 CFLs in 35 different locations in Pakistan.
Detailed delivery points and in accordance with the above delivery mechanism.
Distribution Locations Where CFLs Are to be Supplied Location Wise

Company Distribution of
the CFLs
KESC Karachi 900,000
HESCO HESCO Regional Store, T.M. Khan Road, Near Nara Jail, 140,000
Hyderabad, Sindh
HESCO Regional Store, Near 132 kV Dehri Grid Station, 140,000
Rohri, Sindh
HESCO Field Store, Nawab Shah, Sindh 140,000
HESCO Field Store, Dadu, Sindh 140,000
HESCO Field Store, Shikarpur, Sindh 140,000
QESCO QESCO Ware House, Industrial Grid Station, Quetta, 50,000
Balochistan
QESCO Regional Store, Sibi, Balochistan 50,000
QESCO Field Store, Loralai, Balochistan 50,000
QESCO Field Store, Turbat, Balochistan 50,000
MEPCO MEPCO Regional Store, Qasim Pur Grid Station, Multan, 475,000
Punjab
MEPCO Regional Store, WAPDA Colony, 132 kV Gris 475,000
Station, Multan Road, Sahiwal, Punjab
MEPCO Regional Store, WAPDA Complex, D.G. Khan, 475,000
Punjab
MEPCO Field Store, WAPDA Complex, Rahim Yar 475,000
Khan, Punjab

Appendix 4
LESCO LESCO Warehouse, Chichokimallian, Sheikhupura, 350,000

Punjab
LESCO Regional Store, Shallamar, GT Road, Lahore, 350,000
Punjab
LESCO Field Store, Okara, Punjab 350,000
lESCO Field Store, Kasur, Punjab 350,000
FESCO FESCO Regional Store, Abdullahpur, Faisalabad, Punjab 350,000
FESCO Regional Store, Chiniot Road, Jhang, Punjab 350,000
FESCO Regional Store, Khushab Road, 132-kV Grid 350,000
Station, Sargodha, Punjab
FESCO Regional Store, Shahbaz Khel More, WAPDA 350,000
Colony, Mianwali, Punjab
GEPCO GEPCO Regional Store, Shaheenabad, GT Road, 240,000
Gujranwala, Punjab
GEPCO Warehouse, Wazirabad, Punjab 240,000
GEPCO Field Store, Old Power House, Sialkot, Punjab 240,000
GEPCO Field Store, Gujrat, Punjab 240,000
GEPCO Field Store, 132 kV Grid Station, Narowal, 240,000
Punjab
IESCO IESCO Regional Store, H-8, Islamabad, ICT 250,000
IESCO Regional Store, Rajar, Sara-e-Alamgir, District 250,000
Gujrat, Punjab
IESCO Field Store, Chakwal, Punjab 250,000
IESCO Field Store, Hattian, District Attock, Punjab 250,000
PESCO PESCO Regional Store, Kabul River, Mardan Road, 325,000
Nowshera, NWFP
PESCO Field Store, Defense Colony, Pehawar Cantt., 325,000
NWFP
PESCO Field Store, Main Road, Sarai Naurang Bannu, 325,000
NWFP
PESCO Field Store, Nathia Gali Road, Abbottabad, 325,000
NWFP
Full insurance coverage shall be for the Goods and Related Services supplied under the Contract,
in a freely convertible currency from an eligible country, against loss or damage incidental to
manufacture or acquisition, transportation, storage, and delivery.

Appendix 4
3. Technical Specifications
1. GENERAL DESIGN
The compact fluorescent lamps (CFLs) must be unitary (a single, non-separable unit containing
lamp and ballast, also often referred to as self-ballasted) and designed for applications furnished
with a screw socket originally intended to operate standard incandescent bulbs.
Parts Description/Type
Wattage Rating 20 to 23 W
Lamp Type Self-ballasted compact fluorescent lamp (CFL)
Lamp length (L) ≤ 175 millimeters from base to tip of lamp
Ballast Electronic
Base Bayonet cap B22
Tube Bare U-tube or spiral
The compact fluorescent lamps must be adaptable to tropical and humid weather site
conditions:
- Maximum ambient temperature: 40 o C
- Relative humidity: 85 %
2. TECHNICAL SPECIFICATIONS
2.1 Laboratory and Test Requirements

Product quality certification test data to be provided by the Bidder must conform to the following
requirements:
Laboratory and Test Performance Specifications
Requirements
Laboratory Facility Must be accredited according to ISO/IEC 17025 or equivalent
standard and qualified for pertinent lighting product tests by
a recognized national or regional accreditation body.
Accreditation document must be provided to the Purchaser.
Accreditation document must be provided to PTFCC.
Test Standards and As per IEC 60969, IEC 61000-3, and IEC 60968.
Conditions
Test Data Test data must be from the model for which qualification is
sought. Values indicated on the application form shall be
calculated as the average of the data from all units tested.

Appendix 4
Longevity of Test Test results must be less than three (3) years old with respect to
Results the date of Bid opening.
2.2 Efficiency Specifications

Efficiency Specifications
The CFL package must clearly state the performance of the following characteristics, as defined
in IEC 60969, or equivalent:
• Rated input power in watts, and
• Light output in lumens.
Efficiency shall be calculated from luminous flux and input power for the specific lamp and
ballast combination in the CFL measured at 25 o C and at test voltage of 230V. To qualify, CFLs
shall be ≥ 57 lm/W.
2.3 Power Characteristics

Power Characteristics Performance Specifications
Input Power Input power required to achieve the specified luminous flux.
Frequency 50 Hz.
Power Factor Measured in vertical base up position, as defined in IEC

61000, or equivalent, CFLs must have a power factor of 0.5 or
greater at maximum power.
Harmonics Shall comply with harmonic current limits set by IEC 61000-3-2.
Tolerance of Voltage Manufacturers must state in the application that CFLs will perform
Variation within specified parameters at a range from 200V to 250 V
without a reduction in the rated life.
Transient Protection CFL must comply with IEC 61547, or equivalent.
2.4 Operating Characteristics

Operating Performance Specifications
Characteristics
Lamp Start The lamp must continuously illuminate within 1.5 seconds of
being switched on at 25 ± 1 oC and 92% of rated voltage, as per
IEC Standards.

Appendix 4
Rated Operating The minimum rated starting temperature must not be higher than
Temperatures 5 oC.
Lifetime CFL must have a minimum rated lifetime of 10,000 hours as

defined in IEC 60969, or equivalent.
CFL lifetime shall be clearly indicated in hours on product
packaging.
Safety CFLs must meet the requirements of IEC 60968, or equivalent.
2.5 Light Characteristics

Light Characteristics Performance Specifications
Rated Luminous Flux Rated Luminous flux of CFLs, as defined in IEC 60969 or
equivalent.
Luminous Flux Luminous flux ≥ 1,350 lumens measured in accordance with IEC
60969 or equivalent measured at 100 hours of operation.
Correlated Color Correlated color temperature (CCT) of the CFL must appear on
Temperature product packaging (as defined in IEC 60969, or equivalent, and
measured in accordance with IES LM-16-1984, or equivalent).
The CFLs supplied shall be ‘Daylight’ color temperature (5,500
K to 6,500 K) within 5 SDCM from target values, as per IEC
60969.
Color Rendering Index CRI of at least 80, as measured in accordance with CIE13.3.
Lumen Maintenance The luminous flux of the lamp must be ≥ 80% of initial levels at
40% of the lamp’s rated lifetime. Luminous flux shall be
measured according to IEC 60969.
Stabilized Light Output The time to 75% of stabilized light output after switch-on shall not
exceed 100 seconds, or, the time to 80% of stabilized light output
after switch-on shall not exceed 120 seconds (measured in
accordance with IEC 60969, or equivalent).

Appendix 4
2.6 Other Specifications

Other Performance Specifications
Lamp Packaging A high resolution copy of the design of the lamp package, package
insert, and the wording on the CFL will be provided during the Pre-
bid Conference.
Logos and other information, such as warranty dates, serial numbers,

etc., to be printed in indelible ink on the base of the lamp shall be
specified during the Pre-bid Conference. In addition, the base of the
lamp will be stamped with “Not for Resale”.
As the Purchaser, PEPCO reserves the right to review the packaging

for the lamps and all printed items in this procurement before the
Supplier undertakes final printing.
Warranty The manufacturer must provide a lamp warranty for the CFL (with
rated life of 10,000 hours) for a minimum period of 24 months
The warranty shall be effective from the date that the goods are
accepted by the Purchaser. During this period, the Purchaser may
return defective lamps to the Supplier for replacement. A Warranty
Card insert must be included with CFL when delivered (sample
wording for the Warranty Card provided in Section VI.4).
Performance Security A Performance Security of ten (10) percent of the total Contract Price
shall be provided byt the Supplier. The Performance Security shall be
denominated in the same currency as the Contract Price.
Quality of Production CFLs must be manufactured under a Quality Assurance System in

accordance with ISO 9001-2000 or equivalent.
Certification Certification from internationally accredited testing laboratories will

be accepted provided that the same laboratories are duly recognized
under APLAC/ILAC.

Appendix 4
4. Packaging
Shipment Containers
The CFLs shall be provided in shipping cartons (see below) and any additional aggregate crating
necessary, in 40-ft ISO (or 2 TEU equivalent capacity) shipping containers. The containers and
shipping materials shall become the property of the Purchaser.
Shipping Cartons
Individual CFLs shall be packed in sealed cartons of corrugated cardboard, each containing 48
lamps in two 6 x 4 layers separated by a corrugated cardboard sheet.
Each carton shall be clearly marked on the outside with the following in bold, sans serif lettering
in black color on all four vertical sides, along with appropriate shipping symbols:
FRAGILE: Handle with Care
Compact Fluorescent Lamps (CFLs)
Property of the Government of Pakistan
NOT FOR SALE
Do not stack more than [insert applicable stacking limit] high
Item Count: 48 pcs.

Appendix 4
Indicative CFL Marking and Box Design

Final CFL base marking requirements and box designs in high resolution image format will be
provided at the time of the Pre-bid Conference.

Appendix 4
Indicative Warranty Card Insert

A single-color (monochrome grayscale) warranty card shall be provided inside each CFL box,
and shall contain a hologram, bar code and serial number unique to each unit. The warranty
information shall be printed in English on one side and in Urdu on the other. A sample warranty
card insert in English is provided below:

Appendix 4
Section VII. General Conditions of Contract

Table of Clauses
1. Definitions ................................................................................................... 391
2. Contract Documents .................................................................................. 391
3. Corrupt Practices....................................................................................... 391
4. Interpretation ............................................................................................. 392
5. Language .................................................................................................... 393
6. Joint Venture, Consortium or Association.............................................. 393
7. Eligibility .................................................................................................... 394
8. Notices ......................................................................................................... 394
9. Governing Law........................................................................................... 394
10. Settlement of Disputes ............................................................................... 394
11. Scope of Supply .......................................................................................... 394
12. Delivery ....................................................................................................... 394
13. Supplier’s Responsibilities ........................................................................ 395
14. Purchaser’s Responsibilities ..................................................................... 395
15. Contract Price ............................................................................................ 395
16. Terms of Payment ...................................................................................... 395
17. Taxes and Duties ........................................................................................ 395
18. Performance Security ................................................................................ 396
19. Copyright .................................................................................................... 396
20. Confidential Information .......................................................................... 396
21. Subcontracting ........................................................................................... 397
22. Specifications and Standards.................................................................... 397
23. Packing and Documents ............................................................................ 398
24. Insurance .................................................................................................... 398
25. Transportation ........................................................................................... 398
26. Inspections and Tests................................................................................. 398
27. Liquidated Damages .................................................................................. 399
28. Warranty .................................................................................................... 399
29. Patent Indemnity ....................................................................................... 400
30. Limitation of Liability ............................................................................... 401
31. Change in Laws and Regulations ............................................................. 402
32. Force Majeure ............................................................................................ 402
33. Change Orders and Contract Amendments ........................................... 402
34. Extensions of Time..................................................................................... 403
35. Termination ................................................................................................ 403
36. Assignment ................................................................................................. 404

Appendix 4
1. Definitions 1.1 The following words and expressions shall have the meanings
hereby assigned to them:
(a) “Contract” means the Agreement entered into between the
Purchaser and the Supplier, together with the Contract
Documents referred to therein, including all attachments,
appendices, and all documents incorporated by reference
therein.
(b) “Contract Documents” means the documents listed in the
Agreement, including any amendments thereto.
(c) “Contract Price” means the price payable to the Supplier as
specified in the Agreement, subject to such additions and
adjustments thereto or deductions therefrom, as may be made
pursuant to the Contract.
(d) “Day” means calendar day.
(e) “Delivery” means the transfer of the Goods from the Supplier
to the Purchaser in accordance with the terms and conditions
set forth in the Contract.
(f) “Completion” means the fulfillment of the Related Services
by the Supplier in accordance with the terms and conditions
set forth in the Contract.
(g) “Eligible Countries” means the countries and territories
eligible as listed in Section V.
(h) “GCC” means the General Conditions of Contract.
(i) “Goods” means all of the commodities, raw material, machin-
ery and equipment, and/or other materials that the Supplier is
required to supply to the Purchaser under the Contract.
(j) “Purchaser’s Country” is the country specified in the Special
Conditions of Contract (SCC).
(k) “Purchaser” means the entity purchasing the Goods and
Related Services, as specified in the SCC.
(l) “Related Services” means the services incidental to the
supply of the goods, such as insurance, installation, training
and initial maintenance and other similar obligations of the
Supplier under the Contract.
(m) “SCC” means the Special Conditions of Contract.
“Subcontractor” means any natural person, private or government
entity, or a combination of the above, including its legal
successors or permitted assigns, to whom any part of the Goods
to be supplied or execution of any part of the Related Services is
subcontracted by the Supplier.
(n) “Supplier” means the natural person, private or government
entity, or a combination of the above, whose bid to perform

Appendix 4
the Contract has been accepted by the Purchaser and is named

as such in the Agreement, and includes the legal successors
or permitted assigns of the Supplier.
(o) “The ADB” is the Asian Development Bank.
(p) “The Site,” where applicable, means the place named in the
SCC.
2. Contract 2.1 Subject to the order of precedence set forth in the Agreement, all
Documents documents forming the Contract (and all parts thereof) are intended
to be correlative, complementary, and mutually explanatory.
3. Corrupt 3.1 ADB’s Anticorruption Policy requires borrowers (including
Practices beneficiaries of ADB-financed activity), as well as bidders,
suppliers, and contractors under ADB-financed contracts, observe
the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy, the ADB:
(a) defines, for the purposes of this provision, the terms set forth
below as follows:
(i) “corrupt practice” means the offering, giving, receiving,
or soliciting, directly or indirectly, anything of value to
influence improperly the actions of another party;
(ii) “fraudulent practice” means any act or omission,
including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to
obtain a financial or other benefit or to avoid an
obligation;
(iii) “coercive practice” means impairing or harming, or
threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence improperly
the actions of a party;
(iv) “collusive practice” means an arrangement between two
or more parties designed to achieve an improper
purpose, including influencing improperly the actions of
another party.
(b) will reject a proposal for award if it determines that the
bidder recommended for award has, directly or through an
agent, engaged in corrupt, fraudulent, collusive, or coercive
practices in competing for the Contract; and
(c) will sanction a party or its successor, including declaring
ineligible, either indefinitely or for a stated period of time, to
participate in ADB-financed activities if it at any time
determines that the firm has, directly or through an agent,
engaged in corrupt, fraudulent, collusive, or coercive
practices in competing for, or in executing, an ADB-financed
contract.

Appendix 4
3.2 The Supplier shall permit the ADB to inspect the Supplier’s
accounts and records relating to the performance of the Supplier
and to have them audited by auditors appointed by the ADB, if so
required by the ADB.
4. Interpretation 4.1 If the context so requires it, singular means plural and vice versa.
4.2 Incoterms
The meaning of any trade term and the rights and obligations of
parties there under shall be as prescribed by Incoterms.
EXW, CIF, CIP, and other similar terms, shall be governed by the
rules prescribed in the current edition of Incoterms, published by
the International Chamber of Commerce at the date of the
Invitation for Bids or as specified in the SCC.
4.3 Entire Agreement
The Contract constitutes the entire agreement between the
Purchaser and the Supplier and supersedes all communications,
negotiations and agreements (whether written or oral) of parties
with respect thereto made prior to the date of Contract.
4.4 Amendment
No amendment or other variation of the Contract shall be valid
unless it is in writing, is dated, expressly refers to the Contract, and
is signed by a duly authorized representative of each party thereto.
4.5 Nonwaiver
Subject to GCC Sub-Clause 4.5(b) below, no relaxation,
forbearance, delay, or indulgence by either party in enforcing any
of the terms and conditions of the Contract or the granting of time
by either party to the other shall prejudice, affect, or restrict the
rights of that party under the Contract, neither shall any waiver by
either party of any breach of Contract operate as waiver of any
subsequent or continuing breach of Contract.
Any waiver of a party’s rights, powers, or remedies under the
Contract must be in writing, dated, and signed by an authorized
representative of the party granting such waiver, and must specify
the right and the extent to which it is being waived.
4.6 Severability
If any provision or condition of the Contract is prohibited or
rendered invalid or unenforceable, such prohibition, invalidity or
unenforceability shall not affect the validity or enforceability of
any other provisions and conditions of the Contract.

Appendix 4
5. Language 5.1 The Contract as well as all correspondence and documents relating
to the Contract exchanged by the Supplier and the Purchaser, shall
be written in the language specified in the SCC. Supporting
documents and printed literature that are part of the Contract may
be in another language provided they are accompanied by an
accurate translation of the relevant passages in the language
specified in the SCC, in which case, for purposes of interpretation
of the Contract, this translation shall govern.
5.2 The Supplier shall bear all costs of translation to the governing
language and all risks of the accuracy of such translation.
6. Joint Venture, 6.1 Unless otherwise specified in the SCC, if the Supplier is a joint
Consortium or venture, consortium, or association, all of the parties shall be
Association jointly and severally liable to the Purchaser for the fulfillment of
the provisions of the Contract and shall designate one party to act
as a leader with authority to bind the joint venture, consortium, or
association. The composition or the constitution of the joint
venture, consortium, or association shall not be altered without the
prior consent of the Purchaser.
7. Eligibility 7.1 The Supplier and its Subcontractors shall have the nationality of an
eligible country. A Supplier or Subcontractor shall be deemed to
have the nationality of a country if it is a citizen or constituted or
incorporated, and operates in conformity with the provisions of the
laws of that country.
7.2 All Goods and Related Services to be supplied under the Contract
and financed by the ADB shall have their origin in Eligible
Countries. For the purpose of this Clause, origin means the country
where the goods have been grown, mined, cultivated, produced,
manufactured, or processed; or through manufacture, processing,
or assembly, another commercially recognized article results that
differs substantially in its basic characteristics from its imported
components.
8. Notices 8.1 Any Notice given by one party to the other pursuant to the Contract
shall be in writing to the address specified in the SCC. The term
“in writing” means communicated in written form with proof of
receipt.
8.2 A Notice shall be effective when delivered or on the Notice’s
effective date, whichever is later.
9. Governing Law 9.1 The Contract shall be governed by and interpreted in accordance
with the laws of the Purchaser’s country, unless otherwise
specified in the SCC.

Appendix 4
10. Settlement of 10.1 The Purchaser and the Supplier shall make every effort to resolve
Disputes amicably by direct informal negotiation any disagreement or
dispute arising between them under or in connection with the
Contract.
10.2 If the parties fail to resolve such a dispute or difference by mutual
consultation within twenty-eight (28) days from the
commencement of such consultation, either party may require that
the dispute be referred for resolution to the formal mechanisms
11. Scope of Supply 11.1 Subject to the SCC, the Goods and Related Services to be supplied
shall be as specified in Section VI (Schedule of Supply).
11.2 Unless otherwise stipulated in the Contract, the Scope of Supply
shall include all such items not specifically mentioned in the
Contract but that can be reasonably inferred from the Contract as
being required for attaining Delivery and Completion of the Goods
and Related Services as if such items were expressly mentioned in
the Contract.
12. Delivery 12.1 Subject to GCC Sub-Clause 33.1, the Delivery of the Goods and
Completion of the Related Services shall be in accordance with the
Delivery and Completion Schedule specified in the Section VI
(Schedule of Supply). The details of shipping and other
documents to be furnished by the Supplier are specified in the
SCC.
13. Supplier’s 13.1 The Supplier shall supply all the Goods and Related Services
Responsibilities included in the Scope of Supply in accordance with GCC Clause
11, and the Delivery and Completion Schedule, as per GCC Clause
12.
14. Purchaser’s 14.1 Whenever the supply of Goods and Related Services requires that
Responsibilities the Supplier obtain permits, approvals, and import and other
licenses from local public authorities, the Purchaser shall, if so
required by the Supplier, make its best effort to assist the Supplier
in complying with such requirements in a timely and expeditious
manner.
14.2 The Purchaser shall pay all costs involved in the performance of its
responsibilities, in accordance with GCC Sub-Clause 14.1.
15. Contract Price 15.1 The Contract Price shall be as specified in the Agreement subject
to any additions and adjustments thereto, or deductions therefrom,
as may be made pursuant to the Contract.
15.2 Prices charged by the Supplier for the Goods delivered and the
Related Services performed under the Contract shall not vary from
the prices quoted by the Supplier in its bid, with the exception of
any price adjustments authorized in the SCC.

Appendix 4
16. Terms of 16.1 The Contract Price shall be paid as specified in the SCC.
Payment
16.2 The Supplier’s request for payment shall be made to the Purchaser
in writing, accompanied by invoices describing, as appropriate, the
Goods delivered and Related Services performed, and by the
documents submitted pursuant to GCC Clause 12 and upon
fulfillment of all the obligations stipulated in the Contract.
16.3 Payments shall be made promptly by the Purchaser, no later than
sixty (60) days after submission of an invoice or request for
payment by the Supplier, and the Purchaser has accepted it.
16.4 The currency or currencies in which payments shall be made to the
Supplier under this Contract shall be.the currency or currencies
stated in the Bid of the Supplier.
17. Taxes and 17.1 For goods supplied from outside the Purchaser’s country, the
Duties Supplier shall be entirely responsible for all taxes, stamp duties,
license fees, and other such levies imposed outside the Purchaser’s
country.
17.2 For goods supplied from within the Purchaser’s country, the
Supplier shall be entirely responsible for all taxes, duties, license
fees, etc., incurred until delivery of the contracted Goods to the
Purchaser.
17.3 If any tax exemptions, reductions, allowances or privileges may be
available to the Supplier in the Purchaser’s Country, the Purchaser
shall use its best efforts to enable the Supplier to benefit from any
such tax savings to the maximum allowable extent.
18. Performance 18.1 The Supplier shall, within twenty-eight (28) days of the
Security notification of Contract award, provide a Performance Security for
the due performance of the Contract in the amounts and currencies
18.2 The proceeds of the Performance Security shall be payable to the
Purchaser as compensation for any loss resulting from the Supplier’s
failure to complete its obligations under the Contract.
18.3 The Performance Security shall be denominated in the currencies
of the Contract, or in a freely convertible currency acceptable to
the Purchaser, and shall be in one of the forms stipulated by the
Purchaser in the SCC, or in another form acceptable to the
Purchaser.
18.4 The Performance Security shall be discharged by the Purchaser
and returned to the Supplier not later than twenty-eight (28) days
following the date of completion of the Supplier’s performance
obligations under the Contract, including any warranty obligations,
unless specified otherwise in the SCC.

Appendix 4
19. Copyright 19.1 The copyright in all drawings, documents, and other materials
containing data and information furnished to the Purchaser by the
Supplier herein shall remain vested in the Supplier, or, if they are
furnished to the Purchaser directly or through the Supplier by any
third party, including suppliers of materials, the copyright in such
materials shall remain vested in such third party.
20. Confidential 20.1 The Purchaser and the Supplier shall keep confidential and shall
Information not, without the written consent of the other party hereto, divulge
to any third party any documents, data, or other information
furnished directly or indirectly by the other party hereto in
connection with the Contract, whether such information has been
furnished prior to, during or following completion or termination
of the Contract. Notwithstanding the above, the Supplier may
furnish to its Subcontractor such documents, data, and other
information it receives from the Purchaser to the extent required
for the Subcontractor to perform its work under the Contract, in
which event the Supplier shall obtain from such Subcontractor an
undertaking of confidentiality similar to that imposed on the
Supplier under GCC Clause 20.
20.2 The Purchaser shall not use such documents, data, and other
information received from the Supplier for any purposes unrelated
to the Contract. Similarly, the Supplier shall not use such
documents, data, and other information received from the
Purchaser for any purpose other than the design, procurement, or
other work and services required for the performance of the
Contract.
20.3 The obligation of a party under GCC Sub-Clauses 20.1 and 20.2
above, however, shall not apply to information that:
(a) the Purchaser or Supplier need to share with the ADB or
other institutions participating in the financing of the
Contract;
(b) now or hereafter enters the public domain through no fault of
that party;
(c) can be proven to have been possessed by that party at the
time of disclosure and which was not previously obtained,
directly or indirectly, from the other party; or
(d) otherwise lawfully becomes available to that party from a
third party that has no obligation of confidentiality.
20.4 The above provisions of GCC Clause 20 shall not in any way
modify any undertaking of confidentiality given by either of the
parties hereto prior to the date of the Contract in respect of the
Supply or any part thereof.

Appendix 4
20.5 The provisions of GCC Clause 20 shall survive completion or

termination, for whatever reason, of the Contract.
21. Subcontracting 21.1 The Supplier shall notify the Purchaser in writing of all
subcontracts awarded under the Contract if not already specified in
the Bid. Subcontracting shall in no event relieve the Supplier from
any of its obligations, duties, responsibilities, or liability under the
Contract.
21.2 Subcontracts shall comply with the provisions of GCC Clauses 3
and 7.
22. Specifications 22.1 Technical Specifications and Drawings
and Standards (a) The Supplier shall ensure that the Goods and Related
Services comply with the technical specifications and other
provisions of the Contract.
(b) The Supplier shall be entitled to disclaim responsibility for
any design, data, drawing, specification or other document,
or any modification thereof provided or designed by or on
behalf of the Purchaser, by giving a notice of such disclaimer
to the Purchaser.
(c) The Goods and Related Services supplied under this Contract
shall conform to the standards mentioned in Section VI
(Schedule of Supply) and, when no applicable standard is
mentioned, the standard shall be equivalent or superior to the
official standards whose application is appropriate to the
country of origin of the Goods.
22.2 Wherever references are made in the Contract to codes and
standards in accordance with which it shall be executed, the edition
or the revised version of such codes and standards shall be those
specified in the Section VI (Schedule of Supply). During Contract
execution, any changes in any such codes and standards shall be
applied only after approval by the Purchaser and shall be treated in
accordance with GCC Clause 33.
23. Packing and 23.1 The Supplier shall provide such packing of the Goods as is
Documents required to prevent their damage or deterioration during transit to
their final destination, as indicated in the Contract. During transit,
the packing shall be sufficient to withstand, without limitation,
rough handling and exposure to extreme temperatures, salt and
precipitation, and open storage. Packing case size and weights
shall take into consideration, where appropriate, the remoteness of
the final destination of the Goods and the absence of heavy
handling facilities at all points in transit.

Appendix 4
23.2 The packing, marking, and documentation within and outside the
packages shall comply strictly with such special requirements as
shall be expressly provided for in the Contract, including
additional requirements, if any, specified in the SCC, and in any
other instructions ordered by the Purchaser.
24. Insurance 24.1 Unless otherwise specified in the SCC, the Goods supplied under
the Contract shall be fully insured, in a freely convertible currency
from an eligible country, against loss or damage incidental to
manufacture or acquisition, transportation, storage, and delivery, in
accordance with the applicable Incoterms or in the manner
25. Transportation 25.1 Unless otherwise specified in the SCC, obligations for
transportation of the Goods shall be in accordance with the
Incoterms specified in Section VI (Schedule of Supply).
26. Inspections and 26.1 The Supplier shall at its own expense and at no cost to the
Tests Purchaser carry out all such tests and/or inspections of the Goods
and Related Services as are specified in Section VI (Schedule of
Supply).
26.2 The inspections and tests may be conducted on the premises of the
Supplier or its Subcontractor, at point of delivery, and/or at the
final destination of the Goods, or in another place in the
Purchaser’s country as specified in the SCC. Subject to GCC Sub-
Clause 26.3, if conducted on the premises of the Supplier or its
Subcontractor, all reasonable facilities and assistance, including
access to drawings and production data, shall be furnished to the
inspectors at no charge to the Purchaser.
26.3 The Purchaser or its designated representative shall be entitled to
attend the tests and/or inspections referred to in GCC Sub-Clause
26.2, provided that the Purchaser bear all of its own costs and
expenses incurred in connection with such attendance including,
but not limited to, all traveling and board and lodging expenses.
26.4 Whenever the Supplier is ready to carry out any such test and
inspection, it shall give a reasonable advance notice, including the
place and time, to the Purchaser. The Supplier shall obtain from
any relevant third party or manufacturer any necessary permission
or consent to enable the Purchaser or its designated representative
to attend the test and/or inspection.

Appendix 4
26.5 The Purchaser may require the Supplier to carry out any test and/or
inspection not required by the Contract but deemed necessary to
verify that the characteristics and performance of the Goods
comply with the technical specifications, codes and standards
under the Contract, provided that the Supplier’s reasonable costs
and expenses incurred in the carrying out of such test and/or
inspection shall be added to the Contract Price. Further, if such
test and/or inspection impedes the progress of manufacturing
and/or the Supplier’s performance of its other obligations under the
Contract, due allowance will be made in respect of the Delivery
Dates and Completion Dates and the other obligations so affected.
26.6 The Supplier shall provide the Purchaser with a report of the
results of any such test and/or inspection.
26.7 The Purchaser may reject any Goods or any part thereof that fail to
pass any test and/or inspection or do not conform to the
specifications. The Supplier shall either rectify or replace such
rejected Goods or parts thereof or make alterations necessary to
meet the specifications at no cost to the Purchaser, and shall repeat
the test and/or inspection, at no cost to the Purchaser, upon giving
a notice pursuant to GCC Sub-Clause 26.4.
26.8 The Supplier agrees that neither the execution of a test and/or
inspection of the Goods or any part thereof, nor the attendance by
the Purchaser or its representative, nor the issue of any report
pursuant to GCC Sub-Clause 26.6, shall release the Supplier from
any warranties or other obligations under the Contract.
27. Liquidated 27.1 Except as provided under GCC Clause 32, if the Supplier fails to
Damages deliver any or all of the Goods or perform the Related Services
within the period specified in the Contract, the Purchaser may
without prejudice to all its other remedies under the Contract,
deduct from the Contract Price, as liquidated damages, a sum
equivalent to the percentage specified in the SCC of the Contract
Price for each week or part thereof of delay until actual delivery or
performance, up to a maximum deduction of the percentage
specified in the SCC. Once the maximum is reached, the Purchaser
may terminate the Contract pursuant to GCC Clause 35.
28. Warranty 28.1 The Supplier warrants that all the Goods are new, unused, and of
the most recent or current models, and that they incorporate all
recent improvements in design and materials, unless provided
otherwise in the Contract.
28.2 Subject to GCC Sub-Clause 22.1, the Supplier further warrants that
the Goods shall be free from defects arising from any act or
omission of the Supplier or arising from design, materials, and
workmanship, under normal use in the conditions prevailing in the
country of final destination.

Appendix 4
28.3 Unless otherwise specified in the SCC, the warranty shall remain
valid for twelve (12) months after the Goods, or any portion
thereof as the case may be, have been delivered to and accepted at
the final destination indicated in the SCC, or for eighteen (18)
months after the date of shipment or loading in the country of
origin, whichever period concludes earlier.
28.4 The Purchaser shall give Notice to the Supplier stating the nature
of any such defects together with all available evidence thereof,
promptly following the discovery thereof. The Purchaser shall
afford all reasonable opportunity for the Supplier to inspect such
defects.
28.5 Upon receipt of such Notice, the Supplier shall, within the period
specified in the SCC, expeditiously repair or replace the defective
Goods or parts thereof, at no cost to the Purchaser.
28.6 If having been notified, the Supplier fails to remedy the defect
within the period specified in the SCC, the Purchaser may proceed
to take within a reasonable period such remedial action as may be
necessary, at the Supplier’s risk and expense and without prejudice
to any other rights which the Purchaser may have against the
Supplier under the Contract.
29. Patent 29.1 The Supplier shall, subject to the Purchaser’s compliance with
Indemnity GCC Sub-Clause 29.2, indemnify and hold harmless the Purchaser
and its employees and officers from and against any and all suits,
actions or administrative proceedings, claims, demands, losses,
damages, costs, and expenses of any nature, including attorney’s
fees and expenses, which the Purchaser may suffer as a result of
any infringement or alleged infringement of any patent, utility
model, registered design, trademark, copyright, or other intellectual
property right registered or otherwise existing at the date of the
Contract by reason of:
(a) the installation of the Goods by the Supplier or the use of the
Goods in the country where the Site is located; and
(b) the sale in any country of the products produced by the
Goods.
Such indemnity shall not cover any use of the Goods or any part
thereof other than for the purpose indicated by or to be reasonably
inferred from the Contract, neither any infringement resulting
from the use of the Goods or any part thereof, or any products
produced thereby in association or combination with any other
equipment, plant, or materials not supplied by the Supplier,
pursuant to the Contract.

Appendix 4
29.2 If any proceedings are brought or any claim is made against the
Purchaser arising out of the matters referred to in GCC Sub-Clause
29.1, the Purchaser shall promptly give the Supplier a notice
thereof, and the Supplier may at its own expense and in the
Purchaser’s name conduct such proceedings or claim and any
negotiations for the settlement of any such proceedings or claim.
29.3 If the Supplier fails to notify the Purchaser within twenty-eight
(28) days after receipt of such notice that it intends to conduct any
such proceedings or claim, then the Purchaser shall be free to
conduct the same on its own behalf.
29.4 The Purchaser shall, at the Supplier’s request, afford all available
assistance to the Supplier in conducting such proceedings or claim,
and shall be reimbursed by the Supplier for all reasonable expenses
incurred in so doing.
29.5 The Purchaser shall indemnify and hold harmless the Supplier and
its employees, officers, and Subcontractors from and against any
and all suits, actions or administrative proceedings, claims,
demands, losses, damages, costs, and expenses of any nature,
including attorney’s fees and expenses, which the Supplier may
suffer as a result of any infringement or alleged infringement of
any patent, utility model, registered design, trademark, copyright,
or other intellectual property right registered or otherwise existing
at the date of the Contract arising out of or in connection with any
design, data, drawing, specification, or other documents or
materials provided or designed by or on behalf of the Purchaser.
30. Limitation of 30.1 Except in cases of gross negligence or willful misconduct :
Liability (a) neither party shall be liable to the other party for any indirect or
consequential loss or damage, loss of use, loss of production, or
loss of profits or interest costs, provided that this exclusion
shall not apply to any obligation of the Supplier to pay
liquidated damages to the Purchaser; and
(b) the aggregate liability of the Supplier to the Purchaser, whether
under the Contract, in tort, or otherwise, shall not exceed the
amount specified in the SCC, provided that this limitation shall
not apply to the cost of repairing or replacing defective
equipment, or to any obligation of the Supplier to indemnify
the Purchaser with respect to patent infringement.
31. Change in Laws 31.1 Unless otherwise specified in the Contract, if after the date of the
and Regulations Invitation for Bids, any law, regulation, ordinance, order or bylaw
having the force of law is enacted, promulgated, abrogated, or
changed in the place of the Purchaser’s country where the Site is
located (which shall be deemed to include any change in
interpretation or application by the competent authorities) that
subsequently affects the Delivery Date and/or the Contract Price,

Appendix 4
then such Delivery Date and/or Contract Price shall be

correspondingly increased or decreased, to the extent that the
Supplier has thereby been affected in the performance of any of its
obligations under the Contract. Notwithstanding the foregoing,
such additional or reduced cost shall not be separately paid or
credited if the same has already been accounted for in the price
adjustment provisions where applicable, in accordance with GCC
Clause 15.
32. Force Majeure 32.1 The Supplier shall not be liable for forfeiture of its Performance
Security, liquidated damages, or termination for default if and to
the extent that its delay in performance or other failure to perform
its obligations under the Contract is the result of an event of Force
Majeure.
32.2 For purposes of this Clause, “Force Majeure” means an event or
situation beyond the control of the Supplier that is not foreseeable,
is unavoidable, and its origin is not due to negligence or lack of
care on the part of the Supplier. Such events may include, but not
be limited to, acts of the Purchaser in its sovereign capacity, wars
or revolutions, fires, floods, epidemics, quarantine restrictions, and
freight embargoes.
32.3 If a Force Majeure situation arises, the Supplier shall promptly
notify the Purchaser in writing of such condition and the cause
thereof. Unless otherwise directed by the Purchaser in writing, the
Supplier shall continue to perform its obligations under the
Contract as far as is reasonably practical, and shall seek all
reasonable alternative means for performance not prevented by the
Force Majeure event.
33. Change Orders 33.1 The Purchaser may at any time order the Supplier through Notice
and Contract in accordance with GCC Clause 8, to make changes within the
Amendments general scope of the Contract in any one or more of the following:
(a) drawings, designs, or specifications, where Goods to be
furnished under the Contract are to be specifically
manufactured for the Purchaser;
(b) the method of shipment or packing;
(c) the place of delivery; and
(d) the Related Services to be provided by the Supplier.
33.2 If any such change causes an increase or decrease in the cost of, or
the time required for, the Supplier’s performance of any provisions
under the Contract, an equitable adjustment shall be made in the
Contract Price or in the Delivery and Completion Schedule, or
both, and the Contract shall accordingly be amended. Any claims
by the Supplier for adjustment under this Clause must be asserted
within twenty-eight (28) days from the date of the Supplier’s
receipt of the Purchaser’s change order.

