001 Pam - 0

Project Administration Manual
Project Number: 47094-001

Loan Number: [TBD]
October 2013
Islamic Republic of Pakistan: Jamshoro Power

Generation Project
Contents
I. PROJECT DESCRIPTION 1
II. THE PROJECT 1
A. Rationale 1
B. Impact and Outcome 3
C. Outputs 3
III. IMPLEMENTATION PLANS 5
A. Project Readiness Activities 5
B. Overall Project Implementation Plan 6
IV. PROJECT MANAGEMENT ARRANGEMENTS 7
A. Project Implementation Organizations–Roles and Responsibilities 7
B. Key Persons Involved in Implementation 8
C. Project Organization Structure 8
V. COSTS AND FINANCING 14
A. Detailed Cost Estimates by Expenditure Category ($ million) 16
B. Allocation and Withdrawal of Loan/Grant Proceeds 17
C. Detailed Cost Estimates by Financier ($ million) 19
D. Detailed Cost Estimates by Outputs/Components ($ million) 20
E. Detailed Cost Estimates by Year ($ million) 21
F. Contract Award and Disbursement Projections – OCR Loan #1 22
G. Contract Award and Disbursement Projections – OCR Loan #2 22
H. Contract Award and Disbursement Projections – ADF 23
I. Contract Award and Disbursement Projections ($ million) 24
J. Fund Flow Diagram 26
K. Disbursement Mechanism 27
VI. FINANCIAL MANAGEMENT 27
A. Financial Management Assessment 27
B. Disbursement 33
C. Accounting 34
D. Auditing and Public Disclosure 34
VII. PROCUREMENT AND CONSULTING SERVICES 36
A. Procurement Capacity Assessment 36
B. Advance Contracting and Retroactive Financing 36
C. Procurement of Goods, Works and Consulting Services 36
D. Procurement Plan 37
E. National Competitive Bidding 40
F. Term of Reference of Project Implementation Consultant 42
VIII. SAFEGUARDS 52
IX. GENDER AND SOCIAL DIMENSIONS 55
X. PERFORMANCE MONITORING, EVALUATION, REPORTING AND
COMMUNICATION 56
A. Project Design and Monitoring Framework 56
B. Monitoring 59
C. Evaluation 60
D. Reporting 60
E. Stakeholder Communication Strategy 60
XI. ANTICORRUPTION POLICY 62
XII. ACCOUNTABILITY MECHANISM 62
XIII. RECORD OF PAM CHANGES 62
Project Administration Manual Purpose and Process
The project administration manual (PAM) describes the essential administrative and
management requirements to implement the project on time, within budget, and in accordance with
Government and Asian Development Bank (ADB) policies and procedures. The PAM should
include references to all available templates and instructions either through linkages to relevant
URLs or directly incorporated in the PAM.
GENCO Holding Company Limited (GHCL), the executing agency, and Jamshoro Power
Company Limited (JPCL), the implementing agency, are wholly responsible for the
implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in
accordance with the Government and ADB’s policies and procedures. ADB staff is responsible to
support implementation including compliance by GHCL and J P C L of t h e i r obligations and
responsibilities for project implementation in accordance with ADB’s policies and procedures.
At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with
the Financing and Project Agreements. Such agreements shall be reflected in the minutes of the
Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the
Financing and Project Agreements, the provisions of the Financing and Project Agreement shall
prevail.
After ADB Board approval of the project's report and recommendation of the President (RRP) changes
in implementation arrangements are subject to agreement and approval pursuant to relevant
Government and ADB administrative procedures (including the Project Administration Instructions)
and upon such approval they will be subsequently incorporated in the PAM.
Abbreviations
ADB = Asian Development Bank

ADF = Asian Development Fund
AFS = audited financial statements
DISCO = distribution company
DMF = design and monitoring framework
EA = executing agency
EIA = environmental impact assessment
EPC = Engineering, procurement and construction
EMP = environmental management plan
GAACP = governance and anticorruption action plan
GENCO = government-owned generation companies
GDP = gross domestic product
GHCL = GENCO Holding Company Limited
GOP = Government of Pakistan
GWh = gigawatt-hour
HFO = heavy fuel oil
IA = Implementing agency
ICB = international competitive bidding
IFRS = international financing reporting standard
JPCL = Jamshoro Power Company Limited
LAR = land acquisition and resettlement
LIBOR = London interbank offered rate
MOF = Ministry of Finance
MOWP = Ministry of Water and Power
MW = megawatt
NTDC = National Transmission and Despatch Company
OCR = ordinary capital resource
O&M = Operations and maintenance
PAI = project administration instructions
PAM = project administration manual
PIC = project implementation consultant
PIU = project implementation unit
PMU = project management unit
QCBS = quality- and cost-based selection
RFP = request for proposal
RRP = report and recommendation of the President to the Board
SBD = standard bidding documents
SPS = Safeguard Policy Statement
SPRSS = summary poverty reduction and social strategy
TPS = thermal power station
TOR = terms of reference
1
I. PROJECT DESCRIPTION
1. Acute power shortages of up to 20 hours per day have crippled economic growth and
caused social unrest in Pakistan.1 The country needs affordable, dependable base-load power
to alleviate the shortage. Coal-fired power plants provide secure, inexpensive base-load power
in many countries. The project introduces supercritical coal-fired power generation, which is the
best available technology for Pakistan. The environmental impact of this technology would be
less than that of the existing heavy fuel oil (HFO)-fired power plants, and the more commonly
used subcritical coal-fired power generation technology. The project, which is the first stage of a
multi-stage government plan for this site,2 has three components: (i) construction and 5 years of
operational support for a 600-megawatt (MW) (net)/660-MW (nominal) supercritical coal-fired
unit, with state-of-the-art emission control devices at the Jamshoro Thermal Power Station
(TPS) in Sindh province; (ii) capacity development for coal-fired plant operations; and (iii)
environmental remediation of the existing power generation units and site.
II. THE PROJECT
A. Rationale
2. Pakistan is exploring all options to reduce power load shedding and power cost but has
few medium-term options for affordable, dependable power supply. Natural gas was the main
fuel used for Pakistan’s base-load power plants,3 but the country’s dwindling reserves of gas
have resulted in increasing use of high-cost imported fuel oil for power generation. This has
increased power generation costs and exacerbated the existing financial shortfall, both within
the sector and the national economy. Compared to existing, inefficient HFO-fired plants, the
higher efficiency supercritical generation units and diversification away from imported fuel oil will
enable Pakistan to increase its reliable supply of electricity and lower both costs and
greenhouse gas (GHG) emissions.4
3. Energy crisis. Pakistan’s energy crisis depresses its economic performance and fuels
social instability. Power shortages equaled about one-third of total demand (4,000–5,000 MW)
during most of fiscal year (FY) 2012.5 Increasing, unpredictable load shedding is estimated to
constrain annual gross domestic product (GDP) growth by at least two percentage points.
Small- and medium-sized enterprises that employ the largest number of people, but cannot
afford back-up electricity generators and fuel, experience the largest impact. GDP growth has
averaged 3% since 2007, while GDP growth of 7% is required to generate enough employment
to absorb new labor market entrants. Poverty reduction and provision of basic necessities to the
poor are immediate challenges for Pakistan. Low economic growth creates an environment for
recruitment by society’s radical elements. The government introduced, as a priority, the new
1
ADB. 2013. Asian Development Outlook 2013. Manila.
2
The government plans additional 600-MW supercritical coal-fired unit and conversion of existing units to
coal.
3
Gas-fired power generation overtook hydropower in 1996 as the main power source. The share of gas
in the thermal generation fuel mix has fallen from 56% (2006) to 44% (2011), while HFO increased from
42% to 54%.
4
The existing units at Jamshoro TPS use HFO and emit 930 grams of carbon dioxide (CO 2) per kilowatt-
hour (kWh). The project would emit 750 grams of CO2 per kWh and a subcritical unit 850 grams of CO2
per kWh. Backup generators used to reduce power shortages are substantially less efficient and emit
higher volume of CO2.
5
Ending June 2012. Government of Pakistan, National Electric Power Regulatory Authority (NEPRA).
2012. State of Industry Report 2012. Islamabad.
2
National Power Policy to tackle these issues. PRs480 billion (about $4.5 billion) was paid to fuel
companies and independent power producers to clear payment arrears. The government is
pursuing gas and power tariff rationalization and energy efficiency measures such as
conservation, transmission and distribution loss reduction, and rehabilitation of power plants.6
4. High-power generation cost. Pakistan has 23,538 MW of installed power generation

capacity and 14,000 MW of available capacity on average. Even for the available capacity,
HFO-fired power plants are not fully utilized because of a shortage of funds for fuel. The
increase in HFO-fired power generation (high production cost) is the major reason the cost-
recovery tariff (average tariff) has continuously increased.7 The government has raised the base
tariff by 106% from February 2008 to June 2013, despite this subsidy has increased to PRs5.79
per kilowatt-hour (kWh).8 This puts enormous pressure on the public finances and the country’s
balance of payments. For fiscal and economic sustainability, the government must lower
electricity generation costs and increase supply to reduce adverse impact from power
shortages.
5. Lowering the generation cost. The government aims to increase coal-based power
generation while decreasing expensive HFO generation. This will require converting existing
HFO generation units and constructing new plants.9 The imported HFO costs several times
more than domestic or imported coal, and has higher sulfur content.10 Electricity generated from
coal, through medium-term fuel supply contracts, will also help stabilize the power price. The
National Power Policy includes plans to diversify the energy mix.
6. Renewable and gas-based generation. Improving energy security and affordability, the
government is pursuing large hydropower, gas, and other projects using domestic resources.
Pakistan has a low carbon footprint because of the large amount of hydropower and natural
gas-based power generation. However, hydropower’s contribution to total generation has
declined,11 and accounted for just 32% of power generated in 2012.12 Only 6,716 MW of a
potential of over 40,000 MW of hydropower has been tapped, making large hydropower plants
the ideal solution. Although large hydropower is the least cost solution, the high capital cost, the
long implementation period, and complex safeguard issues mean this is a long-term option.
Small and medium sized run-of-the-river hydropower plants have shorter construction periods
6
Measures in the National Power Policy are reinforced through agreement with International Monetary
Fund (IMF). IMF. 2013. Pakistan: 2013 Article IV Consultation and Request for an Extended
Arrangement Under the Extended Fund Facility. Washington D.C.
7
HFO-fired power accounts for 34% of the energy mix; at PRs15.94 per kWh, it makes up 77% of total
generation costs. In comparison, the hydropower cost was PRs0.16 per kWh, and gas PRs4.24 per
kWh (footnote 5). The cost-recovery tariff has risen from PRs5.5 per kWh in 2008 to PRs14.51 per kWh
in 2013.
8
The subsidies vary monthly according to the consumer mix, load factor, and whether a periodic fuel
price adjustment was applied during the period. The average tariff increased from PRs4.26 per kWh to
PRs8.81 per kWh in May 2012, and further to PRs 11.11 per kWh in August 2013.
9
Emissions for conversion from HFO to gas fired plants would vary according to the state of the existing
equipment. For the Jamshoro TPS oil-fired units, after conversion the emissions would increase to
1,172 grams of CO2 per kWh using imported sub-bituminus coal.
10
Fuel cost savings between a new HFO fired power generation plant and the project would be $535
million annually.
11
Hydropower’s share declined as follows: 72% (1980), 54% (1990), 35% (2000), 32% (2012).
12
Government of Pakistan, National Transmission and Despatch Company. 2012. Power System
Statistics 2011–12.
3
but have seasonal and daily output variation which makes them unsuitable for base-load.13
Domestic gas-fired generation will decline from the current 26% with the depletion of existing
gas fields, and competing demand from industry, transport, and retail customers unless
domestic gas supplies are increased.14 The abundant wind and solar resources are being
developed, but their outputs are variable and would not meet the base-load requirements.
7. Power generation mix. Oil-fired power generation is expensive, and used for less than
5% of world generation. To be competitive economically, Pakistan cannot afford continued
reliance on expensive imported oil for 34% of power generation. Pakistan has one of the lowest
carbon emissions, 19% of the world’s average.15 Coal reserves in Pakistan may generate
10,000 MW of power for 350 years. Globally, coal-based power plants generate 40% of power,16
but account for just 0.07% of generation in Pakistan.17
8. ADB interventions. ADB is engaged in the energy sector through its four multitranche
financing facilities and private sector investments, which fund energy efficiency, transmission,
distribution, and renewable energy projects including eight hydropower and two wind power
projects.18 As the sector’s largest donor, ADB conducts policy dialogue on reforms, planning, and
provides sector assessments to the International Monetary Fund. Ongoing reforms follow the
recommendations of the Friends of Democratic Pakistan Energy Sector Task Force, which ADB
co-chaired with the government. The report addresses diversification of existing fuel sources.19
B. Impact and Outcome
9. The project’s impact will be an enhanced energy supply in Pakistan. The outcome will be
a more efficient energy mix through diversification from expensive HFO to less expensive coal.
C. Outputs
10. The project will (i) increase capacity of the Jamshoro TPS by installing a 600-MW (net)
supercritical coal-fired unit, using an 80/20 blend of imported sub-bituminous coal and domestic
lignite when available,20 and provide 5 years of operation and maintenance (O&M) support; (ii)
ensure compliance with the national environmental standards (install emission control devices
13
Summer and winter output varies by around 3,000 MW. The government has spent $20 million for the
feasibility study of 4,500MW Diamer Basha Dam. The cost is estimated at $12 billion and construction
period of 10 years. Ranking of priority projects and sector roadmap are set out in Friends of Democratic
Pakistan. 2012. A Productive and Water-Secure Pakistan. Islamabad.
14
Natural gas imports are being explored through pipeline gas and liquefied natural gas. The projects
have faced delays. ADB has been the secretariat for the project to pipe gas from Turkmenistan to
Pakistan since 2003.
15
Pakistan‘s carbon emission per capita is 0.81 tons per year according to the International Energy
Agency. 2012. CO2 Emissions from Fuel Combustion. Paris.
16
International Energy Agency. 2011. Power Generation from Coal-Ongoing Developments and Outlook.
Paris.
17
The Lahkra Power Generation Company 150 MW fluidized bed combustion coal-fired power generation
plant is the only coal-fired power plant in Pakistan. Only 30 MW is currently available from the units.
18
List of projects are in Development Coordination (accessible from the list of linked documents in
Appendix 2).
19
Friends of Democratic Pakistan, Energy Sector Task Force. 2010. Integrated Energy Sector Recovery
Report and Plan. 2010. Islamabad.
20
In Sindh Province, usable coal production is expected in the next 5‒7 years.
4
for the existing units and remediating the site);21 (iii) enhance capacity of GENCO Holding
Company Limited (GHCL) and Jamshoro Power Company Limited (JPCL) by providing
financial, technical, and operational training; and (iv) introduce education on coal-fired plant
operation. The infrastructure will support government’s plan to have an additional 600-MW unit
at the same site. The design includes a flue duct interface that will allow adding carbon capture
and storage (CCS) when the technology is available.22
Annual Coal Consumption Estimate

One unit Two units
Domestic Imported Domestic Imported
Blending ratio (%) 20 80 20 80
Fuel consumption per 0.7 1.65 1.4 3.3
annum (Mt)
Total (Mt) 2.35 4.7
Blending ratio (%) 0 100 0 100

Fuel consumption per 0 2.05 0 4.1
annum (Mt)
Total (Mt) 2.05 4.1
Mt = Million ton
Source: Asian Development Bank estimates
11. The imported sub-bituminous coal must meet the following specification requirement.
The batch with properties beyond the limits showed in the following table will be rejected.
Designated Sub-bituminous Coal Properties