Appendix 4
33.3 Prices to be charged by the Supplier for any Related Services that
might be needed but which were not included in the Contract shall
be agreed upon in advance by the parties and shall not exceed the
prevailing rates charged to other parties by the Supplier for similar
services.
34. Extensions of 34.1 If at any time during performance of the Contract, the Supplier or
Time its Subcontractors should encounter conditions impeding timely
delivery of the Goods or completion of Related Services pursuant
to GCC Clause 12, the Supplier shall promptly notify the Purchaser
in writing of the delay, its likely duration, and its cause. As soon
as practicable after receipt of the Supplier’s notice, the Purchaser
shall evaluate the situation and may at its discretion extend the
Supplier’s time for performance, in which case the extension shall
be ratified by the parties by amendment of the Contract.
34.2 Except in case of Force Majeure, as provided under GCC Clause
32, a delay by the Supplier in the performance of its Delivery and
Completion obligations shall render the Supplier liable to the
imposition of liquidated damages pursuant to GCC Clause 27,
unless an extension of time is agreed upon, pursuant to GCC Sub-
Clause 34.1.
35. Termination 35.1 Termination for Default
(a) The Purchaser, without prejudice to any other remedy for
breach of Contract, by Notice of default sent to the Supplier,
may terminate the Contract in whole or in part:
(i) if the Supplier fails to deliver any or all of the Goods
within the period specified in the Contract, or within any
extension thereof granted by the Purchaser pursuant to
GCC Clause 34; or
(ii) if the Supplier fails to perform any other obligation
under the Contract.
(b) In the event the Purchaser terminates the Contract in whole or
in part, pursuant to GCC Clause 35.1(a), the Purchaser may
procure, upon such terms and in such manner as it deems
appropriate, Goods or Related Services similar to those
undelivered or not performed, and the Supplier shall be liable
to the Purchaser for any additional costs for such similar
Goods or Related Services. However, the Supplier shall
continue performance of the Contract to the extent not
terminated.
(c) if the Supplier, in the judgment of the Purchaser has engaged
in corrupt, fraudulent, collusive, or coercive practices, as
defined in GCC Clause 3, in competing for or in executing
the Contract.

Appendix 4
35.2 Termination for Insolvency

The Purchaser may at any time terminate the Contract by giving
Notice to the Supplier if the Supplier becomes bankrupt or
otherwise insolvent. In such event, termination will be without
compensation to the Supplier, provided that such termination will
not prejudice or affect any right of action or remedy that has
accrued or will accrue thereafter to the Purchaser.
35.3 Termination for Convenience
(a) The Purchaser, by Notice sent to the Supplier, may terminate
the Contract, in whole or in part, at any time for its
convenience. The Notice of termination shall specify that
termination is for the Purchaser’s convenience, the extent to
which performance of the Supplier under the Contract is
terminated, and the date upon which such termination
becomes effective.
(b) The Goods that are complete and ready for shipment within
twenty-eight (28) days after the Supplier’s receipt of the
Notice of termination shall be accepted by the Purchaser at
the Contract terms and prices. For the remaining Goods, the
Purchaser may elect:
(i) to have any portion completed and delivered at the
Contract terms and prices; and/or
(ii) to cancel the remainder and pay to the Supplier an agreed
amount for partially completed Goods and Related
Services and for materials and parts previously procured
by the Supplier.
36. Assignment 36.1 Neither the Purchaser nor the Supplier shall assign, in whole or in
part, their obligations under this Contract, except with prior written
consent of the other party.

Appendix 4
Section VIII. Special Conditions of Contract

The following Special Conditions of Contract (SCC) shall supplement the General Conditions of
Contract (GCC). Whenever there is a conflict, the provisions herein shall prevail over those in
the GCC.
GCC 1.1(j) The Borrower’s country is:

Islamic Republic of Pakistan
GCC 1.1(k) The Purchaser is:

Ministry of Water and Power
GCC 1.1 (q) The site is:

Various locations as specified in Section VI (Schedule of Supply).
GCC 4.2 (b) The version of Incoterms shall be: Incoterms 2000.
GCC 5.1 The language shall be: English
GCC 6.1 The individuals or firms in a joint venture, consortium or association shall be
jointly and severally liable.
GCC 8.1 For any notice to the Purchaser, it shall be addressed to:
PEPCO
B-33 WAPDA House
City: Lahore
Country: Pakistan
Telephone: +92 42 920 2080
Facsimile: +92 42 920 2495
Meanwhile, a copy of such notice to the Purchaser shall be sent to:
Attention: Mr Saifullah
Joint Secretary (Power)
Government of Pakistan
Room 241, 2nd Floor, Block A
Pakistan Secretariat
City: Islamabad
Country: Pakistan
Telephone: +92 (51) 920 3087
Facsimile: +92 (51) 921 4273

Appendix 4
GCC 9.1 The governing law shall be the laws of the Islamic Republic of Pakistan.
GCC 10.2 In the case of a dispute between the Purchaser and the Supplier, the formal
mechanism for the resolution of disputes shall be:
(a) if the Supplier is a foreign one:
Such dispute shall be settled by arbitration in accordance with the
United Nations Comission on International Trade Law (UNCITRAL)
Arbitration Rules.
(b) if the Supplier is a domestic one:
Such dispute shall be settled by arbitration in accordance with the
Arbitration Act of Pakistan.
In either of the above cases, the place of the arbitration shall be Lahore, Pakistan.
GCC 11.1 The scope of supply shall be as specified in Section VI (Schedule of Supply). At
the time of awarding the Contract, the Purchaser shall specify any change in the
Scope of Supply with respect to Section VI (Schedule of Supply) included in the
Bidding Document. Such changes may be due, for instance, if the quantities of
Goods and related Services are increased or decreased at the time of the award.
GCC 12.1 For goods supplied from abroad as per Incoterm CIP (named locations specified
in Section VI (Schedule of Supply)):
Upon shipment, the Supplier shall notify the Purchaser and the Insurance
Company, by email and by fax the full details of the shipment, including
Contract number, description of Goods, quantity, the vessel, the bill of lading
number and date, port of loading, date of shipment, port of discharge, etc. The
Supplier shall send the following documents to the Purchaser, with a copy to the
Insurance Company:
(a) Two (2) copies of the Supplier’s invoice showing the description of the
Goods, quantity, unit price, and total amount;
(b) original and two (2) copies of the negotiable, clean, on-board bill of
lading marked “freight prepaid” and two (2) copies of non-negotiable
bill of lading;
(c) Two (2) copies of the packing list identifying contents of each package;
(d) Insurance certificate;
(e) Manufacturer’s or Supplier’s warranty certificate; and
(f) Certificate of origin.
The Purchaser shall receive the above documents at least one week before the
arrival of the Goods at the place of arrival and, if not received, the Supplier shall
be responsible for any consequent expenses.
For Goods from within the Purchaser’s country as per Incoterm EXW:
Upon delivery of the Goods to the transporter, the Supplier shall notify the

Appendix 4
Purchaser and send the following documents to the Purchaser:

(a) two (2) copies of the Supplier’s invoice showing the description of the
Goods, quantity, unit price, and total amount;
(b) delivery note or truck receipt;
(c) Manufacturer’s or Supplier’s warranty certificate; and
(d) Certificate of origin.
(e) The Purchaser shall receive the above documents before the arrival of
the Goods and, if not received, the Supplier will be responsible for any
consequent expense.
GCC 15.2 The price shall remain fixed during the term of the Contract.
GCC 16.1 For Goods and Related Services supplied from outside the Purchaser’s country:
(a) Advance Payment: Ten (10) percent of the Contract Price within twenty-
eight (28) days of signing of the Contract. Payment shall be made
provided the Supplier presents a request for payment accompanied by an
Advance Payment Security in the form of a bank guarantee for an
amount equal to the amount of payment, and that shall be valid until the
Goods are delivered. The security shall be in the form as specified in
Section IX (Contract Forms).
(b) On Shipment: The Purchaser shall pay the Supplier eighty (80) percent of
the Contract Price of the Goods shipped through irrevocable confirmed
letter of credit opened in favor of the Supplier in a bank in its country
under the ADB commitment procedure, upon submission of the
documents specified in SCC Clause 12.1;
(c) On Acceptance: Ten (10) percent of the Contract Price of Goods received
shall be paid within twenty-eight (28) days of receipt of the Goods upon
submission of a claim supported by the acceptance certificate issued by
the Purchaser.
For Goods and related Services supplied from within the Purchaser’s country:
(a) Advance Payment: Ten (10) percent of the Contract Price within twenty-
eight (28) days of signing of the Contract. Payment shall be made
provided the Supplier presents a request for payment accompanied by an
Advance Payment Security in the form of a bank guarantee for an
amount equal to the amount of payment, and that shall be valid until the
Goods are delivered. The security shall be in the form as specified in
Section IX (Contract Forms).
(b) On Delivery: The Purchaser shall pay the Supplier eighty (80) percent of
the Contract Price of the Goods shipped through irrevocable confirmed
letter of credit opened in favor of the Supplier in a bank in its country
under the ADB commitment procedure, upon submission of the
documents specified in SCC Clause 12.1;

Appendix 4
(c) On Acceptance: Ten (10) percent of the Contract Price of Goods received
shall be paid within twenty-eight (28) days of receipt of the Goods upon
submission of a claim supported by the acceptance certificate issued by
the Purchaser.
GCC 16.4 The currencies for payments shall be the freely convertible currencies stated in
the bid of the supplier in accordance with ITB 15.1.
GCC 18.1 The Supplier shall provide a Performance Security of ten (10) percent of the total
Contract Price. The Performance Security shall be denominated in the same
currency as the Contract Price.
GCC 18.3 The types of acceptable Performance Securities are:
A bank guarantee issued by a reputable bank located in the Purchaser’s country
or abroad, acceptable to the Purchaser, in the format included in Section IX
(Contract Forms), or a cashier’s or certified checks.
GCC 18.4 Discharge of Performance Security by the Purchaser and return of the same to
the Supplier shall be not later than twenty-eight (28) days following the date of
completion of the Supplier’s performance obligations under the Contract
including any warranty obligations as evidenced by the issuance of the certificate
of acceptance by the Purchaser.
GCC 23.2 The Supplier shall conform to the packaging requirements described in Section
VI.4.
GCC 24.1 The supplier must ensure the goods in an amount equal to 110% of EXW price
of the Goods from ‘warehouse’ to ‘warehouse’ on all-risks basis, including war
risks and strikes.
GCC 25.1 Obligations for transportation of the Goods shall be in accordance with the
Incoterms specified in Section VI (Schedule of Supply).
GCC 26.2 Not Applicable.
GCC 27.1 The liquidated damage shall be: one half (0.5) percent of the Contract Price per
week or part thereof.
GCC 27.1 The maximum amount of liquidated damages shall be ten (10) percent of the
Contract Price.
GCC 28.3 The period of validity of the Warranty for Goods shall be not less than twenty
four (24) months from the date of delivery to the designated delivery locations
specified in Section VI (Schedule of Supply).
GCC 28.5 The Supplier shall correct any defects covered by the Warranty within: two (2)
weeks of being notified by the Purchaser of the occurrence of such defects.
GCC 30.1 The amount of aggregate liability shall be one hundred (100) percent of the
Contract Price.

Appendix 4
Section IX. Contract Forms
Table of Forms
Agreement ............................................................................................................. 410

Performance Security .......................................................................................... 411
Advance Payment Security ................................................................................. 412

Appendix 4
Agreement
THIS AGREEMENT made the ________ day of ________________________, _____,

between ______________________________________of __________________________
(hereinafter “the Purchaser”), of the one part, and __________________________________
of ______________________________ (hereinafter “the Supplier”), of the other part:
WHEREAS the Purchaser invited bids for certain Goods and Related Services, viz.,
____________________________________________________________________ and has
accepted a Bid by the Supplier for the supply of those Goods and Related Services in the sum of
________________________________________________________ (hereinafter “the Contract
Price”).
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Contract referred to.
2. The following documents shall be deemed to form and be read and construed as part of
this Agreement, viz.:
(a) the Purchaser’s Notification to the Supplier of Award of Contract;
(b) the Bid Submission Sheet and the Price Schedules submitted by the Supplier;
(c) the Special Conditions of Contract;
(d) the General Conditions of Contract;
(e) the Schedule of Supply; and
(f) _________________________________________________________.
This Contract shall prevail over all other Contract documents. In the event of any discrepancy or
inconsistency within the Contract documents, then the documents shall prevail in the order listed
above.
3. In consideration of the payments to be made by the Purchaser to the Supplier as indicated
in this Agreement, the Supplier hereby covenants with the Purchaser to provide the Goods and
Related Services and to remedy defects therein in conformity in all respects with the provisions
of the Contract.
4. The Purchaser hereby covenants to pay the Supplier in consideration of the provision of
the Goods and Related Services and the remedying of defects therein, the Contract Price or such
other sum as may become payable under the provisions of the Contract at the times and in the
manner prescribed by the Contract.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance
with the laws of ________________________ on the day, month and year indicated above.
Signed by ________________________________________________ (for the Purchaser)
Signed by __________________________________________________ (for the Supplier)

Appendix 4
Performance Security
Date:
Contract Name and No. :
To:
WHEREAS _______________________________________ (hereinafter “the Supplier”) has

undertaken, pursuant to Contract No. ____________ dated ________________, _______ to
supply __________________________________________ (hereinafter “the Contract”).
AND WHEREAS it has been stipulated by you in the aforementioned Contract that the Supplier
shall furnish you with a security ____________________ issued by a reputable guarantor for the
sum specified therein as security for compliance with the Supplier’s performance obligations in
accordance with the Contract.
AND WHEREAS the undersigned _____________________________________________

______________________, legally domiciled in ________________________________
____________________________________________, (hereinafter “the Guarantor”), have
agreed to give the Supplier a security:
THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of the
Supplier, up to a total of ____________________________________________________ and
we undertake to pay you, upon your first written demand declaring the Supplier to be in default
under the Contract, without cavil or argument, any sum or sums within the limits of __________
____________ as aforesaid, without your needing to prove or to show grounds or reasons for
your demand or the sum specified therein.
This security is valid until the ___________________ day of __________________, _____.
Name
In the capacity of
Signed
Duly authorized to sign the security for and on behalf of
Date

Appendix 4
Advance Payment Security
Date:
Contract Name and No. :
To:
In accordance with the payment provision included in the Contract, in relation to advance
payments, _________________________________________________ (hereinafter called “the
Supplier”) shall deposit with the Purchaser a security consisting of ____________________, to
guarantee its proper and faithful performance of the obligations imposed by said Clause of the
Contract, in the amount of ___________________________.
We, the undersigned ________________________________________________, legally

domiciled in __________________________________________________ (hereinafter “the
Guarantor”), as instructed by the Supplier, agree unconditionally and irrevocably to guarantee as
primary obligor and not as surety merely, the payment to the Purchaser on its first demand
without whatsoever right of objection on our part and without its first claim to the Supplier, in
the amount not exceeding __________________________________
_________________________________________________________.
This security shall remain valid and in full effect from the date of the advance payment received
by the Supplier under the Contract until _________________________, _______.
Name
In the capacity of
Signed
Duly authorized to sign the security for and on behalf of
Date

Appendix 4
Appendix 5
COST ESTIMATES AND FINANCING PLAN
423. Energy efficiency investment requirements for 2009-2018 are estimated at $8.5 billion.
These can be achieved through implementing clean technology projects, assuming that no
external barriers to such actions—in the form of financing, information and technology access,
policy and pricing disincentives, and other such constraints—exist.
Table A5.1: Annual Investment Requirements

($ Million)
Sector 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Domestic 28 83 27 356 410 384 - - - -
Commercial - 1 5 15 24 23 12 3 1 -
Industry - 25 147 441 711 662 343 98 25 -
Agriculture - 5 28 85 137 127 66 19 5 -
Transport - 7 41 123 199 185 96 27 7 -
Oil Refining - 1 5 15 23 22 11 3 1 -
Generation - - 153 207 147 328 587 946 664 260
Transmission
- 16 44 50 38 10 5 1 0 -
and Distribution
Total 28 138 450 1,292 1,689 1,740 1,120 1,099 702 260
Cumulative 28 166 615 1,908 3,597 5,337 6,457 7,556 8,258 8,518
Source: Asian Development Bank and project preparatory technical assistance consultants estimates.
424. 20% of the investment is expected to come through utilities' internally-generated funds or
equity, and 80% from financiers. The private sector is expected to finance 28%. Commercial
borrowing is expected to cover 32%. The Government is actively looking for funding from the
private sector and other agencies. ADB and AFD financing will be through this MFF, which will
act as the anchor for the investment plan and as the front-runner for commercial investments.
Table A5.2: Financing Plan

($ Million)
Source Physical Non-physical

Amount Share Amount Share
Government of Pakistan 588 7% 17 20%
Asian Development Bank 780 9% 20 23%
a
Agence Française de Développement 200 2%
Other Financiers 1,850 22% 50 57%
Private 2,400 28%
Commercial Borrowing 2,700 32%
Total 8,518 100% 87 100%
a
€150 million equivalent.

Appendix 5
425. Taking into account the realizable potential for energy savings, attractiveness of the
investments, and the existing barriers and constraints to energy efficiency improvements,
priority areas for an investment program that need attention for a ten-year investment program
are:
(i) Energy efficient lighting and replacement of gas and electrical appliances in the
domestic and commercial sectors,
(ii) Replacement of the existing inefficient power generation units with new high
efficiency configurations,
(iii) Replacement of inefficient compressors in the gas transmission systems with
high efficiency compressors, and
(iv) Energy efficiency upgrades in the industry sector focusing on the cement, pulp
and paper, sugar, and textile industries.
426. Table A5.3 shows the summary of cost estimates for Tranche-1. The cost estimation
has been carried out in accordance with ADB’s Financial Management and Analysis of Projects
and have been expressed at a constant 2009 price level. 61 Contingencies of 5% have been
added where price contingencies are based on local and foreign inflation. In addition, interest
during construction and commitment charges has been included.
Table A5.3: Tranche-1 Cost Estimates

ADB/ AFD Government
Item Total
Amount % Amount %
I. PHYSICAL INVESTMENT – National CFL

Project
A. Investment Costs
1.
56,000 56,000 100% 0 0%
Goods
2. CFL Distribution 20,000 0 0% 20,000 100%
3. Communication Campaign 2,500 2,500 100% 0 0
Subtotal (A) 78,500 58,500 75% 20,000 25%
B. Taxes and Dutiesa 0 0 0
C. Contingencies
1. Physical 2,560 2,560 100% 0
2. Price 440 440 100% 0
Subtotal (C) 3,000 3,000 100% 0 0%
Total before Financing Charge 81,500 61,500 75% 20,000 25%
D. Financing Charges During Implementation
1. Interest during implementation 3,400 3,400 100% 0
2. Commitment charges 100 100 100% 0
Subtotal (D) 3,500 3,500 100% 0 0%
Total Project Costs 85,000 65,000 76% 20,000 24%
61
ADB. 2005. Financial Management and Analysis of Projects. Manila.

Appendix 5
ADB/ AFD Government

Item Total
Amount % Amount %
II. SUPPORT COMPONENT

A. PMO Operations 4,000 3,200 800
B. Investment Program Management/
6,600 5,280 1,320
Preparation
C. Strengthening of National Standards and
8,400 6,720 1,680
Testing Facilities
D. Institutional Capacity Development 4,000 3,200 800
E. Lamp Waste Management Facility 2,000 1,600 400
Total Institutional Strengthening Costs 25,000 20,000 80% 5,000 20%
III. TOTAL 110,000 85,000 77% 25,000 23%
ADB = Asian Development Bank, AFD = Agence Française de Développement, PMO = Project Management Office.
Source: Asian Development Bank and project preparatory technical assistance consultants estimates.
a
CFLs are exempt from customs duty and sales tax.
Notes:
1. In mid-2009 prices.
2. Contingencies at 5% with price contingencies based on local inflation of 6>0% and foreign inflation of 0.7%
3. IDC based on 10y swap on $ at 3.8% and spread of 20 basis points.
4. Commitment charges are 0.15%.
5. Taxes and duties amount to $0.00.
427. The first PFR has been submitted. The Government requested ADB to finance
$43 million (from OCR), and AFD to finance $23 million equivalent for the National CFL Project
(physical component). The Government also requested ADB to finance $20 million (from ADF)
for the support component.
Table A5.4: Financing Plan for Tranche-1

($ Million)
Project Components Amount Share

A. Physical Investment
Asian Development Bank 43 51%
Agence Française de Développement 22 26%
Government of Pakistan 20 23%
Total 85 100%
B. Non-physical Investment
Asian Development Bank 20 80%
Government of Pakistan 5 20%
Total 25 100%

Appendix 5
Appendix 6
INVESTMENT PROGRAM SUPPORT COMPONENT
428. A Program Management Support Project (the Support Project) is necessary to
implement the roadmap and the Multitranche Financing Facility (MFF) investment program. The
Roadmap activities cover multiple sectors of the economy and require integrated planning and
management, and a results and monitoring framework. The Support Project will focus on the
Government's capacity to effectively manage energy sector planning and investments in clean
technology and energy efficiency. It will finance the following sub-components: (i) preparation of
subsequent tranche projects; (ii) independent monitoring and evaluation and safeguards;
(iii) strengthening of energy efficiency standards and testing facilities; (iv) institutional capacity
building; (v) program management operations; and (vi) a CFL waste management
demonstration facility. The total cost is estimated to be $25 million. Table A6.1 details the
breakdown of estimated Support Project costs.
Table A6.1: MFF Support Project Breakdown

Item Estimated Cost
($ Million)
PMO Operations62 4.00
2. Consulting Services
a Investment Program management 1.60
b Preparation of subsequent investment projects 4.00
c Project monitoring and evaluation 1.00
3. Strengthening of National Standards and Testing Facilities
a Support PSQCA to adopt international energy performance 0.60
standards
b Support PCSIR to augment national equipment testing and 7.80
certification facilities
4. Institutional Capacity Building
a Energy Wing internal restructuring and expansion 1.00
b Capacity building of EEC 1.00
c Capacity building for other institutions involved 2.00
d Lamp waste management facility 2.00
Total 25.00
EEC = Energy Efficiency Centre; PCSIR = Pakistan Council of Scientific and Industrial Research;
PMO = Project Management Office, PSQCA = Pakistan Standards and Quality Control Authority;
T = Tranche.
429. PMO Operation. A dedicated PMO will be established at the Planning Commission for
the duration of the MFF program. It will be responsible for implementation and administration of
62
Includes (i) staff remuneration; (ii) procurement of vehicles, computers, equipment, and furniture; and (iii)
overhead and miscellaneous costs.

Appendix 6
the overall program. The PMO will conduct policy coordination among all government agencies
involved in the energy efficiency projects, supervise implementation of sector roadmap, develop
subprojects for future tranches, monitor program performance and compliance requirements,
and provide the necessary overall management, reporting, communications, and financing
functions required for these purposes. It will act as the focal point between the GoP, ADB,
project consultants, and various subproject implementing agencies. Consultancy Services - The
energy efficiency roadmap implementation consultants will help the Planning Commission to
expedite the implementation of energy efficiency sector roadmap, including (i) develop relevant
Energy Efficiency policy and regulation framework; (ii) formulate a 10-year national energy
efficiency and conservation (E3C) policy and action plan; (iii) update a national energy efficiency
investment plan (2009-2016); and (iv) promote public sector E3C program, and establish
guidelines, criteria, and procedures for ensuring E3C implemented in all major sector.
Consultants will be tasked to transfer expertise to the PMU staff and increase the institutional
capacity of the Government.
430. Consultancy service for preparation of subsequent investment projects (T2-T6) will
provide resources to ensure subproject preparatory activities linked to tranche-2 and
subsequent tranches can be carried out on schedule and with optimum design. The project
preparation consultant will assist the PMO and relevant parties in (i) identifying future
investment subprojects; (ii) carrying out technical, financial, and economic assessment of the
subprojects and (iii) conducting environmental and social safeguards due diligence assessment.
431. External monitoring and evaluation consultants will ensure that the subprojects are
implemented in accordance with the approved specifications and in particular that the
environmental and social safeguard aspects are implemented in accordance with the approved
plans, through the establishment of a monitoring function.
432. Consultants will be employed by the Planning Commission and will provide varying
services to the Planning Commission depending on their needs and capabilities.
433. Strengthening of National Standards and Testing Facilities - The Pakistan Standards
and Quality Control Authority (PSQCA), under the Ministry of Science and Technology, is the
national standardization body. At present, the GoP specifies some quality standards for lighting
and other electrical appliances, but these do not adequately cover all main product categories,
types, or sizes, nor are they properly enforced. In addition. The Support Project will provide
PSQCA financing resources to introduce and adopt international energy performance standards
for products and subcomponents that are predominantly imported in the country. 63 This would
also include the proper selection and harmonization of multiple standard specifications existing
internationally, so as to ensure that the ones most suitable for the Pakistani context—that do not
unnecessarily penalize the country’s existing manufacturers and supply sources—are adopted.
It is particular imperative in subprojects of residential CFL replacement, gas appliance
upgrades, public building retrofits, and industrial EE financing.
434. In addition, assistance would be provided to Pakistan Council of Scientific and Industrial
Research (PCSIC), under the Ministry of Science and Technology, to rapidly augment existing
national equipment testing and certification facilities, to enable them to achieve international
accreditation and capacity for meeting the needs of the strengthened national EE standards
63
Such as the US Energy Star rating for domestic and office equipment, Euro emission standards for vehicles, etc.

Appendix 6
regime. These activities will be undertaken in collaboration with other donors.64 In particular,
the laboratory facilities and training requirements of PCSIR for undertaking the quality
monitoring of lamps procured through spot checking of bulk CFL shipments would be necessary
to be in place by April 1, 2010. The detailed arrangement for strengthening of PSQCA and
PCSIR will be further elaborated in the project implementation stage.
435. Institutional Capacity Building - In addition to the project-specific management and
planning capacity at the Planning Commission, some key focal agencies would also need
strengthening to facilitate program implementation and for creating an enabling environment for
subproject implementation. The Energy Wing is the coordinating unit for Federal Government
budget appropriations for energy projects. To be able to integrate E3C into integrated energy
planning, project evaluation, and public sector investment and infrastructure development, the
Energy wing would require financing assistance for procurement of equipment, development of
energy databases, office upgrades, and hiring of consultancy services for internal restructuring
and expansion.
436. ENERCON, the National Energy Conservation Centre in existence since 1985 and
dedicated to the promotion of E3C in the country, would be a natural home for the program
given its mandate and accumulated experience in the field. However, the institution has, since
the termination of the initial USAID-funded technical and financial assistance in 1990, been
severely under-resourced and has functioned mostly on project-based donor assistance. As a
result, it has lost most of its key technical staff, professional facilities, business processes, and
knowledge base required to fulfill its original mandate for coordinating, promoting and facilitating
all national energy efficiency and conservation efforts, nor has it been able to commercialize
E3C activities effectively so that it could take on its intended ultimate role of providing a
supportive policy, regulatory, advisory, and enabling environment for the implementation of E3C
actions by the public and private sectors and energy end-users themselves.
437. The GoP plan to reallocate ENERCON under the Planning Commission, redefining its
mandate as a national umbrella E3C policy, program, and technical advisory and market
facilitation body, and in developing and implementing the energy efficiency sector roadmap and
the National E3C Action Plan. The program will provide substantial support for ENERCON's
restructuring, including procurement of equipment staff engagement, and strengthening its
capacity in (i) planning, (ii) design, (iii) project management, (iv) operations, and (v)
maintenance activities.
438. CFL Waste Management Facility – The burnt-out CFL is potentially a hazardous waste
because of the presence of mercury. Its disposal into municipal landfill and dumping site can
result in release of mercury into the soil and to water bodies. There is currently no lamp waste
management facility in the country. The waste generated from fluorescent tube lights (FTL) and
CFLs used in the country are dumped with other municipal waste into various waste dumping
sites or are crushed without any safety consideration for disposal of glass. The 30 million CFLs
to be distributed under the proposed program will contain between 100 to 120 kilograms of
mercury. It is therefore pertinent to develop a lamp waste management facility (LWMF) with the
required handling capacity. A modern LWMF is designed to recover glass, metal, mercury, and
chloride salt from the waste lamp in a manner that these can be reused.
64
The three-year GEF/UNDP regional ‘Barrier Removal for the Cost-effective Development and Implementation of
Energy Efficiency Standards and Labeling’ (BRESL) project initiated in 2009.

Appendix 6
439. The proposed CFL distribution program envisages distribution of 10 million CFLs in
Phase I, spread over a 4 months, and distribution of another 20 million CFLs in Phase II, spread
over 6 months. The Phase II will be initiated about 8 months after the completion of Phase I.
The CFLs procured for the distribution will have a specified life of 10,000 hours. Given that the
average usage of CFLs in the domestic sector is about 3.5 hours per day, the CFLs are
expected to last more than 8 years, on average. However, waste CFL issue is likely to start
much before that because of a number of reasons. Firstly, manufacturing defects and
mishandling may results in burning out and breakage of CFLs before completion of their rated
life. Secondly, The CFLs may also replace FTLs, which also contain about 10-15 mg of
mercury and require proper handling facility. Lastly, the awareness campaign associated with
the program is likely to generate a need for a waste disposal facility for the CFLs are already in
use in the country. It is estimated that about 3% of the CFLs (900,000) distributed under the
program will require disposal within 3 years after the start of the program. As the typical
capacity of a compact LWMF is about 0.4 to 0.5 million CFLs per month, the program envisages
that a facility will be developed and made operational in Year 3 of the program.
440. To make it a viable and sustainable mechanism, waste treatment would be organized on
a commercial basis. There would be a payment for used CFLs and for fluorescents in general.
One option would be to get trash collectors to pick up used fluorescents and bring them to a
colleting point, and be paid for the waste. Private trash recyclers could manage and run the
central waste collection facilities suitably located around the country.
441. Once these lamps have been accumulated at the collection points, a recycling
mechanism would need to be set up to treat them. The CFL program will provide an opportunity
to establish required recycling facilities in the country for all fluorescent lamps. Survey results
show that there are presently 113 million light points in the domestic sector in Pakistan. Of
these, currently approximately 60% utilize fluorescent lamps, including tubes and existing CFLs.
It is estimated that up to four recycling facilities would be required initially, perhaps distributed
across the capitals of each province in Pakistan to limit as much as possible the costs of
transportation of used fluorescent lamps.

Appendix 6
Appendix 7
IMPLEMENTATION ARRANGEMENTS
A. MFF MANAGEMENT
442. The implementation of the EEIP MFF requires significant dedicated management
capacity within the GoP for the effective planning, execution, and support of various program
components and requirements over the multiyear term of the MFF. Such a capacity should be:
(i) Centralized, so as to be able to coordinate with all other agencies and national
stakeholders, properly monitor inputs and activities of the MFF, and liaise
effectively between the GoP and the ADB and cofinancing agencies.
(ii) Positioned as an autonomous unit reporting directly to the highest level of energy
sector planning and decision making.
(iii) Able to directly affect policymaking and direct actions by various ministries, line
agencies, and government departments.
(iv) Technically proficient to undertake design, development, implementation, and
evaluation of current and future tranche subprojects, coordinate with other
relevant government and donor programs, provide necessary safeguards
compliance assurance, conduct program reporting and presentations, and
engage and interact with external consultants for this purpose.
B. EXISTING MANAGEMENT CAPACITY
443. Currently, none of the existing agencies within the federal (central) government meet all
of these key requirements. Of the existing central institutions, ENERCON and the Energy Wing,
Planning Commission, could be possible candidates for the management of the EEIP MFF
program as they meet some of the criteria listed above. However, an assessment of their
present status and roles would indicate neither of these entities, by themselves, would be in a
position or possess the capability of taking on the additional responsibility of MFF management
within the required timeframe.
C. ENERCON
444. ENERCON, the National Energy Conservation Centre in existence since 1985 and
dedicated to the promotion of E3C in the country, would be a natural home for the program
given its mandate and accumulated experience in the field. However, the institution has, since
the termination of the initial USAID-funded technical and financial assistance in 1990, been
severely under-resourced and has functioned mostly on project-based donor assistance. As a
result, it has lost most of its key technical staff, professional facilities, business processes, and
knowledge base required to fulfill its original mandate for coordinating, promoting and facilitating
all national energy efficiency and conservation efforts, nor has it been able to commercialize
E3C activities effectively so that it could take on its intended ultimate role of providing a
supportive policy, regulatory, advisory, and enabling environment for the implementation of E3C
actions by the public and private sectors and energy end-users themselves.
445. The main strengths of ENERCON as the lead agency for the EEIP MFF would be:
(i) Designated national agency for E3C promotion, with established identity and
existing institutional structure and sanctioned staff resources.

Appendix 7
(ii) Knowledge of the sector and market, with sectoral contacts and network, and an
existing level of relevant technical knowhow and experience base.
(iii) A degree of physical resources (office space, equipment, library, databases, etc.)
that could serve as a foundation for augmentation and expansion.
(iv) Relevance if a separate, permanent federal level umbrella E3C institution is
envisaged as a necessary requirement in a prospective National E3C Acton
Plan.
446. The main weaknesses of ENERCON as the EEIP MFF implementing agency would be:
(i) Weak existing technical and management capacity in the form of sufficient
numbers of qualified staff, functional departments, established services,
professional business practices, and physical and financial resources to enable it
to meet extensive, time-bound MFF management and operational needs
satisfactorily.
(ii) A poor track record of program design and implementation capacity without
extensive external technical support, especially with respect to managing large
financing facilities, related project development requirements, challenging
timelines, and performance- and output-based success criteria.
(iii) Inappropriate placement within the GoP administrative structure under the
Ministry of Environment, rather than at a cross-sectoral position that can help
mobilize and influence broader stakeholder E3C initiatives, planning activities,
and policy framework with sufficient direct interaction and reporting to key GoP
decision-makers, especially within the energy sector.
(iv) Lack of experience of handling complex, fast-tracked, and multi-pronged
programs with extensive associated management, contracting, monitoring,
evaluation, and reporting overheads.
(v) Low credibility within the GoP and main E3C stakeholders with respect to
institutional effectiveness, value-addition, and ability to deliver.
447. Due to these constraints, ENERCON in its present form could not be considered capable
of acting as the EEIP MFF implementing agency. However, it would have an important future
role to play with respect to both the MFF as well as the longer term sustainability of a national
E3C initiative, as described subsequently below.
D. ENERGY WING, PLANNING AND DEVELOPMENT DIVISION
448. The Energy Wing, in the Planning and Development Division reporting to the Member,
Energy in the Planning Commission, is responsible for providing technical advice to the GoP for
the planning and design of all energy sector investments and projects in the country as part of
the Public Sector Development Programme (PSDP). It also provide key inputs to specific
planning strategies, such as the annual, five-year, and medium-term development plans and
frameworks, with respect to issues relating to energy supply and security, related infrastructure
development, and relevant economic and environmental implications. The Energy Wing vets all
energy sector project PC-1s development by various GoP line agencies that require PSDP or
external financing before these can be approved by the CDWP or ECNEC. In this capacity and
given its position within the country’s overall planning organizational structure and hierarchy, the
Energy Wing would appear to be more suitable as the EEIP MFF implementing agency able to
coordinate actions and liaise between high-level economic and policy decision-makers and
within disparate ministries and line agencies, but in its present situation lacks sufficient

Appendix 7
institutional resources and staffing to be able to take on such a role immediately. For instance,
the organization currently lacks a head (Senior Chief) under whom the MFF management could
function, while half of its presently sanctioned managerial and technical strength remains
unfilled (e.g., two of four Chiefs, five of ten Deputy Chiefs, three of six Assistant Chiefs positions
lie vacant).
449. The main strengths of the Energy Wing as the lead agency for the EEIP MFF would be
the following:
(i) It meets three of the four criteria listed earlier under the necessary institutional
requirements for the role (i.e., central, cross-sectoral situation; access to high-
level planning and decision-making; and providing inputs to GoP policy and
agency actions relating to the energy sector).
(ii) It would be able to integrate E3C into the mainstream integrated energy sector
modeling and planning process required for sustained reduction of overall energy
intensity in the country.
(iii) It could devise and enforce criteria, guidelines, and instruments for including
energy efficiency aspects into all GoP public investment programs by suitable
modification to the PC-1 process.
(iv) It could lead the design and implementation of mandatory public sector E3C
investments and compliance, as envisaged under the EEIPRM, components of
which could be financed by the MFF.
450. The key weaknesses of the Energy Wing include:
(i) A severely depleted institutional capability to handle even designated functions,
making it difficult to expand its role to manage an aggressive E3C
implementation program in addition.
(ii) Low technical capacity, knowledge, and experience of energy efficiency
methods, practices, technologies, and program approaches, and very little
relevant country-specific data and market intelligence.
(iii) Poor physical resources (office space, equipment, communications facilities, etc.)
and mechanisms and linkages for interacting with diverse E3C stakeholders and
markets.
(iv) Lack of experience of handling complex, fast-tracked, and multi-pronged
programs with extensive associated management, contracting, monitoring,
evaluation, and reporting overheads.
451. Therefore, although more appropriately placed than ENERCON within the GoP’s
administrative structure with respect to EEIP MFF implementation, the Energy Wing by itself
would not be considered capable of providing the requisite institutional capacity required for
program implementation and its requisite planning, coordination, evaluation, and management
needs.
E. PROPOSED MANAGEMENT ARRANGEMENTS
452. In light of the assessment of the existing relevant GoP institutional capacity above, it is
proposed that the EEIP MFF be implemented under a separate Project Management Unit
(PMO) and arrangements proposed below:

Appendix 7
(i) The Planning Commission. As the apex government economic and energy
planning institution with over-arching, cross-ministerial advisory and coordination
mandate—should be designated as the Executing Agency (EA) for the EEIP
MFF, with the Member, Energy as the GoP’s official project counterpart.
(ii) The EEIP PMO should be established as a separate entity within the Planning
Commission, reporting directly to the Member Energy, as shown in Figure A7.1.
(iii) The EEIP PMO should be sufficiently staffed and resourced with a capacity to
undertake overall program management and coordination with the GoP and
ADB, oversee tranche subprojects, including monitoring their compliance with
performance milestones, environmental requirements, and social safeguards,
interact with project consultants and relevant agencies to develop future tranche
projects for funding, and possess the necessary administrative and support
capability. A suggested organization and composition of the PMO is shown in
Figure A7.2.
(iv) The EEIP PMO would be managed by a suitably qualified full-time Project
Director (PD), assisted by a full-time Deputy Project Director (DPD). The PMO
management will report directly to the Member, Energy, PC on a day-to-day
basis as well as via formal project communication procedures. The PMO will
interact with the ADB and other relevant project financiers and partner agencies
through the ADB PRM or designated entity.
(v) It is strongly recommended that ENERCON be placed directly under the Planning
Commission, and that both ENERCON and the Energy Wing act as collaborating
agencies with the EEIP PMO under the consolidated supervisory office of the
Member, Energy, PC. In this respect, ENERCON could be merged with the EEIP
PMO to form a new, more effective national ‘Energy Efficiency Centre (EEC)’
where EE related institutional capacity building can be focused in coordination
with the GoP and other development partners.
(vi) Simultaneously, the institutional role of the EEC needs to be clearly defined to
focus primarily on E3C policy, roadmap implementation, regulatory, and technical
advice, market and technology assessments, promotion and outreach,
information services, service facilitation, and overall program design, with actual
project and investment implementation being carried out by the relevant
stakeholder agencies themselves (utilities, industrial organizations, private
sector, etc.). Working closely with the PMO unit and utilizing the existing base
facilities of ENERCON, these capabilities will be gradually assimilated and built
upon during the initial years of the EEIP so that the EEC can eventually play a
more meaningful role in the design and implementation of Pakistan’s energy
efficiency initiative and action plans.
(vii) The EEIP PMO would be supported, as required, by project consultants engaged
by the GoP/ADB under the MFF Support Component (see Appendix 6) for both
subproject design and implementation requirements as well as for associated
GoP capacity building needs.