Properties Values Reject Limits
4,750 – 6,000 kcal/kg, or 20–25 MJ/kg, or <4,650 kcal/kg and >
Calorific Value (LHV)
8,500 – 10,800 Btu/lb 6,000 kcal/kg
10 – 12, however ash up to 16% could be
Ash (%) >17%
considered
45 – 60, however HIs up to 70 could be
Hardgrove Index <45% and >70%
considered
Volatile Matter (%) 30 – 40 <28% and >42%
Preferably <1%, but coal with TS <1.2%
Total Sulphur (%) >1.2%
could be considered
Preferably <1%, but coal with N <2% could
Nitrogen (%) >2%
be considered
Total Moisture (%) < 25% (Preferably <20%) >26%
Initial Deformation Temp (°C) > 1,150°C (Preferably > 1200°C) < 1,150°C
Fuel Ratio (FC/VM) <2 <1.5 FR
> 5% retained on 50mm
Size (mm) 0 – 50
> 20% passing 1mm
Sodium in Ash (%) <0.8 >1
Potassium in Ash (%) <0.8 >1
Ash Base/Acid Ratio (%) <0.11 >0.13
FC = Fixed Carbon, VM = Volatile Matter
21
The project will also construct hazardous waste storage facility, colony wastewater treatment and
landfill, rehabilitate effluent pipeline, and evaporation pond for the existing units.
22
Capacity development technical assistance, funded by the Carbon Capture and Storage (CCS) Fund,
will determine the potential for CCS and explore the technology in Pakistan.
5
III. IMPLEMENTATION PLANS
A. Project Readiness Activities
2013 2014
Indicative Activities Responsibility
4 5 6 7 8 9 10 11 12 1 2 3 4
Advance Contracting Activities
Project Im plem entation Consultant Recruitm ent

EOI advertisement ▼ GHCL &JPCL
Issue RFP to recruit PIC ▼ GHCL &JPCL
Prepare proposal Bidder
Firms submit proposals ▼ Bidder
PIC proposal evaluated GHCL &JPCL
Contract Aw ard ▼ GHCL &JPCL
Technical Analysis Report USPC
Prepare ToR for Environm ental Monitoring Expert in PMU HBP
Loan Negotiation ▼ GOP, ADB
ADB Board Consideration ▼ ADB
Loan Signing ▼ ADB, MOF
Governm ent Legal Opinion GOP
Governm ent Budget Inclusion GOP
Loan Effectiveness ▼ GOP, ADB
ADB = Asian Development Bank, EOI = expression of interest, GHCL = GENCO Holding Company Limited, GOP = Government of Pakistan, HBP = Hagler Bailly Pakistan (the firm
recruited under the staff consultancy budget and the small-scale project preparatory technical assistance [S-PPTA] to do the environmental impact assessment), MOF = Ministry of
Finance, PIC = project implementation consultant, RFP = request for proposal, TOR = terms of reference, USPC = US Power Consult Co. (the consultancy firm recruited under the
staff consultancy budget and the S-PPTA to undertake the technical feasibility study).
.
6
B. Overall Project Implementation Plan

2013 2014 2015 2016 2017 2018 2019
Project Tasks Responsibility 3 4 5 6 7 8 9 10 11 12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
A. Loan Approval Milestone 1 2 3 4 5 6 7 8 9 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82
Loan Negotiation GOP, ADB Oct 2013
ADB Board Consideration ADB Dec 2013
Loan Signing GOP, ADB Feb 2014
Loan Effectiveness GOP Apr 2014
B. Project Outputs Milestone

1. Supercritical Units
1.1 Detailed Feasibility Study USPC Aug 2013
1.2 Preparation of Bidding Documents Procurement expert Sep 2013
1.3 BD review JPCL/Implementation Consultant Jan 2014
1.4 BD approval ADB Jan 2014
1.5 Issue of BD JPCL/Implementation Consultant Feb 2014
1.6 Preparation of 1st Stage Bidding Proposal Bidders Jun 2014
1.7 1st Stage Bid Evaluation JPCL/Implementation Consultant Sep 2014
1.8 No Objection Letter from ADB JPCL/Implementation Consultant Oct 2014
1.9 Preparation of 2nd Stage Bidding Proposal Bidders Dec 2014
1.10 No Objection Letter from ADB ADB Feb 2015
1.11 Contract Negotiation JPCL Feb 2015
1.12 Contract aw ard and mobilization JPCL Mar 2015
1.13 Survey and detail design Contractor Sep 2015
1.14 Equipment manufacturing Contractor Jun 2016
1.15 Equipment delivery Contractor Mar 2017
1.16 Installation, commission , testing of Unit 1 Contractor Oct 2018
1.17 Installation, commission , testing of Unit 2 Contractor Apr 2019
1.18 O&M of new units Contractor Oct 2023
2 Land Preparetion Contractor
3 Environm ental Mitigation

3.1 Bioremediation Assessment Study Consultant July 2013
3.2 Preparation of Bidding Documents Procurement expert Dec 2013
3.3 Review Bidding Documents JPCL/Implementation Consultant Jan 2014
3.4 Approval of Bidding Documents ADB Jan 2014
3.5 Issue of Bidding Documents Bidders Feb 2014
3.6 Preparation of Bidding Proposals JPCL/Implementation Consultant May 2014
3.7 Contract aw ard and mobilization JPCL Aug 2014
3.8 Survey and detail design Contractor Nov 2014
3.9 Installation, commission , testing Contractor Dec 2015
4 Project Im plem entation Consultant

4.1 Recruitment of Consultants GHCL Feb 2014
4.2 Supervision of Project JPCL/Implementation Consultant Feb 2024
4.3 Final Report Implementation Consultant Feb 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72
ADB = Asian Development Bank, GHCL = GENCO Holding Company Limited, GOP = Government of Pakistan, JPCL = Jamshoro Power Company Limited, PIC= project
implementation consultant, RFP = request for proposals, TOR = terms of reference, PMU = project management unit, BD = bidding document, USPC = US Power Consult Company
(the consultancy firm recruited under the staff consultancy budget, and the small-scale project preparatory technical assistance [S-PPTA] to do the technical feasibility study).
7
IV. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations–Roles and Responsibilities
Project implementation Management Roles and Responsibilities

organizations
 Economic Affairs Division Borrower

 Representing external borrowing
 Ensuring ADF financing proceeds are used
in accordance with Subsidiary Financing
Agreement (SFA)
 Handling of issues pertaining to project-
related taxes and duties
 GENCO Holding Company Executing Agency (EA) of the Project

Limited (GHCL)
 Supervising training, workshops and
seminars for GHCL, other GENCOs and
JPCL personnel
 Monitoring and coordinating
 Closely monitoring site remediation,
implementation of the environmental
management plan and ensuring that
implementing agency comply with all other
safeguard requirements
 Project progress reporting to MoWP and
ADB
 Jamshoro Power Company Implementing Agency (IA)

Limited (JPCL)
 Contract Management for the construction
of the power unit
 Procurement of the contracts
 Contract Management and Supervision of
project implementation consultants
 Supervising and ensuring safeguards
compliance related with construction,
installation of new equipment and the
implementation of the Environment
Management Plan (EMP) and Environmental
Monitoring Plan
 Implementation of all aspects of the Project
and Reporting to GHCL and ADB
 Submitting withdraw applications (WAs) to
ADB
 Retaining all WA supporting documents
 Asian Development Bank Lender

 Main project financier
 Islamic Development Bank Lender
 Project cofinancier
8
B. Key Persons Involved in Implementation
Executing Agency
GHCL Officer's Name: Sultan Muhammad Zafar

Position: Chief Executive Officer, GHCL
Email address: ceprojects786@yahoo.com
Office Address: 197 WAPDA House, Lahore, Pakistan
Implementing Agency
JPCL Officer's Name: Iftikhar Aziz

Position: Chief Engineer (Development), JPCL
Email address: iftikharaziz@hotmail.com
Office Address: Jamshoro Power Company Limited,
Mohra Jabal Dadu Road, Jamshoro, Sindh, Pakistan
ADB
Central and West Asia Staff Name: Rune Stroem

Energy and Natural Position: CWEN Director
Resources Division (CWEN) Email address: rstroem@adb.org
Telephone No: +63-2-632-6356
Mission Leader Staff Name: F. Cleo Kawawaki

Position: Principal Energy Specialist
Email address: fkawawaki@adb.org
Telephone No: +63-2-632-6113
C. Project Organization Structure
12. Roles and Responsibilities of the Economic Affairs Division. The Economics
Affairs Division (EAD) is the borrower and is representing external borrowing. EAD will
ensure that ADF financing proceeds are used in accordance with Subsidiary Financing
Agreement (SFA) and EAD will also handle any issues pertaining to project-related taxes
and duties.
13. The GENCO Holding Company Limited (GHCL) will be the executing agency (EA),
and Jamshoro Power Company limited (JPCL) will be the implementing agency (IA) of the
Project. Ministry of water and power will be the oversight body of the project. A project
management unit (PMU) will be established within GHCL and a project implementation unit
(PIU) will be established in JPCL. The GHCL and JPCL will be required to sufficiently staff
the PMU and the PIU. A project implementation consultant (PIC) will also be hired under the
Project to facilitate PIU and supervise the implementation works on behalf of JPCL as the
“Project Manager”.
14. Roles and Responsibilities of GHCL (the executing agency of the project).
GHCL will be responsible for the following: (i) to coordinate activities between the IA,
Borrower, MOWP ADB and IDB; (ii) support IA in developing project and in getting
government approvals; (iii) ensure the IA comply with Loan covenants; (iv) ensure ADB is
updated in a timely manner on any policy change that affects JPCL current status or
activities; (v) support IA in preparation and approval of tariff determination/notification; and
(vi) establish a dedicated PMU at GHCL level with the following responsibilities: monitor IA’s
implementation progress and its compliance with ADB’s loan covenants; reporting project
progress on a quarterly basis to ADB; hiring the PIC on behalf of JPCL; PMU will be headed
9
by General Manager Design and Development (GM D&D), who will be responsible for all
GHCL related project responsibilities; the PMU Head will report directly to Chief Executive
Officer (CEO) of GHCL and will be the focal point for ADB; PMU will be staffed with three
Directors (i) Director Monitoring & Coordination, (ii) Director Technical and (iii) Director
Environmental. The Directors will also be provided with supporting staff on as needed basis.
15. Roles and Responsibilities of JPCL (the implementing agency of the project).
After the loan agreement is signed, JPCL shall provide ADB the name of the authorized
person who will sign withdrawal applications (WAs) together with the authenticated
specimen signature of the same. Any subsequent change in the list of authorized
representatives must be reported immediately and authenticated specimen signatures of
new representatives must also be provided. The prescribed ADB WA form shall be used for
submission consisting of the following: (i) the application itself in letter form; (ii) summary
sheet(s) for each cost category claimed; (iii) supporting documents; and (iv) summary
sheet(s) and supporting documents, which may be substituted by simplified documentation,
as ADB approved. JPCL is required to retain all WA supporting documents and to enable
ADB’s representative to examine the same. Such records should be retained for at least 1
year following receipt by ADB of the final audited financial statements (AFS) or 2 years after
the loan closing date, whichever is later. JPCL is responsible for ensuring that document
retention also complies with their government’s laws and regulations.
16. The IA will also be responsible for: (i) procurement of the EPC Contractor and other
contractors; (ii) contract management and supervision of the EPC contractor; (iii) contract
award, management and supervision of the project implementation consultants; (iv) ensuring
compliance with safeguards requirements as per ADB policy; (v) report project progress on a
quarterly basis to GHCL as well as ADB; (vi) ensuring compliance with loan covenants; (vii)
conducting due diligence to ensure authenticity of information presented in proposals; (viii)
ensuring timely submission of all variation orders and requests for no-objection approval by
ADB for subcontracts constituting more than 10% of contract value; (ix) providing all
necessary information required by ADB for the purpose of reviewing the compliance with
loan agreement; (x) performing “the Employer” role for all contracts such as approving the
invoices of the contractors once they have been verified by the “Engineer” (the PIC),
monitoring the activities of the experts and approving design and variation requests of the
contractor as verified/recommended by the PIC; (xi) verifying invoices of the PIC contract
and reviewing and approving the variation orders to the PIC contract, and (xii) establishing
PIU at JPCL. The PIU will be headed by a Project Manager (at least of the level of a Chief
Engineer and will report directly to CEO JPCL) supported by Director Technical, Director civil
(assisted by a structural engineer), Director Procurement (supported by a contract
management specialist), Finance Manager (a professional accountant), Director Social
Safeguard (assisted by an environment specialist and a resettlement specialist). Director
technical will be assisted by a mechanical engineer, an electrical engineer, a control and
instrumentation engineer, and a chemical engineer. JPCL will be responsible for securing all
approvals from the competent authorities as per powers delegated in the “Book of Financial
Powers”. For all procurement activities, a procurement committee will be formed with the
responsibility of calling tenders, evaluation and recommendation of award. The committee
will be chaired by the PIU Manager and made up of the staff of the PIC; the director
technical, the PIU’s mechanical; civil engineer; electrical; control and chemical engineers.
The Director Procurement will act as the secretary of the committee. The procurement
committee will make its recommendations to the CEO JPCL who will secure such approvals
of the BoD as may be necessary.
17. Roles and Responsibilities of PIC (The Project Engineer). The PIC will (i) prepare
and issue bidding documents upon approval by the PIU Manager, (ii) undertake the day-to-
day management of the bidding process (distributing documents, reviewing requests for
clarification and drafting responses for PIU Manager’s signature etc.), (iii) undertake due
10
diligence on proposals and for firms subsequently proposed to be subcontractors, (iv)

provide qualified technical staff for the evaluation of bids and recommending award to the
JPCL, (v) provide construction supervision and contract management both in the
construction and O&M phase, (vi) monitor safeguard policies implementation, (vii) act as the
“Engineer” and advise client on variation orders and other contractual issues, (viii) verify
payments to the contract based on physical works and contract terms, and (ix) train staff in
the companies held by GHCL including JPCL staff.
18. Advanced contracting will be undertaken. GHCL and JPCL will abide by ADB’s
Procurement Guidelines (2013, as amended from time to time). The equipment and service,
including the EPC contractor, will be procured through international competitive bidding
(ICB). The EPC contractor will be responsible for the final design, procurement, and
construction followed by a 5-year O&M period after commissioning.
19. The PIU, assisted by implementation consultants, will submit necessary project
plans, progress reports, applications for withdrawal of funds, and any other required reports
to ADB and the Government.
20. The PMU structure up to director/manager level is as below. The GHCL may include
supporting staff to the directors as needed for better supervision, coordination and work
load.
PMU Structure
PMU Manager
Director Technical Director Director

Monitoring and Environmental
Coordination
21. The PIU will include the following positions. Additional support staff to the proposed
positions may be added as per the work load requirements of JPCL.
11
PIU Structure
PIU Manager (Chief Engineer)
Director Finance Director Structural Director Director

Technical Manager Civil Engineer Procurement Safeguards
Mechanical Accountant
Engineer Contract Environment
Management Specialist
Specialist
Electrical
Engineer
Social
Specialist
Chemical
Engineer
Control and
Instrumentation
Engineer
22. The PMU/PIU Project Manager and PMU/PIU staff will have appropriate academic
qualifications with experience of working on large investment projects in their specialty area.
The Director Procurement and Contract Management Specialist will have required academic
qualifications with experience in procurement of consultants and contractors. The terms of
reference of the key staff of the PMU and PIU are as follows:
Position Terms of Reference

PMU
 Provide overall direction and management of PMU.
 Focal point in communications and reporting with ADB, IDB,
GHCL and JPCL.
 Ensure overall project is delivered on schedule to budget and
specification.
 Ensure that due diligence is conducted on potential consultants,
PMU Manager contractors, subconsultants and subcontractors.
 Ensure appropriate reporting to financiers.
 Monitor and ensure project covenants are met.
 Ensure all safeguard requirements are satisfied.
 Ensure CEO of GHCL is apprised of implementation status on a
regular basis.
 Coordinate training program.
 Manage PMU staff.
 Support JPCL in recruiting PIC consultant.
 Prepare request for proposals of consulting services and support
Director JPCL in evaluating the proposals received.
Technical  Assist the GM (D&D) on all technical matters relating to the
project.
12
 Responsible for coordinating activities between the GHCL,

Director JPCL, MoWP, ADB and IDB.
Monitoring and  Prepare quarterly reports for ADB and IDB.
Coordination  Coordinate review missions.
 Assist GM (D&D) in evaluating/reviewing different aspects of the
project.
 Assist the GM (D&D) on all environmental matters relating to the
project.
Director  Prepare semi-annual environmental monitoring reports.
Environmental  Ensure loan covenants relating to environment compliance are
met.
PIU
 Provide overall direction and management of PIU.
 Focal point in communications and reporting with ADB, GHCL
and JPCL.
 Act as contract manager for EPC contracts as well as the PIC
contract.
 Manage relationships with financiers, consultants, and
contractors.
 Ensure project is delivered on schedule to budget and
PIU Manager specification.
 Ensure appropriate reporting to financiers.
 Monitor and ensure project covenants are met.
 Ensure all safeguard requirements are satisfied.
 Ensure CEO of JPCL is apprised of implementation status on a
regular basis.
 Manage project implementation consultants.
 Manage PIU staff.
 Responsible for approving the recommended variation orders by
the Engineers.
 Responsible for maintaining of project accounts and preparation
of project financial reports.
 Monitor cash flow movement and prepare trend analysis of key
operating and financial ratios.
 Monitor loan covenants.
 Maintain separate project financial statements.
 Prepare withdrawal applications for the project implementation
Finance Manager contract.
 Prepare project financial reports.
 Responsible for ensuring that the record of the withdrawal
applications is kept safe as available as per requirements of the
project agreement.
 Supervise the Project accountants in monitoring loan covenants.
 Maintain project accounts.
13
 Ensure that the requirements identified in the Environment

Management Plan (EMP) are included in the environmental
mitigation EPC bidding document and contract.
 Ensure the implementation and monitoring of safeguard
requirements and published results in quarterly progress reports
and semi-annual environmental monitoring reports.
 Monitor and supervise consultant and contractors of the
implementation of site remediation.
 Supervise the PIC on mitigation measures and monitoring plan
Director as specified in the EMP and ensure that the PIC submits semi-
Safeguards annual environmental monitoring reports.
 Prepare internal monitoring reports.
 Supervise PIC on the preparation of updated Environment
Impact Assessment (EIA).
 Ensure that land is acquired and LARP is implemented in
accordance with ADB’s policy.
 Ensure that reporting on LARP is carried out in accordance with
requirements set forth in the project agreement.
 Ensure loan covenants relating to resettlement and environment
compliance are met.
 Monitor and supervise PIU engineers, consultant and
contractors.
 Control schedule, quality, quantity, cost, and safety of all
Director
engineering works.
Technical
 Coordinate with PMU Manager in monitoring the progress
related to all engineering works.
 Manage technical staff of PIU.
 Manage consultant recruitment.