Appendix 7
Figure A7.1: Organizational Placement of EEIP PMO

Appendix 7
425
PIDE = Pakistan Institute of Development Economics, PMO = project management office, EEIP = sustainable energy efficiency investment program, VC = Vice Chancellor.
Figure A7.2: Organizational Structure of EEIP PMO

Appendix 7
453. The creation of a distinct, stand-alone EEC, consisting of the EEIP PMO and erstwhile
ENERCON, within the Planning Commission and working in parallel with the Energy Wing and
other EE stakeholder is possibly the most effective and expeditious strategy for creating a
dedicated capacity within the GoP to both manage the EEIP MFF and for simultaneously
developing and implementing a national E3C strategy and action plan on a sustained basis. In
this respect, it is envisaged that apart from the specific capacity requirements of the EEIP PMO,
both the Energy Wing and the existing institutional resources of ENERCON would also be made
more robust and relevant, partially through available assistance under the EEIP program as well
as through other enhanced GoP, multilateral and bilateral funding.
F. EEIP IMPLEMENTATION PLAN
454. National CFL project implementation arrangements is in Figure A7.3, and the overall
implementation schedule for the EEIP MFF is given in Figure A7.4.
455. Financing for the Tranche-1 CFL Project will be provided by ADB ($40 million) from OCR
funds and AFD ($25 million), and include an additional $2.5 million support component from
ADF resources. The Government of Pakistan (GoP) will be the borrower, with the Ministry of
Water and Power (MoWP) acting as the executing agency (EA). On behalf of the GoP, PEPCO
will undertake bulk procurement of the CFLs through international competitive bidding (ICB),
and ensure that the lamps meet quality and certification criteria. Eight DISCOs and KESC will
act as implementing agencies (IAs) for the distribution of the CFLs at the doorsteps of their
respective household customers in two separate distribution rounds, ending in mid-2011. The
IAs will also be responsible for printing and distributing vouchers with target households’
monthly electricity bills, against which CFLs will be exchanged, as well as for collecting
incandescent bulbs (IBs), accounting for each transaction, and undertaking central verification
and disposal of the collected IBs. For purposes of CDM financing, the CFL distribution may be
further subdivided into smaller, distinct Programs of Activity (PoAs), e.g., consisting of separate
administrative ‘circles’ within each DISCO, for each of which separate Project Design
Documents (PDDs) will be developed under the Support Component. The Support Component
will also help augment the national testing and quality certification regime for CFLs in the
country. The CFL distribution and IB collection costs will be borne by the DISCOs through a
$20 million allocation for this purpose. A national tri-media communication campaign will also
be undertaken by PEPCO and the DISCOs in order to ensure optimum customer response and
facilitate the longer term market transformation towards efficient lighting products in the country.

Appendix 7
Figure A7.3: PFR-1 National CFL Project Implementation Arrangement

Appendix 7
Figure A7.4: Implementation Schedule

Appendix 7
Table A7.1: Project Readiness – Tranche 1

As of 09 July 2009
* The consulting firm will be engaged under the existing ADB financed Power Distribution Enhancement Multitranche
Financing Facility.
ADB = Asian Development Bank, AfD = Agence Francaise de Developpement, CDM = Clean Development
Mechanism, GoP = Government of Pakistan, IEE = Initial environmental examination, MFF = Multitranche Financing
Facility, PC = Planning Commission, PMO = Project Management Office, PMU = Project Management Unit.
Source: ADB and project preparatory technical assistance consultants' assessment.

Appendix 7
Appendix 8
PROCUREMENT PLAN
Basic Data
Project Name: PAK: Sustainable Energy Efficiency Investment Program – Tranche 1

Country: Islamic Republic of Pakistan Executing Agency: (i) Planning Commission, (ii)
Loan Amount: OCR:$40 million, ADF:$20 million Loan (Grant) Number: TBD
Date of First Procurement Plan: June 2009 Date of this Procurement Plan: July 2009
A. PROCESS THRESHOLDS, REVIEW AND 18-MONTH PROCUREMENT PLAN
1. Project Procurement Thresholds

456. Except as the Asian Development Bank (ADB) may otherwise agree, the following
process thresholds shall apply to procurement of goods and works.
Procurement of Goods and Works
Method Threshold
International Competitive Bidding (works) At least $5,000,000
International Competitive Bidding (goods) At least $1,000,000
National Competitive Bidding (works) Less than $5,000,000
National Competitive Bidding (goods) Less than $1,000,000
Shopping Less than $100,000
2. ADB Prior or Post Review

457. Except as ADB may otherwise agree, the following prior or post review requirements
apply to the various procurement and consultant recruitment methods used for the project.
Procurement Method Prior or Post Comments
Procurement of Goods and Works
ICB Works Prior
NCB Works Prior The first NCB contract is subject to
prior review by ADB
Recruitment of Consulting Firms
Quality- and Cost-Based Selection (QCBS) Prior Full Technical Proposal: At least
$600,000;
Simplified Technical Proposal: Less
than $600,000 but at least $200,000
Other selection methods: Consultants Prior Biodata Technical Proposal
Qualifications (CQS), Least-Cost Selection (LCS),
Fixed Budget (FBS), and Single Source (SSS)
Recruitment of Individual Consultants
Individual Consultants Prior

Appendix 8
3. Goods and Works Contracts Estimated to Cost More Than $1 Million

458. The following table lists goods and works contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
Funding General Contract Procurement Prequalification Advertisement Comments
Source Description Value Method of Bidders (y/n) Date
(quarter/year)
OCR Procurement $19.0 ICB (AP) No 3rd quarter single-stage,
of 10 million million 2009 two-envelope
CFLs
OCR Procurement $38.0 ICB No 2nd quarter single-stage,
of 20 million million 2010 one-envelope
CFLs
OCR Design and $2.5 DP with No 3rd quarter The EA has
Implement a million attendant 2009 already
services engaged an
CFL
procured as agency
communication (Midas) for an
"related
campaign ongoing
services"
campaign*
(AP)
ADF Design, supply $2.0 NCB Turnkey No 4th quarter using single-
and install for million 2010 stage single
envelop
waste
turnkey
management method
facilitya
AP = Advance Procurement, ICB = International competitive bidding, CFL = Compact fluorescent lamp,
EA = Executing agency, NCB = National competitive bidding, OCR = Ordinary Capital Resources.
a
Recycling and disposal for all used fluorescent lamps.
* The campaign has similar scope and the agency hired is neither charging any overheads/profits to the EA nor any production cost
as long as no specific desires are made by the client with regards to model selection. The airtime charged is basically fixed rate for
government advertisements which is much less then the market rates. Existing contract with Midas already provided to COSO for
.
review
4. Consulting Services Contracts Estimated to Cost More Than $100,000

459. The following table lists consulting services contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.

Appendix 8
Funding General Description Contract Recruitment Advertisement International or Comments

1
Source Value Method Date National
(quarter/year) Assignment
ADF Management of $1.6 million QCBS (quality: 3rd quarter International and FTP
Investment Program cost ratio, 80:20) 2009 national AP
ADF Feasibility studies for $2.0 million QCBS (quality: 4th quarter International and FTP
subsequent Tranche cost ratio, 80:20) 2009 national
st
ADF Project monitoring $1.0 QCBS (quality: 1 quarter 2010 International and STP
and evaluation for million cost ratio, 80:20) national
Tranche 1
ADF Institutional $2.0 million TBD TBD TBD
Strengthening and
Capacity Building
ADF = Asian Development Fund, AP = Advance Procurement, FTP = Full technical proposal;
QCBS = Quality costbased selection, STP = Simplified technical proposal.
5. Goods and Works Contracts Estimated to Cost Less than $1 Million and
Consulting Services Contracts Less than $100,000
460. The following table groups smaller-value goods, works and consulting services contracts
for which procurement activity is either ongoing or expected to commence within the next
18 months.
Funding General Value of Number of Procurement/Recrui Comments
1
Source Description Contracts Contracts tment Method
(cumulative)
ADF a. Vehicles 0.20 2 Shopping
ADF b. Furniture and 0.10 Various Shopping

Office Equipment
ADF c. Tools and 0.10 Various Shopping
Maintenance
Equipment
6. Indicative List of Packages Required Under the Project

461. The following table provides an indicative list of all procurement (goods, works and
consulting services) over the life of the project. Contracts financed by the Borrower and others
should also be indicated, with an appropriate notation in the comments section.
General Estimated Estimated Procurement Domestic Comments
Description Value Number of Method Preference
(cumulative) Contracts Applicable
1. Goods
a. Compact 57.0 2 ICB Yes
florescent lamps
(2 packages)
b. Vehicles 0.20 2 Shopping No

Appendix 8
General Estimated Estimated Procurement Domestic Comments

Description Value Number of Method Preference
(cumulative) Contracts Applicable
c. Furniture and 0.10 various Shopping No
Office Equipment
d. Tools and 0.10 various Shopping No
Maintenance
Equipment
2. Turnkey
a. Design, supply 2.0 1 ICB Turnkey
and install for
lamp waste
management
facility
3. Consulting
Services
a. Management 1.6 1 QCBS FTP
of Investment (International)
Program
b. Feasibility 2.0 1 QCBS FTP
studies for (International)
Tranche 2
c. Project 6.0 1 QCBS STP
monitoring and (International)
evaluation for
Tranche 1
c. Institutional $2.0 million TBD TBD TBD
Strengthening and
Capacity Building
FTP = Full technical proposal, ICB = International competitive bidding, QCBS = Quality- and cost-based selection,
STP = Simplified technical proposal.
Sources: Asian Development Bank estimates.
B. NATIONAL COMPETITIVE BIDDING
1. General
462. The procedures to be followed for national competitive bidding shall be those set forth in
the Public Procurement Rules 2004 [S. R. O. 432 (1)/2004] issued on the 9th June 2004 by
the Public Procurement Regulatory Authority Ordinance 2002 (XXII of 2002) of the Islamic
Republic of Pakistan with the clarifications and modifications described in the following
paragraphs required for compliance with the provisions of the ADB Procurement Guidelines.
2. Registration
(i) Bidding shall not be restricted to pre-registered firms and such registration shall
not be a condition for participation in the bidding process.
(ii) Where registration is required prior to award of contract, bidders: (i) shall be
allowed a reasonable time to complete the registration process; and (ii) shall not

Appendix 8
be denied registration for reasons unrelated to their capability and resources to

successfully perform the contract, which shall be verified through post-
qualification.
3. Prequalification
463. Normally, post-qualification shall be used unless prequalification is explicitly provided for
in the loan agreement/procurement plan. Irrespective of whether post qualification or
prequalification is used, eligible bidders (both national and foreign) shall be allowed to
participate.
4. Bidding Period
464. The minimum bidding period is twenty-eight (28) days prior to the deadline for the
submission of bids.
5. Bidding Documents
465. Procuring entities shall use the applicable standard bidding documents for the
procurement of goods, works and services acceptable to ADB.
6. Preferences
466. No domestic preference shall be given for domestic bidders and for domestically
manufactured goods.
7. Advertising
467. Invitations to bid shall be advertised in at least one widely circulated national daily
newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight
(28) days for the preparation and submission of bids. NCB contracts estimated to cost
$500,000 or more for goods and related services and &1,000,000 or more for civil works will be
advertised on ADB’s website via the posting of the Procurement Plan.
8. Bid Security
468. Where required, bid security shall be in the form of a bank guarantee from a reputable
bank.
9. Bid Opening and Bid Evaluation

(i) Bids shall be opened in public.
(ii) Evaluation of bids shall be made in strict adherence to the criteria declared in the
bidding documents and contracts shall be awarded to the lowest evaluated
bidder.
(iii) Bidders shall not be eliminated from detailed evaluation on the basis of minor,
non-substantial deviations.
(iv) No bidder shall be rejected on the basis of a comparison with the employer's
estimate and budget ceiling without the ADB’s prior concurrence.
(v) A contract shall be awarded to the technically responsive bid that offers the
lowest evaluated price and no negotiations shall be permitted.

Appendix 8
10. Rejection of all Bids and Rebidding

469. Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.
11. Participation by Government-owned enterprises

470. Government-owned enterprises in the Islamic Republic of Pakistan shall be eligible to
participate as bidders only if they can establish that they are legally and financially autonomous,
operate under commercial law and are not a dependent agency of the contracting authority.
Furthermore, they will be subject to the same bid and performance security requirements as
other bidders.
12. ADB Member Country Restrictions

471. Bidders must be nationals of member countries of ADB, and offered goods and services
must be produced in and supplied from member countries of ADB.

Appendix 8
Appendix 9
SUMMARY FINANCIAL MANAGEMENT ASSESSMENT
OF TRANCHE-1 PROJECT ENTITIES
A. INTRODUCTION
472. In 1998, the Government of Pakistan formed the Pakistan Electric Power Company
(PEPCO) as a private limited management company owned by Government of Pakistan (GoP)
to manage and oversee the power sector reform program. PEPCO owns 100% shares of all ex-
WAPDA entities, which will continue until the completion of the privatization process. After the
successful completion of the corporatization process, PEPCO is now acting as a managing
agent for the ex-WAPDA entities on behalf of the Government. PEPCO had been instrumental
in preparing a conceptual framework and comprehensive strategy whereby WAPDA’s erstwhile
vertically integrated, monolithic Power Wing was restructured into fourteen (14) distinct
autonomous entities under the Pakistan Companies Ordinance, 1984. Under the restructuring
process, four thermal generation companies (GENCOs), one central National Transmission and
Dispatch Company (NTDC), and nine distribution companies (DISCOs) were formed through an
extensive corporatization process in which the assets and liabilities of these companies were
identified and separated, and separate boards of directors appointed to manage the affairs of
each new company. The aim of this transition was to instill a corporate and business culture in
these organizations through adoption of good business practices; enhancement of productivity
and efficiency, including a customer-oriented service culture; improving quality of services
setting performance targets; and reducing costs, power theft and wastage. Besides these
improvements, efforts are also being made to install effective management information systems
for administration, monitoring, and prudent decision-making through extensive use of modern
information technology.
473. A restructuring plan is being implemented at PEPCO/DISCOs to improve the efficiency
of the power sector and to meet customers’ electricity requirements on a sustainable and
environmentally-friendly basis. The DISCOs now are fully empowered to devise and undertake
developmental projects in their respective areas of jurisdiction. PEPCO has directed the
DISCOs to accelerate their payment recovery campaigns and to initiate action against power
theft as well as to avoid overloading in the system. All DISCOs and GENCOs are wholly-owned
by Government of Pakistan, with the President of Pakistan as the shareholder. PEPCO, being
the management company of DISCOs and GENCOs, has seats on the Boards of Directors of all
DISCOs and GENCOs.
474. Although PEPCO’s role should be advising rather than directing DISCOs, currently the
role of PEPCO appears to be the latter. This is, in part, because of the poor financial situation
of the distribution sector in general and of some DISCOs in particular. The influence of PEPCO
has grown with the recruitment of higher caliber personnel and the transfer of some functions
(e.g., IT, finance, statistical) from WAPDA to relevant experienced professionals.
B. ORGANIZATION STRUCTURE OF DISCOS
1. Corporate Governance
475. All DISCOs are incorporated as public limited companies, wholly owned by the
Government of Pakistan (GoP) except for the Karachi Electric Supply Corporation (KESC),
which was privatized in late 2005 and is now under private management. All of the remaining
eight DISCOs have been working in accordance with predefined organizational structures
defined by PEPCO for this purpose. Articles of Association for each DISCO specify that their

Appendix 9
respective Boards of Directors (BoD) should comprise of no less than seven members, who are
appointed for a term of three years each. Board meetings are held every quarter and the
minimum quorum is three members.
476. The BoD of each DISCO consists of the DISCO’s Chief Executive Officer (CEO),
members from the private sector, and representatives from WAPDA or PEPCO. In all cases, in
accordance with generally accepted good corporate governance, the Chairman is from the
private sector. At least three members, in some cases four, of each BoD are drawn from the
private sector (Table A9.1). Independent Board members can contribute significantly to
decision-making by bringing an objective evaluation of the performance of the BoD and
management of the company. In most DISCOs, the Company Secretary’s role of handling legal
and corporate affairs does not exist independently and is undertaken by a Finance Director,
while in some it is assigned to a separate individual who performs these functions. Each
DISCO has a Human Resources (H) Division which maintains job descriptions for each position,
rules of conduct, and policy of annual declaration of assets. The HR division also ensures that
the DISCO’s HR policies are effectively implemented.
Table A9.1: Composition of DISCO Boards

FESCO GEPCO HESCO IESCO LESCO MEPCO PESCO QESCO
Total Directors To be 7 7 7 7 7 7 7
included
DISCO CEO 1 1 1 1 1 1 1
WAPDA/PEPCO 3 3 2 3 3 3 3
Private Sector 3 3 4 3 3 3 3
Source: Pakistan’s nine electricity distribution companies.
477. All DISCOs have an Audit Committee comprising at least two members from the BoD,
either from the private sector or from PEPCO. The purpose of the Audit Committee is to
oversee the company’s financial reporting and audit processes. The Committee’s prime
purposes are to ensure the integrity of the company’s financial statements; compliance with
legal and regulatory requirements; the external auditor’s qualifications, independence and
performance; and the autonomy and efficiency of the internal audit function. This role is
undertaken more diligently than others in some DISCOs. But a number of recommendations
related to systemic improvements remain unaddressed due to continued financial constraints
and a general lack of professional capacity at the middle and lower management levels.
All DISCOs operate according to a Book of Financial Powers setting out the rules governing
corporate transactions. This was developed by WAPDA for use during the transition period and
listed in it are authority limits for works; purchase and repairs of tools; purchase and issue of
stores and local consultancy services; contingency expenditures, such as purchase of stationary,
transport services, hiring of buildings, utility payments; disposal of property, payment of
advances to employees; miscellaneous powers; powers to write off losses; and payment of
compensation. It was developed to bring financial powers in line with the requirements of the
functional responsibilities of officers with a view to achieving optimum operational efficiency.
The powers set out were approved by the Board of WAPDA. It is intended that as the DISCOs
become fully financially autonomous, their Boards will be free to amend these powers as they
consider appropriate.

Appendix 9
2. Organization
478. PEPCO has prescribed a standard organizational structure to be followed by all DISCOs
to ensure that their functions and activities are effectively managed. All DISCOs are currently
organized in this way, with minor exceptions made to suit local circumstances. The prescribed
organization chart showing direct reporting lines to the Chief Executive Officer is given in
Figure A9.1.
Figure A9.1: PEPCO-Prescribed Organizational Structure for DISCOs
Board of
Directors
Chief Executive
Officer
Company Manager,
Secretary Internal Audit
Finance Technical HR & Admin. Cust. Services Operations

Director Director Director Director Director
Manager MIS
Source: Pakistan Electric Power Company (PEPCO).
3. Financial Management Assessment and Recommendations

479. An assessment was conducted to evaluate the financial management capability of
PEPCO and the DISCOs’ to undertake and fulfill ADB’s fiduciary requirements for the identified
Tranche-1 project for which they will act as the executing (EA) and implementing agencies (IAs),
respectively. Financial management assessment questionnaires and field interviews were used
to review the present capacity and management strengths and weaknesses at PEPCO and all
DISCOs.
480. At PEPCO and each DISCO, Finance Directors have either recently been recruited from
the private sector or otherwise have a long service record in the Pakistan electricity industry.
The Finance Directors who have recently moved in from the private sector, in certain cases,
lack relevant power industry experience since there was no power utility company operating in
the private or semi-private sector of the country previously, except for some private power
generation units. Hence, such professionals have taken some time to learn the business add
real value in the overall financial management framework of the DISCOs.
481. There have been positive improvements in the quality of top management of the
DISCOs recently, but there is a substantial need for improvement in the development of
professional human resources at the middle and lower management levels. This can only be
achieved through investment in projects which would contribute to the financial sustainability of
DISCOs on an overall basis. Furthermore, there are a number of other accounting staff
employed at each DISCO who possess good public sector utility accounting experience. As a
general observation, it can be stated that the finance staff currently employed within the

Appendix 9
DISCOs have the requisite experience to undertake effective financial accounting of the EEIP
project, but their capacity to deal effectively with the financial management requirements vary
from DISCO to DISCO, depending on the qualifications and experience of the relevant financial
management teams. Based on preliminary assessments, the financial systems currently
implemented at the DISCOs are deemed sufficient for the proper recording of funds, their
sources and utilization, and to ensure that related assets and liabilities are reflected in the
financial statements of each DISCO properly. On an overall basis, the existing financial
management capacity could be relied upon in various DISCOs, but in case of HESCO, PESCO,
MESCO and QESCO, there is potential for further improvement. These DISCOs would benefit
from external assistance in capacity building in financial management.
482. Financial accounting is carried out on an annual basis with Profit and Loss Accounts,
Balance Sheets and Cash Flow Statements. The financial year ends on 30 June. Financial
statements are prepared on accrual basis in accordance with international accounting standards.
The companies have different external auditors, but all accounts for the year ending 30 June
2006 were signed by external auditors, representing an accurate appraisal of the companies’
financial affairs. Annual budgets are prepared in line with tariff-advised cost heads and levels
and are approved by the Board of Directors. The Finance Director and the CEO keep track of
the budgeted costs on a monthly basis and respond to the need for any variations. However,
such budgets are not monitored by the DISCOs’ Board of Directors. Accounting is a mix of
manual and PC-based systems. In some DISCOs, book-keeping is in a transitional stage, in the
process of moving to automated accounting applications. Fiduciary risks are addressed through
controls and treasury management, including dual signatories for operations of bank accounts,
strictly compliance with authority levels, payments only against allocated budgetary provisions,
and preparation of bank reconciliation statements on periodic basis.
483. The extent of management accounts varies across the DISCOs, but annual budgets are
prepared for expenditure items and performance against budgets reviewed on a regular basis.
484. The DISCOs inherited their accounting systems from WAPDA, and these involve a great
deal of manual intervention. Nevertheless, the DISCOs are able to properly record all financial
data necessary for preparing accounts amenable to external auditing according to a standard
Chart of Accounts. Controls within the systems could be considered weak at the present time,
providing opportunities for fraud. All DISCOs are actively seeking to improve accounting and
management information systems and controls, and some are advanced in the selection and
planning of the use of computerized systems. This process should improve the accuracy,
timeliness and relevance of the financial and management information produced.
485. Although the DISCOs were unbundled from WAPDA several years ago, they continue to
be financially dependent on WAPDA. Despite having their own bank accounts, the cash
collected by the DISCOs has in the past been controlled by WAPDA, although there are
currently moves to change the situation.
486. The GoP determines the tariffs end users pay for electricity, which may be lower than
the tariffs determined by the regulatory agency NEPRA, with the Government contributing the
difference as subsidy to the DISCOs. Consumer tariffs have not been increased in line with
cost of service delivery, generally resulting in insufficient revenues for the DISCOs to cover their
costs. DISCOs are, therefore dependent upon Government support for their financial
sustainability. A move towards tariff structures that do not rely upon Government support would
give customers clearer cost signals and provide the DISCOs with greater financial
independence. This may, however, be politically unacceptable at the current time. The
DISCOs are also dependent upon NEPRA providing prompt and fair tariff determinations.

Appendix 9
487. All DISCOs have an Internal Audit department, but the head of this department reports
to the DISCO Chief Executive Officer rather than to the Board of Directors, as is considered
general good practice. The audits performed tend to be in the form of transaction audits, with
great emphasis on adherence to rules and regulations, and are based on an Audit Manual that
was prepared by WAPDA in 1984. The approach clearly needs to be updated to incorporate
structured procedures for undertaking full reviews of the internal control systems.
488. At the moment, PEPCO being the management company has management contracts
with DISCOs and GENCOs as part of which a management fee is charged and collected from
the latter. The assets and liabilities of DISCOs and GENCOs are not consolidated in the
financial statements of PEPCO, since it is not the holding company. For the purpose of the
Tranche-1 CFL project, since it is envisaged that funds will flow through PEPCO and PEPCO
will be the EA which will perform bulk procurement of CFLs and then allocate them to each
DISCO for distribution to individual households, there will be a need for an on-lending
agreement between PEPCO and all DISCOs, including terms related to the value of loan,
chargeable interest rates, and amortization schedules. Furthermore, since the economic benefit
will be realized through subsidy savings and additional revenues for the DISCOs, all DISCOs
and PEPCO will have to maintain management accounts to reflect total project costs incurred
during the project period and its related realized economic benefits. As per discussions with the
representatives of the finance department of PEPCO, it will be possible for PEPCO and DISCOs
to maintain such management reports on the basis of actual technical and financial information
currently generated through their existing MIS.
C. MANAGEMENT ASSESSMENT WITH RESPECT TO DISTRIBUTION OF CFLS
1. Description of the Project

489. The project involves purchase of 30 million CFLs under the tranche-1 of EEIP for all
DISCOs and KESC. The cost of CFLs will be borne by the GoP. PEPCO will purchase the
CFLs in bulk on behalf of GoP and get the CFLs delivered at about four regional/field store
locations for each DISCO. DISCOs will only be responsible for the distribution of CFLs to
residential customers in their respective jurisdiction.
490. In order to comply with the requirements prescribed by the Executive Board of Clean
Development Mechanism (EB CDM), the customers are obligated to return the equal number of
IBs in use for the CFL received by them. The IBs will be returned to regional/field stores where
they will be destroyed and disposed of after third party verification. For distribution of CFLs,
DISCO’s will be responsible for:
(i) printing and distribution of vouchers;
(ii) transportation and delivery of CFLs to all eligible households;
(iii) collection and disposal of all incandescent bulbs replaced;
(iv) Facilitation of project monitoring and evaluation, including collection and analysis
of redeemed vouchers.
491. DISCOs will receive 30 million CFLs in two rounds of procurement. DISCO-wise number
of customers and CFL distribution has been provided in Table A9.2.

Appendix 9
Table A9.2: DISCO-wise Number of Customers and CFL Allocation
(Million)
Residential
2.41 1.97 2.33 1.63 3.27 2.10 1.14 0.36 1.50 16.8
Customers
CFL
Allocation
Round 1 1.4 1.2 1.4 1.0 1.9 1.3 0.7 0.2 0.9 10.0
Round 2 2.9 2.3 2.8 1.9 4.0 2.5 1.4 0.4 1.8 20.0
Total 4.3 3.5 4.2 2.9 5.9 3.8 2.1 0.6 2.7 30.0
492. These CFLs will be distributed over a span of 15 months to achieve full saving potential
before the demand reaches its maximum during the summer of FY2011. With average
distribution of two CFLs per customer, DISCO’s will be required to distribute CFLs to its
customers at the rate of 40-45 customers per day per Sub-division. Assuming an average time
of 15 minutes per customer to complete the transaction over six hour of field time in day, each
Sub-division will need at least two teams of two persons each to meet the distribution targets.
Owing to shortage of staff in most of Sub-divisions, the Sub-divisional management cannot
spare four persons and allied logistical resources for such extended period for distribution of
CFLs without compromising on their routine activities. Therefore, it was envisaged that a blend
of DISCO’s permanent and contingent staff will be used for the CFL distribution. Similarly,
vehicles and associated fuel will have to be arranged through contingent allocation of funds.
2. CFL Procurement
493. PEPCO will procure CFLs in two rounds, 10 million in round-I and 20 million in round-II.
Both rounds of CFL procurement shall be carried out under international competitive bidding
(ICB) method by PEPCO in accordance with ADB’s Procurement Guidelines. For purposes of
procurement, shipment inspection and distribution to the distribution utilities, a separate
Procurement Committee (PC) shall be formed, headed by PEPCO and with representatives
from DISCOs, Pakistan Standards and Quality Control Authority (PSQCA), and EEIP M&E staff.
Endorsement by the PC shall be required for the design of bidding documents and
specifications, award of supply contracts, pre- and post-shipment inspection and quality tests,
and allocation of CFL consignments to various DISCO’s regional distribution points. Spot
checks on the CFLs delivered at the port shall be conducted by an independent accredited
agency, such as the Pakistan Council for Scientific and Industrial Research (PCSIR), contracted
specifically for this purpose under predetermined sampling protocols.
3. Management System of DISCOs

494. After delivery of CFLs at regional/field store, CFLs will be stored in the containers at the
stores in accordance with the normal inventory management procedures. The existing PMUs
will be responsible for management of distribution of CFLs through Sub-divisional staff. The
PMUs in each disco will assess the CFL allocation to each Sub-division on the basis of number
of customers in each Sub-division. Sub-divisional staff will directly receive CFLs from the
regional/field stores and mange the CFL distribution in their respective areas.

Appendix 9
ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 443
D. IN
NVENTORY
Y MANAGEM
MENT SYST
TEM OF DISCOS
495. DISOC’s
D Inventory syste em is mana aged by Ma aterial Mana agement Directorate (M MMD)
which se erves the invventory needds through itts regional and
a field sto orage systemm. MMD of each
DISCO manages
m the
e inventory needs
n of their respective
e circle and sub-division
s al needs thrrough
its region
nal and field stores. Totaal number of regional annd field store
es of each DISCO
D variess and
subject too DISCO’s jurisdiction area.
a Organizational structure of DISCO’s MMD D has been given
g
in Figuree A9.2.
Figure A9.2: Struc

cture of Material Manag
gement Dire
ectorate (MM
MD)
E. S
STORE MAN
NAGEMENT
T SYSTEM
1. R
Regional Sto
ores
496. AllA the consiignments fro
om supplierr are delivered to regio onal stores where inve entory
records are maintained manually as well as through Computerizzed Store In nventory Syystem
which is integrated with
w central inventory ma anagement system
s of DISCOs.
D Re
egional store es are
responsible to meet the stock requisitions
r of field store
e as well ass direct delivveries to va
arious
project co
onstruction sites.
s
497. AllA the transa actions betw
ween stores and projectts sites are recorded an nd transferre
ed to
the centrral computerrized store inventory sysstem on forttnightly basis. Managem
ment structu
ure of
the regio
onal stores is
s presented in Figure A99.3.
Asian Dev
velopment Ban
R
Appeendix 9
444 ADB TA 7060-PAK:
7 Pak
kistan Sustain
E Dev
velopment Pro
ogram
Fiigure A9.3: Manageme

ent Structure
e of Region
nal Stores
2. Field Stores
498. Field stores are
a responssible to serve e the stock requirementts of field op
perations. Stock
S
requirem
ments from Sub-division
S ns are forew warned to field
f stores through divvisional man nager
which is subsequenttly issued to the sub-divvisions. Sch
hematic diag
gram to rece eipt and issu
uance
of material has been presented in Figure A9 9.4.

Appendix 9
ADB TA 70
060-PAK: Pak
kistan Sustaina
E Development Pro
ogram 445
Figure A9.4:
A Schem
matic Diagra
am to Receipt and Issuance of Material
499. All
A the field stores in the DISCOs have a uniform
m organizatio
onal structurre. The stan
ndard
Organogram for the field
f stores has
h been pre
esented in Figure
F A9.5..
Figure A9.5
5: Standard
d Organogra
am for Field
d Stores
500. TheT present MMD and their resources are fu ully capable to handle the inventoory of
delivered
d CFLs. Th he storage ofo CFLs could be an isssue in the existing
e ding but the CFL
build
containers could eas
sily be stored
d at most of the locations in the DISC
COs.
3. C
CFL Distribu
ution Strategy
501. TheT PICs will be responssible for the design and d implementa ation of their respective
e CFL
distributio
on strategies, mechanissms, and facilities, incluuding measu ures for the recovery off IBs,
voucherss, and their accounting and
a transpo egional collection centerrs. The num
ortation to re mbers
of vouchers and IBs collected byy the utilitiess shall be ve
erified by PE
EPCO and project
p M&E E staff
Asian Dev
velopment Ban
R
Appeendix 9
before their destruction and disposal at predetermined locations. The printing, distribution, and
redemption of vouchers shall be handled in a uniform manner by all utilities, as agreed upon at
the project outset between PEPCO, DISCOs, KESC and the EEIP PMU. Voucher redemption
analysis shall be carried out by each utility under supervision of PEPCO, project consultants,
and M&E staff and consolidated into a central database accessible to all concerned entities.
4. CFL Publicity Campaign

502. The EEIP PMU shall separately contract with one or more prequalified communications
firm with the requisite experience of designing and conducting national tri-media publicity and
social mobilization campaigns for the development and implementation of the project’s
communication project. These contracts will be executed separately for each round of CFL
distribution, and will commence in advance of the distribution and continue until its completion
by each DISCO. The effectiveness of the communications strategy shall be gauged during and
after each round by the project M&E personnel via consumer surveys.
F. CFL DISTRIBUTION MECHANISM AND RESOURCE REQUIREMENTS
503. CFLs will be distributed over a span of 15 months with an average of two teams per
Sub-division. DISCO will need a total of 2,986 teams of two persons to successfully implement
the project. Details of required resources and their expected costs are given in the Annexure –
1 whereas, component wise description is provided in the following sections.
G. MANPOWER POWER REQUIREMENTS
504. The estimated man power required to implement the project is 5,972 including skilled
and semiskilled staff and drivers for mini-trucks. Owing to staff constraints, DISCOs will hire
staff on contractual basis during project implementation period of 15 months under the
applicable labor laws of Pakistan. Average estimated cost of contracted staff is Rs.
11,000/person/month whereas Project allowance of Rs. 3,000/person/month will be given to the
IESCO staff participating in project implementation. Details of manpower requirements and
their estimated costs are given in Table A9.3.
Table A9.3: Detailed Estimates of Manpower Requirements and Related Costs
Estimated Man LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
power
Requirements
Utility Staff 326 330 220 100 400 450 222 53 300 2,401
Contracted Staff 326 330 440 300 800 300 444 80 300 3,320
Drivers 32 22 19 30 40 30 35 11 32 251
Total 684 682 679 430 1,240 780 701 144 632 5,972
Estimated Costs
Utility Staff 14.67 14.85 9.90 4.50 18.00 20.25 9.99 2.39 13.50 108.05
Contracted Staff 53.79 54.45 72.60 49.50 132.00 49.50 73.26 13.20 49.50 547.80
Drivers 4.80 3.30 2.85 4.50 6.00 4.50 5.25 1.65 4.80 37.65
Total (Rs Million) 73.26 72.60 85.35 58.50 156.00 74.25 88.50 17.24 67.80 693.50
Total ($ Million) 0.92 0.91 1.07 0.73 1.95 0.93 1.11 0.22 0.85 8.67

Appendix 9
H. LOGISTICS ARRANGEMENTS
505. The logistic support required for CFL distribution will be arranged through proposed
vehicle purchases including mini-trucks for each division for bulk transportation to respective
sub-divisions and motorbikes one for sub-division. Cost of motorbikes includes the necessary
modifications required to carry the CFLs to households.
506. Average monthly maintenance cost of Rs. 5,000 and Rs. 500 has been allocated for
tucks and motorbikes respectively.
507. Considering the operational area of each sub-division average monthly fuel of 500 liters
and 100 liters have been allocated for trucks and motorbikes respectively assuming a diesel
price of Rs. 62.65/liter and Rs. 62.13/liter for petrol. Detailed estimates of vehicles and the
related costs are presented in Table A9.4.
Table A9.4: Detailed Estimates of Vehicle Requirements and Related Costs
Estimated Logistics
Requirements
Vehicles
Mini-trucks 32 22 19 30 40 30 35 11 32 251.00
Motor bikes with
326 220 110 100 400 150 222 42 300 1,870.00
modified carriers
Estimated Cost of
Vehicles
Mini-trucks 32.00 22.00 19.00 30.00 40.00 30.00 35.00 11.00 32.00 251.00
Motor bikes 24.45 16.50 8.25 7.50 30.00 11.25 16.65 3.15 22.50 140.25
Maintenance Expense
Mini-trucks 2.40 1.65 1.43 2.25 3.00 2.25 2.63 0.83 2.40 18.83
Motor bikes 2.45 1.65 0.83 0.75 3.00 1.13 1.67 0.32 2.25 14.03
Fuel/POL Expense
Mini-trucks 15.04 10.34 8.93 14.10 18.80 14.10 16.45 5.17 15.04 117.94
Motor bikes 30.64 20.67 10.34 9.40 37.59 14.10 20.86 3.95 28.19 175.73
Total (Rs. Million) 106.97 72.81 48.76 63.99 132.39 72.82 93.25 24.41 102.38 293.67
Total ($ Million) 1.34 0.91 0.61 0.80 1.65 0.91 1.17 0.31 1.28 8.97
1. Other Expenses
508. CFL distribution includes the collection of replaced Incandescent Bulbs (IBs) and to
qualify for CDM benefits replaced IBs must be in operating conditions therefore, IBs boxed will
be purchased from market at a price of Rs.1.00/IB box.
509. CFLs distribution voucher will be used for accounting purposes and to avoid mall
distribution. All utilities have the in-house printing capacity and the vouchers will be printed as
part of the bill therefore no additional printing equipment is required. However, considering the
additional printing on bill, large sized paper will be used than the usual size therefore, Rs.0.5/bill
has been allocated to account for the additional printing expenses.

Appendix 9
510. To account for unforeseen expenses, 10% contingencies have been assumed on the
total CFL distribution cost. Utility wise details of other expenses have been presented in
Table A9.5
Table A9.5: Utility-Wise Details of Other Expenses
Others LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
IB Boxes 4.09 3.33 3.99 2.76 5.61 3.61 2.00 0.57 2.57 28.50
Voucher Printing 1.02 0.83 1.00 0.69 1.40 0.90 0.50 0.14 0.64 7.12
Contingency 18.53 14.96 13.91 12.59 29.54 15.16 18.42 4.24 17.34 144.69
Total (Rs. Million) 23.64 19.11 18.90 16.04 36.55 19.67 20.92 4.95 20.54 180.31
Total ($ Million) 0.30 0.24 0.24 0.20 0.46 0.25 0.26 0.06 0.26 2.25
2. Financing Arrangements for Distribution Cost

511. The CFL replacement project is expected to generate significant energy savings and
subsequent cash inflows, sufficient to pay back the investment costs in less than two years and
additional revenues over the project life, making the investment reasonably secure and viable.
512. However, the investment share of each DISCO ranges between 2%-5% of the
distribution margin which makes a significant proportion of annual operation income and it would
be difficult for DISCOs to make upfront arrangements for investment cost from their ordinary
business resources. However, DISCOs can meet this additional funding through receipt of
funds through sale of Certified Emission Reductions (CERs) under the Clean Development
Mechanism (CDM). The DISCOs therefore should be allowed to retain the CDM benefits.

Appendix 9
Table A9.6: Details of CFL Distribution Cost
Estimated Man power LESCO GEPCO FESCO IESCO MEPCO PESCO HESCO QESCO KESC Total
Requirements
Utility Staff 326 330 220 100 400 450 222 53 300 2,401
Contracted Staff 326 330 440 300 800 300 444 80 300 3,320
Drivers 32 22 19 30 40 30 35 11 32 251
Total 684 682 679 430 1,240 780 701 144 632 5,972
Estimated Costs
Utility Staff 14.67 14.85 9.90 4.50 18.00 20.25 9.99 2.39 13.50 108.05
Contracted Staff 53.79 54.45 72.60 49.50 132.00 49.50 73.26 13.20 49.50 547.80
Drivers 4.80 3.30 2.85 4.50 6.00 4.50 5.25 1.65 4.80 37.65
Total (Rs Million) 73.26 72.60 85.35 58.50 156.00 74.25 88.50 17.24 67.80 693.50
Total ($ Million) 0.92 0.91 1.07 0.73 1.95 0.93 1.11 0.22 0.85 8.67
Estimated Logistics
Requirements
Vehicles
Mini-trucks 32 22 19 30 40 30 35 11 32 251.00
Motor bikes (modified) 326 220 110 100 400 150 222 42 300 1,870.00
Estimated Cost of
Vehicles
Mini-trucks 32.00 22.00 19.00 30.00 40.00 30.00 35.00 11.00 32.00 251.00
Motor bikes (modified) 24.45 16.50 8.25 7.50 30.00 11.25 16.65 3.15 22.50 140.25
Maintenance Expense
Mini-trucks 2.40 1.65 1.43 2.25 3.00 2.25 2.63 0.83 2.40 18.83
Fuel (POL) Expense
Mini-trucks 15.04 10.34 8.93 14.10 18.80 14.10 16.45 5.17 15.04 117.94
Total (Rs Million) 106.97 72.81 48.76 63.99 132.39 72.82 93.25 24.41 102.38 293.67
Total ($ Million) 1.34 0.91 0.61 0.80 1.65 0.91 1.17 0.31 1.28 8.97
Others
IB Boxes 4.09 3.33 3.99 2.76 5.61 3.61 2.00 0.57 2.57 28.50
Voucher Printing 1.02 0.83 1.00 0.69 1.40 0.90 0.50 0.14 0.64 7.12
Contingency 18.53 14.96 13.91 12.59 29.54 15.16 18.42 4.24 17.34 144.69
Total (Rs Million) 23.64 19.11 18.90 16.04 36.55 19.67 20.92 4.95 20.54 180.31
Total ($ Million) 0.30 0.24 0.24 0.20 0.46 0.25 0.26 0.06 0.26 2.25
Grand Total 203.87 164.52 153.01 138.53 324.93 166.74 202.67 46.59 190.72 1,591.58
(Rs Million)
Grand Total ($ Million) 2.55 2.06 1.91 1.73 4.06 2.08 2.53 0.58 2.38 19.89

Appendix 9
Appendix 10
TRANCHE-1 PROJECT FINANCIAL ANALYSIS
A. INTRODUCTION
513. The financial analysis of the proposed subprojects under Tranche 1 has been carried out
in accordance with ADB’s Financial Management and Analysis of Projects. All financial costs
and benefits have been expressed at a constant mid 2009 price level. Cost streams used for
the purposes of financial internal rate of return (FIRR) determination, i.e. capital investment,
CFL distribution, etc. reflect costs of delivering the estimated benefits.
B. ASSUMPTIONS
514. The FIRR has been calculated for the procurement and distribution of 30 million CFLs in
Pakistan. Capital costs were estimated in Pakistan rupees using prices prevailing in mid 2009,
expressed in constant prices. Capital costs were derived from local sources which include
physical contingencies and price contingencies and interest during implementation were
excluded in the estimation of capital costs for the purpose of the FIRR.
515. Financial viability was examined by comparing the incremental costs and benefits with
and without investment scenarios. The CFL program’s incremental benefits arise from the
increased energy efficiency of household lighting, resulting in a reduction in subsidies that are
being provided to ratepayers who pay below market electric rates. Another incremental benefit
accrues from the sale of the saved energy to other consumers (Table A10.1). The estimated
saved energy per customer class was converted into monetary terms based on the tariff
schedule notified in February 2009. Other incremental benefits include the reduced evening
peak load resulting from the reduced demand for lighting during evening peak hours, and
deferred investment in new thermal generating plants and the consequent deferred carbon
emissions. It is assumed that benefits will accrue beginning in FY2010, when a first distribution
of 10 million CFLs will occur over a six month period. A second 20-million CFL distribution will
occur in FY2010 or 2011.
Table A10.1: Financial Benefits of Tranche-1 CFL Program
Custome Number of Units Tariff Subsidy Cost of Average Energy Subsidy DISCO Profit
r Class – customers Sold Revenu Received Service Tariff sevings Savings from Excess
Usage in GWh e Rs mil / Paid Rs/kWh Rs/kWh per class Rs Sales
kWh Rs GWh/yr
< 50 5,767,943 1,911 2,676 8,354 5.77 1.40 793 3,465,233,436 (1,538,551,053)
51-100 4,012,649 3,051 9,852 8,268 5.94 3.23 551 1,493,800,400 (1,661,035,597)
101-300 5,040,193 12,789 62,670 18,558 6.35 4.90 693 1,005,262,703 (63,206,847)
301-700 583,950 7,584 60,441 (11,518) 6.45 7.97 80 (121,907,990) 3,925,032,553
>700 107,109 2,892 28,926 (9,810) 6.61 10.00 15 (49,897,357) 2,036,766,304
Total 15,511,844 28,227 164,565 13,852 2,132
Total Annual Revenue (Rs) 5,792,491,192 2,699,005,361
Total Annual Revenue (SUS) 72,406,140 33,737,567
516. For the analysis, it was assumed that projected growth in electricity demand will continue
to exceed supply, and that all energy saved by the CFL Program will generate income to the
DISCOs through reduced subsidies and the sale of the saved energy to other users for at least

Appendix 10
9 years. Transmission and distribution savings that normally accrue to energy efficiency
projects are assumed to be zero as all saved energy will be distributed to other users and the
current T&D losses will be unchanged.
517. A CFL unit cost of $1.87 is an ADB estimate. The actual cost will be generated through
a competitive bid. CFL distribution costs were calculated based on estimated cost of DISCO
employees distributing the CFLs door to door within their respective service territories. Voucher
printing costs were estimated based on the marginal cost of printing the vouchers as part of the
normal printing of utility bills. Communication and marketing costs were estimated based on the
costs of these activities in CFL programs in other countries.
C. WEIGHTED AVERAGE COST OF CAPITAL
518. For estimating the weighted average cost of capital (WACC), it is assumed that the ADB
and ADF will finance 64% of the Tranche 1 project using from OCR. The Government of
Pakistan would on-lend the funds in Rupees to DISCOs at 15% and will bear the foreign
exchange risk. The other assumption includes a 2010 inflation rate on international funds of
1.0% and Pakistan of 6%. The WACC for the Investment Program is 11.4% (Table A10.2.)
Table A10.2: Combined Weighted Average Cost of Capital
($ Million)
Item Financing Component

ADB AFD Government Total
A. Amount 65.0 25.0 20.0 110.0
B. Weighting 39.4% 24.6% 36.0% 100.0%
C. Nominal cost of funds 15.0% 15.0% 13.5%
D. Tax rate 0.0% 0.0% 0.0%
E. Tax-adjusted nominal cost 15.0% 15.0% 13.5%
F. Inflation rate 1.0% 1.0% 6.0%
G. Real cost 13.9% 13.9% 7.1%
H. Weighted component of WACC 5.5% 3.4% 2.5% 11.4%
WACC 11.8%
ADB = Asian Development Bank, CEF = Clean Energy Fund, GEF = Global Environment Facility, WACC = Weighted average
cost of capital.
Onlending rate assumed at 15%.
Government rate assumed at 6-month KIBOR.
D. FINANCIAL INTERNAL RATE OF RETURN
519. Calculated from the financial benefits in Table A10.3, the FIRR of the Project is 110.38%,
calculated by including the capital costs of the Project and the financial benefits. The high FIRR
is due to the strong financial benefits of CFLs in the Pakistan electric power system, particularly
the reduced subsidies afforded by energy savings in the households of ratepayers paying
below-market rates. The FIRR exceeds the weighted average cost of capital, and therefore, the
project is financially viable.

Appendix 10
Table A10.3: Financial Analysis of CFL Program

($ Million)
Year Project Subsidy Profit from Gross Cash Flow After Net Cash Flow to
Capital Cost Savings Excess Expected Debt Service Project
Sales Revenue
0 (31,877,333) (31,877,333)
1 (63,754,667) 24,135,380 11,245,856 35,381,236 35,381,236 (28,373,431)
2 72,406,140 33,737,567 106,143,707 106,143,707 106,143,707
3 72,406,140 33,737,567 106,143,707 106,143,707 106,143,707
4 72,406,140 33,737,567 106,143,707 106,143,707 106,143,707
5 72,406,140 33,737,567 106,143,707 106,143,707 106,143,707
6 72,406,140 33,737,567 106,143,707 106,143,707 106,143,707
8 72,406,140 33,737,567 106,143,707 106,143,707 106,143,707
8 48,270,760 22,491,711 70,762,471 70,762,471 70,762,471
CFL = Compact fluorescent lamp.
E. SENSITIVITY ANALYSIS
520. A sensitivity analysis has been carried out by (i) reducing benefits by 10%, (ii) reducing
benefits by 30%, (iii) increasing costs by 10% (iv) reducing benefits and increasing costs by
10%. The results are presented in Table A10.4.
Table A10.4: Sensitivity Analysis
Sensitivity Parameter FIRR Switching Value
Base Case 110.38% [N.A.To be included]
Reduce benefits by10% 99.09% [N.A.To be included]
Reduce benefits by 30% 76.22%
Increase costs by 10% 100.12% [N.A.To be included]
Reduce benefits by 10% and increase costs by 10% 87.79% [N.A.To be included]
FIRR = Financial internal rate of return, NA = Not applicable.
521. The sensitivity analysis reveals that the project is attractive even in the event that both
benefits and costs change to its disadvantage by 10%.
F. RISK ANALYSIS
522. Regulatory or tariff revision high for this tranche is low. Tariff increases could reduce
subsidies and thus energy savings at subsidized households will not yield as much income to
the DISCOs. However, the life-line tariff (0-100kwh) is not likely to be raised quickly and this is
the segment with the largest number of IB users. The largest risk in the CFL program is theft of
CFLs, although if stolen CFLs are used in Pakistan, they will still generate savings and
contribute to peak reduction.

Appendix 10
523. Geopolitical and political risks are present as for all projects in Pakistan. However, the
high number of households involved and their geographical spread lessen the risk of significant
energy savings not accruing.

Appendix 10
Appendix 11
SUMMARY OF ECONOMIC ANALYSIS
A. ECONOMIC ASSUMPTIONS
524. The economic analysis of the Pakistan Sustainable Energy Efficiency Investment
Program (EEIP) has been carried out in line with a standard cost–benefit analysis framework
and in accordance with Asian Development Bank Guidelines for the Economic Analysis of
Projects.65 Since economic costs and benefits occur at different points in time, an economic
discount rate of 12% is used to reflect the time factor and enable all economic costs and
benefits to be expressed and compared in constant April 2009 prices. The exchange rate in
Pakistan is a managed floating rate, i.e., it is allowed to fluctuate in the exchange market within
prescribed ceiling and floor values. No adjustments were therefore applied to it. The rate used
was PRs 80/$, which was the average for month of April 2009.
525. A managed floating exchange rate does not imply that there are no distortions (taxes,
duties, and subsidies) in the balance of payments. Therefore, a standard conversion factor
(SCF), determined for Pakistan at 0.92, was applied to all domestic prices.
526. The ‘base case’ oil price was taken as $50/bbl, which was the average for April 2009.
Corresponding actual petroleum product prices were used and market rates were corrected for
taxes, levies, and distortions.
B. PROJECT COST-BENEFIT ANALYSIS
527. Project components complement each other in reducing energy consumption in the
country. The six projects identified include distribution of compact fluorescent lamps (CFLs) in
the domestic sector; upgrades in the national gas transmission and distribution systems;
reduction in thermal power generation losses; energy efficiency retrofits in government
buildings; replacement of domestic gas appliances; and replacements and modifications in
machinery and equipment to improve energy performance in the industrial sector. In this
analysis, the economic benefits of the projects are taken as the value of electricity, natural gas,
oil, and coal saved by introducing energy efficient replacements and retrofits in the targeted
sectors.
C. EVALUATION OF PROJECT COSTS AND BENEFITS
1. Project Costs
528. The capital costs of the project to society are the costs of equipment, procurement and
project implementation. They include physical contingencies, but exclude interest during
construction and price contingencies. The total project cost is expressed in 2009 prices.
529. The operating and maintenance (O&M) costs of the project to society are the costs of
fuel, labor and spare parts required to maintain equipment efficiency. Under the gas
compressor upgrade, thermal power plant loss reduction and the industrial efficiency programs,
65
ADB. 1997. Guidelines for the Economic Analysis of Projects. Manila.

Appendix 11
O&M expense is expected to be lower than the current O&M costs incurred, 66 with new
equipment having higher automation level. The remaining programs have negligible O&M costs.
2. Project Benefits
530. Project benefits include energy savings emanating from energy efficient replacements
and retrofits under the various proposed projects. These energy savings were valued at their
economic price. The economic price of gas was equated to the next-best alternative fuel for
each sector. Natural gas was priced at the economic price of imported LNG, which is the
alternative fuel in the domestic and commercial sectors. The economic price of LNG was
estimated at the existing price of crude oil ($50/bbl), using the pricing formula currently being
considered by government authorities. For the power sector, the economic price of fuel oil was
used. For the industrial sector, the economic price of fuel oil was used as a proxy economic
price for natural gas used by industry. Gasoline is the alternative fuel to compressed natural
gas (CNG) in vehicles; therefore, the economic price of natural gas in the transportation sector
was equated to the economic price of gasoline. Border prices of petroleum products in the
country are linked directly with international crude oil prices. The market price of high-speed
diesel (HSD), fuel oil, and LDO was corrected for petroleum development levy (PDL) and
general sales tax (GST) of 16% to arrive at the economic price for gasoline. 67 In the case of
HSD, an import tariff is additionally applied on the import-parity price, which was incorporated
into the economic price as well. The market price of indigenous and imported coal was also
adjusted for sales tax to arrive at the economic price of coal.
531. Pakistan is presently facing serious power supply deficits, and the situation is unlikely to
improve in the next three to five years. In these conditions, electricity saved through EE
measures will make a corresponding amount of energy available to the users who are otherwise
deprived of power supply. The benefit of additional power supplied under this project is the
avoided loss to the economy as a whole, due to ‘load shedding’, or power outages without
project. Consumers’ willingness-to-pay (WTP) for the power not supplied was used as a proxy
for the economic benefit of the electricity saved. Assuming that all segments of society are
equally deprived under a shortfall situation, and each will equally capture the electricity saved
from the projects, WTP was approximated by the average electricity tariff net of subsidy. 68 It
reflects society’s WTP during power shortages. Following the elimination of deficits in power
supply, electricity savings can be valued at the system’s marginal peak rate of generation, which
in the case of Pakistan ranges from 7.0 to PRs 8.5/kWh.69 In view of the uncertainty associated
with the timing of possible capacity additions and elimination of power supply deficits, WTP
corresponding to an average electricity tariff of PRs 6.06/kWh was taken as a conservative
estimate for the economic price of electricity throughout the analysis period. 70
66
A detailed study for each project will be conducted at the tranche design stage subsequently.
67
Petroleum Development Levy has been replaced with Carbon Surcharge w.e.f. 1st July 2009. The impostion of
the Carbon Surcharge, however, was temporarily stayed by a Supreme Court ruling on July 7, 2009.
68
A small segment of domestic, commercial, and industrial consumers opt for standby generation fueled by high-
speed diesel (HSD) or gasoline. The WTP for this segment is substantially higher than the electricity tariff applied
by the utility. The average electricity tariff is therefore a conservative estimate for the WTP for the society as a
whole.
69
Considering the implementation of Tranche-3 ’Reduction in Thermal Power Plants Loss‘, the likely marginal peak
generation rate will drop to PRs 7.0 to 7.5 per kWh, compared to the current rate of PRs 8.23 per kWh.
70
PEPCO Tariff Revenue, Energy Sales and Subsidy Analysis for FY2008-09.

Appendix 11
532. The total project costs under the EEIP are estimated at $1,180 million. After valuing
energy benefits at economic price, the aggregated EIRR for the six subprojects was determined
as 66%. The individual project EIRR is 145% for the CFL distribution program, 32% and 26%
for gas compressor replacement and reduction in thermal power generation losses, respectively,
21% for energy efficiency retrofits in government buildings, 395% for replacement of domestic
appliances, and 27% for improving energy performance in the industrial sector. Economic costs
and respective EIRRs for the subprojects are summarized in Table A11.1 below. The overall
MFF economic costs and benefits are presented in Table A11.2.
Table A11.1: Summary of Economic Analysis of the Project
Project Cost Economic Costs EIRR

($ Million) ($ Million)
National CFL Project 85.00 82.63 145%
Gas Transmission and Distribution Upgrade 130.00 104.75 32%
Thermal Power Plant Loss Reduction 550.00 526.84 26%
Government Buildings Retrofits 60.00 56.40 21%
Domestic Gas Appliance Upgrades 80.00 74.60 395%
Industrial Efficiency Financing 250.00 229.60 27%
Support Component 25.00 22.02
Total 1,180.00 1,096.84 66%
CFL = Compact fluorescent lamp; EIRR = Economic internal rate of return.
Source: Asian Development Bank and PPTA Consultants’ estimates.
Table A11.2: Details of MFF EIRR Calculations

($ Million)
Year Energy Benefits Costs Net Benefits
FY2010 - 31.1 (31.1)
FY2011 19.1 72.5 (53.4)
FY2012 133.8 184.6 (50.8)
FY2013 173.9 268.2 (94.3)
FY2014 194.5 186.6 7.9
FY2015 479.3 84.4 394.9
FY2016 585.3 105.9 479.4
FY2017 702.7 108.4 594.3
FY2018 728.4 46.5 682.0
FY2019 720.3 6.3 714.0
FY2020 604.9 - 604.9
FY2021 564.1 2.9 561.3
FY2022 561.6 - 561.6

Appendix 11
Year Energy Benefits Costs Net Benefits

FY2023 559.0 - 559.0
FY2024 556.5 - 556.5
FY2025 553.9 - 553.9
FY2026 551.4 - 551.4
FY2027 548.8 - 548.8
FY2028 546.3 - 546.3
FY2029 543.7 - 543.7
FY2030 210.7 - 1,433.7
Note: Net Benefits are inclusive of terminal value.
533. Improving energy efficiency and energy conservation, in general, leads to a cleaner and
better environment. Power generation, particularly from fossil fuels, has far-reaching
environmental impacts, which will be mitigated by saving electricity at the end-use level and by
improving energy efficiency in electricity generation, transformation, and distribution. Improving
energy efficiency in the country will reduce emissions of atmospheric pollutants in the
transportation and industrial sectors, resulting in cleaner air and reduced greenhouse gas
emissions. The natural gas saved will displace heavy fuel oil in power generation and industry,
which will help in improving air quality through lower sulfur and particulate emissions.
534. Carbon emissions reduction potentials for the CFL program were estimated based on
CDM methodology. Estimated emissions reduction under the CFL project is approximately
1,063,000 tons of CO2 equivalent (tCO2e) annually, which at a conservative price of $10/tCO2e,
will generate revenues of about $10.6 million per year.
535. The remaining projects will result in numerous environmental benefits. The benefits
from reduction of greenhouse gas (GHG) emissions and the contribution to mitigate climate
change can be shared regionally and globally. However, the literature on climate change
suggests that avoided global damage from reducing CO2 emissions, or the social value of
carbon, is likely to be significantly larger than the carbon market value. 71 The Project’s
economic internal rate of return (EIRR), even without accounting for the social value of carbon
on the benefit side, significantly exceeds the economic hurdles rate of 12%. Therefore, keeping
on the conservative side, the environmental benefits associated with reduced GHG emissions
were not accounted for in the overall economic analysis.72
536. Under the Tranche-1 project, 30 million CFLs will be distributed throughout the country.
By procuring the CFLs at wholesale price, the price per lamp will be reduced from their local
retail price. A survey conducted during the project design phase determined the wattage of
incandescent bulbs (IBs) in use (Section IV). Around 62% of the electrified households in
Pakistan currently use 100W, and the rest use either 60W or 40W IBs. Single wattage
(21-23 W) CFLs will be procured under the project, equivalent to at least 100W IBs in lumens
71
Social value of carbon is estimated as the present value of the total damages inflicted or reduced globally when
an additional unit of CO2 is emitted into or taken out of the atmosphere.
72
An estimation of carbon benefits for each project will be conducted at the tranche design stage.

Appendix 11
output.73 Each replacement will result in a saving of 18-78 watts, depending on the IB wattage
replaced. With 3.5 hours of average use per day, each replacement will save about 77 kilowatt-
hours (kWh) annually, contributing to total annual energy savings of 2,132 GWh per year. This
will result in capacity savings of 1,094 MW, assuming a nationwide lamp use coincidence factor
of 66% during the evening peak. Transmission and distribution losses were not included as
benefits of the project as the energy saved will be resold to other users and thus T&D losses will
remain unchanged. The energy benefits were estimated based on a 7.7-year life of each CFL
(corresponding to a 10,000-hour life rating). The EIRR of this project is 145%, reflective of a
relatively short period in which investment in a CFL can be recovered.
537. Upgrades of inefficient gas compressors on the utility networks will result in natural gas
savings, which were valued at the economic price of fuel oil; the alternative fuel of choice during
gas shortfalls. Similarly, upgrades of state-owned thermal power plants (at GENCOs) will result
in their improved efficiency, reducing the plants’ energy intake per unit of electricity generated.
The energy saved under the thermal plant upgrade program was therefore also valued at the
economic price of fuel oil.
538. The government buildings retrofit program aims to improve building envelope, HVAC
(heating, ventilating and air-conditioning) installations, lighting and controls in approximately 50
government buildings. These could include offices, hospitals, schools, colleges and other
institutional or public facilities. The retrofits will results in reduced electricity consumption, and
the corresponding benefits were valued at the economic price of electricity.
539. Upgrade and replacement of domestic gas appliances will reduce natural gas
consumption for water and space heating and cooking in households. Under the current gas
allocation policy, the GoP assigns highest priority to the domestic and commercial sectors.
Supply of natural gas to these sectors is considered ‘essential’ or given highest priority, and with
increasing gas shortfalls, LNG will eventually have to be imported to meet growing household
gas demand. Therefore, natural gas savings under the domestic appliance upgrade program
were valued at the economic price of imported LNG, determined at a crude oil price of $50/bbl.
540. The industrial sector has diverse energy uses and the industrial efficiency-financing
program will result in savings in electricity, natural gas, and coal. These were valued at their
economic price, which in the case of electricity are WTP, in the case of natural gas is the
economic price of fuel oil, and for coal is the economic price of coal (net of taxes and subsidies).
3. Sensitivity Analysis
541. The sensitivity of project economic results to changes in key variables was tested, and
the results are summarized in Table A11.3 below. In general, EIRRs were found to be sensitive
to the variables tested, but exceed the economic hurdle rate for all sensitivities tested, including
the multiple-downside (combined) scenario. On this basis, the project appears to be
economically viable.
73
It is customary to indicate a wattage band for CFLs (equivalent in lumens produced to a single wattage IB) in
order to accommodate different manufacturers’ specifications and not bias procurement criteria in favor of any
particular supplier.

Appendix 11
Table A11.3: Sensitivity Analysis
Sensitivity Parameter Variation EIRR

Base Case 66%
Capital Cost Increase 10% 59%
Benefits Reduced –10% 59%
Implementation Delay 1 year 44%
Cost Increase and Benefits Reduced +10%, –10% 53%
Cost Increase, Benefits Reduced and +10%, –10%, 1 year 38%
Implementation Delay

Appendix 11
Appendix 12
ENVIRONMENTAL BENEFITS AND SOCIAL SAFEGUARDS
A. ENVIRONMENT ASPECTS
1. Overall MFF
better environment. Electricity production, particularly from fossil fuels, has far reaching
environmental impacts. Consequently, energy efficiency is closely related to environmental
benefits. Other than the economic and financial benefits, improving energy efficiency in the
country will decrease the demand for natural resources and reduce atmospheric pollutants,
resulting in reduced greenhouse gas emissions and consequently less climate change impact.
Moreover, improved energy efficiency will lower water use and improve water quality, reduce
accumulation of solid waste, and reduce pressure on natural wilderness and pristine areas from
fossil fuel biomass and extraction.
2. Projects
543. National CFL Project. This project will replace 30 million incandescent bulbs in the
domestic sector with efficient, high-quality CFLs. The project will accelerate CFL market
penetration and will result in around 1,094 MW reduction in the peak evening electricity demand,
adding up to savings in electricity consumption of 2,132 GWh per year by 2011, thus alleviating
power supply deficits currently common in the country. An IEE of the CFL program has been
undertaken that concludes that the procurement, distribution, and use of the CFLs will not have
any significant adverse environmental and social impact.
544. CFLs typically contain 3 to 4 milligrams (mg) of mercury, which is a highly toxic
substance. The harmful impact of mercury on human health is caused by long-term, low-level,
or ‘chronic’ exposure, which affects the kidneys, nervous system, and the female reproductive
system. Spent CFLs are therefore potentially hazardous. As there is presently no hazardous
waste handling regulations and disposal facilities in the country, facilities dedicated to the
handling and disposal of spent CFLs will need to be organized on a commercial basis to
properly dispose off the CFLs distributed under the project (in addition to other CFLs and FTLs
in use in the country) after they have expired. The lamp waste management system would
need to be in place by the fourth year of the program as the CFLs distributed under the program
begin to reach the end of their operating lifetimes (a 10,000-hour rated lamp, used on average
for less than three hours a day, could last for ten years). However, the program could be
started even earlier to help manage current CFL/FTL disposal needs, as well as to establish and
test an effective recycling regime and create the necessary public awareness levels. The
facilities to be developed fall under Category B under ADB’s environmental guidelines, and
consequently an initial environmental examination (IEE) for the facility will be undertaken.
Under the environmental regulations of Pakistan, “a waste disposal facility for domestic or
industrial wastes, with annual capacity of less than ten thousand cubic meters” requires an IEE.
It is expected that the facilities will be developed in the private sector and therefore the IEE shall
be the responsibility of the project owners. However, as there is a risk that the facility may not
be commercially viable for the private sector, a contingency provision has been kept in the
project budget to establish it in the public sector. In this case, the EA for the project will be
responsible for ensuring that the IEE is undertaken and approved.
545. Gas Transmission and Distribution Upgrades. In the natural gas transmission system,
gas compressors are used to increase the upstream pipeline pressure of the gas by
compressing it into smaller volumes. The increased pressure allows the transport of the gas

Appendix 12
through the transmission and distribution pipeline network. Currently, Sui Northern Gas
Pipelines Limited (SNGPL) operates 11 compressor stations that use natural gas as fuel.
SNGPL proposes to replace the existing outdated compressors with new, more efficient, and
larger machines to enhance compression capacity and improve system reliability. Installation of
more efficient compressors will reduce the consumption of gas and consequently the emission
of air pollutants. The new compressors will replace existing compressors and will be installed
within the premises of the existing facilities. No new land will be acquired for the purpose. This
component is categorized under Category C and therefore no environmental assessment is
required.
546. Thermal Power Plant Loss Reduction. There are four public sector power generation
companies (GENCOs) in Pakistan that operate 13 power units based mainly on steam-cycle
and combined-cycle technologies. Due to various reasons, mainly associated with the financial
constraints faced by these companies, these plants are being operated at derated capacities
nearly 25% below their nameplate ratings. The average forced outage rate for the GENCOs, at
12%, has been high compared with 6% for IPPs in the country. Nearly all GENCO plants are
operating at much lower efficiency than the industry benchmark levels for plants of similar ages
and configurations. Due to the aging of several plants, all of the derated capacity and efficiency
cannot be economically restored. It is proposed that the existing units at three plants—Guddu
Steam, Faisalabad Steam, and Multan Steam—be replaced by modern combined-cycle plants.
The plant at Guddu is gas-fired and can use the same gas already allocated to the existing
power plant to fuel the replacement plant. At the other two plants, the less efficient steam-cycle
plant will be replaced by high efficiency combined-cycle plants. This will increase the power
generation capacities of the plants by improving the efficiencies from the existing 22% to 31% to
about 43% to 48%. The installation of the more efficient plants will also result in overall
environmental benefits. These include reduced air pollution, reduced global warming and
climate change impact, and less water consumption. The new units will be installed at the
existing plant sites. This will avoid the requirement of purchasing new land, consequently
eliminating the environmental and social issues associated with land acquisition and
resettlement, and land use conversion. Lower emissions will also benefit the communities living
around the plants by reducing potential health risks to them. Good environmental practice
demands that the operation of the entire facility comply with applicable environmental standards.
Thus, the modification the plants will also address the environmental and social issues
associated with the existing plants, and will bring the plants at par with modern power plants in
terms of their environmental performance. This will be an added benefit to the local community
and the environment. Nevertheless, activities associated with the construction of power plants,
particularly near built-up areas, have potential environmental impacts. A 750 MW plant at
Guddu, and 450 MW plants at Faisalabad and Multan, are planned to be replaced. These are
categorized as Category A projects and will require environmental impact assessments (EIA) to
meet ADB’s environmental guidelines. Under the environmental regulations of Pakistan,
thermal power plants exceeding 200 MW in size require an EIA.
547. Public Buildings Retrofits. This program aims at improving the energy efficiency through
system upgrades of three targeted groups of government buildings—offices, hospitals, and
educational institutions. The component includes creation of a new national Energy Efficiency
Center (EEC) under the management of the Planning Commission, the executing agency (EA)
for EEIP. It includes a detailed study of selected buildings, energy audits, purchase of energy
audit tools, data loggers and energy analysis software tools for undertaking building energy use
analysis. It also includes the financing for implementation of EE retrofits for the buildings
selected for efficiency upgrades. The nature of activities in this component is such that no
environmental assessments are required as the component is categorized as Category C under
ADB guidelines.