 Manage the turnkey contract.
 Prepare Request for Proposals for consultant services.
Director  Prepare bid evaluation reports.
Procurement  Monitor compliance of consultants and contractors with contract
requirements.
 Prepare overall project progress report.
 Prepare contract award and disbursement projections.
 Monitor and supervise consultant and contractors of the civil

Director construction.
Civil  Control schedule, quality, quantity, cost, and safety of civil works.
 Coordinate with PMU Manager in monitoring the progress
related to civil works.
14
23. The project’s organizational structure and PIU staffing are shown below:
Asian Development
Ministry of Water and Power (MOWP)
Bank (ADB)
Reporting
GENCO Holding Company Limited (GHCL)
Reporting
Reporting
Project Management Unit (PMU)
rd
3 Party Auditor
Audit
Reporting
Jamshoro Power Company Limited (JPCL)
Reporting
Project Implementation Unit (PIU)
Contract
Reporting Manager
and Monitor
Supervise
Assist
Report and
EPC
Contractors
Supervise as
“Engineer”
Project Implementation
Consultants (PIC)
V. COSTS AND FINANCING
24. The Project costs consist of:
(i) EPC Contract for the design, supply, installation, testing and commissioning
of one supercritical unit at Jamshoro TPS.
Two other ICB contracts for the site remediation and installation of FGD for
existing units and one NCB contract for site preparation.
15
These will be under JPCL’s responsibility. They are financed out of the OCR
loan proceeds which are relent by the Government to JPCL in accordance
with the Subsidiary Financing Agreement (SFA).
Project Implementation Consultants (PIC) Services. The project

implementation and management will be assisted by a team of PIC. The
environmental monitoring will also be undertaken by PIC and included in its
contract. An external monitoring agency will also be recruited by GHCL and
JPCL to carry out monitoring implementation and validation of the different
components of EMP and submit an independent monitoring and appraisal
report to the PMU, GHCL.
This will be under JPCL’s responsibility and recruited with GHCL’s

assistance. It is financed out of the ADF loan proceeds which are relent by
the Government to JPCL in accordance with the SFA. GHCL and JPCL will
provide necessary office space and office equipment as its share of the
project cost.
(ii) Capacity Development Component. The capacity development component

will be financed out of the ADF loan proceeds which are relent by the
Government to JPCL in accordance with the SFA.
(iii) Land Acquisition and Resettlement. This will be financed by JPCL as

government contribution.
(iv) Taxes and duties. Taxes and duties will be covered under
Government/counterpart contribution, or exempted, as their share of the
project cost.
(v) Financial charges. Interests during implementation and commitment charges

will be capitalized in to the loan.
(vi) Operations and Management Escrow Account. An escrow account in a

bank acceptable to ADB and the EPC contractor will be set up by JPCL
before commissioning and will contain one-year estimated operation and
maintenance cost for the following year for the duration of the operations and
maintenance contract. Should there still be a short-fall after exhausting the
escrow account, OCR Loan 2 may be utilized to pay part or whole of the
invoices from the EPC contractor if the short-fall is caused by non-
performance by regulatory or other government entities despite the best
efforts of JPCL.
(vii) Fuel Escrow Account. An escrow account in a bank acceptable to ADB and
the EPC contractor will be set up by JPCL before commissioning and will
contain one-month estimated fuel cost for the following month for the duration
of the loan.
25. Recurrent costs of the PMU and PIU are part of the project cost to be financed by
GHCL and JPCL as part of the government contribution. However, these costs will be
subject to audit and will be covered under the audited financial statement.
16
A. Detailed Cost Estimates by Expenditure Category ($ million)
Item Amount
1
A. Base Cost
1 Construction of Supercritical Power Plant 880.0
2 Environmental Remediation of Site 9.0
3 Site Preparation 5.0
2
4 Emission Control for the Site 160.0
3
5 Capacity Development 10.0
6 Land Acquisition and Resettlement 2.0
4
7 Implementation Consultant 15.0
8 O&M Service Contract 5 102.0
6 8.0
9 Recurrent Costs
7
10 Taxes and Duties 83.9
Subtotal (A) 1,274.9
8
B. Contingencies
1 Physical 128.3
2 Price 47.1
Subtotal (B) 175.3
C. Financing Charges During Implementation 9

1 Interest 46.0
2 Commitment Charges 3.7
Subtotal (C) 49.7
D. Total (A+B+C) 1,500.0

1
In mid-2013
Source: prices.
Asian Development Bank estimates.
2
1 In mid-2013
Includes flue gasprices
desulfurisation retrofit for existing units at JPCL power plant.
3
Includes technical
2 Includes flue gastraining to be provided
desulfurisation tofor
retrofit JPCL staffunits
existing on site (simulator)
at JPCL powerand through
plant
WAPDA College training courses.
3 Includes technical training to be provided to JPCL staff on site (simulator) and
4
Includes 10-year
through WAPDA contract.
College training courses
5
Includes 5-year O&M contract with spare parts.
6 4 Includes 10-year contract
Includes project management unit cost for 10 years and external audit cost.
7 5 Includes 5-year O&M contract with spare parts
5% of total value of imported equipment and 15% of GST to be financed by the
6 Includes project management unit cost for 10 years and external audit cost
government.
8 7 5% of total value of imported equipment and 15% of GST to be financed by the
Physical contingency at 10% of base cost. Price contingency calculated based on price
government
escalation factors.
9
ADB OCR loan
8 Physical # 1 interest
contingency rate calculated
at 10% at LIBOR
of base cost. 5-year fixedcalculated
Price contingency swap ratesbased
plus 0.4%
on
margin
priceand 0.1% maturity
escalation factors premium. ADB OCR loan # 2 interest rate calculated at
LIBOR 5-year fixed swap rate plus 0.4% margin. Commitment charge for both ADB
9 ADB
OCR OCR
loans at loan # 1ADB
0.15%. interest
ADFrate calculated
interest rate atat2%.
LIBOR
IDB 5-year fixed
financing swap
rate rates to
assumed plus
be at
0.4% margin and 0.1% maturity premium.
LIBOR 5-year fixed swap rate plus 1.15% spread. ADB OCR loan # 2 interest rate calculated
Source:atAsian
LIBOR 5-year fixed Bank
Development swap estimates.
rate plus 0.4% margin. Commitment charge for both
ADB OCR loans at 0.15%. ADB ADF interest rate at 2%. IsDB financing rate
assumed to be at LIBOR 5-year fixed swap rate plus 1.15% spread.
17
B. Allocation and Withdrawal of Loan/Grant Proceeds
ALLOCATION AND WITHDRAWAL OF ADF PROCEEDS

(Jamshoro Power Generation Project)
CATEGORY ADB FINANCING
Total Amount Allocated for ADB Percentage and Basis for Withdrawal from the
No. Item
Financing (SDR) ADF Account
Capacity
1 6,460,000 100% of total expenditure claimed*
development
Implementation
Consultant
(Construction
Phase)**
Interest during
3 969,000 100% of total amount due
Construction
4 Unallocated 2,713,000
Total 19,380,000
* Exclusive of taxes and duties imposed within the territory of the Borrower.
** Expenditures for the project implementation consultant (operational phase) will be financed under OCR loan 2.
ALLOCATION AND WITHDRAWAL OF OCR1 PROCEEDS

Total Amount Allocated for ADB

Percentage and Basis for Withdrawal from the
No. Item Financing ($)
OCR Account
Construction of
1 Supercritical Power 660,000,000 100% of total expenditure claimed*
Plants
Environmental
Remediation of Site
3 Site Preparation 5,000,000 100% of total expenditure claimed*

Emission Control
for the Site
Interest and
5 Commitment 37,600,000 100% of total amount due
Charges
Total 840,000,000
18
ALLOCATION AND WITHDRAWAL OF OCR2 PROCEEDS

Total Amount Allocated for ADB

Percentage and Basis for Withdrawal from the
No. Item Financing ($)
OCR Account
Implementation
1 750,000 100% of total expenditure claimed*
Consultant
O&M Service
Contract
Interest and
3 Commitment 2,550,000 100% of total amount due
Charges
Total 30,000,000
19
C. Detailed Cost Estimates by Financier ($ million)

Item Amount ADB ADB ADB IsDB Government
OCR 1 OCR 2 ADF
A. Base Cost
1 Construction of Supercritical Power Plant 880.0 660.0 75% - 0% - 0% 125.3 14% 94.7 11%
ADB Financed Portion 660.0 660.0 100% - 0% - 0% - 0% - 0%
Non-ADB Financed Portion 220.0 - 0% - 0% - 0% 125.3 57% 94.7 43%
2 Environmental Remediation of Site 9.0 9.0 100% - 0% - 0% - 0% - 0%
3 Site Preparation 5.0 5.0 100% - 0% - 0% - 0% - 0%
4 Emission Control for the Site 160.0 32.0 20% - 0% - 0% - 0% 128.0 80%
5 Capacity Development 10.0 - 0% - 0% 10.0 100% - 0% - 0%
6 Land Acquisition and Resettlement 2.0 - 0% - 0% - 0% - 0% 2.0 100%
7 Implementation Consultant 15.0 - 0% 0.7 5% 14.3 95% - 0% - 0%
Phase 1 14.3 - 0% - 0% 14.3 100% - 0% - 0%
Phase 2 0.7 - 0% 0.7 100% - 0% - 0% - 0%
8 O&M Service Contract 102.0 - 0% 21.0 21% - 0% - 0% 81.0 79%
ADB Financed Portion 21.0 - 0% 21.0 100% - 0% - 0% - 0%
Non-ADB Financed Portion 81.0 - 0% - 0% - 0% - 0% 81.0 100%
9 Recurrent Costs 8.0 - 0% - 0% - 0% - 0% 8.0 100%
10 Taxes and Duties 83.9 - 0% - 0% - 0% - 0% 83.9 100%
Subtotal (A) 1,274.9 706.0 55% 21.7 2% 24.3 2% 125.3 10% 397.6 31%
B. Contingencies
1 Physical 128.3 70.6 55% 2.9 2% 2.4 2% 12.5 10% 39.8 31%
2 Price 47.1 25.8 55% 2.8 6% 1.8 4% 4.1 9% 12.6 27%
Subtotal (B) 175.3 96.4 55% 5.7 3% 4.2 2% 16.6 9% 52.4 30%
C. Financing Charges During Implementation

1 Interest 46.0 34.1 74% 2.3 5% 1.5 3% 8.1 18% - 0%
2 Commitment Charges 3.7
3.4 93% 0.2 7% - 0% - 0% - 0%
Subtotal (C) 49.7 37.6 76% 2.5 5% 1.5 3% 8.1 16% - 0%
D. Total (A+B+C) 1,500.0 840.0 56% 30.0 2% 30.0 2% 150.0 10% 450.0 30.0%
1
Source: Asian Development Bank estimates.
In mid-2013 prices.
2 1 In mid-2013 prices
Includes
2 Includes flue flue gas desulfurisation
gas desulfurisation retrofit
retrofit for existing unitsfor existing
at JPCL powerunits
plant at JPCL power plant.
3
Includes
3 Includes technical
technical training training to be
to be provided provided
to JPCL to JPCL
staff on site staff
(simulator) andon site WAPDA
through (simulator)
College and through
training WAPDA College training courses.
Includes 10-year contract.
Includes
6 Includes 5-year
project O&M unit
management contract
cost for 10with spare
years parts.audit cost
and external
6
7 5% of total value of imported equipment and 15% of GST to be financed by the government
7 8 Physical contingency at 10% of base cost. Price contingency calculated based on price escalation factors
5% of total value of imported equipment and 15% of GST to be financed by the government.
8 9 ADB OCR loan # 1 interest rate calculated at LIBOR 5-year fixed swap rates plus 0.4% margin and 0.1% maturity premium. ADB OCR loan # 2 interest rate calculated at LIBOR 5-year fixed swap rate plus 0.4% margin.
Physical contingency
Commitment at 10%
charge for both ADB of base
OCR loans cost.
at 0.15%. ADBPrice contingency
ADF interest calculated
rate at 2%. IsDB financing based on price
rate assumed to be atescalation
LIBOR 5-yearfactors.
fixed swap rate plus 1.15% spread.
9
ADB OCR loan # 1 interest rate calculated at LIBOR 5-year fixed swap rates plus 0.4% margin and 0.1% maturity premium. ADB OCR loan # 2 interest rate
calculated at LIBOR 5-year fixed swap rate plus 0.4% margin. Commitment charge for both ADB OCR loans at 0.15%. ADB ADF interest rate at 2%. IDB
financing rate assumed to be at LIBOR 5-year fixed swap rate plus 1.15% spread.
20
D. Detailed Cost Estimates by Outputs/Components ($ million)
Coal Fired Capacity Environmental &

Power Plant Development Emission Control
Component 1 Component 2 Component 3
Total % of Cost % of Cost % of Cost
Item Cost Amount Category Amount Category Amount Category
A. Base Cost
1 Construction of Supercritical Power Plant 880.0 880.0 69% - 0% - 0%
2 Environmental Remediation of Site 9.0 - 0% - 0% 9.0 4%
3 Site Preparation 5.0 5.0 0% 0% 0%
4 Emission Control for the Site 160.0 - 0% - 0% 160.0 78%
5 Capacity Development 10.0 - 0% 10.0 79% - 0%
6 Land Acquisition and Resettlement 2.0 2.0 0% - 0% - 0%
7 Implementation Consultant 15.0 15.0 1% - 0% - 0%
8 O&M Service Contract 102.0 102.0 8% - 0% - 0%
9 Recurrent Costs 8.0 8.0 1% - 0% - 0%
10 Taxes and Duties 83.9 71.3 6% 0.7 6% 11.9 6%
Subtotal (A) 1,274.9 1,083.3 85% 10.7 85% 180.9 88%
B. Contingencies
1 Physical 128.3 109.0 9% 1.1 8% 18.1 9%
2 Price 47.1 39.99 3% 0.40 3% 6.68 3%
Subtotal (B) 175.3 149.0 12% 1.5 12% 24.8 12%