Appendix 12
548. Industrial Energy Efficiency Financing. An industrial sector EE fund will be established
to provide loans, contingency loans, or leases for the purchase of energy-efficient equipment by
industrial plants, especially electrical motors, boilers and furnaces, and other large to medium-
scale investments, although small cogeneration units, HVAC, lighting retrofits, process controls,
and other measures could be financed as well. Retrofits and expansions would be supported
through working-capital and bridge-funding arrangements with Pakistani commercial banks,
supplemented by equity financing from owners. Other than benefits associated with energy
conservation, these measures often result in the installation of modern technologies that also
have localized benefits, particularly in terms of occupational health and safety for the workers
and the local community. Due to their scale and nature, these measures generally fall into
Category C assessment and do not require specific environmental assessments.
549. Domestic Gas Appliance Upgrades. The energy efficiency potential in gas used for
domestic water heating in Pakistan is estimated to be 30%, which can be achieved by
retrofitting existing water heating appliances. The gas utilities, SSGC and SNGPL, have
devised some of these retrofits in collaboration with local technical partners. These retrofits
include a) timing device to switch off the heater during parts of the day when hot water is not
required; b) de-scaling to improve heating efficiency; and c) flue gas control to minimize heat
loss from the exhaust. The potential for improvement in energy efficiency in space heating
appliances is similarly estimated at 36%, which can be achieved by replacing them with more
efficient ones.
550. The retrofits could be developed and provided by the gas utility companies, or
alternatively utility companies could involve the private sector in their commercial development
and marketing. This type of activity is unlikely to involve any significant environmental impact
and is therefore categorized as C under the ADB’s environmental guidelines.
B. SOCIAL ASPECTS
1. Overall MFF
551. Pakistan is currently faced with a serious energy crisis to which inefficient use of
available energy resources has been identified as one of the key contributors. The economic
and social impacts of this situation are felt across all sectors of national life. Although some of
the economic issues confronting the country can be attributed to the global economic recession,
there are many impacts that can be clearly linked to the shortfall in energy supply. These
include, most importantly, the shutting down of industrial units or reduction in their production,
resulting in, among other negative impacts, unemployment and reduced income for workers.
The Government of Pakistan is taking various measures to overcome this issue, and energy
efficiency has been identified as an effective, least-cost short and medium-term solution.
Improvement in energy supply will help in increasing employment and economic productivity,
which will contribute directly to the elimination of poverty and to improving the living conditions
of workers. Its social benefits will also reduce the adverse impact of power outages on social
life, education, and on the quality of life in general. Indirect and wider economic benefits can
also follow to the community through, for example, increased business opportunities for local
suppliers and retailers.
552. Improved energy efficiency will result in the reduction of instances of load shedding. At
times of power shortages, the electricity distributions companies (DISCOs) switch off power
supply to entire parts of the grid to reduce the load on the distribution system. It is a common
practice to maintain much longer load-shedding hours in the rural areas compared to urban
areas. At times, load-shedding in rural areas is twice as long in duration compared to the case
in towns and cities. Availability of additional power supply, made possible through energy

Appendix 12
efficiency savings, is likely to reduce the occurrence of load-shedding, which would particularly
benefit rural areas where the majority of the poor population of the country resides.
2. Projects
553. National CFL Project. This project will help in improving the quality, reliability, and
access to electricity in the country. At the household level, it is expected that the replacement of
incandescent lamps with CFLs will improve lighting conditions, particularly for poor consumers
that currently use inferior quality or wattage lamps. This is especially important for children,
since reading and studying under low lighting levels can cause eyestrain and lead to poor
eyesight. Better lighting in households will also help improve the environment for social and
economic activities. In addition, CFL lamps will benefit poor customers directly by affecting cost
savings in their electricity bills. The average annual consumer electricity savings per light point
are estimated at about Rs 293 per year. This reduction is significant for the lifeline consumers,
representing several times their average monthly bills in the case of the lowest categories.
Other, less tangible, benefits include increased public awareness towards hazardous wastes,
availability of better quality lamps due to development and enforcement of product standards
and labeling, and development of commercial opportunities in waste management.
554. Gas Transmission and Distribution Upgrades. This project will not have any direct social
impact other than those associated with overall energy efficiency.
555. Thermal Power Plant Loss Reduction. The installation of the more efficient thermal
generation plants will also result in overall social benefits. Some of these are directly related to
improved environmental conditions made possible by the replacements and/or rehabilitation.
These include, for example, the health benefits of cleaner air and water. As discussed earlier,
installation of the units at existing GENCO sites will avoid the need for purchasing new land,
consequently eliminating social issues associated with land acquisition and resettlement.
Construction-related impacts of the power plant installation include generation of new
employment opportunities, issues associated with migrant workers, such as cultural conflicts
between local and non-local workers, and traffic impact and community safety hazards caused
by construction vehicles. The EIA of projects will include a full-scale community consultation
plan for the design, construction, and operational phases of the plants.
556. Public Buildings Retrofits. Retrofitting of public buildings—offices, schools, and
hospitals—will help improve comfort levels for persons using the buildings. School children will
particularly benefit from such an upgrade, as schools in public sector are generally in a poor
state of maintenance compared to their counterparts in the private sector.
557. Industrial Energy Efficiency Financing. This project will not have any direct social impact
other than those associated with overall energy efficiency. However, improved energy
efficiency—say, for a boiler or furnace or lighting—may result in reduction of ambient
temperatures and improved illumination levels in the work area, which will be beneficial for the
workers. The industrial efficiency program can also be packaged with some of the occupational
health and safety measures for improving occupational conditions for the workers.
558. Domestic Gas Appliance Upgrades. The project will result in savings on gas bills, and is
also likely to improve comfort levels during winters. The project, if managed through the private
sector, could also generate substantial job opportunities.

Appendix 12
Appendix 13
SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY
Country/Project Title: Pakistan – Sustainable Energy Efficiency Investment Program
Central and West Asia

Lending/Financing Department/
Multitranche Financing Facility Department, Energy and
Modality: Division:
Natural Resources Division
I. POVERTY ANALYSIS AND STRATEGY
A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy
Despite recent efforts to increase capacity and supply, Pakistan is presently suffering from serious energy shortfall.
This shortfall is more pronounced in the electricity sector during peak hours resulting in significant power cuts
affecting economic activity and delivery of social services. Frequent power cuts in the recent past resulting in
reduced production levels in various industries have rendered many workers, mostly belonging to the poor
segments of society, as unemployed. In addition, the phased adjustment to petroleum prices and electricity tariffs
starting in 2008 following the increase in international oil prices has burdened poor consumers with growing
expense in meeting their energy needs.
Achieving energy security and energy affordability are two main goals set in the Vision 2030 and the Medium-Term
Development Framework of Pakistan. A recently updated Poverty Reduction Strategy (PRSP-II) for 2009-11 aims
at achieving poverty reduction through sustainable economic growth and employment generation. In achieving
these objectives the strategy regards it essential to provide adequate energy to industry to drive economic growth
and create employment opportunities; to the domestic sector for cooking and heating; and to prevent the continuing
environmental degradation and deforestation by massive use of wood for domestic fuel. Based on these
government priorities, improving energy efficiency is among key target outcomes of ADB's sector assistance under
its Country Partnership Strategy 2009–13 for Pakistana.
The energy savings resulting from improved efficiency under the proposed program are expected to provide a more
reliable energy supply to various sectors of the economy. The resulting sustained economic activity in particular in
the industrial sector will indirectly benefit the industrial labor as their jobs will not be threatened by power cuts any
more. Poor and vulnerable consumers including social utilities like hospitals and schools often hardest hit by
insufficient power supply and load shedding will also benefit as well from efficient and more reliable delivery of
services. Under the CFL distribution program the use of CFLs by life liners expressed as a percentage of total
lighting points used is expected to increase from existing 34% of households to 74% of households after two rounds
of distribution.
B. Poverty Analysis Targeting Classification: General Intervention

1. Key Issues. Efficient energy use in all sectors of the Pakistani economy is expected to help reduce the overall
rate of increase of energy demand to more manageable levels and reduce potential shortages. Energy efficiency
can reduce the large financial outlays required for developing additional energy supplies in future. It can also help
minimize uneconomical standby capacity required to cater to peak loads, reduce subsidy requirements, and defer
transmission system expansion needs, thereby saving public funds and increasing returns on energy infrastructure
investments that could, in return, be directed towards social programs.
The poor sections of the society are more often among the hardest hit by the shortfall in energy supply. Typically
the duration of load shedding is far higher compared to that in the urban areas or relatively larger cities. The poor
are expected to benefit from energy savings realized from the implementation of energy efficiency interventions with
reliable access to energy and improved lighting. This would have an improved impact on the household's economic
and social activities in the evening. In addition, the poor households will also learn about other affordable energy
efficient choices for reducing household energy expenditure from communication and social mobilization
component. However, the impact of the promotion of CFLs also depends on affordability and effective distribution
channels.

Appendix 13
II. SOCIAL ANALYSIS AND STRATEGY
Findings of Social Analysis

Increased investments and market penetration of energy efficient technologies in Pakistan:
(i) reduced energy wastage in industrial, residential and public sector gas and power consumption - 2,200 MW
savings;
(ii) reduced energy transformation loss (gas transmission and thermal power generation) - 500 MW savings;
(iii) minimum national energy efficiency standards established;
(iv) energy efficiency mainstreamed into planning and investments, and managed properly;
(v) reduced air pollution and greenhouse gas emissions.
Consumers’ energy costs will be reduced with the use of efficient technologies and practices. With reduced
electricity demand, the overall need for supply (additional generation) will be reduced. Also, a large amount of
greenhouse gas emissions—and the associated cost of importing fuel—will be avoided, creating emission reduction
credits under carbon financing. The Program will establish sustainable business model for large-scale
implementation of energy-efficiency programs. It will reduce public sector energy expenditure, reduce health risks
associated with residual mercury and kerosene (in off-grid areas), enhance livelihoods of rural communities,
facilitate a viable energy efficiency audit and management industry, and establish a certification process for energy
and environmentally efficient technologies and practices.
B. Consultation and Participation

1. Consultations were carried out with various government and non-government agencies, institutions, and
companies relevant to energy policy, legislation, planning, management, and implementation will be involved in the
development of the energy efficiency program.
2. What level of consultation and participation (C&P) is envisaged during the project implementation and
monitoring?
Information sharing Consultation Collaborative decision making Empowerment
3. Was a consultation and participation (C&P) plan prepared? Yes No
C. Gender and Development

1. Key Issues. The program is expected to improve households’ living standards including women through
increased access and quality of energy services which will result in higher savings from the reduced energy
expenditure. A more reliable and secure supply of energy can drastically improve the quality of sanitation; health
care; and other social services, particularly education without a gender discrimination.
a. Key Actions. Measures included in the design to promote gender equality and women’s empowerment—
access to and use of relevant services, resources, assets, or opportunities and participation in decision-making
process:
Gender plan Other actions/measures No action/measure

Appendix 13
III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS
Issue Significant/Limited/ Strategy to Plan or Other Measures Included

No Impact Address Issue in Design
Involuntary No impact. None Full Plan

Resettlement Short Plan
Resettlement Framework
No Action
Indigenous Peoples No impact None. Plan
Other Action
Indigenous Peoples Framework
No Action
Labor Significant opportunities for Possible issues Plan
Employment employment are expected with labor Other Action
opportunities during construction. conditions No Action
Labor retrenchment Adherence to Core Labor Standards
Core labor standards to be included in contractors’
contract.
No impact The projects Action
Affordability are not No Action
expected to
result in price
increases.
Other Risks and/or Limited Possible Plan
Vulnerabilities diffusion of Other Action
HIV/AIDS HIV/AIDS No Action
Human trafficking Contractors’ contract to include
Others(conflict, provision on responsibility to
political instability, frequently lecture on the diffusion of
etc), please specify HIV/AIDS.
IV. MONITORING AND EVALUATION
Are social indicators included in the design and monitoring framework to facilitate monitoring of social development
activities and/or social impacts during project implementation? x Yes □ No
a
ADB. 2009. Country Strategy and Program Update (2009–2013): Islamic Republic of Pakistan. Manila.

Appendix 13
Appendix 14
PAKISTAN: ENERGY EFFICIENCY SECTOR INSTITUTIONAL MATRIX
1. 2. 3. 4. 5. 6. 7.
Policy and Economic Project Institutional Market Technical R&D, Technology
Regulatory Evaluation and Implementation Strength- Facilitation and Transfer and
Framework Planning ening Financial Commercialization
Support
Mechanisms
6.2 EE Financing Opportunities and

5.1 Energy Auditing and Technical
7.1 Market Surveys and Potential
7.3 R&D and Technical Training

4.2 Other relevant Stakeholders
Agency
7.2 Indigenous Fabrication and

5.2 Information and Technical
Knowledge Dissemination
5.3 Awareness and Outreach

● Primary
2.2 Costing and Financing
3.3 Support Infrastructure

3.2 Public E3C Programs
● Secondary
6.1 Donor Coordination

3.1 Investment Climate
Advisory Services
4.1 Focal Agencies
Assessment
1.2 Regulations
Instruments
1.3 Legislation
Marketing
2.3 Planning
2.1 Analysis
1.1 Policy
Government, Executive
Economic Affairs Div. (EAD) ● ●

Economic Coord. Committee
(ECC) ● ●
Min. of Food, Agriculture &
Livestock (MoFAL) ● ● ●
Ministry of Communications
● ● ●
(MoC)
Ministry of Defence (MoD) ● ● ●
Ministry of Education (MoEd) ●
Appendix 14
Ministry of Environment (MoE) ● ● ● ● ● ● ●

Ministry of Finance (MoF) ● ● ● ● ● ●
469
Appendix 14
470
1. 2. 3. 4. 5. 6. 7.
Support
Mechanisms


Agency


● Primary

● Secondary

Advisory Services
4.1 Focal Agencies
Assessment
1.2 Regulations
Instruments
1.3 Legislation
Marketing
2.3 Planning
2.1 Analysis
1.1 Policy
Ministry of Industries and

Production (MoIP) ● ● ● ● ● ●
Ministry of Information &
Broadcasting (MoIB) ● ●
Ministry of Law, Justice &
Human Rights (MoLJHR) ● ●
Ministry of Petroleum &
Natural Resources (MoPNR) ● ● ●
Ministry of Railways (MoR) ● ● ●
Ministry of Science &
● ● ●
Technology (MoST)
Ministry of Textile Industry
(MoTI) ● ● ●
(MoWP) ● ● ●
Planning Commission (PC) ● ● ● ● ● ●
1. 2. 3. 4. 5. 6. 7.
Support
Mechanisms


Agency


● Primary

● Secondary

Advisory Services
4.1 Focal Agencies
Assessment
1.2 Regulations
Instruments
1.3 Legislation
Marketing
2.3 Planning
2.1 Analysis
1.1 Policy
Government, Line Agencies
Energy Wing (EW) ● ● ● ● ● ●

Engineering Dev. Board
(EDB) ● ● ● ● ● ●
Fed. Board of Statistics (FBS) ● ● ●
Fed. Bureau of Revenue
(FBR) ● ● ● ● ●
Higher Education Commission
(HEC) ● ●
Hydrocarbon Development
● ● ●
Institute of Pakistan (HDIP)

National Energy Conservation
Centre (ENERCON) ● ● ● ● ● ● ● ● ● ● ● ●
National Highway Authority
●
Appendix 14
(NHA)
National Transportation
Research Centre (NTRC) ●
471
Appendix 14
472
1. 2. 3. 4. 5. 6. 7.
Support
Mechanisms


Agency


● Primary

● Secondary

Advisory Services
4.1 Focal Agencies
Assessment
1.2 Regulations
Instruments
1.3 Legislation
Marketing
2.3 Planning
2.1 Analysis
1.1 Policy
Pak. Council for Scientific &

Industrial Research (PCSIR) ● ● ● ●
Pakistan Industrial
Development Corp. (PIDC) ●
Regulators
National Electric Power
Regulatory Auth. (NEPRA) ● ● ●
Oil & Gas Regulatory Authority
(OGRA) ● ● ●
Pakistan Electronic Media
●
Regulatory Auth. (PEMRA)

Pakistan Environmental
Protection Agency (Pak EPA) ● ●
Pakistan Standards and
Quality Control Auth. ● ● ● ● ●
(PSQCA)
1. 2. 3. 4. 5. 6. 7.
Support
Mechanisms


Agency


● Primary

● Secondary

Advisory Services
4.1 Focal Agencies
Assessment
1.2 Regulations
Instruments
1.3 Legislation
Marketing
2.3 Planning
2.1 Analysis
1.1 Policy
Utilities & Suppliers

Distribution Companies
(DISCOs) ● ● ● ● ● ● ●
National Transmission and
Dispatch Company (NTDC) ●
Pakistan Electric Power
Company (PEPCO) ● ●
Sui Northern Gas Pipelines
(SNGPL) ● ● ● ● ● ● ●
Sui Southern Gas Company
(SSGC) ● ● ● ● ● ● ●
Development Programs
(ADB) ● ● ● ● ● ● ● ● ● ● ● ●
Appendix 14
Agence Française de
Développement (AFD) ● ● ● ● ● ● ● ●
Development Partners ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
473
Appendix 14
474
1. 2. 3. 4. 5. 6. 7.
Support
Mechanisms


Agency


● Primary

● Secondary

Advisory Services
4.1 Focal Agencies
Assessment
1.2 Regulations
Instruments
1.3 Legislation
Marketing
2.3 Planning
2.1 Analysis
1.1 Policy
Donor Coord. Comm. (DCC) ●

EE Programs & Funds ● ● ●
Non-governmental
Organization (NGOs) ● ●
Financial Institutions
International Financing
Institutions (IFIs) ● ● ● ● ● ● ● ● ● ● ●
Local Financing Institutions
(LFIs) ● ● ●
State Bank of Pakistan (SBP) ●

Private Sector
Fed. of Pak. Chambers of
Comm. & Industry (FPCCI) ● ● ● ● ● ● ● ●
Industry & Trade Assocs. ● ● ● ●
Manufacturing and Services ● ● ● ● ● ● ●
Appendix 14
Others
(OMCs)
Municipalities
Agency
Retail Suppliers
● Primary
Committee (OCAC)
● Secondary
Local Administration
Relevant Stakeholders
Oil Companies Advisory
Provincial & Local Govts.

Oil Marketing Companies
●
1.1 Policy
1.
●
●
●
1.2 Regulations
Policy and
Regulatory
Framework
●
●
1.3 Legislation
2.1 Analysis
2.
●
Planning
Economic
●
Evaluation and
2.3 Planning
●
● 3.1 Investment Climate
3.

Project

Implementation
●
4.1 Focal Agencies
4.
ening
●
Strength-

Institutional

●
Advisory Services
5.
Market
Facilitation

6.
and

Support
Financial
Technical
Instruments
Mechanisms

●
Assessment

7.
Marketing
Transfer and

R&D, Technology
Commercialization

Appendix 15
FUTURE TRANCHE PROJECTS
A. GAS TRANSMISSION AND DISTRIBUTION UPGRADES
1. Compressor Replacement in the Gas Utilities

559. Compressors on the gas pipeline network play a vital role in maintaining continuity and
quality of service for consumers connected to the country’s natural gas transmission and
distribution systems, especially when demand is high and the network throughput capacity is
constrained by operating pressures dipping below permissible limits. The current installed
capacity at the 11 compressor stations of Sui Northern Gas Pipeline Company Ltd. (SNGPL),
the utility serving the northern half of Pakistan’s gas market, is approximately 200,000 hp, based
on 1,100 to 6,100 hp gas turbines driving centrifugal compressors. The gas consumed in these
compressors is accounted for as ‘gas internally consumed’ and is considered a technical loss by
the utility. This internal consumption mainly depends on the capacity and adiabatic efficiency of
the compressor units and their use. The net efficiency of the compressor units is taken as a
product of the turbine and compressor efficiencies. The net efficiency of the compressors in the
SNGPL system has improved significantly over the past decade due to installation of
compressors based on advanced technology and materials. However, a number of existing
compressors in the SNGPL system are three to four years old, and therefore are currently
operating at very low efficiencies compared with new machines. In addition, these compressors
incur high maintenance costs and have low availability due to frequent breakdowns.
560. Compared to the SNGPL, compressors in the system operated by the Sui Southern Gas
Company Ltd. (SSGC), the utility serving in the southern region of the country, are new and
relatively efficient. Any existing inefficient machines are used only for short periods by SSGC,
and therefore there is no immediate replacement need for these. Assessment of compression
upgrade potential in the gas transmission networks in the country was therefore limited to the
SNGPL system.
561. Although no specific industry-wide standards for gas internally consumed in utility
networks exist, regulators normally allow relatively relaxed bounds for internal consumption with
reference to system configuration, compression requirements and the optimal operating
efficiency of the compression system. Historically, the SNGPL system has required
compression during the winter season, when the demand increases two- to three-folds over
summer loads on account of domestic heating loads. However, since supply pressures are
generally expected to drop in the near future with the gradual depletion of field reserves in the
country, consequently the compressors’ duty cycle is expected to increase to almost full year-
round operation, thereby further increasing the internal consumption of gas (in proportion to the
volume of gas transmitted) in the SNGPL system.
562. There is thus a pressing requirement for replacing some of the old compression
equipment in the SNGPL system. SNGPL has recently replaced 13 inefficient Solar T1000
compressor units (1,100 hp each), having a combined capacity of 14,000 hp, with six new Solar
T4700 compressors of 4,700 hp rating each. However, the utility still has 16 old Solar T1000
compressors operating at turbine efficiencies in the rage of 17-20% and compressor efficiency
of 70%. Similarly, 14 compressors consisting of Solar T4000 machines, with a capacity of 3,800
hp each and efficiencies in a similar range as that of the Solar T1000 units, are also candidates
for replacement. The SNGPL has plans to replace both of these types of machines with efficient
new Solar T4700 machines that can operate at 30% turbine efficiency and 85% compressor
efficiencies, almost doubling the combined efficiency over the existing machines. The SNGPL

Appendix 15
Board of Directors has already approved the replacement of all 16 Solar T1000 compressors
with a total capacity of 17,600 hp. A funding source for the replacement projects, however, is
yet to be identified by the SNGPL management. The other 14 compressors (Solar T4000), with
a combined capacity of 53,620 hp, are also in need of urgent replacement. Details of the
proposed SNGPL compressor replacement program are provided in Table A15.1.
Table A15.1: SNGPL’s Proposed Compressor Upgrade Program
Compressor Station Existing Configuration Proposed Configuration

Projects Already Approved by SNGPL BOD
Manawala (BC1) 7 x Solar T1000 (1,100 hp each) 3 x Solar T4700 (4,700 hp each)
= 7,700 hp = 14,100 hp
= 6,600 hp = 9,400 hp
Dhullian (FC1) 3 x Solar T1000 (1,100 hp each) 2 x Solar T4700 (4,700 hp)
= 3,300 hp = 9,400 hp
Other Proposed Projects
Bhong (ACIX) 1 x Solar T4000 (3,830 hp each) 1 x Solar T4700 (4,700 hp each)
= 3,830 hp = 4,700 hp
Multan (AC6) 6 x Solar T4000 (3,830 hp each) 6 x Solar T4700 (4,700 hp each)
= 22,980 hp = 28,200 hp
Shorkot (AC7) 4 x Solar T4000 (3,830 hp each) 4 x Solar T4700 (4,700 hp each)
= 15,320 hp = 18,800 hp
= 11,490 hp = 14,100 hp
Source: Planning and Development Department, SNGPL.
563. Under the SNGPL’s proposed compressor upgrade program, the total installed
compression capacity on the utility network will increase by 27,500 hp due to installation of
bigger machines at compression stations, providing much needed capacity expansion and
redundancy at those facilities. However, for purposes of calculating potential savings and
associated investments under the ADB SEED MFF, only capacity replacements equivalent to
the existing installed capacity of 71,220 hp have been considered.
2. Energy Consumption and Savings Potential

564. Total gas demand on the SNGPL system for FY2008 was 561,22674 billion Btu and the
utility used 11,880 billion Btu internally in compressors. Thus, the estimated gas savings
potential of 3,500 billion Btu due to compressor replacements represents 0.62% of total utility
sales and 29% of the total gas currently used in the utility’s compressors based on current
average utilization of nine months. As stated earlier, compressor utilization is likely to increase
in the future, and assuming a load factor of 100%, a saving of about 5,455 billion Btu per annum
can be anticipated upon completion of the upgrade program.
74
OGRA Determination on Final Revenue Requirement for SNGPL, FY2008.

Appendix 15
3. Barriers, Constraints, and Investment Potential

565. An upgrade of compressor capacity in the SNGPL system can be implemented within
two to three years, and will result in immediate savings in the internal use of gas in the SNGPL
network, releasing more gas for sale to domestic and industrial customers. The implementation
of such a project is well within SNGPL’s capability, as the utility has executed such upgrades in
the recent past using its own resources. The total investment requirement is estimated at $130
million, based on a unit cost of $ 1,800/hp.75 The annual revenue stream needed to calculate
payback periods for the compressor replacement program was estimated by using a sale price
for commercial customers of Rs 268/MMBtu.
566. The investment schedule for the SNGPL gas compressor upgrade project was estimated
assuming 100% replacement of inefficient compressors over a period of ten years. The
corresponding investment requirements, investment schedule, and estimated payback periods
are shown in Table A15.2.
Table A15.2: Investment Schedule for SNGPL Compressor Replacement Program
Energy Consumed Energy Efficiency Energy Saved Investment Simple

2008 Potential Required Payback
Period
(MMscf) (TOE) Technical (MMscf) (TOE) ($ Million) (Years)
Natural 11,680 264,853 50% 5,840 132,426 130 7.1
Gas
($ Million)
Annual 16.1 42.2 44.0 27.7 - - - - - -
Cumulative 16.1 58.4 102.3 130.0 - - - - - -
4. Implementation Schedule
567. SNGPL will be the implementation agency for the compressor replacement program.
The utility is in sound financial health, with an assured retail gas tariff based on 17.5% return on
its assets (ROA). The utility also has the requisite experience of procurement and installation of
gas compressors and allied equipment. In terms of the actual installation program, the
tendering process and evaluation of bids will take around six months, and delivery of
compressor equipment by suppliers another 18 months. The SNGPL plans to install these new
compressors while keeping the existing machines operative, as sufficient space exists at the
compressor stations (without the need for additional land acquisition) for the replacement
machines, and it will take approximately 12 to 18 months to complete the installation.
568. The implementation schedule for the replacement of compressors in the SNGPL
transmission system is given in Figure A15.1, in which the replacement is given in two rounds,
75
Based on equipment costs of $1,000/hp for compressors and $800/hp for ancillary equipment such as piping,
valves, fittings, and installation. The cost details were provided by SNGPL based on their latest contracts for
procurement of similar facilities.

Appendix 15
to separate out replacement units for which a detailed feasibility assessment has yet to be
carried out.
Figure A15.1: Implementation Schedule for the SNGPL Compressor

Replacement Program

B. INSTALLATION OF POWER GENERATION AT DECOMPRESSION LOCATIONS
569. The gas transmission system in Pakistan is designed for Class 600 standard under
which the trunk pipelines can be operated at around 1,400 psi. However, due to ageing and
current physical condition of certain pipeline segments, the maximum allowable operating
pressure (MAOP) in the SSGC transmission network is maintained at about 1,298 psi in
practice, whereas in SNGPL network it is limited to 1,235 psi. The operating pressure varies
from segment to segment in both the networks, and the average upstream pressure at different
compression stations in the SNGPL and SSGC networks is about 850 psi.
570. At the transfer point from main trunk pipelines to the distribution network, gas is
decompressed by passing it through expansion valves. The average pressure at the city gate
after decompression is reduced to about 150-200 psi, and the differential pressure could be
transformed into power generation by installing expansion turbines instead of expansion valves.
This is an efficient way of recovering some of the compressor power supplied to the
transmission network to maintain the flows, or alternatively could provide revenues from sale to
the power grid.
1. Savings (Generation) Potential

571. Expansion turbine technology has been used to good effect in different parts of the
world. To evaluate its viability in Pakistan, a basic calculation has been done using the
following criteria and assumptions:

Appendix 15
(i) Conservative average annual demand and pressure numbers at each potential
decompression facility
(ii) Only sites with a generation potential of at least 1 MW were considered
(iii) A common decompression (downstream) gas pressure of 200 psi was assumed
at each facility
(iv) Information available on similar applications in other countries was employed to
calculate the potential at each facility
(v) A facilty load factor of 80% was assumed to estimate corresponding electricity
production potential.
572. Table A15.3 shows the generation potential and required investments estimated on the
basis of these assumptions at feasible sites on the SNGPL and SSGC networks.
Table A15.3: Potential Decompression Locations in the SNGPL and

SSGC Networks
Potential Annual Investment

Capacity Generation Required
(MW) (GWh) ($ Million)
SSGC
Karachi 8.76 61.4 10.6
Hyderabad 1.53 10.7 1.8
Jamshoro 1.53 10.7 1.8
Total SSGC 11.82 82.9 14.3
SNGPL
Multan 6.84 47.9 8.2
Faisalabad 4.11 28.8 4.9
Lahore 3.61 25.3 4.4
Islamabad 2.85 19.9 3.4
Total SNGPL 17.41 122.0 21.0
Total Generation Potential 29.2 204.8 35.2
573. The power generated at these locations could have several advantages, besides
improving the operating efficiency of the network, as this would yield additional revenue for gas
companies. The power would be generated close to existing demand centers and could be
injected directly in to the 11 kV distribution network of the power distribution companies
(DISCOs), thereby also saving nearly on the typical 25% transmission and distribution grid
losses for the electric utilities.

574. The amount of power generated and revenue earnings for the gas utilities from such an
application will remain small compared with their mainstream gas business. The two utilities
may have to add these operations in to their Articles of Associations and may require board
approvals before being able to embark on such programs. Furthermore, both SNGPL and

Appendix 15
SSGC will have to obtain generation licenses from the National Electric Power Regulatory
Authority (NEPRA) for setting up the generation facilities, as well as for electricity tariff for sale
of power to DISCOs. The utilities may be reluctant in exposing themselves to two different
regulators (OGRA and NEPRA), which would require them to maintain the two businesses
separately from each other, thereby increasing their management overheads.
575. NEPRA has adopted the principal of ‘cost-plus’ for tariff determinations across the power
market, based on 15% rate of return on investment. All grid-connected generation plants in the
country are required to file a tariff petition with NEPRA in order to get their bulk sales tariff
approvals. On the other hand, the DISCOs would be interested in buying this power only as
long as it does not add to their supply costs. Therefore, the revenue for the purpose of
calculating the payback period for the gas utilities has been estimated at the generation tariff,
that is, equal to the average DISCO sale rate minus the distribution margin (DM) currently
allowed to the DISCOs. Presently, the average DM for the DISCOs is around 15% of their
average sale rate. Using an average sale rate of Rs 5.97/kWh, the estimated net back
generation tariff for the gas utilities comes to Rs 5.07/kWh, which sets the expected revenue
expectation for the gas utilities. The total investment requirements have been calculated
assuming installation of the full estimated potential for the decompression power generation
capacity over a period of ten years. The investment requirements, investment schedule, and
estimated payback period for the proposed installation of the decompression facilities are
indicated in Table 15.4.
Table A15.4: Investment Schedule for the Installation of Power Generation at SNGPL and
SSGC Decompression Facilities
Energy Consumed Energy Efficiency Energy Saved Investment Simple

Potential Required Payback
Period
Technical Realizable (GWh) (TOE) ($ Million) (Years)
- 50% 100% 192 15,640 35 2.9
($ Million)
Annual - 0.4 2.1 6.3 10.2 9.5 4.9 1.4 0.4 -
Cumulative - 0.4 2.5 8.8 19.0 28.5 33.5 34.9 35.2 35.2
576. SNGPL and SSGC will be the implementation agencies for the installation programs of
power generation facilities at their respective decompression facilities.
577. Both the utilities are in good financial condition, as they are allowed tariffs based on
assured 17.5% ROA (for SNGPL) and 17% (for SSGC). In terms of implementation of the
installation program, the detailed feasibility work and internal approvals are expected to take
about six months, followed by the tendering process and evaluation of bids that would require
another six months. Generation licenses, electricity tariffs, and negotiations with DISCOs are
expected to be completed in six months. After closure of all agreements, the delivery of turbine
and generation equipment compressor equipment by suppliers would require another 12 to 18
months. The installation of the equipment and interconnection facilities would be completed in
an additional 12 to 18 months. SNGPL has sufficient land at all of these decompression stations
and does not expect procurement of additional land for installing these generating facilities.

Appendix 15
578. The implementation schedule for the installation of power generation facilities at the
major gas pressure let-down sites on the SNGPL and SSGC transmission system is given in
Figure A15.2.
Figure A15.2: Implementation Plan for Installation of Decompression Facilities
C. THERMAL POWER PLANT LOSS REDUCTION
1. Power Plant Replacement Options for GENCOs

579. Under the MoWP’s power sector restructuring plan of 1991, WAPDA’s extant thermal
generation assets were disaggregated into four separate generating companies (GENCOs).
The installed capacity of these GENCOs mainly consists of steam and combined cycle
technology. All of the steam plants have the capability of operating on natural gas as well as
residual fuel oil (RFO). The GENCOs’ combined cycle/gas turbine (CC/GT) plants operate on
natural gas supplied by the SNGPL, SSGC, and independent fields.
580. Nearly 70% of the installed capacity of GENCOs, however, is current over 15 years of
age, and has generally been operated under harsh conditions. Moreover, WAPDA has
generally not been able to allocate adequate funds to adequately meet required operational and
maintenance expenditures of these plants, due to the weak financial condition of the utility,
which has resulted in a loss of effective capacity, efficiency, and dispatch availability of these
plants. Consequently, the GENCOs are operating their plants at nearly 25% overall reduced
output due to derating over their nameplate capacities. Similarly, the average forced outage
rate for GENCOs has been around 12%, compared with 6% for thermal IPPs in the country.
Nearly all the GENCO power plants are operating at much lower efficiency levels than the

Appendix 15
industry-wide standard efficiency levels for plants of similar age and configuration. GENCO-
wise details of plants, their installed and derated capacities, and thermal efficiencies are given in
Table A15.5.
2. Energy Savings Potential at GENCO Plants

581. It is not possible to completely restore the derated generation capacity and efficiency of
the GENCO units in view of the present age and condition of the plants. A number of these
plants are dual-fuel units and use natural gas when it is available. GENCO II (Guddu) has gas
allocations from a number of medium-Btu gas fields located in the geographical proximity of the
plant. Gas currently used by the steam units can be diverted to new combined cycle plants that
can operate at an efficiency of 48%, compared with around 30% for the existing steam units.
Since the site and allied infrastructure is already in place, the replacement of steam units by
combined cycle generation equipment carries the advantage of lower installation costs, as well
as reduction in the plant’s commissioning time compared with a similar greenfield power plant.
PEPCO has already invited tenders for procurement of new plant machinery of 750 MW and
have received a bid of $688 million based on GE machines. However, funds for this
procurement have yet to be arranged, and there is a possibility that the validity period for the bid
may expire unless the required financing can be provided soon. PEPCO is presently in
discussions with the World Bank for potential financing of this plant under a public-private joint
development option. However, no agreement has yet been reached in this regard. So far, no
power generation project has been implemented in Pakistan under public-private partnership,
and there is high likelihood that the plan may not take affect to differences in risk perceptions of
the parties involved. However, the option remains open for other financing considerations.
582. A number of other GENCO plants are in a similar situation. For instance, at such as
GENCO III, where the steam units of 132 MW SPS Faisalabad and 195 MW NGPS Multan are
well past their economic lives and are operating at low thermal efficiencies, ranging between 22-
28%. Due to prevailing power shortages in the country that are projected to continue for
another five to six years, the GENCOs are forced to keep these plants operational. The
generation equipment of these plants could also be replaced with modern, high efficiency
combined cycle plants operating on fuel oil at 43% thermal efficiency. As a result of this
capacity replacements, the GENCOs will not only get the benefit of lower cost generation due to
reduced fuel requirements, but will also be able to improve their environmental performance due
to lower emissions.
583. Table A15.6 presents options for replacement of existing steam units at various
GENCOs with modern combined cycle plants along with the estimated investment and savings
if these options are implemented.
3. Issues, Barriers, and Investment Requirements

584. Besides proposals for replacement of generation capacity at Guddu, PEPCO had
considered installation of 450 MW natural gas/fuel oil based combined cycle units at Multan and
Faisalabad. However, for the purpose of funding under the SEED MFF, the GENCO plant
replacement options have been considered on the basis of replacement of capacity equivalent
to existing capability of the plants to be replaced to qualify as energy efficiency investments.
For this reason, the original proposal for installation of 750 MW generation capacity at Guddu
was adjusted to match the existing capacity of 425 MW of the Guddu steam units. Therefore,
PEPCO will need to arrange financing from other available resources for its remaining capacity
augmentation requirement of 325 MW. This concept has been applied across the board to
other similar proposals prepared by GENCOs for their generation upgrade plans.

Appendix 15
585. For capital investment calculations, a unit capital cost of $917/kW has been used, based
on bids received for the Guddu plant. Due to the advantage of lower fuel consumption,
investments on new plants show attractive payback periods, ranging between 2.5 to four years
at the prevailing economic price of $33676 for fuel oil. There could be other opportunities at the
850 MW Jamshoro and 1,350 MW Muzzafargarh power plants (GENCOs I and III) as well, but
these may be considered at a later stage as they are relatively newer plants and therefore have
a longer replacement payback period due to the high associated stranded and replacement
costs. It is also worth noting that the GENCOs are faced with cash shortfalls that may preclude
them securing funds from commercial financing institutions in the present circumstances.
586. The investment requirements for GENCO upgrades were estimated assuming 100%
replacement of the inefficient units at Guddu, Faisalabad and Multan with the most efficient
available technologies over a period of ten years. The corresponding investment requirements,
investment schedule, and estimated savings and payback periods are provided in Table A15.7.
76
Pakistan State Oil’s HSFO price of April 16, 2009 delivered in Multan region, converted to economic price by
removing 16% sales tax from ex-depot prices.

Appendix 15
Appendix 15
486
Table A15.5: GENCO-wise Installed and Derated Power Plant Capacities, Rehabilitation Plans, and Associated Costs
Plant Plant Configuration Year of Fuel Thermal Capacity Current
(Units x MW) Commissioning Efficiency (MW) Capability
(MW)
GENCO I
Jamshoro Steam 1 x 250, 3 x 200 1990-1991 Natural 29%-33% 850 700
Gas/RFO1

Kotri CC 4 x 25,1 x 44 1978-81, 1994 Natural Gas 30%-34% 144 116
Kotri GT 2 x 15 1970 Natural Gas 20% 30 24
GENCO II
Guddu Steam 2 x 110, 2 x 210 1974, 1980- Natural Gas/RFO 29%-33% 640 425
1986
Guddu GT/CC 6 x 100, 2 x 135, 1 x 1985-88, 1993- Natural Gas 34% 1,015 730
145 94
Quetta TPS 1 x 35 2004 Natural Gas/RFO 21% 35 25
GENCO III
Muzaffargarh Steam 3 x 210, 2 x 200, 1 x 1993-97 Natural Gas/RFO 28%-33% 1,350 1,130
320
Faisalabad CC 4 x 25, 1 x 44 1975, 1994 Natural Gas 40% 144 124
Faisalabad GT 4 x 25 1975 Natural Gas 21% 100 86
Faisalabad Steam 2 x 66 1967 Natural Gas/RFO 24%-28% 132 100
Multan Steam 3 x 65 1963 Natural Gas/RFO 22% 195 60
Shahdara GTPS 1 x 59 2004 Natural Gas 12% 59 30
GENCO IV
Lakhra FBC 3 x 50 1995-96 Coal 22% 150 30
Total GENCOs 4,844 3,580
1
Residual fuel oil (furnace oil).
Source: Power System Statistics, 33rd Ed., 2008.
Table A15.6: GENCO-wise Replacement Options and Savings

Capacity Energy Load Existing Benchmar Existing New Energy Energy Savings
Generation Factor Thermal k Energy Consump-
Efficiency Efficiency Consump- tion
tion
(MW) (GWh) (TOE) (TOE) (TOE) RFO ($ Million)
(Tonnes)
GENCO-II
Guddu Steam 425 2,283 61% 31% 48% 599,779 270,868 328,911 337,805 132
GENCO-III
Faisalabad Steam 100 625 71% 26% 43% 195,773 118,375 77,399 79,492 31
Multan Steam 60 347 66% 22% 43% 128,657 65,722 62,935 64,637 25
Total 585 3,255 924,209 454,965 469,245 481,934 188
Source: Power System Statistics, 33rd Ed., 2008.
Table A15.7: Investment Requirement, Paybacks and Schedule for GENCO Replacement
Energy Consumed Energy Efficiency Potential Realizable Savings Investment Simple Payback
Fuel Oil Required Period
(GWh) (TOE) Technical Realizable Effective (Tonnes) (TOE) ($ Million) (Fin.) (Eco.)
Guddu Steam 2,283 599,779 55% 100% 55% 337,805 328,911 393 2.9 3.4
Faisalabad Steam 625 195,773 40% 100% 40% 79,492 77,399 95 2.9 3.4
Multan Steam 347 128,657 49% 100% 49% 64,637 62,935 58 2.2 2.5
Total 3,255 924,209 481,934 469,245 545
Investment Schedule ($ Million)

Annual – 152.5 207.0 132.0 38.3 15.3 – – – –
Appendix 15
Cumulative – 152.5 359.5 491.5 529.7 545.0 – – – –
487
4. Implementation Plan
587. The Pakistan Electric Power Company (Pvt.) Ltd. (PEPCO) will be the implementation
agency for thermal plant replacement projects at both GENCOs, being the corporate owner of
all four GENCOs (in addition to nine DISCOS and NTDC). PEPCO also functions as the
managing agent of the Government of Pakistan for these entities. Currently, PEPCO is under
severe financial strain for a variety of reasons, including: mismatch in the cost of supply and
consumer tariffs for the DISCOs, the difference of which is payable by the government as a
subsidy, and timely recovery of such payments is a recurring issue leading to cash flow
problems; rising prices of fuel for thermal plants which were not passed on to consumers in real
time; and high power losses, coupled with low revenue collection levels, at some DISCOs.
These revenue shortfalls are resulting in increasing circular debt between major energy sector
entities, adding to their costs of operation due to the resulting heavy short-term borrowings that
they resort to in order to to meet their operational obligations. Some of these problems may be
resolved shortly, as the government has announced an intent to eliminate external retail tariff
subsidies to DISCOs by June 30, 2009. However, efforts are required on instituting best
practices and improved corporate governance of the sector to help reduce losses and enhance
revenue collection by the DISCOs. With ADB’s on-going MFF assistance in the transmission
and distribution sectors, DISCOs’ performance is expected to improve.
588. The National Electric Power Regulatory Authority (NEPRA) regulates tariffs for all power
sector entities in the country using the ‘cost-plus’ approach, allowing an equity return of 15%
and passing on the operational costs based on benchmark efficiencies. Most of the existing
GENCO plants, as mentioned earlier, are appreciably depreciated, lowering the book value of
their assets, which consequent equity hampers the DISCOs’ ability to earn significant profits that
could be reinvested in installation of new assets. The GoP, therefore, may have to inject
additional equity to enable these GENCOs to obtain external financing under commercial
market terms.
589. On the other hand, the GENCOs have extensive experience in procurement and
installation of power station equipment. The Guddu 750 MW project could be initiated on fast-
track basis, as bids for generation equipment have already been received. This project could be
implemented within 30 to 36 months from the date of finalization of financing arrangements.
The replacement of steam units at Faisalabad and Multan power stations, however, may take
longer as project feasibility work is yet to be completed. Under best case assumptions, the
feasibility assessment and internal approvals for these plants could be completed within six to
nine months. PEPCO could proceed with the financing arrangements in parallel with the
technical feasibility studies for these projects. The tendering process, evaluation of bids, and
finalization of EPC agreements could be accomplished in another nine months to a year. The
approval of generation tariffs for these units would be possible within six months from
finalization of EPC costs. The delivery of generation equipment by suppliers and installation of
a combined cycle plant normally takes 24 to 30 months from award of the EPC contract. In
most of the existing premises of GENCO power plants, sufficient land is already available for
construction of additional units and therefore no additional land acquisition is envisaged for
these projects, nor any loss of existing capacity due to construction downtimes, as the existing
units can continue to operate until the new plants are commissioned.
590. The implementation schedule for the installation of power generation facilities at existing
GENCO power stations is given in Figure A15.3.

Appendix 15
Figure A15.3: Implementation Plan for GENCO Replacement Projects

D. DOMESTIC GAS APPLIANCE UPGRADES
591. The domestic sector in Pakistan mainly uses natural gas for cooking and, during the
winter season, for water and space heating. In the SNGPL system, gas demand in the domestic
sector remains around 250 MMscfd from April to September. Demand starts to rise in October
and reaches a maximum of 900 MMscfd during the month of January as the space and water
heating loads reach their peaks. The SSGC system, on the other hand, serves a climatic zone
with relatively mild winters, except for the Quetta region. Domestic gas demand in the SSGC
system increases from 135 MMscfd in the summer to 265 MMscfd during January.
592. This situation is exacerbated by the relatively low efficiency of the appliances used.
Most gas appliances, such as stoves, water and space heaters used by domestic sector are
inexpensive, locally manufactured items and are inherently inefficient and hazardous due to
poor design and quality of manufacturing.

Appendix 15
1. Appliances Replacement in the Gas Utilities

593. The existing thermal efficiency of commonly-used gas water heaters in Pakistan is
around 30%. This efficiency reduces further below design levels with the passage of time due to
deposition of scale on internal heat transfer areas.
594. Estimated gas consumption in the SNGPL system ranges between 350-400 Mmscfd
during the January from around 1.8 million water heaters. 77 The population of similar water
heaters in the SSGC system is around 0.47 million, accounting for consumption of 60-100
MMscfd. The overall consumption of the gas water heaters in the country averages around 225
Mmscfd over seven months of usage during the winter season.
595. Space heaters used in the domestic sector are not only hazardous for health, but also
increase gas demand by around 250-300 Mmscfd and 70 Mmscfd in the SNGPL and SSGC
systems, respectively. These heaters are 40% to 50% efficient, and their total population is
estimated to be 4 million in the two utilities, mostly on the SNGPL network.
596. Stoves are the most common gas-fueled device in households, with efficiencies ranging
around 40%. The gas demand for cooking in the SNGPL and SSGC systems is around
200 MMscfd and 153 Mmscfd, respectively.
2. Energy Consumption and Savings Potential

597. The efficiency of gas appliances could be improved significantly with appropriate choice
of design and materials. The efficiency of water heaters could be improved from the existing
30% to 60% with minor modifications in design and retrofits, requiring an investment of Rs 1,000
per water heater. Similarly, the efficiency of space heaters could be enhanced to 70% from the
prevailing range of 40% to 50% through further innovations costing about Rs 2,000 per space
heater. The efficiency of the stoves can also be increased further to 70% through
improvements costing around Rs 800 per piece.
598. During FY2008, the total annual average gas demand on the SNGPL and the SSGC
systems was 375 MMscfd and 185 Mmscfd, respectively. Using the EE measures above,
around 174 MMscfd of gas–about 30% of the total gas consumption in domestic sector–could
be saved with an investment of approximately $179 million, assuming 100% penetration of the
EE measures.

599. Pakistan’s domestic sector has in the past enjoyed low gas prices ($1-2 per MMbtu) that
left little incentive for consumers to opt for better designed and manufactured, but more
expensive, appliances. However, the government, over the past two years, has increased gas
prices manifold for large customers consuming over 10 MCF per month, and these customers
now pay around $4-9 per MMbtu. On the one hand, where the price increase has compelled
customers to switch to more efficient devices, lower availability and high prices of energy
efficient appliances remain major barriers towards their penetration. Furthermore, the gas
utilities earn their revenues on the basis of fixed return on assets that too leaves little incentive
for them to introduce EE measures at the customer end.
600. Most of locally available gas appliances are being manufactured in cottage industries,
where manufacturers do not have access to energy efficient technologies and designs. The
77
SNGPL statistics.

Appendix 15
government needs to play its role through R&D allocations that can provide appropriate
technologies and designs to these manufacturers and build their capacity sustainably to be able
to upgrade to meet acceptable EE standards, which should be gradually introduced into the
market. This will, besides helping the gas utilities meet peak winter loads and save the precious
resource for more productive industrial uses, also help reduce the burden on the country’s
balance of payments through avoided imports of more expensive alternative fuels. Besides
such efforts to upgrade the manufacturers’ capabilities, the gas utilities must be incentivized to
undertake appliance retrofits and upgrades at the household level to lock in system-wide
savings in gas use.
601. Program implementation of domestic gas appliance retrofits and upgrades is well within
SNGPL’s management and technical capability. The total investment has been estimated at
$179 million based on the unit costs mentioned above. The gas thus saved could be diverted to
industrial and power customers at higher rates, generating additional revenues. Annual savings
for the customers to calculate the payback period was estimated by using the sale price of
Rs 181.97 per MMbtu, assuming most of the benefit to be availed by mid-slab customers with
significant gas appliance holdings.
602. The corresponding schedule of investment was estimated assuming 100% replacement
of inefficient compressor units over a period of ten years. Investment requirements, investment
schedule, and estimated payback periods are indicated in Table A15.8.

Appendix 15
492
Appendix 15
Table A15.8: Energy Consumption, Realizable Savings, Investment Requirements, and Schedule for
Replacing Gas Appliances
Energy Energy Consumed Energy Consumption Energy Efficiency Potential Realizable Savings Investment Simple
Type FY2008 Forecast 2020 Required Payback
FY2020 Period
(MMscf) (TOE) (MMscf) (TOE) Technical Realizable Effective (MMscf) (TOE) ($ Million) (Fin.) (Eco.)
Water 42,241 988,441 98,507 2,013,679 30% 80% 24% 10,138 237,226 28 1.3 0.3
Heating

Space 33,430 782,274 77,961 986,886 36% 80% 29% 9,628 225,295 99 4.8 1.1
Heating
Cooking 128,363 3,003,705 299,347 7,788,899 43% 80% 34% 43,644 1,021,260 52 0.5 0.1
Total 204,035 4,774,412 475,815 10,789,464 39% 80% 31% 63,409 1,483,780 179 1.3 0.3
603. All of the EE potential mentioned above cannot be realized due to a number of reasons,
including large geographical spread of customers, lack of affordability by low-income customers,
and the time required to upgrade/replace each device. It was assumed that about 50% of the
above potential could be realized through the SEED MFF. It was assumed that once an
effective consumer awareness campaign, coupled with adequate financing, takes place, the rest
of the customers will be more inclined to adopt the upgrades on their own. Table A15.9
provides the domestic gas appliance investment project and corresponding savings realizable to
be considered under the proposed SEEIP MFF.
Table A15.9: Investment Requirements and Energy Savings for

Gas Appliance Upgrade Project
Investment Energy Percentage
Required Savings Allocation of
Funds
$ Million TOE
Water Heaters 28 237,226 39%
Space Heaters 32 72,085 36%
Cooking Stoves 20 394,193 25%
Total 80 703,504 100%
($ Million)
Annual - - - - 24.0 28.0 28.0 - - -
Cumulative - - - - 24.0 52.0 80.0 - - -
604. The SNGPL and SSGC shall be the implementation agencies in their respective regions
for the appliance retrofit and upgrade project. The utilities are in sound financial health, as they
are enjoying tariffs based on 17-17.5% return on assets (ROA). The utilities have extensive
experience of dealing with all types of gas equipment and have recently launched active DSM
campaigns targeting their domestic customers. For implementation of the appliance retrofit and
upgrade project, the R&D phase may take around six to nine months. The local manufacturing
industry is estimated to take three to six months for manufacturing of components and
appliances based on new designs and technology. For procurement of equipment and
components by the utilities, the tendering process and evaluation of bids would take
approximately six months. The delivery and installation of equipment would take place over
seven to eight years, depending on the human resources the companies could spare for these
activities. The implementation schedule for the gas appliance retrofit and upgrade project is
given in Figure A15.4.

Appendix 15
Figure A15.4: Implementation Plan for Domestic Gas Appliance Upgrades

Appendix 15
Appendix 15
E. INDUSTRIAL ENERGY EFFICIENCY FINANCING
605. An Industrial Sector EE Fund will be established to provide loans, contingency loans, or
leases for the purchase of energy-efficient equipment by industrial plants, especially electrical
motors, boilers and furnaces, and other large- to medium-scale investments, although small
cogeneration units, HVAC, lighting retrofits, process controls, and other measures could be
financed as well. Retrofits and expansion would be supported through working-capital and
bridge-funding arrangements with Pakistani commercial banks, supported by equity financing
from owners.
606. The Fund will initially be established on a pilot basis with $20 million of OCR funding,
and will target certain energy-intensive industrial subsectors, such as fertilizer, cement, pulp and
paper, sugar and cement companies. The textile industry and other export-oriented industries
already have access to below-market credit terms from the State Bank of Pakistan (SBP) (see
Paragraph 50), so they may only require technical assistance.
607. Given that small and medium-sized enterprises (SMEs) play a critical role in generating
economic growth, employment, and exports, a portion of the fund will be reserved for SMEs—
initially, during the pilot phase, SMEs in the textile industry. Since SME’s can be a hard-to-
reach class, they could be ‘clustered’—as is done in India, where the State Bank of India
developed a cluster-lending strategy (Project Uptech), and several other banks followed with
their own approaches. SME cluster lending can focus either on a specific sector or technology
group, or else on a geographically grouped cluster that includes one or several industrial
categories.
608. The Fund will be housed at the State Bank of Pakistan, which has conducted its own
industrial loan programs focused on export oriented industries at the moment. The SBP is
currently preparing to establish a loan program for renewable energy investments for export
oriented industries, and ADB funds under the SEEIP MFF would be used to co-finance the
loans or co-capitalize such a fund with objective to extend the scope of SBP’s existing lending
program to include energy efficiency, and also to establish a new window for non-export
oriented industries. Further, it is under discussion that, considering the current conditions of the
country’s financial sector, a mix of risk sharing and refinancing for the commercial banks may be
implemented to ensure higher lending leverage and liquidity to commercial banks.
609. There has not been much activity in the SBP’s current industrial lending facility, although
the SBP expects to lend Rs 10 billion ($125 million) over the next six months to the sector. Its
interest rate structure, as provided by commercial banks to industrial borrowers, is given in
Table A15.10.
Table A15.10: SBP Industrial Lending Rates

Term Annual Interest
Rate
3 years 8% fixed
5 years 9% fixed
10 years 10% fixed
Source: State Bank of Pakistan.

Appendix 15
1. On-lending Issues
610. The GoP’s current on-lending policy for multilateral financing could be a barrier to
providing affordable financing to industrial borrowers who need to be adequately incentivized to
undertake efficiency-related investments, in addition to their normal capital expenditures. Under
this policy, interest rate charges are added to concessional ADB funds that will result in a final
interest rate to borrowers of 16 to18% per annum. Rates this high would make loans for EE
investments unattractive, as the normal commercial lending rate is currently at about 17%.
611. Most of the GoP’s interest adders (about 8-9%) are intended to hedge currency risk. If
the currency exposure could be mitigated through other means, the on-lending rate could be
reduced to the range of the SBP loans and ADB funds could more readily co-finance with the
SBP. One potential method for addressing the currency risk would be to use donor funds to
provide a limited currency guarantee. The guarantee would cover those currency losses that
fall within recent historical fluctuations. Any losses above that would be covered by the GoP.
To our knowledge, donor funds have not been used to cover currency risk, but there is no
reason to think they could not be used in such a fashion. Further, as per discussions with SBP
and commercial banks, at the moment industries may be more interested in having longer term
borrowings in comparison to the payback period of the project to be financed, with some grace
period, instead of subsidies in interest rates. Considering experience in other parts of the world,
there may be need for some upfront financial incentives for borrowers, which may include some
fiscal benefits, such as accelerated tax depreciation allowance or tax credits for EE investments.
These aspects would need to be finalized before the launch of the pilot Fund.
2. Financing Arrangements
612. ADB and SBP funds will be on-lent to commercial banks, which will provide the loans
(and possibly leases) to industrial borrowers. These loans/leases may need to be accompanied
by rebates or the aforementioned tax breaks to incentivize participation. However, if the loan or
lease terms (interest rate and maturity) are attractive enough, then the loan and lease payments
could be paid out of energy savings, and a rebate may be unnecessary. The fiduciary risk—that
the funds disbursed for EE investments are utilized for that purpose or not—will be with the
commercial banks during whole tenure of loans. For this purpose, commercial banks will be
provided with technical assistance in structuring and monitoring the EE loans.
613. Contingency loans could also be provided to pay for energy audits. Under this
approach, the audit loans would be forgiven if the borrower implements all audit
recommendations with simple paybacks of, say, two years or less.
614. A boiler and furnace replacement program (perhaps including other associated thermal
systems, such as heat exchangers, steam systems, etc.) may be particularly suitable for
employing lease financing. A program could be established for this equipment category in
conjunction with one or more Pakistani leasing companies, or banks that provide leases, such
as the SME Bank. Leasing is a viable but under-utilized financing technique for certain kinds of
energy efficiency equipment, essentially equipment that is discrete and easily repossessed,
such as commercial-scale boilers or furnaces.
615. Whether loans or leases are used, the program could be structured with energy service
companies (ESCOs) providing performance guarantees to companies, ensuring that loan or
lease payments would come from energy savings. ADB loan proceeds would be used to provide
partial loan guarantees (PLGs) to back up Pakistani banks lending to the ESCOs. This model
has been successfully used in the Hungary Energy Efficiency Cofinancing Project (HEECP) and
the Commercializing Energy Efficiency Finance (CEEF) program in Eastern Europe, both
sponsored by the IFC and GEF. The PCG covers all occurrences and causes of non-payment

Appendix 15
for a designated part of a bank’s loan to an ESCO. PCGs are generally used to encourage
lenders, like Pakistani commercial banks and leasing companies, to make loans for projects that
they would otherwise not lend to. These guarantees share the risk of the loan with the
lender/lessor, so the lender/lessor has an incentive to make a good lending/leasing decision but
has partial downside protection in the event the loan is not fully repaid by the ESCO.
616. An alternative model is Thailand’s Energy Efficiency Revolving Fund (EERF), capitalized
through a Baht 2 billion (about $50 million) government transfer, which provides low-interest
loans directly to ESCOs through local commercial banks.
617. Carbon finance through Programmatic CDM (pCDM) could complement that portion of
the industrial energy-efficiency program where a single technology, such as motors or boilers, is
being supported.
3. Industrial Energy Efficiency Financing (Pilot)

618. The overall financing requirements for the pilot Industrial Energy Efficiency Fund are
given in Table A15.11, and the main components summarized below.
Table A15.11: Pilot Industrial EE Financing
Component Amount
($ million)
Lending Facility 20.00
Feasibility Study 0.20
Preparatory Activities 0.25
Promotional Campaign 0.50
Audits, Analysis, and 0.80
Disbursements
M&E 0.20
Total 21.95
619. Feasibility Study: Detailed assessment of the industrial energy-efficiency market, the
availability and cost of energy-efficient equipment (especially motors, boilers, and furnaces), the
creditworthiness of energy-intensive industrial sectors, and the likelihood that an industrial
energy-efficiency fund will attract sufficient creditworthy borrowers.
620. Preparatory Activities: Working with a donor to structure a currency guarantee, inform
the textile industry about the program, build the capacity of commercial banks to lend for energy
efficiency, and work with engineering and auditing firms to ensure they can provide the
necessary industrial auditing services.
621. Promotional Activities with Textile Industry: Personal contacts with individual textile
firms, trade associations, trade shows prior to, and after, program start-up.
622. Audits, Engineering Analysis, and Disbursement of Loan Funds: Project
management and oversight during this time period.
623. Monitoring and Evaluation: Preparation and implementation of an M&E plan.

Appendix 15
624. A proposed implementation schedule for the pilot Industrial EE Fund is given in
Figure A15.5 below.
Figure A15.5: Implementation Schedule for Pilot Industrial EE Financing Subproject


Appendix 15
Appendix 16
PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM,
ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK
A. INTRODUCTION
625. The Government of Pakistan (GoP) has requested the Asian Development Bank (ADB)
to provide a multitranche financing facility (MFF) to implement a systemic energy efficiency
investment program under a flexible public sector financing mechanism to (i) scale up the
deployment of proven energy efficiency technologies in energy supply and use, and (ii) establish
a viable energy efficiency market. The proposed MFF will establish a dynamic business
environment and transform the energy efficiency market in Pakistan. This MFF will finance
priority projects that (i) increase energy supply and (ii) reduce peak loads. This will help
strengthen Pakistan's energy security, optimize the energy mix and balance energy demand
and supply.
626. This Environmental Assessment and Review Framework (EARF) identifies the broad
scope of the MFF and outlines the policy, procedures, and institutional requirements for
preparing the environmental assessments of the subsequent projects under the MFF loan. This
EARF shall apply to all projects under the MFF, so as to ensure that the environmental impacts
are appropriately addressed and mitigated to acceptable levels.
627. The MFF funding from the ADB is expected to be released in stages (tranches). Under
the MFF loan procedures of the ADB, implementation of safeguards is to be achieved by
environmental assessment of every project to be undertaken following the ADB’s Environment
Policy 2002. The constituent projects in the Program generally concern investments in existing
institutions and are not be likely to affect sensitive areas, forests or wetlands, and might typically
be expected to been classified as Category B or C under the ADB’s Environmental Assessment
Guidelines 2003 that will be followed for all projects.
628. GoP regulations (Pakistan Environmental Protection Agency Review of Initial
Environmental Examination and Environmental Impact Assessment Regulations 2000)
categorize development projects into two schedules, according to their potential environmental
impacts. Proponents of projects that have reasonably foreseeable impacts are required to
submit an initial environmental examination (IEE) for their respective projects (Schedule I).
Projects that have potentially more adverse environmental impact (Schedule II) are required to
submit an environmental impact assessment (EIA) to the respective provincial Environmental
Protection Agency (EPA). The requirements for EIA and IEE for different projects under the
SEEIP Program will vary.
B. INVESTMENT PROGRAM DESCRIPTION
629. Since 2006, Pakistan has been facing an acute energy crisis caused by (i) insufficient
energy supply capacity, (ii) poor sector performance, (iii) increasing demand, and (iv) inefficient
use of energy resources. The Government of Pakistan is struggling to resolve the crisis.
Currently planned capacity additions will take at least another five years to start coming online.
Ad hoc measures are therefore being taken, to little immediate avail, while more shortages loom
over an already overstretched energy system. As Pakistan's economy grows and industrializes,
standards of living continue to improve consequently. Coupled with rapid population growth,
this is causing a steep increase in energy demand. Energy efficiency is identified as the least-
cost short- to medium-term solution and a more sustainable development trajectory for the
longer run.

Appendix 16
630. The MFF will finance a time-slice of the energy efficiency investment program in
tranches. The proposed projects will utilize technologies that are used successfully
internationally and are available commercially. Projects to be financed under the MFF include:
(i) National Compact Fluorescent Lamp (CFL) Project
(ii) Loss reduction in gas transmission and distribution networks
(iii) Replacement of inefficient thermal power generation units
(iv) Public buildings energy efficiency retrofits
(v) Financing of industrial energy efficiency investments, and
(vi) Domestic gas appliance upgrades and replacements.
C. ENVIRONMENTAL ASPECTS OF PROPOSED PROJECTS
631. The domestic sector CFL distribution project is to be implemented under Tranche-1 of
the MFF. An IEE has been carried out for the project following the ADB’s Environment Policy
2002 and Environmental Assessment Guidelines 2003 and GoP’s environmental assessment
regulations and guidelines. The environmental assessment of projects in remaining tranches
will use Tranche 1 IEEs and EMPs for guidance on how to scope, assess, mitigate, and monitor
environmental impacts. Further generic guidance on preparing EMPs is given in Attachment 1.
The projects identified for investment under the MFF are listed in Table A16.1 and discussed
below.
Table A16.1: Proposed MFF Projects

Project EPA IEE/EIA Estimated ADB
Schedule* Category*
First Tranche
Part A: National CFL Distribution NA** B
Part B Investment Program Support
A. PMO Operations NA C
B. Investment Program Management/Preparations NA C
C. Strengthening of National Standards and Testing Facilities NA C
D. Institutional Capacity Development NA C
E. Lamp Waste Management facility IEE/EIA*** B
Future Tranches
Gas T&D Upgrades NA B
Thermal Power Plant Loss Reduction EIA A/B
Government Buildings Retrofit NA C
Domestic Appliance Replacement NA C
Industrial EE Financing Facility NA C
* Categorization and reports required to be confirmed by the ADB and EPA during tranche period.
** NA = not applicable.
*** Categorization will depend on the size of the facility.

Appendix 16
632. National CFL Distribution: This project will replace 30 million incandescent bulbs in the
domestic sector with efficient, high-quality CFLs. The project will accelerate CFL market
penetration and will result in around 1,131 MW reduction the evening peak electricity demand
and yearly savings in electricity consumption of 2310.5 GWh by 2011, thus alleviating much of
the current power supply deficits. An IEE of the CFL program has been undertaken that
concludes that the procurement, distribution, and use of the CFLs will not have any significant
adverse environmental and social impact.
633. CFLs typically contain 3 to 4 milligrams (mg) of mercury, which is a highly toxic
substance. The harmful impact of mercury on human health is caused by long-term, low-level,
or ‘chronic’ exposure, which affects the kidneys, nervous system, and the female reproductive
system. Spent CFLs are therefore potentially hazardous. As there is presently no hazardous
waste handling regulations and disposal facilities in the country, facilities dedicated to the
handling and disposal of spent CFLs will need to be organized on a commercial basis to
properly dispose off the CFLs distributed under the project (in addition to other CFLs and FTLs
in use in the country) after they have expired. The lamp waste management system would
need to be in place by the fourth year of the program as the CFLs distributed under the program
begin to reach the end of their operating lifetimes (a 10,000-hour rated lamp, used on average
for less than three hours a day, could last for ten years). However, the program could be
started even earlier to help manage current CFL/FTL disposal needs, as well as to establish and
test an effective recycling regime and create the necessary public awareness levels. The
facilities to be developed fall under Category B under the ADB’s environmental guidelines, and
consequently an initial environmental examination (IEE) for the facility will be undertaken.
Under the environmental regulations of Pakistan, “a waste disposal facility for domestic or
industrial wastes, with annual capacity of less than ten thousand cubic meters” requires an IEE.
It is expected that the facilities will be developed in the private sector and therefore the IEE shall
be the responsibility of the project owners. However, as there is a risk that the facility may not
be commercially viable for the private sector, a contingency provision has been kept in the
project budget to establish it in the public sector. In this case, the EA for the project will be
responsible for ensuring that the IEE is undertaken and approved.
634. Gas Transmission and Distribution Upgrades: In the natural gas transmission
system, gas compressors are used to increase the upstream pipeline pressure of the gas by
compressing it into smaller volumes. The increased pressure allows the transport of the gas
through the transmission and distribution pipeline network. Currently, Sui Northern Gas
Pipelines Limited (SNGPL) operates 11 compressor stations that use natural gas as fuel.
SNGPL proposes to replace the existing outdated compressors with new, more efficient, and
larger machines to enhance compression capacity and improve system reliability. Installation of
more efficient compressors will reduce the consumption of gas and consequently the emission
of air pollutants. The new compressors will replace existing compressors and will be installed
within the premises of the existing facilities. No new land will be acquired for the purpose. This
component is categorized under Category C and therefore no environmental assessment is
required.
635. Thermal Power Plant Loss Reduction: There are four public sector power generation
companies (GENCOs) in Pakistan that operate 13 power units based mainly on steam-cycle
and combined-cycle technologies. Due to various reasons, mainly associated with the financial
constraints faced by these companies, these plants are being operated at derated capacities
nearly 25% below their nameplate ratings. The average forced outage rate for the GENCOs, at
12%, has been high compared with 6% for IPPs in the country. Nearly all GENCO plants are
operating at much lower efficiency than the industry benchmark levels for plants of similar ages
and configurations. Due to the aging of several plants, all of the derated capacity and efficiency

Appendix 16
cannot be economically restored. It is proposed that the existing units at three plants—Guddu
Steam, Faisalabad Steam, and Multan Steam—be replaced by modern combined-cycle plants.
The plant at Guddu is gas-fired and can use the same gas already allocated to the existing
power plant to fuel the replacement plant. At the other two plants, the less efficient steam-cycle
plant will be replaced by high efficiency combined-cycle plants. This will increase the power
generation capacities of the plants by improving the efficiencies from the existing 22% to 31% to
about 43% to 48%. The installation of the more efficient plants will also result in overall
environmental benefits. These include reduced air pollution, reduced global warming and
climate change impact, and less water consumption. The new units will be installed at the
existing plant sites. This will avoid the requirement of purchasing new land, consequently
eliminating the environmental and social issues associated with land acquisition and
resettlement, and land use conversion. Lower emissions will also benefit the communities living
around the plants by reducing potential health risks to them. Good environmental practice
demands that the operation of the entire facility comply with applicable environmental
standards. Thus, the modification the plants will also address the environmental and social
issues associated with the existing plants, and will bring the plants at par with modern power
plants in terms of their environmental performance. This will be an added benefit to the local
community and the environment. Nevertheless, activities associated with the construction of
power plants, particularly near built-up areas, have potential environmental impacts. A 750 MW
plant at Guddu, and 450 MW plants at Faisalabad and Multan, are planned to be replaced.
These are categorized as Category A projects and will require environmental impact
assessments (EIA) to meet the ADB’s environmental guidelines. Under the environmental
regulations of Pakistan, thermal power plants exceeding 200 MW in size require an EIA.
Construction-related impacts of the power plant installation include generation of new
employment opportunities, issues associated with migrant workers, such as cultural conflicts
between local and non-local workers, and traffic impact and community safety hazards caused
by construction vehicles. The EIA of projects will include a full-scale community consultation
plan for the design, construction, and operational phases of the plants.
636. Public Buildings Retrofits: This program aims at improving the energy efficiency
through system upgrades of three targeted groups of government buildings—offices, hospitals,
and educational institutions. The component includes creation of a new national Energy
Efficiency Center (EEC) under the management of the Planning Commission, the executing
agency (EA) for SEEIP. It includes a detailed study of selected buildings, energy audits,
purchase of energy audit tools, data loggers and energy analysis software tools for undertaking
building energy use analysis. It also includes the financing for implementation of EE retrofits for
the buildings selected for efficiency upgrades. The nature of activities in this component is such
that no environmental assessments are required as the component is categorized as
Category C under ADB guidelines.
637. Industrial Energy Efficiency Financing: An industrial sector EE fund will be
established to provide loans, contingency loans, or leases for the purchase of energy-efficient
equipment by industrial plants, especially electrical motors, boilers and furnaces, and other
large- to medium-scale investments, although small cogeneration units, HVAC, lighting retrofits,
process controls, and other measures could be financed as well. Retrofits and expansions
would be supported through working-capital and bridge-funding arrangements with Pakistani
commercial banks, supplemented by equity financing from owners. Other than benefits
associated with energy conservation, these measures often result in the installation of modern
technologies that also have localized benefits, particularly in terms of occupational health and
safety for the workers and the local community. Due to their scale and nature, these measures
generally fall into Category C assessment and do not require specific environmental
assessments.

Appendix 16
638. Domestic Gas Appliance Upgrades: The energy efficiency potential in gas used for
domestic water heating in Pakistan is estimated to be 30%, which can be achieved by
retrofitting existing water heating appliances. The gas utilities, SSGC and SNGPL, have
devised some of these retrofits in collaboration with local technical partners. These retrofits
include a) timing device to switch off the heater during parts of the day when hot water is not
required; b) de-scaling to improve heating efficiency; and c) flue gas control to minimize heat
loss from the exhaust. The potential for improvement in energy efficiency in space heating
appliances is similarly estimated at 36%, which can be achieved by replacing them with more
efficient ones.
639. The retrofits could be developed and provided by the gas utility companies, or
alternatively utility companies could involve the private sector in their commercial development
and marketing. This type of activity is unlikely to involve any significant environmental impact
and is therefore categorized as C under the ADB’s environmental guidelines.
D. ENVIRONMENTAL CRITERIA FOR ADDITIONAL PROJECT SELECTION
640. Specific environmental criteria for project selection are:

(i) The projects shall not disturb any cultural heritage designated by the
Government or by international agencies, such as UNESCO, and shall avoid any
monuments of cultural or historical importance.
(ii) The projects shall not be located within or near any national park, wildlife
sanctuary, or game reserve as designated by the concerned regulatory
authorities.
(iii) The projects shall have a government and ADB-approved EMP prior to letting of
any construction contract associated with the project. The EMP must be
consistent with Attachment 1 of this EARF. Any departure from the EMP shall be
approved by the ADB prior to commencement of the project.
(iv) The projects shall not clear any existing forest resources classified by the
Government as forest or watershed with any kind of protected status. Where
unavoidable, tree-cutting outside said forest resource areas will be minimized
and compensatory planting will be conducted in at least a 7:1 ratio (three
saplings planted and tended for five years for every one tree cut greater than
10 cm in diameter). The budget for compensatory planting shall be included in
the EMP.
(v) The projects shall only involve activities that follow GoP laws and regulations,
ADB’s Environment Policy (2002) and ADB Environmental Assessment
Guidelines (2003), and this EARF.
E. ENVIRONMENTAL ASSESSMENT AND REVIEW PROCEDURES OF ADDITIONAL

PROJECTS
1. Application of Selection Criteria

641. Any additional project not meeting the criteria listed above will not be put forward for
consideration or inclusion under the MFF tranches. The environmental assessment of the
projects will be conducted by the IA prior to the submission of the PFR for subsequent tranches
and in line with the requirements of the FFA. A final check on conformity with the selection
criteria will be made at the submission of IEEs or EIAs of additional projects for ADB's
clearance.

Appendix 16
2. Environmental Classification
642. The Government will propose, and the ADB will confirm, environmental categorization
using the Rapid Environmental Assessment checklist approach in compliance with the ADB’s
Environment Policy 2002 and Environmental Assessment Guidelines 2003, or their successor
policies and guidelines.
3. Land Acquisition
643. It is expected that all the proposed projects involving physical investments will be
undertaken on existing facilities and no land acquisition will be necessary. However, if for a
particular project acquisition of land is required, the ADB’s Resettlement Policy will be triggered.
The EA may be required to prepare a Land Acquisitioned Resettlement Framework (LARF) and
a Land Acquisitioned Resettlement Plan (LARP). Prior to any land acquisition, the EA will seek
advice of the ADB on documentation requirements.
4. Preparation of Detailed Design

644. Detailed design work for each additional project will include and follow the
recommendations of the environmental assessments. The EA will include the requirements of
the EMP, as required, in the bid documents and ensure the detailed designs include such
requirements before contracts are finalized. Where modifications to designs are incorporated at
a later stage, the requirements of the IEE/EIAs as needed and EMP will also be included.
Certification to the ADB that the detailed designs were drawn in accordance with IEE/EIA
(including EMP) recommendations will be required before contracts may be signed and made
effective.
5. Environmental Monitoring
645. Environmental monitoring will be undertaken for projects that require physical investment
in developing new facilities. Monitoring consists of regular systematic checking that the above-
mentioned environmental management measures have been implemented effectively during
each stage of the project. Table A16.2 presents the key tasks for the Project’s environmental
monitoring plan.
646. Some of the projects that fall in Category C, may also require environmental monitoring
or monitoring of occupation health and safety. Such requirements will be identified prior to the
approval of the financing by the ADB.
647. Monitoring during construction will be the responsibility of the EA. Monitoring will relate
to compliance with construction contracts, and the effectiveness of mitigation measures and
complaints (also known as ‘project performance monitoring’), and the state and health of nearby
environmental resources (also known as ‘ambient environmental monitoring’). Ambient
monitoring will follow the approach to selecting quantitative standards, as recommended in the
ADB’s Environment Policy 2003 or its successor(s). Reporting will be to the relevant provincial
or federal EPA on a regular basis (at least quarterly) and to the ADB semi-annually.
648. Monitoring during operation should be conducted on an as-needed basis. For example,
some aspects of additional project design may require continuous operations-phase monitoring
to guard against negative environmental impacts. Reporting will be to the relevant provincial or
federal EPA on a quarterly basis and to the ADB semi-annually.