1 Interest 46.0 45.6 4% 0.5 4% - 0%
2 Commitment Charges 3.7 3.6 0% 0.0 0% - 0%
Subtotal (C) 49.7 49.2 4% 0.5 4% - 0%
D. Total (A+B+C) 1,500.0 1,281.5 12.7 205.7

100% 100% 100%
1
In mid-2013 prices.
2
Includes flue gas desulfurisation retrofit for existing units at JPCL power plant.
3
Includes technical training to be provided to JPCL staff on site (simulator) and through WAPDA College training
courses.
4
5
6
7
5% of total value of imported equipment and 15% of GST to be financed by the government.
8
Physical contingency at 10% of base cost. Price contingency calculated based on price escalation factors.
9
ADB OCR loan # 1 interest rate calculated at LIBOR 5-year fixed swap rates plus 0.4% margin and 0.1% maturity
premium. ADB OCR loan # 2 interest rate calculated at LIBOR 5-year fixed swap rate plus 0.4% margin.
Commitment charge for both ADB OCR loans at 0.15%. ADB ADF interest rate at 2%. IDB financing rate assumed to
be at LIBOR 5-year fixed swap rate plus 1.15% spread.
21
E. Detailed Cost Estimates by Year ($ million)

Item Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cost 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
A. Base Cost
1 Construction of Supercritical Power Plant 880.0 - 151.9 244.1 343.6 140.4 - - - - -
2 Environmental Remediation of Site 9.0 - 9.0 - - - - - - - -
3 Site Preparation 5.0 - 5.0 - - - - - - - -
4 Emission Control for the Site 160.0 - 64.0 64.0 32.0 - - - - - -
5 Capacity Development 10.0 - 1.7 2.8 3.9 1.6 - - - - -
6 Land Acquisition and Resettlement 2.0 - 1.0 1.0 - - - - - - -
7 Implementation Consultant 15.0 0.8 3.0 4.5 4.5 1.5 0.2 0.2 0.2 0.2 0.2
8 O&M Service Contract 102.0 - - - - - 20.4 20.4 20.4 20.4 20.4
9 Recurrent Costs 8.0 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
10 Taxes and Duties 83.9 - 13.8 22.2 31.2 12.7 0.8 0.8 0.8 0.8 0.8
Subtotal (A) 1,274.9 1.6 250.2 339.4 416.0 157.0 22.2 22.2 22.2 22.2 22.2
B. Contingencies
1 Physical 128.3 0.2 25.2 34.1 41.9 15.8 2.2 2.2 2.2 2.2 2.2
2 Price 47.1 - 8.1 13.1 18.4 7.5 - - - - -
Subtotal (B) 175.3 0.2 33.3 47.2 60.2 23.3 2.2 2.2 2.2 2.2 2.2

1 Interest 46.0 0.05 4.2 8.9 15.1 15.4 0.4 0.5 0.5 0.5 0.5
2 Commitment Charges 3.7 1.3 1.1 0.7 0.3 0.1 0.1 0.1 0.1 0.1 -
Subtotal (C) 49.7 1.3 5.3 9.7 15.4 15.5 0.5 0.5 0.5 0.5 0.5
D. Total (A+B+C) 1,500.0 3.0 288.8 396.2 491.7 195.8 24.9 24.9 24.9 24.9 24.9
1
Source: Asian Development
In mid-2013 prices. Bank estimates.
2 1
In mid-2013
Includes flueprices
gas desulfurisation retrofit for existing units at JPCL power plant.
3 2 Includes flue gas desulfurisation retrofit for existing units at JPCL power plant
Includes technical training to be provided to JPCL staff on site (simulator) and through WAPDA College training courses.
4 3 Includes technical training to be provided to JPCL staff on site (simulator) and through
6Includes projectmanagement
Includes project management unit unit cost
cost for 10 for 10and
years years andaudit
external external
cost audit cost.
7
75%5%ofof total value
total value of of imported
imported equipment
equipment and 15% andof 15%
GST toofbeGST to be
financed byfinanced by the government.
the government
8
8Physical contingency
Physical contingency at 10%
at 10% of baseof base cost.contingency
cost. Price Price contingency calculated
calculated based based
on price on price
escalation escalation factors.
factors
9
9ADB
ADB OCR
OCR loan loan# 1# interest
1 interest rate calculated
rate calculated at LIBORat5-year
LIBOR 5-year
fixed fixedplus
swap rates swap0.4%rates plus
margin 0.4%
and 0.1%margin and 0.1%ADB
maturity premium. maturity
OCR loanpremium. ADB
# 2 interest rateOCR loanat#LIBOR
calculated 2 interest
5-yearrate
fixed swap rate plus 0.4%
margin. Commitment
calculated at LIBORcharge 5-yearfor fixed
both ADB
swap OCR loans
rate at 0.15%.
plus 0.4% ADB ADF interest
margin. rate at 2%.
Commitment IsDB financing
charge for bothrate
ADBassumed
OCR toloans
be at LIBOR 5-yearADB
at 0.15%. fixed ADF
swap rate plus 1.15%
interest spread.
rate at 2%. IDB
financing rate assumed to be at LIBOR 5-year fixed swap rate plus 1.15% spread.
22
F. Contract Award and Disbursement Projections – OCR Loan #1
900.0 OCR Loan #1 Cumulative 900.0

Contract Award
Quarterly Cumulative Disbursement ($
800.0 OCR Loan #1 Cumulative 800.0

Disbursement
Contract Award ($ million)

700.0 700.0
600.0 600.0
million)
500.0 500.0
400.0 400.0
300.0 300.0
200.0 200.0
100.0 100.0
0.0 0.0
I II III IV I II III IV I II III IV I II III IV I II III IV
2014 2015 2016 2017 2018
G. Contract Award and Disbursement Projections – OCR Loan #2
35.0 25.0
OCR Loan #2 Cumulative

30.0 Contract Award
20.0

25.0
15.0
20.0
million)
15.0
10.0
10.0
5.0
5.0
0.0 -
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
23
H. Contract Award and Disbursement Projections – ADF
35.0 35.0
ADF Cumulative Contract
Award
30.0 30.0

25.0 25.0
20.0 20.0
million)
15.0 15.0
10.0 10.0
5.0 5.0
0.0 0.0
2014 2015 2016 2017 2018
Note: Graph includes only ADB-funded portion excluding price and physical contingencies.
24
I. Contract Award and Disbursement Projections ($ million)
A. 2014–2018
2014 2015 2016 2017 2018

OCR 1 1.4 160.3 227.8 311.7 134.2
Contract award (CA) 0.0 14.0 32.0 660.0
Cumulative CA 0.0 14.0 46.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0 706.0
Disbursement (D) 0.0 0.7 0.4 0.4 40.1 40.1 40.1 40.1 56.9 56.9 56.9 56.9 77.9 77.9 77.9 77.9 33.5 33.5 33.5 33.5
Cumulative D 0.0 0.7 1.1 1.4 41.5 81.5 121.6 161.7 218.6 275.6 332.5 389.5 467.4 545.3 623.2 701.2 734.7 768.2 801.8 835.3
OCR 2 0.0 0.0 0.0 0.0 0.0

Contract award 0.0 0.7 21.0
Cumulative CA 0.0 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 21.7
Disbursement 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cumulative D 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2
ADF 2.1 5.4 8.0 9.3 4.2

Contract award 0.0 14.3 10.0
Cumulative CA 0.0 14.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3
Disbursement 0.0 1.1 0.5 0.5 1.3 1.3 1.3 1.3 2.0 2.0 2.0 2.0 2.3 2.3 2.3 2.3 1.1 1.1 1.1 1.1
Cumulative D 0.0 1.1 1.6 2.1 3.5 4.8 6.1 7.5 9.5 11.5 13.5 15.5 17.8 20.1 22.4 24.8 25.8 26.9 27.9 29.0
25
Contract Award and Disbursement Projections ($ million)
B. 2019–2023
2019 2020 2021 2022 2023

OCR 1
Contract award (CA)
Cumulative CA
Disbursement (D)
Cumulative D
OCR 2 27.9 0.44 0.46 0.46 0.47

Contract award
Cumulative CA 21.7 22 22 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7
Disbursement 7.0 7 7 6.99 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12
Cumulative D 7.2 14 21 28.2 28.3 28.4 28.5 28.6 28.7 28.8 29 29.1 29.2 29.3 29.4 29.5 29.7 29.8 29.9 30
ADF
Contract award
Cumulative CA
Disbursement
Cumulative D
26
J. Fund Flow Diagram
Direct payment, ADB ADB

commitment procedures ADB (Lender)
Loan Project Project

Agreements Agreement Agreement
Withdrawal
application
Economic Affairs Division
(Borrower)
Subsidiary
Financing
Agreement
GHCL (EA)
JPCL (IA)
Contract
Contract
Invoice
Invoice
Project Implementation
EPC Contractors Consultant and training
ADB = Asian Development Bank, EA = executing agency, GHCL = GENCO Holding Company Limited, IA =
implementing agency, JPCL = Jamshoro Power Company Limited, MOF = Ministry of Finance, TPS = thermal power
station.
Source: Asian Development Bank.
27
K. Disbursement Mechanism
IDB ADB
Withdrawal
Application ADB’s Share
(with invoice) of Payment
Withdrawal
Application
(with invoice)
JPCL
IDB’s Share
of Payment
Invoice Invoice
Invoice
O&M
Site
Preparation
Invoice
Implementation
Consultant
EPC
Contractors
ADB = Asian Development Bank, EPC = engineering, procurement and construction, IDB = Islamic
Development Bank, JPCL = Jamshoro Power Company Limited, O&M = operation and
maintenance.
VI. FINANCIAL MANAGEMENT
A. Financial Management Assessment
26. The financial management of JPCL is generally satisfactory especially on the accounting
policies and procedures and financial reporting which are in line with International Financial
Reporting Standards (IFRS) and of credible quality as the audit reports have been regularly
audited and audit opinion has been unqualified. Financial management of JPCL was carried out
using the ADB Financial Management Questionnaire (FMAQ). However, JPCL has not been
able to operate independently and commercially as its Board of Directors has ceased
functioning since 2010 even though it is a corporate entity. There is serious corporate
governance issue which needs to be addressed promptly. This will be addressed through the
Rehabilitation Plan which will be carried out according to the financial performance milestones.
JPCL’s organizational structure will be reviewed and adjusted in order to establish
accountability. Financial and management reporting will be automated with the introduction of
the Silicon Alley Group Enterprise Resource Planning (SAG ERP) system.
28
27. JPCL has accumulated a significant amount of losses which has resulted in negative
cash position and net asset value. JPCL’s revenue streams and cash flows are driven by tariffs
collected by DISCOs and transferred through the NTDC to the GENCOs. The prime collectors
of funds into the systems, the DISCOs, have been also facing with severe constraints such as a
high level of bad debts, and outstanding from GOP for subsidies which mean that the entire
system is cash-short at any given point in time. The quantum and timing of the cash inflow for
energy supplied to NTDC dictates the manner in which payments are made, the most significant
being the payments to the suppliers of fuel. As a result the JPCL is essentially financed by fuel
creditors, which is not a satisfactory situation. In addition, rapidly increasing losses, primarily
due to using the under cost recovery tariff and operating under optimal efficiency, have resulted
in a negative equity base which means that the GENCOs are facing severe liquidity risk. JPCL
requires financial rehabilitation to restore stable operating income, ensure sufficient cash flow,
and reduce, if not eliminate, accumulated losses to recapitalize its balance sheet. Furthermore,
if the situation does not improve, JPCL will not have sufficient cash to sustain the new
investment. The financial rehabilitation road map agreed is summarized in the following table:
Rehabilitation Period
June 2013 – June 2021 with different annual milestones and thereafter with permanent annual
milestones
Measures
A. Tariff petition and determination

 Immediate recruitment of an international independent assessment engineer (multi-year
contract)
 Tariff petition and determination for both existing plants and the two new supercritical coal-fired
power plants
 Reassessment and revision of tariff petition and determination (as needed and annually)
 Monitoring of revenue and expenditure flows (quarterly)
B. Recapitalization
 Recapitalization analysis and plan (eliminate accumulated losses by 2019).
 Elimination of accumulated losses will be made through capital injection by the Government of
Pakistan
 Profit recovery
C. Corporate governance strengthening

 Organizational restructure analysis and plan
 Appointment of a new Board of Directors
 Establishment of an independent legal function staffed with qualified lawyer(s)
 Recruitment for qualified internal audit specialists to strengthen the Internal Audit Cell at GHCL.
D. Business Plan and Financial Projection

 Submission of an annual business plan with financial review and projection
 Monitoring financial indicators
 3-year rolling business plan
 Performance benchmark for each operational unit and position
 Status update on the implementation of Silicon Alley Group Enterprise Resource Planning (SAG
ERP)
 Preventative O&M and cost reduction measures
 Variance analysis
29
Monitoring Indicators
A. Restoration of stable income
 Measure: immediate tariff petition and determination
 Performance Indicator: Filing of Tariff Petition with NEPRA
 Monitoring operating indicators: [This indicator shall be linked with approval of Tariff by NEPRA]
gross profit margin = Sales – Cost of Sales

Sales
B. Restoration of capital adequacy
 Measure: recapitalization by profit recovery and revaluation of fixed assets
 Monitoring capital adequacy indicator:
debt to asset ratio = Total Debt

Total Assets
C. Ensuring adequate liquidity

 Measure: immediate tariff petition and determination
 Monitoring liquidity indicators:
current ratio = Current Assets

Current Liabilities
Free Cash Flow [revenues-expenses +/- extraordinary

debt service income/loss (excluding non-cash items, working
coverage ratio = capital movements and interest charges)
– net capital expenditure]
Annual Debt Service
D. Monitoring methods
 Submission of “Financial Rehabilitation Progress and Achievement Report”:
Deadline: 31 December (2014-2019), annually
 Submission of “Business Plan and Variance Report”:

Deadline: 31 July (2014-2019), annually
 Joint semi-annual reviews (JPCL - ADB):

Frequency and timing: January and August (for 2014-2019)
Financial Performance Milestones

Coverage
Milestones
Period
2013 and 2014 Agree with NEPRA on tariff for existing plants by 31 Dec 2013.
Agree with NEPRA on tariff for the new coal-fired power plants by 31 Dec 2014.
2013 and 2014 Complete organizational restructure and appointment of Board of Directors and key
managers (as set out in the FMA).
Submission of “Corporate Governance – Organizational Restructure Progress

Report” by 31 Dec 2014.
31 Dec 2014 Develop “Annual Business Plan and Performance Report” including:
 Financial performance review,
 3-year rolling business plan
 Monitoring financial indicators
 Performance benchmark for each operational unit and position (see below)
30
 Next fiscal year’s budget and proposed financing and investment activities
 Status of SAG ERP roll-out and implementation
 Variance analysis
Develop performance benchmark for each operational unit against industry standards
including:
 Total/operating revenue per head
 Total/operating/non-fuel operating cost per head
 Plant efficiency rate (heat rate)
 Total cost to income ratio
 Non-fuel operating cost to income ratio
Submission: December 2014.

For the year Prepare “Annual Business Plan and Performance Report” including the following
ended 30 June additional information for the designated fiscal year(s):
2015 and 30  Gross profit margin = 3% (subject to the approval of NEPRA)
June 2016  Current ratio = 0.3
 Debt to assets ratio = 0.8
 Debt-service coverage ratio = —
 Annual business plan with financial performance review, next year’s budget
and financing and investing proposal
Provisional Submission: November 2015 and 2016

Submission: December 2015 and 2016
 Debt-service coverage ratio = —

 Debt-service coverage ratio = 1.0

2021  Gross profit margin = 9% (subject to the approval of NEPRA)
 Current ratio = 1.0
31
Provisional Submission: November 2021

Submission: December 2021
Thereafter for Prepare “Annual Business Plan and Performance Report” including the following
each fiscal year additional information for the designated fiscal year(s):
 Gross profit margin = 9% (subject to the approval of NEPRA)
 Current ratio = 1.2
Provisional Submission: November of each year

Submission: December of each year
FMA = financial management assessment, NEPRA = National Electric Power Regulatory Authority.
28. The Project is expected to curtail losses with the envisaged capacity improvements and
efficiency improvement. However, this project will be the first ADB financed transaction and
PMU staff training will be necessary to be familiarized with ADB procedures. To bolster the
corporate and financial management capacities of EPP and to ensure governance in project-
related activities, the Project will include the following measures:
(i) Establish PMU, PIU and maintaining separate project accounts;
(ii) Conduct PMU and PIU staff training for ADB procedures (procurement and
disbursement)
(iii) Recruiting an international consulting firm to provide assistance in project
implementation;
(iv) Establishing a direct payment procedure and/or commitment procedure for
disbursements to contractors and consultants, and
(v) Project financial statements and entity-level financial statements annually audited
in accordance with international auditing standards by an external independent
auditor acceptable to ADB.
29. Overall control risks could be mitigated to medium level through various mitigation
measures. The financial risk assessment and mitigation measures are summarized in the table
below.
Financial Management Risks and Mitigation Measures

Risk Management Plan and/or Expected Risk after
Risk
Assessment Mitigation Measures Timing Mitigation
1. Inherent Substantial  Corporate governance of the 30 June Substantial/
risks implementing agency to be reinforced 2014 Moderate
(specific to including:
the o Board of Directors to be
implementing appointed;
agency) o organizational structure to be
reviewed and adjusted to ensure
segregation of duties and to
eliminate conflict of interest;
o establishment of an independent
legal function staffed with
qualified lawyer(s); and
o recruitment for qualified internal
audit specialists.
 A PMU and a PIU to be established at 31
GHCL and JPCL, respectively. Both to December
be supported by international 2013
32

Risk
consultants. Training on ADB
procedures to be provided.
2. Financial Substantial  A separate project account to be kept. From loan Substantial/
risks Asset of the project to be ring-fenced signing Moderate
and segregated from existing
operation.
 ADB direct payment, commitment
letters, and reimbursement procedures
are to be used for the project. [No
imprest account will be established.]
 Training to be provided by
internationally recruited consultant on
managing project account and
formulating operational practices in line
with ADB procedures.
 Financial viability of JPCL will
contribute to the financial risk of the
Project. A roadmap is proposed to
improve JPCL’s financial sustainability.
3. Staffing Moderate  JPCL to carry out a review of existing 30 June Moderate/
staff and in-house expertise to 2014 Negligible
determine the appropriate staffing for
the operation and maintenance of the
existing units, as well as the new coal-
fired power plant to be constructed
under the project.
 Training to be carried out by
international consultants to equip staff
with pertaining knowledge about the
coal-fired technology.
 Introduction of documented
procedures and staff training will be
required to retain institutional
knowledge.
 GHCL and JPCL to be responsible for
retaining adequate staffing for the
operation and the PMU and PIU.
4. Accounting Moderate  Roll-out of the SAG ERP system to 31 Moderate/
policies, allow for automatic data collation from December Negligible
procedures, different operations within JPCL and 2013
and systems generation of management reporting.
 Project account to be kept separately From loan
in the system and managed by signing
dedicated PIU accountants.
5. Internal High  Qualified internal audit experts to be 30 June Substantial
audit recruited by JPCL immediately. 2014
 The Audit and Finance Committee of
JPCL’s new BoD to consist members
with qualification and experience in
order to provide effective supervision.
6. External Negligible  External audit to be carried out on the From loan Negligible
audit project accounts every year signing
7. Reporting Substantial/  A reporting system, which will have From loan Moderate
33

Risk
and Moderate functionality for automatic generation signing
monitoring of financial reports, will need to be
established and maintained for the
project. Implementation consultants
will be recruited to assist the PMU and
PIU in supervising the project
implementation, recording project
costs, preparing withdrawal
applications and progress reports.
8. Information Substantial/  SAG ERP to be fully implemented. 31 Moderate
systems Moderate Other information systems and December
processes to be enhanced to meet the 2013
demands of organization, ensure
operational stability, and allow for full
consolidation of management
information, as well as financial data.
Overall Substantial/ Overall risk should be reduced if all 31 Moderate
Moderate mitigation measures are undertaken. December
2014
ADB = Asian Development Bank, BoD = Board of Directors, ERP = Enterprise Resource Planning, GHCL = GENCO
Holding Company Limited, JPCL = Jamshoro Power Company Limited, PIU = project implementation unit, PMU =
project management unit, SAG = Silicon Alley Group.
B. Disbursement
30. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement
Handbook (2012, as amended from time to time),23 and detailed arrangements agreed upon
between the Government and ADB.
31. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),24 ADB funds may not be
applied to the activities described on the ADB Prohibited Investment Activities List set forth at
Appendix 5 of the SPS.
32. The Project uses direct payment and commitment letter procedures for all the contracts.
For the consulting services, direct payment method will be used. Reimbursement method may
be used when necessary. JPCL will prepare disbursement projections, collect supporting
documents, and prepare and send withdrawal applications to ADB and IsDB. . MOF will ensure
necessary funds are made available and/or in-kind contributions are made available for their
respective counterpart responsibilities.
33. Before the submission of the first withdrawal application, JPCL should submit to ADB
sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on
behalf of the JPCL, together with the authenticated specimen signatures of each authorized
person. The minimum value per withdrawal application is US$100,000, unless otherwise
approved by ADB. JPCL is to consolidate claims to meet this limit for reimbursement claims.
Withdrawal applications and supporting documents will demonstrate, among other things that
the goods, and/or services were produced in or from ADB members, and are eligible for ADB
financing.
23
Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf
24
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
34
C. Accounting
34. GHCL and JPCL will cause PIU to maintain separate books and records by funding
source for all expenditures incurred on the Project. The PIU will prepare consolidated project
financial statements in accordance with the government’s accounting laws and regulations
which are consistent with international accounting principles and practices.
D. Auditing and Public Disclosure
35. GHCL and JPCL will cause the detailed consolidated project financial statements to be
audited in accordance with International Standards on Auditing and with the Government's audit
regulations, by an independent auditor acceptable to ADB. The audited financial statements
(AFS) for the GHCL and JPCL and audited project financial statements (AFPS) will be
submitted in the English language to ADB within six months of the end of the fiscal year by the
GHCL.
36. The annual audit report will include an audit management letter and audit opinions which
cover (i) whether the project financial statements present a true and fair view or are presented
fairly, in all material respects, in accordance with the applicable financial reporting framework;
(ii) whether loan and grant proceeds were used only for the purposes of the project or not; and
(iii) the level of compliance for each financial covenant contained in the legal agreements for the
project.
37. Compliance with financial reporting and auditing requirements will be monitored by
review missions and during normal program supervision, and followed up regularly with all
concerned, including the external auditor.
38. The Government, GHCL and JPCL have been made aware of ADB’s policy on delayed
submission, and the requirements for satisfactory and acceptable quality of the audited project
financial statements.25 ADB reserves the right to require a change in the auditor (in a manner
consistent with the constitution of the recipient, or for additional support to be provided to the
auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits
are substantially delayed. ADB reserves the right to verify the project's financial accounts to
confirm that the share of ADB’s financing is used in accordance with ADB’s policies and
procedures.
39. Public disclosure of the project financial statements, including the audit report on the
project financial statements, will be guided by ADB’s Public Communications Policy (2011).26
25
ADB Policy on delayed submission of audited project financial statements:
 When audited project financial statements are not received by the due date, ADB will write to the executing
agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six
months, requests for new contract awards and disbursement such as new replenishment of imprest
accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.
 When audited project financial statements have not been received within 6 months after the due date, ADB
will withhold processing of requests for new contract awards and disbursement such as new replenishment
of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will
(i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit
documents are not received within the next six months.
 When audited project financial statements have not been received within 12 months after the due date, ADB
may suspend the loan.
26
Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications
35
After review, ADB will disclose the annual audited project financial statements and the opinion
of the auditors on the project financial statements within 30 days of the date of their receipt by
posting them on ADB’s website. The Audit Management Letter will not be disclosed.
36
VII. PROCUREMENT AND CONSULTING SERVICES
A. Procurement Capacity Assessment
40. A procurement capacity assessment of GHCL and JPCL was conducted. A summary of
the assessment can be found in the Supplementary Appendix.
B. Advance Contracting and Retroactive Financing
41. Advance contracting. All advance contracting will be undertaken in conformity with
ADB’s Procurement Guidelines (2013, as amended from time to time)27 and ADB’s Guidelines
on the Use of Consultants (2013, as amended from time to time)28. The issuance of invitations
to bid under advance contracting will be subject to ADB approval. The Borrower, GHCL and
JPCL have been advised that approval of advance contracting does not commit ADB to finance
the Project. Advance contracting is expected for the recruitment of project implementation
consultants. Advertisement, shortlisting, issuance of requests for proposals, technical and
financial evaluations may take place prior to effectiveness of the loan agreements.
42. Retroactive financing. The project envisages advance contracting and retroactive
financing of up to 20% of total financing for project implementation consultant services, as per
the Project Concept Paper approved by ADB Management.
C. Procurement of Goods, Works and Consulting Services
43. All procurement of goods and works will be undertaken in accordance with ADB’s
Procurement Guidelines (2013, as amended from time to time).
44. EPC Contracts. JPCL will select the most appropriate contract form with ADB prior
concurrence, however, two-stage, single envelope bidding procedure without prequalification is
preferred for the procurement of (i) Construction of one new supercritical coal-fired unit with 5-
year O&M service contract, (ii) Environmental mitigation and (iii) Construction of FGD for
existing units. The procurement will follow international competitive bidding (ICB) procedures.
45. An 18-month procurement plan indicating threshold and review procedures, goods,
works, and consulting service contract packages, is in Section D.
46. Project Implementation Consultants. All consultants will be recruited according to

ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).29 Quality-
and cost-based selection (QCBS) method will be the default method for recruiting consulting
firms with a standard quality: cost ratio of 90:10 due to its complexity and high impact of the
project. Up to 817 person-months (PM) comprising of 337-PM international and 480-PM national
consulting services are required to: (i) review conceptual design and bidding documents; (ii)
assist in the recruitment of engineering contractors in accordance to ADB's Procurement
Guidelines (2013, as amended from time to time); (iii) develop and implement comprehensive
project management plans to ensure the most efficient, timely, and economical implementation
of the Project; (iv) undertake due diligence in relation to proposed consultants, subconsultants,
contractors and subcontractors during procurement processes and if proposed to be included in
27
Available at: http://www.adb.org/sites/default/files/pub/2013/Guidelines-Procurement.pdf
28
Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf
29
Checklists for actions required to contract consultants by method available in e-Handbook on Project
Implementation at: http://www.adb.org/documents/handbooks/project-implementation/
37
contracts after contract award; (v) ensure non-objection by ADB for any subcontracting
structures in excess of 10% proposed to be included in consulting or construction contracts; and
(vi) supervise the engineering contractors for supply, installation, commissioning and testing of
equipment. Estimated contract duration is 60 months. The terms of reference for consulting
services are detailed in Section F. ADB ADF loan proceeds will cover the cost of the project
implementation and supervision consultant.
47. Capacity Development. GHCL and JPCL will need to develop its capacity for future
coal project expansion. The activities will be financed through ADB's ADF loan proceeds.
D. Procurement Plan
A. Basic Data
Project Name: PAK: Jamshoro Power Generation Project

Country: Pakistan Executing Agency:
GENCO Holding Company Limited (GHCL)
118 WAPDA House, Lahore, Pakistan
Implementation Agency:
Jamshoro Power Company Limited (JPCL),
Mohra Jabal Dadu Road, Jamshoro, Sindh,
Pakistan
Loan Amount: $900 million ($30 million Loan Numbers: [TBD] (OCR Loan 1), [TBD]
ADF; $870 million OCR in two (OCR Loan 2), [TBD] (ADF)
separate loans amounting $840 million and
$30 million respectively)
Date of First Procurement Plan: June Date of this Procurement Plan:

2013 September 2013
48. The project envisages advance contracting and retroactive financing of up to 20% of
total financing, as per the Project Concept Paper approved by ADB Management.
B. Process Thresholds, Review and 18-Month Procurement Plan
49. Except as 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 (ICB) for Works $5,000,000 and above
National Competitive Bidding (NCB) for Works Between $100,000 and $5,000,000
ICB for Goods $1,000,000 and above
NCB for Goods Between $100,000 and $1,000,000
38
1. ADB Prior or Post Review
50. 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 Yes
ICB Goods Prior Yes
Recruitment of Consulting Firms
Quality- and Cost-Based Selection (QCBS) Prior Yes
Recruitment of Individual Consultants

Individual Consultants (ICS) Prior Yes
2. Goods and Works Contracts Estimated to Cost More Than $1 Million
51. The following table lists goods and works contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
General Contract Procurement Prequalification Advertisement

Description Value Method of Bidders (y/n) Date (quarter/year) Comments
Procurement of $982 million ICB N 1st quarter 2014 Financed by

EPC Contract for ADB, IsDB
Construction of and GOP
one Supercritical
Coal-fired Unit with
5-year O&M
Procurement of $160 million ICB N 1st quarter 2014 Financed by

EPC Contract for ADB and GOP
FGD for Existing
Units
Procurement of $9 million ICB N 1st quarter of 2014 Financed by

EPC Contract for ADB and GOP
Site Remediation
Procurement of $5 million NCB N 4th quarter 2013 Financed by

Work for the site ADB and GOP
preparation
39
3. Consulting Services Contracts Estimated to Cost More Than $100,000
52. The following table lists consulting services contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
Advertisement International or
General Contract Recruitment Date National
Description Value Method (quarter/year) Assignment Comments
Project $15 million QCBS (QC 2nd Quarter 2013 International Financed by ADB
Implementation Ratio: 90:10)
Consultant
Capacity $10 million QCBS (QC 1st Quarter 2014 International Financed by ADB
Development Ratio: 90:10)
Component
4. Consulting Services Contracts Estimated to Cost Less Than $100,000
53. There are no smaller-value consulting service contracts envisaged in this project.
5. ADB Review of Contract Modification
54. ADB will review contract modifications in accordance with the procedures set forth in the
financing agreement between the Beneficiary and ADB.
40
6. Indicative List of Packages Required Under the Project
55. 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.
Estimated Estimated Domestic

Procurement
General Description Value Number of Preference Comments
Method 1
(cumulative) Contracts Applicable
A. Procurement of EPC
Contract for Financed
$982 million 1 ICB No
Construction of one by ADB,
Supercritical Coal-fired and GOP
Unit with 5-year O&M
B. Procurement of EPC
Financed
Contract for $160 million 1 ICB No
by ADB
Construction of FGD
and GOP
for Existing Units
C. Procurement of
Financed
Turnkey Contract for $9 million 1 ICB No
by ADB
Site remediation of the
and GOP
site
D. Procurement of Financed
No
Work for site $5 million 1 NCB by ADB
preparation and GOP
Consulting Services
Estimated Estimated
Value Number of Recruitment
2 3
General Description (cumulative) Contracts Method Type of Proposal Comments
A. Project $15 million 1 International FTP Financed

implementation by ADB
consultant
B. Capacity Financed
$10 million International FTP
Development 1 by ADB
Component
ADB = Asian Development Bank; BTP = bio-data technical proposal; CQS = consultants’ qualification selection; FTP =
full technical proposal; QCBS = quality- and cost-based selection; HFO = heavy fuel oil; TPS = thermal power station
1
Notes: See Procurement Guidelines, Appendix 2
2
Indicate recruitment method and whether it is for international or national assignment
3
See PAI 2.02G: full, simplified or bio-data proposal
E. National Competitive Bidding
1. General
56. 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’s Procurement Guidelines (2013, as
amended from time to time).
41
2. Registration
57. Bidding shall not be restricted to pre-registered firms and such registration shall not be a
condition for participation in the bidding process.
58. 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 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
59. 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
60. The minimum bidding period is twenty-eight (28) days prior to the deadline for the
submission of bids.
5. Bidding Documents
61. Procuring entities shall use the applicable standard bidding documents for the
procurement of goods, works and services acceptable to ADB.
6. Preferences
62. Domestic preference shall be given for domestic bidders and for domestically
manufactured goods.
7. Advertising
63. 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
64. Where required, bid security shall be in the form of a bank guarantee from a reputable
bank.
9. Bid Opening and Bid Evaluation
65. Bids shall be opened in public.
66. 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.
42
67. Bidders shall not be eliminated from detailed evaluation on the basis of minor, non-
substantial deviations.
68. 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.
69. A contract shall be awarded to the technically responsive bid that offers the lowest
evaluated price and no negotiations shall be permitted.
10. Rejection of all Bids and Rebidding
70. Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.
11. Participation by Government-owned enterprises
71. 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
72. 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.
F. Term of Reference of Project Implementation Consultant
A. Background
73. Pakistan faces energy shortage that decreases industrial productivity and adversely
affects the social welfare of the people. To sustain economic growth and make it more inclusive,
a reliable supply of electricity is essential, as electricity is central to almost every aspect of the
country’s sustainable socioeconomic development. Uninterrupted supply of electricity supports
commerce and business, maintains and attracts industrial activities for job creation, and
enhances people’s well-being. Energy efficiency and diversification of energy mix away from
imported heavy fuel oil (HFO) to cheaper coal are, for Pakistan, the faster and cheaper ways to
increase electricity supply and to decrease generation cost.
74. The Jamshoro Power Generation Project (JPGP) will increase reliable power generation
and reduce power shortage through construction of one new supercritical coal-fired power unit
in Jamshoro Thermal Power Station (TPS). This will provide the power needed to help address
the country’s power shortage and improve reliability and enhance energy security by diversifying
the fuel mix.
75. GENCO Holding Company Limited (GHCL) intends to procure EPC turnkey contractors
to build the supercritical coal-fired power unit. The contractors will be responsible for design,
supply, delivery, erection, testing, commissioning of the new unit. The contractor is scheduled to
be mobilized in the first quarter of 2015. The proposed implementation consulting firm will be
recruited to assist GHCL in reviewing bidding documents and tender evaluation for the new
43
supercritical unit, supervising and monitoring the implementation progress of the project. GHCL
and Jamshoro Power Company Limited (JPCL) will assist the consultants in the onsite
coordination and data gathering. GHCL and JPCL will also provide all necessary assistance to
the consultants in liaising with other government ministries and agencies.
76. GHCL and JPCL will provide and make available to the consultants, free of charge, the
following facilities, services, equipment, materials, documents and information as required by
the consultants for carrying out the assignment:
(i) Counterpart staff/technical support;