Appendix 16
Table A16.2: Key Tasks for Environmental Monitoring Plan

No. Environmental Monitoring Tasks* Implementation Implementation
Responsibility Schedule
1 Design Phase
1.1 Audit project bidding documents to ensure IEE EA Prior to issue of bidding
and EMP are included documents
1.2 Disclosure of project to EPA EA Prior to construction
1.3 Monitor final site selection and its EA Prior to approval of
environmental compliance with EMP detailed designs
2 Construction Phase
2.1 Regular (monthly) monitoring and reporting EA Continuous throughout
(quarterly) of contractor’s compliance with construction period
statutory environmental requirements
2.2 Regular monitoring and reporting of EA Continuous throughout
contractor’s compliance with contractual construction period
environmental mitigation measures
2.3 Regular monitoring and reporting of EA Continuous throughout
complaints and responses or environmental construction period
mitigation measures
2.4 Monitor adjustments to the EMP and the EA During all phases of the
thorough implementation of detailed EMP projects
2.5 Commissioning phase monitoring of as built EA At commissioning
equipment and facilities versus environmental
contractual performance criteria
3 Operation and Maintenance Phase
3.1 Observations during routine maintenance EA As per agreed inspection
inspections of facilities. Inspections will include schedules
monitoring implementation of operational
mitigation measures versus environmental
criteria specified in EMP for operational
impacts
3.2 Monitoring impact on the ambient environment EA During the life of the
such as air quality, noise and water quality project
* Additional monitoring requirements related to land acquisition and resettlement may be required that are addressed
in the LARF and LARP.
6. Public Disclosure and Consultation

649. Public Disclosure: In all projects for which an environmental assessment is carried out,
disclosing the environmental document to the public will be the responsibility of the EA. The EA
will be responsible for ensuring that all environmental assessment documentation, including
environmental due diligence and monitoring reports, are properly and systematically kept as
part of the project-specific record. All environmental documents are subject to public disclosure,
and therefore will be made available to the public, upon request. For category A and B-
sensitive projects, the SEIA/SIEE will be publicly disclosed through the ADB’s websites
120 days before a PFR is submitted to the ADB, while the SEIA/SIEE be reviewed by the ADB
prior to disclosure. The EA will consult the public, particularly with project-affected persons, as

Appendix 16
required in the ADB’s Environment Policy 2003 and Public Communications Policy 2005, or
their successors.
650. Public Consultation: Where a project requires an IEE, at least one public consultation
will be conducted with the local community and potentially affected people. The IEE will be
approved before commencement of detailed design, while IEE results will be communicated to
the local community before commencement of construction. Any projects that are categorised
‘A’ will require full environmental impact assessment (EIA) and will include two rounds of public
consultations. The second consultation will be conducted after the draft EIA is prepared, which
will include the EMP. A summary EIA (SEIA) will be made available to the general public at
least 120 days before project approval by the ADB. Similar disclosure procedures will also
apply to Category B sensitive projects, with an IEE and SIEE (including an EMP) posted on the
website at least 120 days before the PFR is submitted to the ADB.
7. Environmental Management Plans

651. Attachment 1 summarizes an environmental management plan in matrix form. This is a
generic EMP that will be used to develop future projects requiring physical investments.
Additional requirements may be necessary for some projects. The matrix is developed on the
basis of typical environmental impacts of development projects. Mitigation measures for the
additional projects will be developed in the spirit of the principles agreed upon in this EMP.
However the EMP for all projects will be a working document and any unanticipated
consequence(s) of the project will be documented in the regular quarterly reports, while
environmental mitigation measures will be modified to take account of unexpected impacts, as
necessary, throughout the implementation period.
8. Institutional Arrangements
652. The executing agency (EA) for the MFF is the Planning Commission. The IA for the
projects will depend on the sector in which the project falls. The IA will be responsible for
implementing most of the project’s environmental tasks. IA’s overall responsibilities will include
(i) ensuring that project selection criteria are strictly adhered to; (ii) ensuring that preparation of
IEEs/SIEE or EIA/SEIA will be carried out in a manner consistent with this EARF; (iii) ensuring
that environmental monitoring and institutional requirements are fully met; (iv) ensuring that
meaningful public consultations are carried out in a manner consistent with Government and
ADB policy; and (v) ensuring the categorization checklists, IEE/SIEEs and EIA/SEIAs, and
monitoring reports are submitted to the ADB for review.
653. Prior to the submission of the PFR for a tranche of projects, the IA will:
(i) Prepare an environmental screening checklist to classify the projects in each
tranche.
(ii) Prepare the terms of reference for environmental consultants to conduct
environmental assessments, prepare environmental assessments, IEE/EIA
reports including an EMP, and SIEE/SEIA for Category A and B sensitive for
public disclosure.
(iii) Ensure that adequate public consultation has been undertaken with affected
groups and local NGOs, review the environmental assessments, and submit the
IEE/EIAs, EMPs, SIEE/SEIA documents as required, to the ADB.
(iv) Prior to the letting of civil works for projects in a tranche, the IA will:
(v) Submit the IEE/EIAs for regulatory approval of the relevant environmental
protection agency and obtain approval.

Appendix 16
(vi) Ensure that all regulatory clearances for the project that are obtained from the
relevant government authorities are submitted promptly to the ADB.
(vii) Ensure that the required mitigation measures during construction and the EMP
are included in the bidding document of the project and that all bidding
contractors have access to the EIA/IEE and EMP.
(viii) During the implementation of civil works for projects in a tranche, the IA will:
(ix) Ensure that an environmental management plan, including all proposed
mitigation measures and monitoring programs, as required, are implemented as
per the requirements and guidance of the EMP.
(x) Monitor the implementation of EMP and prepare the monitoring reports.
(xi) In case unpredicted environmental impacts occur during project implementation,
inform the ADB, review the EMP with the contractor, and implement alternative
environmental mitigation program.
(xii) In case a project has a major change in scope78, inform the ADB and reconfirm
the environmental classification, determine whether a supplementary IEE or EIA
study is required with the ADB, and carry out the appropriate study.
(xiii) Submit the requisite reports on social and environmental compliance and
implement the EMP as required by the Pakistan EPA and the ADB.
(xiv) Undertake environmental due diligence and monitoring of all the projects. The
due diligence report as well as monitoring reports on EMP, as required, will be
systematically prepared and be available to the public, if requested. If the ADB
decides to undertake environmental due diligence and monitoring, then support
the ADB and provide information and coordination assistance, as requested.
654. The ADB will be responsible for regular review and timely approval of project IEE/SIEEs
and EIA/SEIAs. Technical guidance will be provided by the ADB to the IA as needed. The ADB
will also be responsible for reviewing regular monitoring reports and officially disclosing the
summary environmental assessments for selected projects (Category A and B sensitive) on the
the ADB website. During the MFF, ADB will:
(i) Review environmental assessment reports as a basis for project and tranche
approvals.
(ii) Publicly disclose the SIEE and SEIA for Category B sensitive and A projects,
respectively, 120 days via ADB websites before a PFR is submitted to the ADB.
(iii) Monitor the EMP through due diligence missions or as part of MFF reviews.
(iv) Provide assistance to the IA, if required, in carrying out its responsibilities and for
building capacity for safeguards compliance.
78
A major change in scope is a change that materially alters or fundamentally affects the project’s purpose
(immediate objectives) components, costs, benefits, procurement, or other implementation arrangements as
approved by the ADB. It is not necessarily accompanied by a significant cost impact. Example of major changes
in scope include changing the route of a road, shifting the project site, or changing the project’s stakeholders.

Appendix 16
(v) Ensure that the IA will conduct the required consultations with project-affected
groups and local NGOS, and that the borrower or project sponsor provides
relevant information on the project’s environmental issues in a form and
language(s) accessible to those being consulted.
(vi) Publicly disclose monitoring reports received by the Government in accordance
with the ADB’s Environment Policy 2003 and Public Communications Policy
2005, if not already done so by the Government.
(vii) Guide the IA on the format, content, and scope of semi-annual reports submitted
to the ADB.
655. Where necessary, the IA will establish an Environmental Cell. The Cell’s main
responsibility will be to ensure that the environmental assessment and review framework is
strictly implemented.
656. The Environmental Cell Leader will prepare the detailed TORs, assist in selection,
oversee daily tasks, and report on the progress of all environmental consulting contracts. The
Environmental Cell Leader will be responsible for coordinating environmental monitoring, quality
control, supervising the monitoring, and writing the quarterly progress reports on implementation
of the EMP and semi-annual reporting to the ADB. The Environmental Cell Leader will be
responsible for writing the quarterly progress reports on implementation of the project EMP.
657. The Environmental Cell Leader will be designated by the IA before the loan becomes
effective. The IA will further ensure the release of resources for environmental management
and that monitoring budgets are made available for timely EMP implementation
658. The Environmental Cell Leader will be in post for the duration of the financing and will
report directly to the head of the IA, who will be accountable and responsible for implementation
of the EARF and project EMPs.
9. Disclosure, Consultation and Grievances

659. Where necessary, the EMP (as part of the IEE) prepared for additional projects will be
translated into local language(s) and made available to the public. Public disclosure and a
complaints contact person will be designated for each project to help address all concerns and
grievances of the local communities and affected parties.
10. Monitoring and Reporting

660. The EMP will have both internal and external monitoring. Internal monitoring will be the
responsibility of the Environmental Cell Leader. Internal monitoring reports will be prepared
quarterly and submitted to the IA. These reports will document progress made in EMP
implementation, with particular attention to compliance with the principles and matrix set out in
the EMP. The IA will submit a semi-annual monitoring report to the ADB.
661. External monitoring will be conducted by the ADB via safeguard review missions. These
missions may occur at any time during the loan period. They will compare the project’s
progress in achieving environmental covenants, mitigation measures of the EMP, and
implementation of the EARF. Safeguard review missions will submit an aide memoir of its
findings to government prior to mission completion.

Appendix 16
F. ATTACHMENT 1:
Table A16.3: Sample Environmental Management Plan for Future Projects

Environmental Objectives Mitigation Measures (MM) Timing to Locations to Responsible Responsible
Concern Recommended Implement Implement MM to to Monitor
MM Implement MM
MM
DESIGN STAGE
Project Ensure Disclose project & design to the Commence All projects Design IA - ADB
disclosure statutory provincial environmental protection ment of consultant/IA
compliance agency & clarify what documents are detailed
with PEPA required to be filed (if any) to ensure design
1997 compliance with sec. 12(1) of the PEPA
1997.
2. Project Ensure EMP Review IEE and EMP and confirm Completion All projects Design IA - ADB
boundaries sufficient to findings and recommendations. of detailed consultant/IA
change control Submit REA, revised IEE/EIA and EMP design.
impacts and to the ADB.
compliance
Complete the environmental
with statutory
assessment process in line with EPA
requirements
and ADB Guidelines.
PEPA 1997.
3. Waste Ensure 1. Design consultants to identify reuse 1. Detailed All projects Design IA
Disposal sufficient options and sufficient stockpiling and design consultant/IA
disposal disposal locations for site clearance of output.
space for cut scrabbled and cut surface materials 2. Within
surface and bored piles or caissons and one
materials and include disposal locations and month of
avoid fly- requirements in contracts. award of

tipping. 2. Before works commence selected contract
contractor to prepare Waste or earlier
Management Plan with disposal sites
Appendix 16
identified for agreement by

construction supervision consultants
and IA.
509
510
Appendix 16

MM Implement MM
MM
4. Hydrological To minimize Design of adequate major and minor 1, 2.During Areas considered IA with DDC IA
Impacts hydrological lead off drainage facilities will be detailed prone to flooding,
and drainage completed in detailed design. design. bridges and
impacts culverts
during
constructions

.
5. Retain trees To avoid 1. Identify all trees>10cm DBH 1. Detailed All routes Design IA
and negative (diameter at breast height) in design consultant/IA
landscape impacts due alignment. output.
designs to 2. Detailed design to avoid tree removal
unnecessary unless justified on engineering, safety
removing of and environmental grounds.
trees
3. Identification of off-site landscape
opportunity spaces in liaison with
local community for planting with
trees and shrubs and spaces for
compensatory planting to be included
in detailed designs.
4. Include tree protection and mitigation
requirements in tender and contract
documentation as milestone
payments.
5. Landscaping with trees and shrubs
shall take place at all stations and
verges included in detailed designs.

Planting of trees/shrubs/ornamental
plants to contribute to aesthetic value.

MM Implement MM
MM
6. Enhance To provide 1. Opportunity spaces for landscape 1. Detailed Project sites IA with DDC IA
landscape by enhancement planting to be identified along side of design
including s in line with highway to provide visual interest in output.
trees in ADB policy line with best international practice for
landscape on highway design. Locations may
designs environmenta provide a chance to create
l ly landscaping where successful
responsible planting of trees and shrubs could be
procurement accomplished. This practice should
and avoid be encouraged as far as practicable.
negative Other opportunities for enhancements
impacts due can be assessed prior to construction
to and proposed enhancements should
unnecessary be discussed with the local population
removing of with respect to available water supply
trees during establishment and protection
to avoid cutting for fuel.
2. Detailed designs to avoid tree
removal unless justified and include
tree protection and mitigation
requirements in tender and contract
documentation.
7. Noise Ensure noise 1. Detailed design stage, with the benefit During Noise sensitive IA with the IA
barriers impacts are of traffic flow forecasts, acoustical designing locations to be design
acceptable in assessments should be made to stage no reconfirmed and consult-ant.
operational determine if noise mitigation at source later than checked in the
phase. (noise barriers/low noise road pre- EMP.
surfacing) are required near any qualification

sensitive receivers. or tender
2. Near schools, hospitals and places of negotiations
worship make detailed assessment of
Appendix 16
noise climate and conduct detailed

acoustic assessment
511
512
Appendix 16

MM Implement MM
MM
3. if predicted noise at sensitive receiver
exceeds agreed criterion [e.g., 3dB(A)
above baseline or leq67dB(A) if who
criterion acceptable] design and
include construction of acoustic
measures to control noise at source,

e.g., solid barrier to attenuate noise to
below agreed criterion.
8. Air quality Predict Use USEPA models or equivalent to Prior to Two locations on IA with the IA
benchmark possible predict air quality impact. Sample to construction each route design
future obtain benchmark levels of heavy activity consult-ant.
deterioration metals and hydrocarbons in air and soil Submission
of air quality. at locations near the alignments. to the ADB
Avoid
environmenta
l being
undetected
due to lack to
baseline
data.
9. Environ- Avoid 1. Contractor to submit Method During Tender evaluators Tender IA
mentally operational Statement and schedule of product to check evaluators
responsible environmenta environmental mitigation measures acquisition, contractors Method
procurement l pollution with tender. Techniques and prior to Statements and
and impacts machinery selection to minimize purchase proposed mitigation
upon impacts and duration of works. measures and
decommissio 2. Choose non-polluting equipment. timing.

ning. Equipment
3. Specify equipment not to contain
POP, asbestos, other hazardous or specifications and
toxic components. performance with
company
certificates/
accreditations.

MM Implement MM
MM
CONSTRUCTION STAGE
1. Loss of trees To avoid 1. Removal of trees >10 cm DBH One month All routes Contractor IA/CSC
and several (diameter at breast height) to be prior to and especially where and CSC
vegetation negative justified on engineering and safety during trees can remain
cover of the impacts due grounds in tree removal plan. construction under elevated
areas work to 2. Clearing of trees for construction, of relevant sections.
areas and unnecessary cutting trees and other important activities
aesthetics removing of vegetation during construction should
trees and be minimized.
other street
3. Trees that are unavoidably to be
foliage.
removed for construction shall have
compensatory planting and
replacement and establishment plans
for trees that shall be approved by the
contractor one month before existing
trees are cut.
4. Payments for site clearance shall be
withheld until compensatory tree
planting is complete for that sector
and payment therefore linked to tree
reestablishment not removal as one
of the milestone payments.
5. At lease seven (7) new trees shall
replace each cut tree and maintained
alive for three years as part of the
contractual agreement and milestone
payments.
6. Landscaping with trees and shrubs
shall take place to contribute to the
aesthetic value of the area.
Appendix 16
7. At conclusion of the project, all debris

and waste shall be removed.
513
514
Appendix 16

MM Implement MM
MM
8. All temporary structures, including
office buildings, shelters and toilets
shall be removed.
2. Orientation Ensure that 1. Contractors tenders shall be required Induction for All site agent staff. contractor IA & to
for the CSC + to separate clearly the resources and all site Monthly induction management observe and

contractor, Contractor funds to be applied to the mitigation agents and and six month with the CSC record
and workers and workers measures for environmental impacts above refresher course as and record success.
and understand 2. Contractual clauses shall be included including all necessary until details and
construction and have the to tie the implementation of CSC staff contractors comply/ report
management capacity to environmental mitigation measures in new staff improve. quarterly
plans ensure that the above plans to milestone before
the payments. commence
environmenta ment of
3. Contractual clauses shall require
l work.
Contractors to conduct special
requirements Weekly tool
induction briefing and/or on-site
and box talks
training for the contractor’s
mitigation and
management, contractor’s staff,
measures refreshers
subcontractors and workers to cover
must be at early
the environmental requirement of the
implemented stages of
project.
by them. construction
4. Contractors shall record and report
for all
regularly on record attendance and
construction
achievement test for all staff and
employees
managers.
as far as
5. Contractual clauses shall be included reasonably
to require contractors to employ
practicable.
dedicated environmental Include with
management staff to safety talks.
conduct/oversee the environmental
orientation sessions and the
implementation of environmental
mitigation measures so as to facilitate
checking for milestone payments.

MM Implement MM
MM
6. Contractual clauses shall emphasize

that financial compensation shall not
be allowed as mitigation for
environmental impacts or
environmental nuisance without
written and environmentally justifiable
agreement from the relevant
environmental authorities.
7. Engineering controls shall be
promulgated by the construction
contractors and shall be designed as
mitigation measures to control the
impacts at source in the first place.
The CSC shall be responsible to
approve the measures and report the
update of EMP.
3. Exploitation To minimize Contracts to include specifications for update 1. List the borrow Contractor IA
handling, and or avoid 1. Selecting sites for material monthly areas to be and CSC to
transportatio adverse exploitation as approved by IA. prepared one agree
n and environmenta month prior to
2. Maintain vehicles used in material
storage of l impacts commencemen
transport in good condition and
construction arising out of t of contracts
covered with tarpaulins.
materials construction 2. A map of
material 3. Specify sites for material storage at a
locations of
exploitation, safe distance from sensitive
storage is
handling, receptors
prepared by the
transportation
4. Excavation of earth fill to be limited to contractor.
and storage. an approximate depth of 50 cm.
5. In case of deep ditching, the top 1 m
To minimize layer of the ditching area to be
Appendix 16
contaminatio stripped and stockpiled. Ditch initially

n of the to be filled with scrap material from
surroundings construction and then levelled with
515
516
Appendix 16

MM Implement MM
MM
the stockpiled topsoil.
6. Ditches or borrow pits be revegetated
and landscaped to minimize erosion
and to avoid creating surface hazards
for people and livestock.

7. Update materials management plan
monthly and include in progress
report.
4. To minimize 1. Install, maintain and monitor all Maximum Contractor IA/
Noise/Gr noise level requisite mitigation as per contract allowable should CSC
ound increases 2. All heavy equipment and machinery noise levels monitor and
Vibration and ground shall be fitted in full compliance with at the maintain the
vibrations the national and local regulations. façade of accepted
during the standards)
construction sensitive
3. As a rule, the operation of heavy
operations. receiver are
equipment shall be conducted in CSC should
daylight hours. monitor
4. Hammer-type pile driving operations 1. relevant
shall be avoided during night time. 70dB(A)LEQ activities.
5. Construction equipment, which or
generates excessive noise, shall be 2.
enclosed. Well-maintained haulage 3dB(A)LEQ
trucks with speed controls will be above the
used. background
6. Performance criteria shall during night (measured
time (10 pm to 7 am) the measured no more

impact noise at the residential or than 2
hospital sensitive receiver shall not be weeks
more than 3dB above background before the
noise levels measured at the nearest commence
sensitive receiver (Leq15minutes) two ment of
weeks prior to the commencement of work).
works. The contractor shall also

MM Implement MM
MM
maintain and service all equipment to
minimize noise levels.
5. Construction To minimize 1. Estimating the amounts and types of Update The list of waste 1. IA/
Waste the impacts construction waste to be generated by once a sites to be Contr CSC
Disposal from the the project. month and reconfirmed and actor
disposal of 2. Investigating whether the waste can report that dumping areas 2. CSC
construction be reused in the project or by other quarterly is available as should
waste. interested parties. identified by supervise
detailed design and take
3. Identifying potential safe disposal
engineer. action to
sites close to the project..
ensure
4. Investigating the environmental
completion of
conditions of the disposal sites and
Contractor’s
recommendation of most suitable and
relevant
safest sites.
activities
5. Used oil and lubricants shall be according to
recovered and reused or removed environmenta
from the site in full compliance with l standards.
the national and local regulations.Oil
wasted must not be burned.
6. Machinery should be properly
maintained to minimize oil spill during
the construction.
7. Solid waste should be disposed at an
approved solid waste facility.
6. Worker To ensure 1. Identify location of worker canteen Update Location map is Contractor IA/
canteen and that the and toilet facilities in consultation with once a prepared by the CSC
toilet facilities operation of local communities. Location month Contractor.
the works subject to approval by the IA. If
and worker possible, canteen and toilet facilities
facilities does shall include drinking water supplies.
Appendix 16
not adversely 2. In order to maintain proper sanitation

affect the around construction routes, temporary
surrounding
517
toilets will need to be provided.
518
Appendix 16

MM Implement MM
MM
environment Waste shall not be buried (see
and residents above)
in the area. 3. Drinking water and sanitary facilities
shall be provided for employees.
4. Solid waste and sewage shall be

managed according to the national
and local regulations.
5. The Contractor shall organize and
maintain a waste separation,
collection and transport system.
6. The Contractor shall document that all
liquid and solid hazardous and non-
hazardous waste are separated,
collected and disposed of according
to the given requirements and
regulations.
7. At the conclusion of the project in a
particular sector, all debris and waste
shall be removed. All temporary
structures, including office buildings,
shelters, waste receptacles and toilets
shall be removed.
8. Exposed areas shall be replanted with
suitable vegetation in line with the
landscape plans and be inspected by
IA and CSC shall inspect and report
that the site has been vacated and

restored to pre-project conditions or
as agreed with IA.
7. Safety To ensure 1. Providing adequate warning signs. During Relevant canteen Contractor IA/
Precautions safety of 2. Providing workers with skull guard or construction and worker and CSC CSC
for the workers hard hat. sanitation facilities.
Workers and
3. Contractor shall instruct his workers in

MM Implement MM
MM
first aid health and safety matters, weekly,
and require the workers to use the
provided safety equipment.
4. Establish all relevant safety measures
as required by law and good
engineering practices.
5. Contractor shall provide first aid
facilities for the workers on the site
and at the worker canteens with at
least one qualified first-aider or nurse
present at all times. It is
recommended that the workforce be
given access to a trained doctor at
least once per two weeks for routine
checks and medical examinations if
necessary.
8. Nuisance to Control 1. Contract clauses to specify At all times All Routes CSC To CSC/
nearby nuisances acceptable construction practices to Monitor and IA
properties and reduce mitigate nuisances, noise, vibration enforce (Contractor
and dust impacts and liaison with Within 50m of all
impacts on implementati through
local community on approach to hospitals schools
property on of contract contract
mitigation. and colleges
value or clauses provisions)
interruption to 2. No payment in lieu of environmental versus
neighbouring mitigation measures and penalty milestone
land uses. clauses in contract. payments.
3. Incorporating good construction Complaints
management practices – complaints response

reported once per month for each time to
site/km of line under construction. rerecord,
4. Compensation will be paid for loss of respond and
livelihood due to construction resolve
Appendix 16
disruption in line with ADB guidelines. complaints.

5. Set up complaints hot line, recording,
response and resolution monitoring
519
520
Appendix 16

MM Implement MM
MM
OPERATIONAL STAGE
1. Monitoring To monitor Monitor air quality parameters such as After Surrounding areas IA IA
Air Quality pollution level NOx, SO2, and PM10 and feedback commissioni
in results to IA. ng and
surrounding periodically

areas.
2. Noise Control noise 1. Establishing standards and During Surrounding areas IA IA
from regulations for noise levels emanating operation
exceeding from vehicles.
tolerable 2. Strict enforcement of regulations,
levels within subsequent to an awareness
a 100m programme.
corridor by
3. Establishing a national policy on
decrease of
vehicle imports – noise levels, too,
traffic flow.
increase with age of vehicles.
4. In sensitive areas such as schools,
places of worship, hospitals and
libraries, sound barriers including to
be employed.
3. Noise To monitor 1. Monitor noise annually at plant fence Three Surrounding areas IA IA
monitoring the noise and in SR. months
level 2. Compare to base line. after
commence
3. Review strategy and policy on noise
ment of
pollution.
operations
1. SRs = Sensitive receivers, residences, schools, hospitals, mosques. PC = Public consultation.
2. CSC = Construction supervision consultant .
3. IA = Implementing agency
Appendix 17
PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM, TRANCHE-1
A. ANNEX 1: OUTLINE TERMS OF REFERENCE FOR PROJECT IMPLEMENTATION

CONSULTANTS
662. Project implementation consultants will be recruited by the implementing agency (EA) -
Pakistan Electric Power Company (PEPCO) to assist its Project Management Unit (PMU) 79
implementing the Tranche 1 - National Compact Fluorescent Lamps (CFL) Distribution Project.
663. The scope of work for the project implementation consultants for the would comprise the
following:
• Assistance in defining the staff and resource needs of the PMU, including
recruiting of relevant personnel against identified position descriptions.
• Assistance to PEPCO and DISCOs 80 in devising mechanisms, procedures,
protocols, safeguards, reporting requirements, and methodologies for CFL
distribution and IB recovery logistics, tracking, accounting, and verification,
including provision of adequate safeguards against potential risks and workflow
disruptions.
• Establishment by DISCOs of CFL receipt, testing, and disbursement allocation
procedures, including consignment tracking and supply chain logistics.
• Assistance in design and implementation of project communications strategy,
including media content, CFL packaging and voucher design, customer
interfacing, and response evaluation requirements.
• Assistance to DISCOs in design and implementation of CFL and IB accounting,
chain-of-custody, and transaction procedures and documentation.
• Coordination with the Project Management Office (PMO) in Planning
Commission, PEPCO, DISCOs, and monitoring and evaluation (M&E)
consultants in evaluating project progress, identifying and removing bottlenecks,
undertaking midcourse project review, recommending modifications, and
evaluating customer response.
• Assistance in meeting compliance, verification, and documentation requirements
of CDM.
664. The implementation consultants’ contract will extend over the entire 26 calendar month
duration of the project.
665. The total cost of recruiting project implementation consultants’ services for the Tranche-
1 National CFL Project will be $0.99 million. The consultants will be selected and engaged in
accordance with ADB's Guidelines on the Use of Consultants (2007). Firms carrying out
consulting services will be selected using the quality- and cost-based selection (QCBS) method.
79
The PMU was established under ADB financed MFF Power Distribution Enhancement Investment Program.
80
PEPCO will take the overall responsibility of project implementation and conduct bulk procurement of CFLs, with
each distribution company (DISCO) being responsible for implementing the project in its license area.

Appendix 17
666. It is estimated that the project implementation consultants’ team will comprise of 16 staff
members, including management, procurement, logistics, auditing, safeguards, and other
specialized and support personnel as described in Table A17.1 below:
Table A17.1: Project Implementation Consultants Requirements

Position International Number Level of Effort
or Domestic (Per Position, Over 26 Month
Consultant Contract Duration)
Home Office Field
(Months) (Months)
Management Consultants’ Team International 1 6 4
Leader
Project Management Specialist Domestic 1 12 14
Procurement Specialist Domestic 1 3 3
Logistics Specialist Domestic 1 2 6
Process Auditors Domestic 2 2 10
Safeguards Specialist Domestic 1 3 3
Tracking and Reporting Specialist Domestic 1 2 10
Liaison Officers Domestic 2 12 14
Support Staff Domestic 6 26 0
Home = Islamabad.
667. The project implementation consultants will prepare the reports listed in the following
Table A17.2:
Table A17.2: Reporting by Project Implementation Consultants

Title Contents Month/Frequency
Submitted
1. Inception report Review of terms of reference with 1
recommendations, if appropriate, on alternative
approaches
2. Assessment of PMU PMU and IA implementation and organizational 2
and IA needs requirements, position descriptions and
qualifications criteria
3. Project Design Description of main project component design, 4
Report including overall CFL procurement, distribution and
IB recovery methodologies, voucher collection, and
associated logistical and administrative
requirements and safeguards
4. Bidding and Tender Finalization of bidding documents and 5
Evaluation Report specifications, tender evaluation results, selection of
suppliers, and contract awards
5. Quarterly Progress Summary of project activities, milestones reached, Quarterly
Reports issues, and remediation methods against IAs
workplans

Appendix 17

Submitted
6. End-of-Round Results of distribution rounds, CFL/IB transactions, 3 months after end
Reports voucher analysis and consumer surveys, of each Round
recommendations for future project design, etc.
7. Project Completion Summary of project outcomes, including estimated 26
Report energy savings achieved, and evaluation against
project objectives
B. ANNEX 2: OUTLINE TERMS OF REFERENCE FOR PROJECT MONITORING AND

EVALUATION CONSULTANTS
668. The project monitoring and evaluation (M&E) consultants will be recruited by the Project
Management Office (PMO) of the Planning Commission for the independent monitoring and
verification requirements of the compact fluorescent lamps (CFL) distribution and incandescent
bulbs (IB) recovery processes.
669. The scope of work for the M&E consultants for the Tranche-1, National CFL Distribution
Project, would comprise the following:
• Inspection and verification of CFL shipments received from contracted suppliers,
including compliance with third-party testing and certification requirements for
release of payments.
• Oversight of allotment of CFL consignments to the DISCOs and receipt at their
respective regional distribution points, based on predetermined allocations and
delivery schedules agreed upon.
• Evaluation of each DISCOs accounting, delivery, resource allocation, and
internal auditing arrangements for CFL delivery, IB recovery, and voucher
handling requirements.
• Spot checking of voucher distribution, CFL delivery, and IB recovery at the
household level based on representative sampling of urban, rural, bulk, income
and remote customer stratification.
• Undertaking post-delivery surveys of sample representative households to gauge
actual CFL penetration and use, customer satisfaction, and feedback on delivery
mechanism and communications campaign.
• Assistance to the EA and IAs in designing and conducting voucher redemption
analysis at the end of each CFL distribution round to assess project impact,
customer take-up profiles, and associate load and peak electricity savings
attributable to the project.
• Verify numbers and types of IBs recovered and oversee their destruction and
disposal by PEPCO/DISCOs.
• Ensure that the project communication project is effective in delivering its
intended message to all target populations by conducting limited consumer
awareness assessment surveys and compiling performance indicators (television
and radio air time, press advertisements, packaging and marketing materials
developed, etc.).
• Prepare, in collaboration with the IAs, an overarching and nine separate DISCOs’
detailed project implementation schedules and work plans (using MS Project or
similar software) identifying timelines, milestones, resources, and dependencies
for each DISCOs implementation of each round of CFL, voucher, and IB

Appendix 17
transactions and associated tasks that will serve as the reference benchmark for
progress monitoring.
• Prepare monthly M&E reports to communicate project progress, issues,
milestone deviations, and performance appraisal to the SEEIP PMO M&E cell
and other project stakeholders (Planning Commission, ADB, AFD, EA, etc.).
670. The project M&E contract will need to be in place before the arrival of the first CFL
shipments at Karachi Port, and continue for a period of 26 calendar months.
671. The total cost of consultancy services for this assignment will be $980,000. The
consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of
Consultants (2007). Firms carrying out consulting services will be selected using the quality-
and cost-based selection (QCBS) method.
672. The key position of consultant team and their responsibilities include:
(i) Team Leader (International Consultant): Overall responsibility for M&E project
design, implementation, and reporting. Will be required periodically prior to
commencement of CFL shipments and before and after each CFL distribution
round, as well as for final project M&E analysis. Total 8 person months.
(ii) M&E Manager (Domestic Consultant): Will be responsible for day-to-day
management of M&E activities on a full-time basis for the duration of the project,
and will report to the M&E Team Leader and liaise with the PMO M&E cell for
routine reporting purposes. Total 26 person months.
(iii) Work plan Managers (Domestic Consultants): Shall develop detailed project
implementation plans with each IA and design monitoring indicators and
performance milestones to be used for subsequent project tracking by the M&E
management. Total 8 person months each.
673. It is estimated that the project M&E consultants’ team will comprise of approximately 29
staff members, to be able to simultaneously cover all nine DISCO operations as well as overall
M&E administration and analysis requirements. This will include overall M&E management
personnel as well as field verifiers, surveyors, and accounting personnel as described in
Table 17.3 below:
Table A17.3: Project M&E Staff Requirements

or Domestic (Per Postion, Over 26 Month
Home Office Field
(Months) (Months)
M&E Team Leader International 1 4 4
M&E Manager Domestic 1 10 16
Workplan Managers Domestic 2 3 5
Shipment Inspectors Domestic 4 2 6
Field Evaluators and Domestic 8 2 12
Surveyors
Stock Auditors Domestic 8 2 12
Data Analysts Domestic 2 6 4

Appendix 17

or Domestic (Per Postion, Over 26 Month
Home Office Field
(Months) (Months)
Database Manager Domestic 1 12 0
Reporting and Secretarial Domestic 2 26 0
Home = Islamabad.
674. The project M&E team will prepare the reports listed in the following Table A17.4.
Table A17.4: Reporting by Project M&E Consultants

Submitted
1. Inception report Review of terms of reference with 1
recommendations, if appropriate, on
alternative approaches
2. DISCO-wise project Description of implementation milestones, 2
implementation work timelines and monitoring indicators
plans (9)
3. Consignment CFL consignment receipt, test results, 2-3 for each round
acceptance reports allocation, and dispatch
4. DISCO-wise monthly CFL, IB, and voucher Every month for 4
distribution reports distribution/recovery, stock movement and months (Round 1) and
(9x10) balances, geographical and household 6 months (Round 2)
coverage, targets achieved, issues and
discrepancies, etc.
5. Voucher analysis Statistical results of voucher redemption 2 months after end of
reports (2) analysis each Round
6. Consumer Survey Results of post-distribution consumer 3 months after end of
Report survey on acceptance, CFL use and each Round
penetration, comments on distribution and
communication efficacy, etc.
Final M&E Report Summarizing performance evaluation, 26
parameters, lessons, and results of each
Round

Appendix 17
Appendix 18
ENERGY EFFICIENCY SECTOR ASSESSMENT
675. In recent years, Pakistan has emerged as one of the fastest-growing economies in Asia,
with rising per capita incomes and improved social indicators. Pakistan’s gross domestic
product (GDP) was $161.0 billion in FY2008. An average annual GDP growth rate of 7.1% from
FY2004 to FY2008 has translated into rapidly escalating energy demand, while primary energy
supply in Pakistan increased at an average rate of 6.0% per annum during the same period. Oil
imports increased by 32% in this period, while the value of oil imports increased by over 280%
due to increasing prices of crude oil and high demand. Peak demand for electricity increased
by 34% from FY2004 to FY2009, largely due to a substantial increase in appliance holdings in
households, driven by rising incomes and a burgeoning consumer financing market. The
country faced shortfalls in the range of 4,000-5,000 MW, corresponding to 25-30% of peak
demand, in the same year—necessitating significant ‘load shedding’, or forced outages, that
adversely affect economic activity and provision social services. Despite a steady improvement
in recent years, system-wide transmission and distribution losses still remain high at 23.4% of
dispatched power and close to 8% in the case of gas supply. The current energy crisis is
therefore costly, and the country has become highly vulnerable in terms of securing its energy
supplies.
676. With respect to comparable developing countries, Pakistan has been an inefficient user
of energy, which negatively affects its international competitiveness and impacts its balance of
payments. The country uses 15% more energy than India and 25% more than the Philippines
for each dollar of GDP produced. Expanding needs and rising energy costs mandate efficient
resource utilization and conservation, as the marginal cost of additional supplies is higher than
the cost of affecting such savings. Improved energy efficiency (EE) options offer Pakistan a
lower-cost alternative to capacity additions in energy supply, and can reduce end-user energy
expenditures. EE can also improve service affordability and access, improve overall energy
security, increase returns on infrastructure investments, and help integrate Pakistan better into
the global economy. In overall economic terms, EE thus represents a ‘least-cost’ development
strategy for Pakistan that can bring about substantial benefits over the long term.
677. The energy sector is administered largely through federal government ministries and
agencies. Provincial government involvement is restricted to small-scale power generation (<50
MW capacity), to exploration and mining leases for coal, and to permitting for wind and hydel
projects. The Planning Commission is responsible for overall energy planning and infrastructure
development in the country. It is supported by the Energy Wing for technical advice and
approval of all public sector energy investments. The Ministry of Water and Power (MoWP) is
the GoP’s executive arm for all issues relating to electricity generation, transmission and
distribution, pricing, regulation, and consumption in the country. Through the Private Power and
Infrastructure Board (PPIB) and the Alternative Energy Development Board (AEDB), the
Ministry provides private investors with one-window facilities for undertaking conventional and
renewable IPPs, respectively. The Pakistan Atomic Energy Commission (PAEC), an
autonomous agency, is exclusively responsible for the country’s civilian nuclear power program.
The sector is regulated by the National Electric Power Regulatory Authority (NEPRA). The
energy sector, however, remains largely fragmented, with an unbalanced distribution of
responsibilities among key sector institutions in terms of policy formulation, regulation, and
administration.
678. The Ministry of Petroleum and Natural Resources (MoPNR) administers the oil and gas
sector through its various technical directorates. The sector is regulated by and Oil and Gas
Regulatory Authority (OGRA). The Ministry of Environment (MoE), through its CDM Cell, is the