(ii) Office space: sufficient office space for the consultant team, with national and
international telephone lines, electricity and air conditioning/heating, and internet
connections;
(iii) Office furniture: desks, office chairs, and bookshelves/cabinets adequate to
accommodate the full complement of international and local consultants; and
(iv) Organizational support: assistance in all arrangements for workshops, meetings,
and field visits; and access to required available data, maps and other relevant
information.
77. The consultants will be responsible for their personal computers and other facilities not
mentioned above for producing relevant reports.
B. Objective of the Assignment
78. The implementation of the Project will require the service of a multidisciplinary team of
consultants. An international consulting firm (the Firm) with international and national experts
experienced in the development of power plants is required to supervise the construction work
of the two new supercritical coal-fired power units and to provide assistance on procurement.
C. Scope of Work
79. The Firm will assist GHCL Project Management Unit (PMU) in conducting international
competitive bidding for selection of engineering, procurement and construction contractor. The
Firm will prepare, not limited to the necessary project plans, progress reports, payment
certificates, provisional and final take over certificates, claims evaluation reports, project final
report and any other project management documents as required in accordance with good
practice and GHCL and ADB requirements.
80. The services to be provided by the Firm include but are not limited to, the following:
(i) Review and recommend the proposed technical design of the supercritical coal
fired power unit;
(ii) Reconfirm the technical specification, and if it has deficiency, update it;
(iii) Gather primary data on climate condition and process the data to produce the
required climate condition for the final design;
(iv) Assist in tendering procedures which includes clarification, pre-bidding meeting
and issue an addendum as required;
(v) Review bidding documents and evaluating bids including preparing Bid
Evaluation Report (BER) in accordance with ADB’s Procurement Guidelines
(2013, as amended from time to time);
44
(vi) Provide trainings and capacity development for procurement, new technology
management, operation and maintenance of coal fired power unit and
safeguards capacity in JPCL and GHCL;
(vii) Compare as-built drawings to the design;
(viii) Develop and implement a construction quality assurance program;
(ix) Monitor implementation progress and identify what actions and resources are
required to address the EPC needs to achieve the schedule and how the
proposed project could be best implemented;
(x) Inspect materials before shipment, upon arrival and upon erection;
(xi) Review the contractor’s test procedures for compliance with manufacturers’
requirements and design criteria. The consultant will witness selected tests and
review the test results and submit a report;
(xii) Undertake due diligence reviews for all proposed amendments and changes in
subcontracting arrangements proposed by the contractor to ensure that both the
qualification and eligibility criteria as used in the evaluative process are satisfied;
(xiii) Ensure that due diligence is conducted on potential contractors and
subcontractors;
(xiv) Update the EIA based on the detailed design and update, and formulate a site-
specific EMP;
(xv) Oversee the construction of the emission control devices for the existing units;
(xvi) Monitor the implementation of the environmental remediation of the site;
(xvii) Monitor safeguards and environmental management plan (EMP) implementation
and provide early warning of any potential safeguard risks;
(xviii) Verify contractor’s work and issue certification of payment to the contractor;
(xix) Prepare quarterly payment reports, ensure claim management, manage project
account and analyze the causes of delay, if any;
(xx) Prepare the protocol for handover of the unit to JPCL after the 5-year O&M
contract period, which shall include efficiency tests, performance records,
manuals and drawings, and verification of inventory;
(xxi) Assist the EPC contractor and JPCL in commissioning activities; and
(xxii) Provide additional services as reasonably requested by GHCL and JPCL to
complete the Project.
D. Qualification of the Firm
81. The Firm should have demonstrated experience in (i) Consulting engineering services
involving preparation of bidding documents and tender evaluation; (ii) design and construction
supervisory work, on at least three supercritical coal-fired power units with capacity equivalent
or above 600 MW in the last 15 years. The Firm shall have international consultants with
expertise in supercritical coal-fired power plant design, development and operation,
electrical/control and instrumentation of power plant, project management and implementation,
bidding document preparation, procurement evaluation and institutional analyses. The Firm
shall have experience in developing countries in the region. Previous experience in Pakistan is
preferred. The assignment will be undertaken over a five-year period until the commissioning of
the two new units; except the Operations and Maintenance (O&M) Engineer who will continue to
work until the O&M support expires. For all international positions, English language skills are
compulsory. For all national positions, English language skills are desirable and Urdu language
skills are compulsory.
45
E. International Consultants – Qualification and Detailed Tasks
82. Team Leader/Power Plant Engineer. The Team Leader shall have a bachelors or
higher degree in engineering and has at least 5 year experience of leading a team. The
consultant should have at least 20 years of professional experience in the design and
management of major power plant projects, at least 10 years of which was on supercritical/ultra-
supercritical coal-fired projects. The consultant should have previous experience in
procurement, engineering, business administration; knowledge of international
organizations/agencies; donor-funded projects particularly by ADB, and disbursement and
monitoring procedures. Several years of experience in project implementation of supercritical
coal-fired power plants would be preferred. The consultant will manage the team, serving as
lead consultant and Power Plant Engineer all at the same time. Previous experience in
developing countries in the region is desirable. The Team Leader/Power Plant Engineer will
undertake the following tasks:
(i) Coordinate with other members the development of a detailed work plan and
implementation schedule;
(ii) Review and prepare project scope, capital and operating cost estimates,
implementation schedule, contracting, and implementation arrangements;
(iii) Ensure quality reports are delivered on time;
(iv) Review and confirm the proposed technical design and configuration of the coal-
fired power plant prepared by the project preparatory consultant;
(v) Assist procurement specialists and GHCL in reviewing the bidding document
especially on technical related matters, evaluation of bid and preparation of BER;
(vi) Review and confirm the proposed technical design of the supercritical coal-fired
power unit and ensure contractor’s designs and works are executed following
project requirement;
(vii) Supervise and monitor project implementation;
(viii) Develop and maintain project safety and project quality assurance plans and
ensure compliance with these plans;
(ix) Certify As-Built drawings and progress payments;
(x) Prepare quarterly payment reports and analyze causes of delay, if any, and
propose remedial measures as necessary; and
(xi) Act as a focal person to coordinate with GHCL & ADB on all technical &
contractual issues related to assignment.
83. Deputy Team Leader/Mechanical Engineer. The qualified engineer shall have a
bachelors or higher degree in engineering. The Engineer should have previous experience in
the design and management of major power plant projects including procurement, detailed
engineering, and in projects financed by international financial organization, especially
associated knowledge of ADB financed project. The consultant shall have at least 15 years of
experience on subcritical and supercritical/ultra-supercritical coal-fired technology which shall
include at least one supercritical coal-fired power plant project with capacity of 600 MW or plus.
Experience in project implementation of supercritical coal-fired power plants is desirable.
Previous experience in developing countries in the region is desirable. In the event that the
team leader is unavailable, act as a team leader. The Mechanical Engineer will undertake the
following tasks:
(i) Coordinate with other team members to develop a detailed work plan and
implementation schedule;
(ii) Review and prepare the scope, capital and operating cost estimates,
implementation schedule, contracting, and implementation arrangements;
(iii) Ensure quality reports are delivered on time;
46
(iv) Review and confirm the proposed technical design and configuration of the coal-
fired power plant prepared by the project preparatory consultant;
(v) Assist procurement specialists and GHCL in reviewing the bidding document
especially on technical related matters, evaluation of bid and preparation of BER;
(vi) Review and confirm the proposed technical design and configuration of the and
ensure contractor’s designs and works are executed following project
requirement;
(vii) Supervise and monitor the project implementation;
(viii) Develop and maintain a project safety and project quality assurance plans and
ensure compliance with these plans;
(ix) Certify As-Built drawings and progress payments; and
(x) Prepare quarterly payment reports and analyze causes of delay, if any, and
propose remedial measures as necessary.
84. Procurement Specialist. The specialist shall have a bachelor or higher degree in
engineering and at least 15 years of relevant experience in procurement roles of major power
plant projects. The specialist shall have advance knowledge of international
organizations/agencies and national public procurement regulations and procedures, especially
associated knowledge of ADB procurement. The specialist should also have previous work
experience in procurements and should have worked on projects financed by the international
financial organization, especially ADB funded projects. Direct experience of public sector
procurement (legislation, institutional framework, systems and training) are added advantages.
Previous experience in developing countries in the region is desirable. The specialist will
undertake the following tasks:
(i) Assist GHCL and JPCL in developing procurement capacity.
(ii) Prepare procurement capacity development plan and procurement capacity
assessment report for GHCL and JPCL;
(iii) Assist GHCL and JPCL in creating procurement committee, evaluating bid and
preparing BER, and in monitoring and evaluating procurement progress,
procedures compliance and BER preparation;
(iv) Ensure that due diligence is conducted on potential contractors and
subcontractors;
(v) Ensure adherence to project safety and quality assurance plans; and
(vi) Update procurement status databases on procurement processes and contract
awards.
85. Electrical Engineer. The Engineer shall have a bachelor or higher degree in electrical
engineering and at least 15 years of professional experience in applying design and application
of electrical system for power plants. Previous experience in developing countries in the region
is desirable. The Engineer will undertake the following tasks:
(i) Coordinate with other team members and help team leader/deputy team leader
develop a detailed work plan and implementation schedule;
(ii) Assist team leader/deputy team leader and procurement specialists in the
evaluation of bids and preparation of BER related to electrical equipment and
electrical wiring;
(iii) Assist team leader/deputy team leader for electrical components in design
reviews;
(iv) Supervise and monitor the project implementation with electrical equipment and
electrical wiring,
(v) Work with the Commissioning Engineer on the inspection and testing plan and
accompany the Commissioning Engineer to test the electrical equipment; and
47
(vi) Ensure adherence to project safety and quality assurance plans.
86. Control & Instrumentation Engineer. The Engineer shall have a bachelor or higher
degree in engineering and at least 15 years of professional experience in applying design and
application of control & instrumentation system for power plants. Previous experience in
developing countries in the region is desirable. The Engineer will undertake the following tasks:
(i) Coordinate with other team members and help team leader develop a detailed
work plan and implementation schedule;
evaluation of bids and preparation of BERs related to control & instrumentation
equipment;
(iii) Assist team leader/deputy team leader for control & instrumentation components
in design reviews;
(iv) Supervise and monitor the project implementation with control & instrumentation
related equipment,
(v) Work with the Commissioning Engineer on the inspection and testing plan and
accompany the Commissioning Engineer to test the control & instrumentation
equipment; and
(vi) Ensure adherence to project safety and quality assurance plans.
87. Civil Engineer. The Engineer should have a bachelor or higher degree in civil
engineering and at least 15 years of professional experience in design of power plants which
shall include at least two supercritical coal-fired power plants with at least 600MW capacity.
Previous experience in developing countries in the region is desirable. The Engineer will
undertake the following:
(i) Coordinate with other team members and help team leader/deputy team leader
develop a detailed work plan and implementation schedule;
evaluation of bids and preparation of BERs related to civil work;
(iii) Assist the team in civil design reviews including but not limited to foundations
and structures;
(iv) Supervise and monitor civil works of the Project; and
(v) Ensure adherence to project safety plan and quality assurance plan.
88. Operation & Maintenance (O&M) Engineer. The Engineer should have a bachelor or
higher degree in engineering and at least 15 years of professional experience in O&M of coal-
fired power plant and at least 5 years of experience in O&M of supercritical coal-fired plants.
Previous experience in developing countries in the region is desirable. The Engineer will assess
GENCOs’ capacity in coal-fired O&M and recommend capacity building measures as
appropriate. The Engineer will also advise maintenance and spares holding strategy. The
Engineer will undertake the following:
(i) Assess GENCO coal-fired power plant O&M capacity and skills level and
recommend necessary institutional and capacity building measures to meet the
supercritical coal-fired power plant needs and in view of future converted
subcritical coal-fired plants. Capacity building options to be considered shall
include (a) specialist training by the coal-fired equipment suppliers and electrical
control suppliers, (b) need for contractor’s specialist staff to provide on the
ground and/or remote advisory services, and (c) non-equipment specific O&M
training to be provided in GENCO;
48
(ii) Based on actual market, geographic conditions and power plant strategy,
recommend appropriate O&M activities to be carried out by GENCO staff and if
any activities should be outsourced;
(iii) Propose a spares holding strategy;
(iv) Identify various maintenance options and recommend the most optimal
approach;
(v) Advise on procurement options for training services. Where appropriate, include
such scope in the Bidding Documents for the construction contract;
(vi) Provide trainings, workshops and seminars for the operational personnel to build
O&M capacity and ensure smooth plant operation;
(vii) Ensure training of client counterpart staff through on-the-job training and
classroom training programs;
(viii) Ensure adequacy of O&M manuals; and
(ix) Oversee the operation support provided by the EPC contractor and ensure the
claimed benefits/outputs can be achieved.
89. Environmental Specialist. The Environmental Specialist should have a bachelor or

higher degree in environmental engineering/science or equivalent and at least 15 years of
professional experience in carrying out environmental studies of infrastructure projects and
ensuring their delivery. Experience in power plant related projects would be desirable. Previous
experience in developing countries in the region is desirable. The specialist will assist in the
following tasks:
(i) Recommend monitoring plans to address identified significant environmental
impacts;
(ii) Ensure that the cost of implementing mitigation measures for identified
environmental management and monitoring plans, and any strengthening
measures, are included in the proposed Project’s cost;
(iii) Monitor safeguards and EMP implementation to ensure the safeguards and EMP
are properly implemented;
(iv) Ensure the environmental safeguard compliance during construction of the new
supercritical unit, installation of emission control devices and remediation of the
site;
(v) Prepare the updated EIA report and summary EIA (SEIA) which meets both the
GOP’s requirements and ADB's Safeguard Policy Statement (2009); and
(vi) Assist GENCO with capacity building on environmental safeguard.
90. Commissioning Engineer. The Commissioning Engineer should have a bachelor or