Appendix 18
Designated National Agency (DNA) for Clean Development Mechanism (CDM) projects in the
country and for climate change-related policies and activities. ENERCON, the National Energy
Conservation Centre, is responsible for promotion of EE and conservation, and is currently
placed under the MoE. The Ministry of Science and Technology (MoST) is also engaged in
energy-related research, standardization, and certification, through the Pakistan Standards and
Quality Control Authority (PSQCA) and the Pakistan Council for Scientific and Industrial
Research (PCSIR). Finally, the Ministry of Finance (MoF) defines and approves all financial and
fiscal terms and incentives applicable to the energy sector, including the tax and customs
regime through the Federal Bureau of Revenue (FBR).
679. The following measures essentially constitute the existing framework relevant to EE
specific regulation in Pakistan:
(i) Building Energy Use: Pakistan Building Energy Efficiency Code for residential
and commercial buildings was developed, along with a compliance handbook
detailing technical design and material data, by ENERCON under USAID
assistance in 1990. However awareness about the code—much less actual
compliance by the building industry—has remained negligible in the following
decades. The Code has also undergone recent revisions, which are currently
under review.
(ii) Power Factor Penalties: Low (<0.9) power factor penalties at industrial
electricity connections have been in place for some time. Consumer awareness
and access to proper power factor correction equipment and advice, however, is
often problematic, especially for mid- to small-sized industrial units.
(iii) Time-of-day Electricity Tariffs: More recently, power utilities in Pakistan have
introduced time-of-day (ToD) based electricity tariffs for industrial and agricultural
connections. Full impact and evaluation of this measure is yet to be determined.
Similar charges are currently under consideration for domestic customers as
well.
(iv) Daylight Savings Time: Operation since 2008, it is estimated to have reduced
system-wide power demand by 250 MW in 2009.
680. Pakistan’s National Energy Conservation Policy, 2006 aims to provide broad guidelines
for enhancing end-use efficiency in various energy consuming sectors of economy. The policy
lays out four strategic goals – (i) sustainable development, (ii) improved economic productivity,
(iii) environmental protection, and (iv) gender mainstreaming and social development in rural
and remote communities through EE-supplemented energy supplies. These goals are to be met
through (i) promotion of EE and improved energy management in all sectors of the economy,
(ii) development of EE market and commercialization of relevant products and services,
(iii) enhanced utilization of available indigenous energy resources and reduced dependence on
imported fuels, (iv) reduced energy intensity through efficient practices, technology upgrades,
and waste reduction. The policy separately defines ‘short and medium term’ and ‘long term’
measures for meeting overall policy objectives and goals. The document also lists some action
areas, but does not indicate how these are to be achieved. In this respect, the policy document
resembles more of a statement of intent on the part of the GoP rather than an enabling
instrument for encouraging EE.
681. Given a virtually non-existent EE-specific policy and legislative framework and absence
of concerted strategic EE roadmap and implementation action plan, the local market for related
goods and services remains underdeveloped, despite rising energy tariffs and mounting supply
shortages. This, coupled with poor consumer awareness of efficient alternatives, has led to the
continuation of wasteful end-use practices and behavior, as well as a growing stock of inefficient
energy-consuming equipment and infrastructure in the country. Lack of EE-related awareness,

Appendix 18
technical capacity, product and service availability, and effective standards and regulations
means that the country continues to lock in long-term energy inefficiencies in the accumulating
numbers of buildings, vehicles, electric motors, industrial equipment, etc., which could, at best,
be subsequently rectified or replaced only partially and at much higher cost.
682. Barriers to energy efficiency in Pakistan include lack of information about comparative
energy use, especially retail appliances; the perceived risk due to lack of confidence in new
technologies (in appliances, building design, and industrial technologies); the higher cost of EE
technologies; and the asymmetry of sharing costs and benefits, especially in the buildings
sector (that is, a builder might invest in the initial expenses but the tenant will benefit from the
energy efficiency, so codes that address EE costs and benefits are particularly important for this
sector). Barriers that need to be removed at the public policy and administrative level include
non-economic pricing of energy, inappropriate tariff structures, and poor collection rates; market
incentives for energy suppliers to supply more rather than less; lack of EE information
dissemination mechanisms, standards, codes, or labeling systems; and inadequate regulatory
or legal frameworks to support energy service companies. Barriers that need to be addressed at
with respect to end users (final beneficiaries) include lack of awareness, together with
implementation skills, of energy savings benefits; capital and corporate constraints leading to
bias towards investment in new facilities rather than in EE upgrades of existing ones; and
greater weight given to addressing upfront, compared to recurring, energy costs, especially if
these costs are a small proportion of total investment costs. Barriers in the provision of finance
and expertise include lack of awareness amongst investors and financiers of potential financial
returns, high transaction costs associated with smaller projects, and the perceived risks
associated with assessing and securitizing revenues generated through energy savings.
683. In Pakistan, EE sector improvement opportunities can be broadly categorized as:
(i) Buildings: Building design and measures, such as better insulation, window
treatments, lighting, space conditioning, water heating, and construction
techniques
(ii) Industry: Industrial processes, cogeneration, waste heat recovery, preheating,
efficient drives, lighting
(iii) Cities and municipalities: Efficient street-lighting, efficient water supply,
pumping, and sewage removal systems
(iv) Agriculture: Efficient irrigation pumping and efficient water use, such as drip
irrigation
(v) Power generation: Upgrading state-owned thermal power plants, improved
O&M practices, and better resource utilization (higher plant load factors and
availability)
(vi) Reduced transmission and distribution losses: In high voltage lines, insulated
conductors, capacitors, low-loss transformers, and improved metering systems
(vii) Transport: Efficient motorized vehicles, urban mass transport systems, modal
freight and passenger shifts to inter- and intra-city rail and water transport, traffic
demand management
(viii) Households: Lighting, appliance efficiency, improved cook stoves, water pumps
and motors, water heaters
684. Whilst the status of energy efficiency implementation in Pakistan is presently inadequate,
there is a general consensus developing in the country’s public and private sectors for the need
for urgent action in bringing about a strong EE policy and implementation regime. The ADB, in
conjunction with relevant stakeholders, has estimated the following realizable savings and
investment requirements to help improve energy use in various sectors:

Appendix 18
Sector Energy Consumed Realizable Savings Energy Saved Investment

in 2008 (As % of 2008 by 2020 Requirements
(ToE 000') Consumption) (000' ToE) ($ Million)
A. End Use
Domestic 8,046 25.8% 2,074 1,305
Commercial 1,456 23.9% 347 84
Industry 16,804 11.1% 2,445 2,450
Agriculture 804 19.6% 331 472
Transportation 11,567 13.9% 1,906 685
Other Government 736 2.7% 42 -
Subtotal 39,413 15.4% 7,145 4,996
B. Transformation
Oil Refining 61 81
Power Generation 2,121 3,292
Gas Compression 132 130
Gas Decompression 16 35
Subtotal 2,330 3,538
Total 9,475 8,535
685. ADB's proposed SEEIP MFF will assist the Government in addressing market, technical,
and institutional barriers to EE implementation in Pakistan through careful design of policies,
programs, investments, and interventions that can help achieve realizable EE targets in different
economic sectors. Most interventions are focused on increasing investment in energy efficient
equipment or infrastructure by, or on behalf of, energy consumers. Intervening pricing or market
mechanisms would provide consumers with stronger price signals and incentives to conserve
energy or shift consumption out of ‘peak demand’ periods, wherein the government would
develop frameworks to stimulate more efficient behavior (e.g., energy building codes or
minimum energy performance standards (MEPS) for appliances). Appropriate fiscal or tax
policies would encourage investment in EE or induce procurement of efficient products and
services, while market transformation programs could influence voluntary consumer actions and
behavioral change (e.g., appliance labeling and customer education).
686. Taking into account realizable potential for energy savings, viability of investments, and
existing barriers and constraints to EE improvements, the priority areas for ADB's proposed
investment program, in broad order of preference, could be as under:
(i) Energy efficient lighting and replacement of gas and electrical appliances in
domestic and commercial sectors
(ii) Replacement of existing inefficient thermal power generation units with new
higher efficiency configurations
(iii) Replacement of inefficient compressors in gas transmission systems with high
efficiency compressors and other gas T&D improvements
(iv) Energy efficiency upgrades in the industrial sector focusing on the cement, pulp,
paper, sugar, and textile industries as well as small and medium enterprises
(SMEs).

Appendix 18
687. Recently, the Economic Advisory Council of the Government of Pakistan mandated an
Energy Experts Group to prepare an Integrated Energy Plan which would provide a short-,
medium- and long-term strategies for meeting the country’s energy needs. The Group, in March
2009, recommended various measures for the promotion of EE in Pakistan, including
(i) developing a holistic national energy conservation program, (ii) allocations for efficient fuel
use; (iii) energy audits in power sector and amongst major users, including efficiency
benchmarking; (iv) institutionalizing differential tariffs and progressive pricing for energy
supplies; (v) implementing building codes; (vi) developing and implementing appliance and
equipment standards, (vii) introducing alternative fuels and hybrid technologies, and
(viii) launching comprehensive media and educational campaigns on energy efficiency. The
ADB is also assisting the Government in developing an integrated energy model as a decision-
making tool to analyze fuel-switching options and economic values of various energy uses in the
national energy mix, including EE, amongst available least-cost development options.

Appendix 18
Appendix 19
PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM
TRANCHE-1: NATIONAL CFL PROJECT
INITIAL ENVIRONMENTAL EXAMINATION
A. INTRODUCTION ........................................................................................................... 534
1. BACKGROUND ............................................................................................................ 534

2. ENVIRONMENTAL REGULATORY COMPLIANCE ..................................................... 535
3. ENVIRONMENTAL CATEGORY UNDER ADB ENVIRONMENTAL
GUIDELINES ................................................................................................................ 535
4. OBJECTIVES AND SCOPE OF IEE ............................................................................. 535
B. PROJECT DESCRIPTION ............................................................................................ 536
C. POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS ......................................... 537
1. POTENTIAL ENVIRONMENTAL IMPACTS ................................................................. 537

2. ENVIRONMENTAL RISK .............................................................................................. 540
D. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL

MONITORING PLAN .................................................................................................... 541
1. INSTITUTIONAL REQUIREMENTS ............................................................................. 541

2. ENVIRONMENTAL MONITORING ............................................................................... 541
E. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE................................ 541
F. CONCLUSIONS ............................................................................................................ 542

Appendix 19
A. INTRODUCTION
688. The Asian Development Bank (ADB) initiated a preparatory technical assistance project
for formulating ‘Pakistan’s Sustainable Energy Efficiency Development Program’ (TA 7660-PAK)
to promote energy efficiency in Pakistan. This initial environmental investigation (IEE) was
prepared to assess the environmental and social impacts of a proposed national Compact
Fluorescent Lamp (CFL) Distribution Project that will form the first tranche of the Pakistan
Sustainable Energy Efficiency Investment Program (SEEIP) multitranche financing facility
(MFF).
1. Background
689. Adequate power supply is a key to achieving sustainable economic growth. Presently,
amongst a population of around 162 million, only about 70% have access to electricity in
Pakistan, and the Government is committed to providing electricity access to all households in
the minimum possible time. However, even amongst the electrified segments of society,
demand has continued to outstrip the available supply of electricity, and the country is currently
facing peak power shortages of approximately 4,000 to 4,500 MW. The present electricity
demand-supply gap, coupled with consistent growth in electricity demand (7 to 8% per annum),
clearly indicates the critical need for enhancing the country’s power generation capability.
690. Pakistan has 19,420 megawatts (MW) of total installed generation capacity, based on
hydroelectric, thermal, and nuclear sources.81 Electricity is supplied primarily by conventional
thermal plants, with oil and natural gas being the primary fuel sources. Thermal power plants
account for around 66% of total generation capacity. A further 32% of the capacity is accounted
for by hydroelectric plants, with the remaining 2% supplied by nuclear power stations.
691. A preliminary energy efficiency assessment conducted in 2007 under the ADB’s Energy
Efficiency Initiative determined that Pakistan has a large potential for energy efficiency
improvements. The study identified several energy-efficiency improvement opportunities in gas
distribution and power generation (supply side) and in the industrial, transportation, commercial,
government, and residential sectors (demand side) that can be tapped into. Some of these
opportunities can be exploited immediately without extensive analysis, policy design, or
framework development.
692. International experience shows that amongst these potential EE opportunities, one of the
most effective in terms of impact and returns is to promote compact fluorescent lamps (CFLs) in
the domestic sector: this can be relatively quickly implemented; it can results in significant
power savings, especially impacting on peak demand in the evening when the supply capacity
is fully strained; and it can generate economic benefits for energy users as well as the society at
large.
693. CFLs already have a substantial share of the residential lighting market in Pakistan and
are outselling incandescent lamps. But a project to accelerate their market penetration can have
a quick and lasting impact on the power demand curve, and result in immediate savings that
could help address the presently severe electricity shortages. The government is interested in
just such an aggressive CFL project that has a quick payback, and can help alleviate the need
for power loadshedding in the country.
81
National Transmission and Dispatch Company. 2008. Power System Statistics.

Appendix 19
694. This IEE of the CFL project is submitted to the ADB by the Pakistan Electric Power
Company (PEPCO). This IEE does not cover the required lamp waste management facility
which is expected to develop in the private sector and financed separately under the SEEIP
Support Component. A separate assessment will be required for the facility under the
environmental regulations of the country.
2. Environmental Regulatory Compliance

695. Section 12(1) of the Pakistan Environmental Protection Act 1997 (Act) requires that “No
proponent of a project shall commence construction or operation unless he has filed with the
Federal Agency an initial environmental examination or, where the project is likely to cause an
adverse environmental effect, an environmental impact assessment, and has obtained from the
Federal Agency approval in respect thereof.”
696. In the Act, ‘project’ is defined as “any activity, plan, scheme, proposal or undertaking
involving any change in the environment, and includes (a) construction or use of buildings or
other works; (b) construction or use of roads or other transport systems; (c) construction or
operation of factories or other installations; (d) mineral prospecting, mining, quarrying, stone-
crushing, drilling and the like; (e) any change of land use or water use; and (f) alteration,
expansion, repair, decommissioning or abandonment of existing buildings or other works, roads
or other transport systems, factories, or other installations.”
697. The Pakistan Environmental Protection Agency Review of Initial Environmental
Examination and Environmental Impact Assessment Regulations, 2000 (IEE-EIA Regulations
2000) provide the necessary details on the preparation, submission, and review of the IEE and
the environmental impact assessment (EIA). The regulation categorizes the projects on the
basis of their anticipated degree of environmental impact. Project types that are likely to have
significant adverse impacts are listed in Schedule II of the regulations and require an EIA.
Projects that are not likely to have significant adverse impacts are listed in Schedule I and
require an IEE, provided that the project is not located in an environmentally sensitive area.
698. The proposed CFL distribution project is not included in either of the schedules in the
IEE-EIA Regulations 2000. Similarly, the proposed project does not fall in the definition of
‘project’ provided by the Act. However, a “waste disposal facility for domestic or industrial
wastes, with annual capacity less than ten thousand cubic meters” requires an IEE, whereas a
facility with higher capacity requires an EIA. It is therefore concluded that the CFL distribution
project, per se, does not require regulatory approval from the environmental protection agencies.
However, the lamp waste facility would require an IEE or EIA, depending on its design and size.
3. Environmental Category Under ADB Environmental Guidelines

699. Under the ADB’s Environmental Assessment Guidelines (2003), the CFL project falls
under Category B and requires an IEE.
4. Objectives and Scope of IEE

700. The objectives of this IEE were to:
701. Assess the proposed activities, identify and evaluate the potential impacts, and
determine their significance;
702. Propose appropriate mitigation measures that can be incorporated into the proposed
activities to minimize any adverse impacts, ensure that residual impacts are acceptable and
propose monitoring requirements.

Appendix 19
B. PROJECT DESCRIPTION
703. The objective of the residential energy-efficient lighting project is to a) capture the
potential power and electricity savings in the domestic lighting sector by replacing incandescent
bulbs (IBs) with high-performance, high-quality CFLs; b) achieve rapid and long-term savings by
using the existing resources and household access of distribution companies (DISCOs) and
taking advantage of their customer knowledge, experienced staff, existing field storage facilities,
and integrated knowledge of customer consumption patterns and overall system load profiles;
and c) flood the market with high quality CFLs in the shortest possible timeframe, displacing
existing inefficient incandescent and substandard CFLs in the market and set a standard and
consumer preference for quality, long-life CFLs. If a second phase is deemed necessary under
a subsequent MFF tranche, it will be used to reinforce the demand for high quality CFLs and
anchor a market transformation towards such lighting products. Indirectly, the project will
enhance demand for other energy-efficient products.
704. The project shall replace 30 million incandescent bulbs with CFLs. If successful, the
project, through two rounds of free CFL distribution, will largely eliminate the use of inefficient
incandescent bulbs from the Pakistani residential market.
705. The CFLs will be provided to consumers free-of-charge over a two-year period.
Typically, CFL give-away programs do not recover their costs. However, this project is
projected to recover its costs through reduced subsidies to low-income ‘lifeline’ utility customers.
The higher tariffs paid by more affluent customers to support low-income customers, plus the
direct government subsidies paid to support low-income users, will together generate a revenue
surplus because low-income customers are expected to consume less electricity as a result of
CFL use, and the saved electricity could be sold by the utilities at higher rates to other customer
categories, raising their revenues further. Such saved subidy payments and additional power
sales revenues are projected to more than cover the costs of the CFLs and program
administration within a year. Hence, the project, despite purchasing and giving away CFLs for
free, will recover its costs financially, in addition to reaping substantially greater economic
benefits for the country.
706. PEPCO and the DISCOs will handle the distribution of the CFLs. The DISCOs have the
ability, with minor adjustment to their existing logistics capabilities, to handle the distribution. As
observed in other countries, utility-led DSM programs have the advantage of enhancing the
image of the utility with respect to their customers and can be successful if properly managed
and guarded from potential fraud or diversion of the products.
707. The recommended minimum lumens per Watt for the new CFLs shall follow Efficient
Lighting Initiative (ELI) standards (57 lumens per Watt). The total rated lumens for a 21 to
23 Watt CFL is expected to match or exceed the total rated lumens for a 100 Watt IB
(1,254 vs 1,240). Based on a market survey conducted during the PPTA, approximately 90% of
the IBs throughout the country were found to use B22 caps (i.e., ‘pin’ or ‘bayonet’ type).
Therefore, it is recommended in the project to procure CFLs with B22 caps. All lamps would
have a rated life of 10,000 hours.
708. A lamp waste management facility (LWMF) will be required for the disposal of waste
CFL lamps after they expire. It is expected that the facility will be developed in the private
sector on a commercial basis. The lamp waste management system would need to be in place
by the fourth year of the SEEIP MFF, as the CFLs distributed under the project begin to reach

Appendix 19
the end of their operating lifetimes.82 However, the facility could be commissioned even earlier
to help manage the country’s current CFL/FTL disposal needs, as well as to establish and test
an effective recycling regime and help create the necessary awareness levels amongst the
general public.
709. The project will be implemented over a two-year period starting in the last quarter of
2009.
C. POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS
1. Potential Environmental Impacts

710. Life Cycle Analysis: The CFL project entails the manufacture and distribution of CFLs at
a large scale. As the worldwide potential of energy saving by using CFL runs into several
terawatt-hours, it is pertinent to compare the life-cycle environmental cost of the CFL to that of
the IB that it replaces. Such an analysis83 concludes that:
a) The impact of CFL use on the world’s physical environment is less by all normal
measures compared to that of the IB, mainly due to the decreased energy use entailed,
b) The impact of the mercury in CFLs which may be released upon disposal, is not a major
problem relative to other factors nor relative to the amount of mercury released from the
burning of some coals, and
c) The electronics in the ballast of the CFLs have a significant impact, largely because of
the material content and energy used during manufacture.
711. Manufacturing: All the CFLs that will be distributed under the project will be imported
from other countries. Therefore, the impact of the manufacturing processes is beyond the
scope of this project.
712. Risk of Mercury Exposure: Mercury is a potent neurotoxin found in a variety of products.
It affects the brain, liver and kidneys and can cause developmental disorders in children. Young
children and developing foetuses are especially at risk. Breakage of CFLs can potentially
release mercury vapors into the air.
713. The US Occupational Safety and Health Administration (OSHA) sets a legally
enforceable ceiling for workplace exposure to mercury at 100 micrograms per cubic meter
(μg/m3). Mercury concentrations cannot exceed this level at any time during the work day. The
National Institute for Occupational Safety and Health (NIOSH) sets its recommended exposure
limit (REL) for mercury vapor at 50 μg/m3 as a time-weighted average (TWA). The American
Conference of Governmental Industrial Hygienists (ACGIH) recommends a threshold limit value
(TLV) of 25 μg/m3 of mercury vapor as an average exposure for a normal 8-hour workday.84
714. A typical, good quality CFL contains about 3 to 4 mg of mercury. For analysis, it is
assumed that on breakage the entire mercury content in a CFL is vaporized and is
instantaneously distributed in a typical room of 40 m3 volume. The initial concentration of the
82
At the typical 2.9 hours of daily light point use observed during the PPTA household lighting survey, a 10,000-hr
is expected to last for nine years.
83
Parsons, D. 2006. The Environmental Impact of Compact Fluorescent Lamps and Incandescent Lamps for
Australian Conditions. The Environmental Engineer. Vol. 7, No. 2, p8.
84
Indoor Air Mercury. 2003. www.newmoa.org/prevention/mercury/MercuryIndoor.pdf

Appendix 19
mercury in the air would thus be about 100 μg/m3. Even in a tightly insulated room, the rate of
air change is of the order of 0.4 to 0.5 air changes per hour. This is equivalent to complete air
change every 2 to 2.5 hour. Thus the mercury concentration will drop from the initial level to
less than 40 μg/m3 in two hours and less than 2 μg/m3 in eight hours.85 A person who stays in
the room for eight hours would experience an exposure level of 25 μg/m3. In reality, exposure
levels are likely to be much lower than this because a) the rates of air changes are typically
higher than 0.5, typically 1 to 2 air changes per hour; and b) not all mercury is released into the
air in vapor form, and only about 1 mg can be released in this form. Under these typical
conditions, a person present in the room for eight hours would be exposed to about 3 μg/m3
over the period. Furthermore, safe exposure limits are based on long-term exposure, not on a
single event basis. Therefore, the health hazards of mercury exposure due to a single
accidental breakage of CFL are not deemed significant.
715. Waste Disposal: A burnt-out CFL constitutes potentially hazardous waste because of the
presence of mercury inside the lamp casing. Its disposal into municipal landfills and dumping
sites can result in the release of the mercury into the soil and water bodies. There is currently
no dedicated lamp waste management and mercury extraction facility operational in the country.
The waste generated from fluorescent tube lights (FTLs) and CFLs used in the country is
dumped, along with other municipal waste, into various dumping sites or are crushed without
any safety consideration for the disposal of glass, etc. The 30 million CFLs to be distributed
under the proposed project will contain between 100 to 120 kilograms (kg) of mercury. It is
therefore pertinent to develop a lamp waste management facility with at least this required
handling capacity, if not a larger one to handle all CFL and FTL waste generated in the country.
A modern LWMF is designed to recover glass, metal, mercury, and chloride salt from the waste
lamp in a manner that these can be reused.
716. The proposed CFL distribution project envisages distribution of 10 million CFLs in
Round 1, spread over a four-month period, followed by the distribution of another 20 million
CFLs in Round 2 lasting six months. Round 2 will be initiated about eight months after the
completion of Round 1, and will be designed based on the experience gained. The CFLs
procured for the distribution will have a specified operating life of 10,000 hours. Given that the
average usage of CFLs in the domestic sector is about 2.9 hours per day, the CFLs are
expected to last more than nine years on average. However, waste CFLs are likely to start
accumulating much before that because of a number of reasons. First, manufacturing defects
and mishandling may results in early failures and breakage of CFLs. Second, some CFLs may
replace FTLs, which also contain about 10 to 15 mg of mercury per lamp and would similarly
require a proper waste disposal facility. Lastly, the awareness campaign associated with the
project is likely to generate a need for a waste disposal facility for the CFLs already in use in the
country. It is estimated that about 3% of the CFLs (or 0.9 million lamps) distributed under the
project will require disposal within three years of the start of the project. As the typical capacity
of a compact LWMF is about 0.4 to 0.5 million CFLs per month, the project envisages that a
facility be developed and made operational in Year 3 of the SEEIP MFF.
717. To make it a viable and sustainable mechanism, waste treatment would need to be
organized on a commercial basis. There would be a payment made for used CFLs and for
fluorescents in general for deposit to central facilities. One option would be to incentivise trash
collectors to pick up used fluorescents and bring them to a colleting point for a payment per
85
Based on the assumptions: room volume 40 m3; air change rate 0.5 equal to fresh air flow rate of 5.56 litres/s,
and CFL mercury content 4 mg.

Appendix 19
intact lamp delivered. Private trash recyclers could manage and run the central waste collection
facilities suitably located around the country, the recurring costs for which could be payed by the
Government, for instance, through a levy imposed on tariffs or lamp sales.
718. Once these lamps have been accumulated at the collection points, a recycling
mechanism would need to be set up for their proper disposal. The CFL project will provide an
opportunity to establish the required recycling facilities in the country for all fluorescent lamp
types in use in the country. Survey results show that there are presently 113 million light points
in the domestic sector in Pakistan. Of these, currently approximately 60% utilize fluorescent
lamps, including tubes and CFLs. It is estimated that up to four recycling facilities would be
required initially, perhaps distributed across the capitals of each province in Pakistan to limit as
much as possible the costs of transportation of the spent fluorescent lamps.
719. Environmental and Social Benefits
better environment. Electricity production, particularly from fossil fuels, has far reaching
environmental impacts. Consequently, energy efficiency is closely related to environmental
benefits. Other than the economic and financial benefits, improving energy efficiency in the
country will decrease the demand for natural resources and reduce atmospheric pollutants,
resulting in reduced greenhouse gas emissions and consequently less climate change impact.
An estimate of electricity savings achievable by replacing 30 million incandescent lamps with
CFLs is presented in Table A19.1.
721. The key benefits of the project are a) Avoided peak generation capacity of 1,757 MW, b)
annual energy savings of 2,310 GWh, c) annual utility customer’s electricity savings per CFL of
Rs 302. Total CO2 emissions reduction over CFL life 10.11 million tonnes of CO2 equivalent
(tCO2e).
Table A19.1: Avoided Generation, Electricity Savings and CO2 Reduction Potential
of CFL Project
Estimated numbers of 40W IBs to be replaced with 22W CFLs 3,383,000
Total IB light points to be replaced with 22W CFLs 30,000,000
Total peak demand reduction (@ 100% coincidence factor) 1,714 MW
Total peak demand reduction (@ 66% coincidence factor) 1,131 MW
Transmission and distribution losses 19.5%
Total required generation (net of reserve margin) 1,405 MW
Peak generation cost (net of reserve margin) 1,150 $/kW
Peak avoided cost 1.62 $ billion
Reserve margin 20%
Avoided peak generation (installed capacity) 1,757 MW
Avoided peak generation cost (installed capacity) 2.02 $ billion
Average CFL use per light point 3.6919 h
Average annual CFL use per light point 1,347 h

Appendix 19
CFL rated life 10,000.00 h

CFL useful life (average) 7.42 yrs
Total annual grid electricity savings 2,310 GWh
Total grid electricity savings over CFL life 17,146 GWh
Total household electricity cost savings over CFL life per lamp 2,242 Rs
Total annual household electricity cost savings per CFL 302 Rs/yr
Pakistan grid CO2 emission factor (tCO2e/GWh) 589.65
Annual CO2 emission reduction 1,362,385 tCO2e
Total CO2 emissions reduction over CFL Life 10,110,139 tCO2e
722. Other less tangible project benefits include increased public awareness towards the
proper handling of hazardous lamp waste, availability of better quality lamps due to
development and enforcement of CFL standards and product labeling, and development of
commercial opportunities in lamp waste management. Compact fluorescent lamps are now
easily available and have been selling widely in Pakistan in recent years. However, as in many
other developing Asian countries, customers are often provided with low-quality products that
either consume excess electricity, do not provide sufficient illumination, or fail early. The
proposed program will strengthen CFL standards, certification and testing in the country,
thereby improving the quality of the products available in the market, apart from displacing sales
of inefficient lighting products directly.
723. Improved energy efficiency will result in reduction in instances of load shedding across
the country. At times of peak loads, the electricity distributions companies (DISCOs) switch off
power supply to parts of the grid as a means of ‘managing’ the load on the grid. It is a common
practice to impose longer load-shedding hours in the rural areas compared to the urban centers.
At times, load-shedding experienced by rural areas can be twice as much as that in towns and
cities. The availability of additional power saved through energy efficiency projects is likely to
reduce both the frequency and duration of load-shedding, which is likely to benefit rural
communities and poor segments of society more than the affluent classes.
724. The CFL project will result in reduction of utility customers’ electricity bills. The reduction
is likely to be much more significant for lifeline consumers—in some cases amounting to several
times the average monthly electricity bill amount each year—than for consumers in the upper
consumption brackets.
2. Environmental Risks
725. There are several important assumptions on which the design and outcome of the
National CFL Project has been predicated and on which its eventual success will depend.
Adequate provision and safeguards, however, have been built into the project methodology to
prevent any one of these from significantly jeopardizing the project’s main objectives being
achieved. The key environmental risk is that the assumption that lamp waste management will
provide an opportunity to private investors proves wrong. This will result in the situation where
the program starts accumulating lamp waste but there are no facilities available for the proper
and safe disposal of the waste. To avoid this risk a sum of $6 million has been provided for in
the SEEIP budget to develop the waste facility in the public sector, should the need arises.

Appendix 19
D. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN
1. Institutional Requirements
726. The Pakistan Electric Power Company (PEPCO) shall be the executing agency (EA) for
the National CFL Project, while nine DISCOs86 will be the implementing agencies (IAs). In this
capacity, PEPCO will be ultimately responsible for the environmental performance of the project.
For purposes of this project, Project Implementation Cells (PICs) will be established at each
DISCO to coordinate and manage their respective project activities and to liaise with the project
consultants, the EA, and the Project Management Office (PMO) at the Planning Commission.
The role of the M&E consultants will commence with the initiation of the project communication
program and continue till the end of the project.
727. A consultant expert in lamp waste management as well as energy efficiency standards
and labeling will assist the EA in the preparation of specifications, prequalification documents,
and tender documents. The bidding documents will specify, among others, that the CFL shall
meet international technical and environmental standards.
2. Environmental Monitoring
728. No specific environmental monitoring is proposed for the CFL distribution project.
729. The key environmental risk is that the LWMF is not functional in the fourth year of after
the CFLs have been distributed, as envisaged in the project design. A functional lamp waste
collection and management facility by the year 2015 and creation of the appropriate regulatory
environment for hazardous materials handling is included as a key performance indicator for the
project.
E. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE
730. A Consultative Group, involving representatives from the Ministries of Water and Power,
Petroleum and Natural Resources, and Finance, ENERCON, and the Energy Wing of the
Planning Commission was formed. Additional meetings were held with various donor agencies,
and power and gas utility companies.
731. A Baseline Domestic Lighting Survey was undertaken across Pakistan. The survey was
conducted in 3,253 randomly selected households spread over 58 major districts, tehsils87 and
town committees. 45% of these households were located in urban areas, with the remaining
55% in rural areas. The survey sample was distributed over the nine DISCOs’ service territories
and electricity consumption categories using the actual utility-wise electricity customer base in
2008.
732. Other than the query regarding household energy consumption and appliances,
information and opinion was also sought during the survey on households’ awareness and
acceptability levels with respect to CFL purchase and use. In response to a question, 89% of
respondents reported having heard of CFLs, mostly from radio and television advertisements.
64% reported that they regularly purchase CFLs. Of these, 90% cited ‘reducing electricity cost’
as the main reason for purchasing CFLs. Of those who do not use CFLs, high cost was cited as
86
LESCO, GEPCO, FESCO, HESCO, PESCO, MEPCO, QESCO, IESCO, and KESC. The project will not include
TESCO, the Northern Areas, or Azad Jammu and Kashmir (AJK).
87
Administrative unit.

Appendix 19
the main reason of not purchasing such lamps by 89% of the respondents. In response to the
question, “Would you be willing to purchase a CFL/energy saver that is more expensive than an
incandescent bulb?” 58% responded in the affirmative, 26% said maybe, whereas only 16%
answered negatively. In general, this indicates that awareness about the CFLs already exists
widely amongst households and that a general acceptance of CFLs exists, even though the
initial cost of the lamps is considerably higher than that of incandescent lamps.
F. CONCLUSIONS
733. The CFL project does not present any direct adverse environmental or social impacts.
The project will result in benefits in the form of expensive avoided power generation using fossil
fuels, annual energy savings, CO2 emissions reductions, and reduced household electricity
costs and better electricity service provision, particularly to the poorest segments of the
population.

Appendix 19

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Technical Assistance Consultant’s Final Report

For Planning Commission

ADB – Asian Development Bank

Asian Development Bank Consultants’ Final Report

MMscfd – million standard cubic feet per day

Consultants’ Final Report Asian Development Bank

Currency Unit – Pakistan rupee/s (PRe/PRs/Rs)

WEIGHTS AND MEASURES

GWh – gigawatt-hour (1,000 megawatt-hours)

(ii) In this report, "$" refers to US dollars.

Asian Development Bank Consultants’ Final Report

I. PROGRAM DESCRIPTION ............................................................................................ 11

A. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND

II. PAKISTAN: ENERGY EFFICIENCY SECTOR ROADMAP 2009-2016 ........................ 37

A. SUMMARY .......................................................................................................... 37

A. SUMMARY .......................................................................................................... 51

IV. PAKISTAN BASELINE DOMESTIC LIGHTING SURVEY ........................................... 129

A. SURVEY METHODOLOGY .............................................................................. 129

Asian Development Bank Consultants’ Final Report

1. DESIGN AND MONITORING FRAMEWORK FOR THE INVESTMENT PROGRAM

2. PROBLEM ANALYSIS .................................................................................................. 301

3. TRANCHE 1 NATIONAL COMPACT FLUORESCENT LAMP (CFL) PROJECT ......... 303

4. BIDDING DOCUMENT FOR SUPPLY OF COMPACT FLUORESCENT LAMPS

5. COST ESTIMATES AND FINANCING PLAN ............................................................... 413

6. INVESTMENT PROGRAM SUPPORT COMPONENT ................................................. 417

7. IMPLEMENTATION ARRANGEMENTS ....................................................................... 421

8. PROCUREMENT PLAN ................................................................................................ 431

9. SUMMARY FINANCIAL MANAGEMENT ASSESSMENT OF TRANCHE-1

10. TRANCHE-1 PROJECT FINANCIAL ANALYSIS.......................................................... 451

11. SUMMARY OF ECONOMIC ANALYSIS....................................................................... 455

12. ENVIRONMENTAL BENEFITS AND SOCIAL SAFEGUARDS .................................... 461

13. SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY ................................ 465

14. PAKISTAN: ENERGY EFFICIENCY SECTOR INSTITUTIONAL MATRIX .................. 469

15. FUTURE TRANCHE PROJECTS ................................................................................. 477

16. PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM,

17. PAKISTAN: SUSTAINABLE ENERGY EFFICIENCY INVESTMENT PROGRAM,

18. ENERGY EFFICIENCY SECTOR ASSESSMENT ....................................................... 527

19. INITIAL ENVIRONMENTAL EXAMINATION ................................................................ 533

Consultants’ Final Report Asian Development Bank

Table 1: Summary of Savings by Sector and Investment Requirements............................... 17

Asian Development Bank Consultants’ Final Report

Consultants’ Final Report Asian Development Bank

Table 51: Realizable Savings, Investment Requirements and Schedule for

Asian Development Bank Consultants’ Final Report

Consultants’ Final Report Asian Development Bank

A. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES

1. Background and Strategic Context

Asian Development Bank Consultants’ Final Report

a. Strategic Framework and Roadmap

Consultants’ Final Report Asian Development Bank

technology. An integrated institutional structure and resource allocation is prescribed to

2. Key Problems and Opportunities

Asian Development Bank Consultants’ Final Report

ii. Demand Side

3. Non Physical Challenges

a. Institutional Structure and Capacity

Consultants’ Final Report Asian Development Bank

i. The Planning Commission

ii. National Energy Conservation Centre (ENERCON)

Asian Development Bank Consultants’ Final Report

d. Standards and Testing

4. Opportunities for Energy Efficiency

a. Demand Side Potential and Investment Requirement