higher degree in mechanical engineering with at least 15 years of professional experience in
commissioning of different kind of power plants including subcritical and supercritical/ultra-
supercritical coal-fired plants. The Engineer should have commissioned at least 3-projects in the
last five years having similar capacity and complexity. The Engineer will undertake the following
tasks:
(i) Coordinate and finalize all commissioning schedules with the EPC contractor;
(ii) Develop an inspection and testing plan covering factory and site tests;
(iii) Review and approve all final commissioning procedure/methodology in line with
relevant International standards;
(iv) Supervise testing and commissioning as required;
(v) Inspect and verify calibrations/certifications of the testing equipment as per
relevant standards;
(vi) Monitor and verify all guaranteed values as per contract terms;
(vii) Ensure adherence to project safety and quality assurance plans;
49
(viii) Prepare the impact reports and remedies in case of any test failures; and
(ix) Prepare report for the client to issue final acceptance certificate.
91. Legal Adviser. The Legal Advisor should possess a Law degree in a reputable
institution and have at least 10 years of work experience as contract lawyer. The Legal Advisor
should have thorough knowledge of licence applications and regulatory principles relating to
contractual agreements with suppliers, pricing and electricity tariffs, and experience of
establishing/assisting new entities/companies within the energy sector. The Legal Advisor shall
also have the ability to effectively communicate complex legal issues and negotiation
procedures to high-level audiences including Government Ministers and Directors. Excellent
writing and presentation skills are required.
92. The Legal Advisor will be responsible for providing advice on a wide range of legal
issues relating to the proposed coal-fired power unit. The Legal Advisor will prepare contracts
and assist in contract negotiations. The Legal Advisor will be responsible, but not limited, for the
following:
(i) Provides expert legal and advisory services to legal issues that may arise during
project implementation;
(ii) Provides legal support, advice and draft standard legal documentation required
for the power plants’ business transactions, including but not limited to, “Coal
supply agreement”, “Ash recycling agreement” and “Coal transportation
agreement” that conform to best practice in the coal sub-sector and exclusively
protect GHCL and JPCL’s interests.
(iii) Assist GHCL and JPGL in all contract negotiations including but not limited to,
the turnkey contract, coal supply contract, ash recycling contract and coal
transportation contract.
(iv) Verify and ascertain the business value of all contracts and advise management
accordingly and timeously;
(v) Investigates legal framework for finalization of bankable contracts and
agreements.
(vi) Contracts Management of all appointed consultants.
(vii) Manage the land transfer process.
(viii) Interacts with MOWP, NEPRA, suppliers, and contractors on all legal matters
pertaining to the power plants.
(ix) Proactively identifies and advises management on legal risks, and propose and
implement mitigation strategies
(x) Scrutinizes and reviews all relevant government legislation relating to the coal
subsector, energy sector and advise management on their impact to the
operation of the power plants; and
(xi) Perform any other legal related tasks assigned from time to time.
93. Tariff Specialist. The Tariff Specialist shall hold a Bachelor or higher degree in
economics, finance or accounting. The Tariff Specialist will have at least 10 years working
experience preferably in the energy sector, including at least 3 years of proven experience
advising on electricity tariff regulation and conducting detailed tariff analysis in a non-developed
country context. The Tariff Specialist should have excellent understanding of tariff-setting
mechanisms for coal-fired power generation. Previous experience in developing countries in the
region is desirable. Fluency in English is essential.
94. The Tariff Specialist will assist JPCL in their tariff application to:
50
(i) Review the existing tariff submissions;

(ii) Provide on-the-job training to JPCL staff; to draft the tariff petition and submit to
NEPRA
(iii) Draft Standard Operating Procedures for preparing tariff petitions and train JPCL
staff. Hold training workshops for staff in companies held by GHCL.
95. Ash Recycling Marketing Expert. The Ash Recycling Marketing Expert shall hold a
MBA or equivalent degree with experience in cement industry and shall demonstrate networking
skills and linkages with the cement industry or other relevant industries in Sindh/Pakistan. The
Ash Recycling Marketing Expert should have good understanding of ash recycling plan for coal-
fired power generation and should be a marketing expert. Previous experience in developing
countries in the region is desirable. Fluency in English is essential. The Ash Recycling
Marketing Expert will undertake, but not limited, to the following:
(i) Prepare an action plan in discussion with GHCL, JPCL and ADB, which shall be
approved by JPCL and ADB before implementation;
(ii) Assist GHCL and JPCL by liaising with the All Pakistan Cement Manufacturers’
Association (APCMA) and facilitate the signing of a Memorandum of
Understanding (MoU) between JPCL and selected cement manufacturers within
a 100 km radius of the Jamshoro TPS on recycling ash for mixing in Ordinary
Portland Cement (OPC) or in Blended Cement as prescribed by international and
national guidelines. The signing of the MoU should be facilitated within one year
of effectiveness of the loan;
(iii) Facilitate the signing of a pre-agreement between selected cement companies
and JPCL through advocacy and confidence building measures by 2016. The
Pre-agreement shall state the details of the ash and the specification of this
product and the likely uses and quantities that will be available for each of the
selected users. The pre-agreement will have all details and will be a commitment
in all respects other than the terms and conditions for transfer of ash and any
monetary aspects;
(iv) Advise GHCL/JPCL If no such agreement is signed and initiate the purchase of
additional land for ash pond;
(v) Work with JPCL and the selected cement companies to finalize the agreement by
2018;
(vi) Work with the Legal Advisor on drafting individual contracts between JPCL and
each cement company and ensure the signing of the contracts.
96. Climate Change Specialist.
F. National Consultants (Twelve)
97. Ten National Consultants shall be hired comprising two Resident Mechanical Engineers,
two Procurement specialists, one Resident Electrical Engineer, one Resident Control &
Instrumentation Engineer, one Resident Civil Engineer, one Environmental and Waste
Management Specialist, one Resident Commissioning Engineer and three Technical Support
Staff. The duties of the national consultants are to assist the International Power Plant Engineer,
the International Mechanical Engineer, the International Procurement Specialist, the
International Electrical Engineer, the International Control & Instrumentation Engineer, the
International Civil Engineer, the International Environmental Specialist, and the International
Commissioning Engineer in (i) monitoring the Project implementation; (ii) collecting data and
preparing documents; (iii) conducting project site visits, liaising with government agencies and
51
participating in public consultations, if required by the team leader; (iv) assisting with
procurement process; (v) assisting in monitoring waste management and safeguard
implementation; (vi) assisting in monitoring testing and commissioning of the equipment; and
(vi) assisting with payment analysis.
98. The national consultants shall have a bachelor or higher degree in the related
engineering field and at least 15 years of professional experience of major power plant projects.
The consultants should be familiar with Pakistan legislation and should have worked on projects
financed by international financial organizations. Work on ADB-funded projects is a plus.
G. Reporting requirements
99. The Consultants will prepare and submit to ADB and GHCL for review the BERs, a
procurement capacity building plan, a procurement assessment report, an inception report,
quarterly progress reports, monthly monitoring reports, a draft final report, and a final report
including executive summary, following the schedule shown below:
(i) The review report of bidding document and technical specification shall be
submitted to GHCL, JPCL and ADB within 3 weeks of commencement.
(ii) The BER of technical proposal shall be submitted to ADB within 10 weeks of 1st
stage bid opening.
(iii) The BER of financial proposal with recommendation on contract awarding shall
be submitted to ADB within 4 weeks of 2nd stage bid opening.
(iv) A procurement capacity building plan shall be submitted to ADB and GHCL
within the second month of mobilization of procurement specialists. And a
procurement capacity assessment report should also be submitted with the final
report to evaluate the procurement capacity building progress.
(v) The inception report shall be submitted to GHCL and ADB within the first month
of the commencement of fieldwork. The inception report shall outline the
proposed work program and any apparent barriers to prevent the successful
completion of the Project.
(vi) Quarterly progress reports shall be submitted to GHCL and ADB to address the
progress and related issues rose during the project implementation on a quarterly
basis.
(vii) In addition to the progress reports, regular monthly monitoring reports should be
sent to GHCL and ADB to inform the progress and related issues of the project.
GHCL and ADB will review the progress of project implementation as well as
monitor achievement of development objectives.
(viii) Draft final draft report will be submitted after completion of the Project. Within one
month of its submission to GHCL and ADB, a tripartite meeting comprising ADB,
GHCL, and the Consultants will be held to discuss the draft final report and
review its findings.
(ix) The final report will be submitted within one month of receipt of comments from
GHCL and ADB.
52
H. Level of Effort of Team of Consultants
100. The expected level of effort from the Firm is shown in the following tables.
A. For international consultants:
Team Member Person-month

1. Team Leader/Power Plant Engineer 60
2. Mechanical Engineer 60
3. Procurement Specialist 12
4. Electrical Engineer 36
5. Control & Instrumentation Engineer 36
6. Civil Engineer 36
7. O & M Engineer 24
8. Environmental Specialist 24
9. Commissioning Engineer 24
10. Legal Advisor 10
11. Tariff Specialist 6
12. Ash Recycling Marketing Expert 6
13. Climate Change Specialist 3
Total 337
B. For national consultants:
Team Member Person-month

1. Local Team Leader-Mechanical Engineer 1 60
2. Local Deputy Team Leader-Mechanical Engineer 2 60
3. Procurement Specialist 1 6
4. Procurement Specialist 2 6
5. RE (Electrical Engineer) 36
6. RE (Control & Instrumentation Engineer) 36
7. RE (Civil Engineer) 36
8. Environmental & Waste Management Specialist 36
9. RE (Commissioning Engineer) 24
10. Technical Support Staff 180
Total 480
I. Period
101. The assignment will be undertaken over a 120-month period on an intermittent basis
(March 2014 to March 2024).
VIII. SAFEGUARDS
102. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),30 ADB funds may not be
applied to the activities described on the ADB Prohibited Investment Activities List set forth at
Appendix 5 of the SPS. The government through the JPCL will ensure that all safeguard
requirements prescribed for project that have been prepared will be implemented. The project, in
accordance with ADB SPS 2009, was categorized as “A” project for environment, as “B” project for
30
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
53
Involuntary Resettlement, and as “C” project for Indigenous People impacts. Therefore, the following
safeguard documents were prepared during project preparation:
(i) The Environmental Impact Assessment (EIA) report, including its Environmental
Management Plan, was prepared. This report identified potential impacts related with
the project and proposed mitigation measures and monitoring plan that presented in the
Environmental management Plan (EMP). This EIA also includes the findings from
environmental compliance audit report and recommended corrective actions for the
existing facilities.
(ii) The Land Acquisition and Resettlement Plan (LARP) for expansion of the Jamshoro
TPS.
103. The government through GHCL and JPCL is obliged to implement recommendation from
these two safeguard reports that were prepared with adequate consultation with people living in
surrounding project areas. The following paragraphs describe briefly the activities to be
implemented during project implementation and operation.
104. Environment. The project is classified as Category A under ADB’s SPS (2009). EIA
report including EMP was drafted, disclosed per ADB public disclosure requirements of 120
days and is provided as Web-linked Documents in ADB website. GHCL and JPCL will ensure
that the design, construction, and operation and maintenance of the facilities under the project are
carried out in accordance with ADB’s SPS (2009), applicable laws and regulations in Pakistan, and
recommendation from EIA and its EMP. GHCL and JPCL will ensure that potential adverse
environmental impacts arising from the project are minimized by implementing all mitigation and
monitoring measures as presented in the EMP included in the EIA. The EIA including EMP will be
updated by the PMU and PIU and implemented by the PIU. An external monitor will be engaged
to verify the monitoring information from the project.GHCL and JPCL will ensure that:
(i) The PIU has sufficient resources to implement and record the implementation of
the EMP prepared for the project;
(ii) Undertake the measurement of the required baseline environmental data prior
construction especially air quality, and ensure that the findings will be used in
preparing detail design;
(iii) If the findings and detailed designed will be changed, the updated EMP has to
be prepared, and all necessary government’s permits and license to construct
the expand Jamshoro TPS will be obtained;
(iv) detailed engineering designs, civil works and other contracts for the project
incorporate applicable environmental measures identified in the EIA and its EMP;
(v) bidding document for supervision consultant/engineer will include necessary
requirement to enable them to assist in implementing EIA and its EMP;
(vi) all bidding documents for civil works include all safeguards requirement as
described in the EIA and its EMP;
(vii) the winning bidder will have adequate resources to implement safeguards
requirement;
(viii) EMP is updated prior to implementation of civil works;
(ix) Starting from project commencement, the PIU will prepare annual environmental
reports on implementation of EMP, and semi-annual environmental monitoring
report after commencement of civil works. The report will include, among other
things, a review of progress made on environmental measures detailed in the
EIA and EMP, and problems encountered or unexpected impacts encountered
during implementation and remedial measures taken to address those problems;
54
(x) Civil works contractors are supervised and monitored to ensure compliance with
the requirements of the EIA and EMP;
(xi) If unexpected or unforeseen environmental impacts occurred, the environment
specialist from PIU together with the supervision consultant, and contractor will
promptly take corrective measures;
(xii) The environmental specialist of PIC will assist PIU to report in routine basis to
ADB as part of the quarterly project report any complaint received and action to
resolve the complaint.
105. Ash Management Plan (AMP). Ash from the unit is expected to be recycled, however
100 acres of available land will be purchased for a lined ash disposal pond to store the ash in
case there is a lag in demand from cement factory and other potential customers as a condition
to contract award. An Ash Recycling Marketing Expert (ARME) shall be recruited under the
project implementation consultant contract by JPCL. The following actions shall be taken to
ensure the proper disposal/handling and recycling of ash: (i) an action plan shall be prepared
within half an year of effectiveness of the loan, in discussion with GHCL, JPCL and ADB, which
shall be approved by JPCL and ADB before implementation (AMP adoption will be condition for
EPC contract award); (ii) ARME is assisting JPCL in liaising with the All Pakistan Cement
Manufacturers’ Association (APCMA) and facilitating the signing of a Memorandum of
Understanding (MoU) between JPCL and selected cement manufacturers within a 100 km
radius of the Jamshoro TPS on recycling ash for mixing in Ordinary Portland Cement (OPC) or
in Blended Cement as prescribed by international and national guidelines. The signing of the
MoU should be facilitated within one year of effectiveness of the loan; (iii) ARME is facilitating
the signing of a pre-agreement between selected cement companies and JPCL through
advocacy and confidence building measures by 2016. The Pre-agreement shall state the details
of the ash and the specification of this product and the likely uses and quantities that will be
available for each of the selected users. The pre-agreement will have all details and will be a
commitment in all respects other than the terms and conditions for transfer of ash and any
monetary aspects; (iv) If no such pre-agreement is signed, JPCL shall initiate the purchase of
additional land for ash pond in accordance with ADB safeguard policy; (v) ARME assists JPCL
in finalizing the ash recycling agreement between JPCL and the selected cement companies
within one year from the commissioning; and (vi) if the ash recycling agreement is not signed,
JPCL shall finish acquiring additional 200 acres of land no later than commissioning of the
project.
106. Land Acquisition and Resettlement (LAR). The project is classified as Category B
under ADB’s SPS (2009). Project investments will be implemented in existing Jamshoro TPS
where land acquisition and resettlement (LAR) impacts are not deemed significant. JPCL will
monitor LARP implementation. In the event that further land acquisition and/or resettlement
impacts are identified during project implementation, JPCL will ensure that such impacts are
addressed in accordance with ADB’s SPS (2009), including update land acquisition and
resettlement plan in consultation with the affected people. GHCL and JPCL will ensure that:
(i) The PIU will recruit social specialist to implement LARP and address other social
concerns of the project if any;
(ii) The LARP will be updated if the detailed design has been completed. The updated
LARP report will be carried out with adequate consultation with affected people. The
report should at least indicate any change on land acquisition from the detailed
design, change on affected people, and change on budget for LARP
implementation;
55
(iii) The updated LARP has to be submitted to ADB to receive a concurrence prior to
implementation;
(iv) The updated LARP will be disclosed to affected people;
(v) If the detailed design will not cause any change on land acquisition, the PMU has
to provide ADB with written information that updated LARP is not required, and
the existing LARP report will be implemented;
(vi) The awarding of civil work contract will be done only after affected people receive
full payment of compensation, and report on full payment of compensation needs
to be submitted to ADB. The advance payment to the contractor only can be
released by ADB after the report on full payment has been received by ADB;
(vii) Report on monitoring the implementation of LARP including any grievance will be
submitted to ADB on quarterly basis until the payment of compensations to affected
parties has been fully paid;
(viii) The social specialist of PIU will also observe any unanticipated impacts due to land
acquisition and take necessary measures in accordance to the provisions described
in the LARP.
107. Indigenous Peoples. The project is classified as Category C under ADB’s SPS (2009).
The project does not involve any territory, habitat, or common property that is managed by ethnic
minority or indigenous people, and the project is not expected to generate impacts to indigenous
people as described in ADB SPS (2009), because there is no such community living in surrounding
project areas. Therefore, no arrangement was prepared to address indigenous people impacts as
described in ADB SPS (2009). However, during the entire implementation of the project, the social
specialist is obliged to observe any concerns related with this aspect.
IX. GENDER AND SOCIAL DIMENSIONS
108. Gender Dimensions. Indirect benefits of reliable energy supply will include reductions in
women’s time poverty, and improved health by reducing fume-related indoor pollution and
water- and food- borne diseases (by being able to boil water and food appropriately).
109. The project will also explore how local women will be trained and employed in the
cleaning of the new plants, and this will require monitoring.
110. Social Dimensions. The project does not entail impacts on affordability or operational
employment opportunities. During construction the turnkey contractor will be required to ensure
equal opportunities for all social groups, equal pay for equal work regardless of gender, and
prohibition of child labor. The contractor will also be required to undertake HIV/AIDS awareness
activities with imported workers.
56
X. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Project Design and Monitoring Framework
Performance Targets and Data Sources and Assumptions and

Design Summary Indicators with Baselines Reporting Mechanisms Risks
Impact Assumptions
Enhanced energy Peak load shedding NTDC Electricity Political stability and
supply reduced from 5,000 MW Marketing Data security maintained
(2013) to 3,000 MW by
The government
2023
commits to support
Large-scale manufacturing Pakistan Annual ongoing reform of the
growth of at least 2% by Economic Yearbook power sector under the
2023, compared to 1.2% National Power Policy
(2011) and is dedicated to the
elimination of load
shedding through
enhanced, lower-cost
supply
Risk
Insufficient enabling
environment for private
sector investment
Outcome Assumption
More efficient energy Additional 4,468 GWh per NTDC Electricity Sufficient coal supply
mix (through annum of power generated Marketing Data available and secured
diversification from from coal by 2019 through medium-term
expensive HFO) (baseline: 89,238 GWh in NEPRA determination: coal supply
2010) monthly fuel price agreements
adjustment
Share of HFO in the power Risks
generation mix decreased JPCL is not paid
to 30% by 2019 (baseline: sufficient amounts for
34%, August 2012) maintenance and fuel
Share of clean coal in the Limited O&M capacity

power generation mix of Jamshoro TPS may
increased to 3% by 2019 be insufficient to
(baseline: 0.14% installed, optimize the coal-fired
August 2012) power unit
NEPRA energy purchase

price for Jamshoro TPS
reduced by 30% by 2019
(baseline: $0.212/kWh,
June 2012)
57

Outputs Assumptions
1. Jamshoro TPS Installation of one 600 MW Executing agency’s The government is
capacity increased (net) supercritical coal- project completion committed to providing
fired unit and start of report, consultants’ timely counterpart
implementation of the 5- reports support
year O&M contract, by
Commissioning
2019
certificate
2. National Bioremediation of the Environmental audit Risks

environmental contaminated soil by report Jamshoro TPS O&M
a
standards 2023. capacity is below
compliance optimal level
ensured Construction of hazardous Commissioning
waste storage facility, certificate Weak environmental
effluent pipeline, landfill for management at
colony waste, and proper Jamshoro TPS
lined evaporation ponds by
2019. Absence of ash buyers
Installation of emission Executing agency’s Untimely coal delivery

control devices (FGD) for project completion report
the existing units by 2019.
3. Executing At least 50 relevant staff Executing agency’s

agency (male and female) pass project completion report
and the assessment test on
implementation project administration,
agency staff safeguard, procurement,
capacity financial, and technical
enhanced O&M aspects by 2019
4. Coal-fired power Inclusion of at least one

plant operation subject related to coal-
introduced in fired plant operation in a
b
technical school technical school by 2019
curriculum
Activities with Milestones Inputs

1. Jamshoro Thermal Power Station capacity Loan
increased ADB: $900 million ($30 million ADF;
$870 million OCR in two
1.1 EPC contractor selected by March 2015 separate loans amounting
1.2 Unit commissioned by February 2018 $840 million and $30 million
1.3 Operation and maintenance contract of the new respectively)
supercritical unit completed and project
handed over to JPCL by 2023 Government: $450 million
Cofinancing: $150 million (Islamic Development
2. National environmental standards complied
Bank)
by Jamshoro Thermal Power Station
2.1 Site remediated by December 2016

2.2 Emission control devices installed by
December 2017
58

3. Executing agency and implementation
agency staff capacity enhanced
3.1 Staff capacity of the executing and

implementing agencies assessed by March
2014
3.2 Capacity development plan prepared by May
2014
3.3 Resource persons engaged by August 2014
3.4 Training manuals developed by December
2014
3.5 Training commenced by March 2015
4. Coal-fired power plant operation introduced

in training curriculum
4.1 Partnership with technical school facilitated by

June 2014
4.2 Course on CFPP operation designed by May
2015
4.3 Course on CFPP operation introduced by
September 2015
ADB = Asian Development Bank, ADF = Asian Development Fund, CFPP = coal-fired power plant, EIA =
environmental impact assessment, EPC = engineering, procurement, and construction, FGD = flue gas
desulfurization, HFO = heavy fuel oil, GHCL = GENCO Holding Company Limited, GWh = gigawatt-hour, JPCL =
Jamshoro Power Company Limited, kWh = kilowatt-hour, MW = megawatt, NEPRA = National Electric Power
Regulatory Authority, NTDC = National Transmission and Despatch Company, O&M = operation and maintenance,
OCR = ordinary capital resources, TPS = thermal power station.
a
Bioremediation of the contaminated soil will not affect the target dates for the outcome indicators.
b
Agreement with Water and Power Development Authority technical school or other equivalent school will be signed
prior to EPC contract award.
59
B. Monitoring
111. Project performance monitoring. Following indicators will be updated in the quarterly
progress reports and at the time of semi-annual meetings and the midterm review expected in
two years from the date of loan effectiveness for Jamshoro TPS.
EA responsible for data

Indicator Units collection and
Reporting
 Availability and plant factor of each unit % GHCL / JPCL
 Efficiency rating of each unit % GHCL / JPCL
 Power output of each unit MW GHCL / JPCL
 Power generated by unit GWh GHCL / JPCL
 Annual fuel consumption by unit

3
Ton or m GHCL / JPCL
 Annual water consumption by unit 3

m GHCL / JPCL
 Power outage by unit hour GHCL / JPCL
 Scheduled maintenance (hour) for each unit hour GHCL / JPCL
 Annual CO2 emission tCO2e GHCL / JPCL
 SO2 emission g/s GHCL / JPCL
 PM 10 emission g/s GHCL / JPCL
 PM 2.5 emission g/s GHCL / JPCL
 NOX emission g/s GHCL / JPCL

GHCL = GENCO Holding Company Limited, GWh = gigawatt-hour, JPCL = Jamshoro Power Company Limited, MW
= megawatt, PM = particulate matters, tCO2e = tons of CO2 equivalent.
112. Compliance monitoring: Loan covenants – i.e., policy, legal, financial, economic,
environmental, and others, will be monitored through semi-annual project meeting and the
midterm review.
113. Safeguards monitoring will be performed by the PIC and PIU. The monitoring results
will be included in the quarterly progress reports, Environmental Management Plan (EMP) and
semi-annual environmental reports.
114. Gender and social dimensions monitoring: Monitoring is not required for gender as
the project does not have a gender element. Monitoring on equal employment opportunities for
all social groups, equal pay for equal work regardless of gender, and prohibition of child labor
will be monitored by the PIC and PIU. The monitoring results will be included in the
60
quarterly progress reports and semi-annual environmental reports.
C. Evaluation
115. Inception Mission. ADB will field an inception mission after loan signing to (i)
establish a working relationship between ADB and the EAs; and (ii) to ensure that the Borrower
and EAs understand ADB's procedures.
116. Review Missions. ADB will field review missions at least once a year to review overall
implementation of the project and update project implementation schedule based on mission
findings.
117. Midterm Review Mission. ADB will field a midterm review mission after two years of
loan signing to assess whether attainment of the project’s immediate objective (purpose in terms
of the design and monitoring framework) is still likely.
118. Project Completion Review Mission. ADB will field a project completion review (PCR)
mission upon physical completion of the project to commence preparation of ADB's project
completion report. GHCL and JPCL will submit a project completion report to ADB within 6
months of physical completion of the project.31
D. Reporting
119. GHCL and JPCL will jointly provide ADB with (i) quarterly progress reports in a format
consistent with ADB's project performance reporting system; (ii) consolidated annual reports
including (a) progress achieved by output as measured through the indicator's performance
targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d)
updated implementation plan for next 12 months, and (iii) a project completion report within 6
months of physical completion of the Project . To ensure projects continue to be both viable
and sustainable, project financial statements and GHCL AFSs, together with the associated
auditor's report, should be adequately reviewed. GHCL is responsible for submission of reports
to ADB.
E. Stakeholder Communication Strategy
120. Project information will be strategically disseminated through media at main milestones
including loan signing, contract awards and project completion. Grievance redress mechanism
will establish at the PMU, by phone and email, and through public consultation events. GHCL
and JPCL will ensure that (i) designation of a focal point for regular contact with project-affected
people and other stakeholders; (ii) identification of mechanisms for feedback during design and
implementation; (iii) details of types of information to be disclosed, mechanisms for public notice
including language and timing, and responsibility for implementing and monitoring disclosure
and dissemination.
31
Project completion report format available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-
Public- Sector-Landscape.rar
61
ADB Public Communications Strategy
Project Documents Means of Responsible Frequency Audience(s)

Communication Party
Project Information Document ADB’s website ADB initial PID no later than General Public
(PID) 30 calendar
days of approval of the
concept paper; quarterly
afterwards
Design and Monitoring ADB’s website ADB draft DMF after post Project-affected
Framework (DMF) fact-finding mission people
Environmental Impact ADB’s website ADB at least 120 days before General Public,
Assessment Board consideration project-affected
people in particular
Resettlement Planning ADB’s website ADB post fact-finding mission General Public,
Documents project-affected
Report and Recommendation ADB’s website ADB within 2 weeks of Board General Public
of the President approval of the loan
Legal Agreements ADB’s website ADB no later than 14 days of General Public
Board approval of the
project
Initial Poverty and Social ADB’s website ADB within 2 weeks of General Public,
Assessment completion project-affected
Documents Produced under ADB’s website ADB within 2 weeks of General Public
Technical Assistance completion
Project Documents Means of Responsible Frequency Audience(s)
Communication Party
Project Administration Manual ADB’s website ADB After loan negotiations General Public
Social and Environmental ADB’s website ADB routinely disclosed, no General Public,
Monitoring Reports specific requirements project-affected
Major Change in Scope ADB’s website ADB within 2 weeks of General Public
approval of the change
Progress Reports ADB’s website ADB within 2 weeks of Board General Public
or management
approval
Completion Report ADB’s website ADB within 2 weeks of General Public
circulation to the Board
for information
Evaluation Reports ADB’s website ADB routinely disclosed, no General Public
specific requirements
Performance of the The borrower's The borrower per project progress, no General Public
investment program with Website (Executing longer than monthly
clearly defined information Agency)
requirements and indicators,
policy construction and
reconstruction, business
opportunities, bidding process
and guidelines, results of
bidding process, and
summary progress reports of
ongoing projects.
62
XI. ANTICORRUPTION POLICY
121. The Borrower, through the GHCL and JPCL, shall comply with ADB's Anticorruption
Policy (1998, as amended to date),32 and operate fully with any investigation by ADB and
extend all necessary assistance, including providing access to all relevant books and records for
the satisfactory completion of such investigation. ADB reserves the right to investigate, directly
or through its agents, any violations of the Anticorruption Policy relating to the project. GHCL
and JPCL shall ensure that anticorruption provisions acceptable to ADB are included in all
bidding documents and contracts, including provisions specifying the right of ADB to audit and
examine the records and accounts of GHCL, JPCL and all project consultants, suppliers,
consultants and other service providers as they relate to the Project. Individuals/entities on
ADB’s anticorruption debarment list are ineligible to participate in ADB financed activity and may
not be awarded any contracts under the project.33
122. To support these efforts, relevant provisions are included in the loan
agreement/regulations and grant agreement/regulations and the bidding documents for the
project. Procurement will follow ADB Procurement Guidelines (2013, as amended from time to
time), consultant selection will adopt ADB Guidelines on the Use of Consultants (2013, as
amended from time to time), and disbursement will be made in accordance with ADB's
disbursement policies, guidelines, practices, and procedures.
XII. ACCOUNTABILITY MECHANISM
123. People who are, or may in the future be, adversely affected by the project may submit
complaints to ADB, or request the review of ADB’s compliance under the Accountability
Mechanism. The Accountability Mechanism provides an independent forum and process
whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution
of their problems, as well as report alleged violations of ADB’s operational policies and
procedures. Before submitting a complaint to the Accountability Mechanism, affected people
should make a good faith effort to solve their problems by working with the concerned ADB
operations department. Only after doing that, and if they are still dissatisfied, should they
approach the Accountability Mechanism.34
XIII. RECORD OF PAM CHANGES
None as of 31 October 2013
32
Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies Strategies.pdf
33
ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp
33
For further information, see: http://www.adb.org/Accountability-Mechanism/default.asp.
34
For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

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Project Administration Manual

Project Number: 47094-001

Islamic Republic of Pakistan: Jamshoro Power

Project Administration Manual Purpose and Process

ADB = Asian Development Bank

II. THE PROJECT

4. High-power generation cost. Pakistan has 23,538 MW of installed power generation

B. Impact and Outcome

Annual Coal Consumption Estimate

Blending ratio (%) 0 100 0 100

Designated Sub-bituminous Coal Properties

III. IMPLEMENTATION PLANS

A. Project Readiness Activities

Project Im plem entation Consultant Recruitm ent

B. Overall Project Implementation Plan

B. Project Outputs Milestone

2 Land Preparetion Contractor

3 Environm ental Mitigation

4 Project Im plem entation Consultant

IV. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations–Roles and Responsibilities

Project implementation Management Roles and Responsibilities

 Economic Affairs Division Borrower

 GENCO Holding Company Executing Agency (EA) of the Project

 Jamshoro Power Company Implementing Agency (IA)

 Asian Development Bank Lender

B. Key Persons Involved in Implementation

GHCL Officer's Name: Sultan Muhammad Zafar

JPCL Officer's Name: Iftikhar Aziz

Central and West Asia Staff Name: Rune Stroem

Mission Leader Staff Name: F. Cleo Kawawaki

C. Project Organization Structure

diligence on proposals and for firms subsequently proposed to be subcontractors, (iv)

Director Technical Director Director

PIU Manager (Chief Engineer)

Director Finance Director Structural Director Director

Position Terms of Reference

 Responsible for coordinating activities between the GHCL,

 Ensure that the requirements identified in the Environment

 Manage consultant recruitment.

 Monitor and supervise consultant and contractors of the civil

GENCO Holding Company Limited (GHCL)

Project Implementation Unit (PIU)

V. COSTS AND FINANCING

24. The Project costs consist of:

Project Implementation Consultants (PIC) Services. The project

This will be under JPCL’s responsibility and recruited with GHCL’s

(ii) Capacity Development Component. The capacity development component

(iii) Land Acquisition and Resettlement. This will be financed by JPCL as

(v) Financial charges. Interests during implementation and commitment charges

(vi) Operations and Management Escrow Account. An escrow account in a

A. Detailed Cost Estimates by Expenditure Category ($ million)

C. Financing Charges During Implementation 9

D. Total (A+B+C) 1,500.0

B. Allocation and Withdrawal of Loan/Grant Proceeds

ALLOCATION AND WITHDRAWAL OF ADF PROCEEDS

CATEGORY ADB FINANCING

ALLOCATION AND WITHDRAWAL OF OCR1 PROCEEDS

CATEGORY ADB FINANCING