Regional: Establishment of the CAREC Members' Electricity Regulatory Forum

Sovereign Project | 39083-012

Summary

The goal of the TA is the promotion of regional trade and cooperation, private sector investment, and infrastructure development in the energy sectors in East and Central Asia by advancing regulation of the electricity sector in a harmonized fashion. The purpose is to generate the knowledge base necessary to help members develop the appropriate package of reforms necessary to accomplish these goals.

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Project Name Establishment of the CAREC Members' Electricity Regulatory Forum
Project Number 39083-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6267-REG: Establishment of the CAREC Members' Electricity Regulatory Forum
Technical Assistance Special Fund US$ 500,000.00
TA 6267-REG: Development of the Capital Market and a Modernized Payment and Settlement System
Public-Private Infrastructure Advisory Facility US$ 242,800.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description The goal of the TA is the promotion of regional trade and cooperation, private sector investment, and infrastructure development in the energy sectors in East and Central Asia by advancing regulation of the electricity sector in a harmonized fashion. The purpose is to generate the knowledge base necessary to help members develop the appropriate package of reforms necessary to accomplish these goals.
Project Rationale and Linkage to Country/Regional Strategy

Member regulators, utilities and governments are eager to learn from the experiences of their neighbors in the region as they attempt to devise approaches that are suitable to their own economic and technical conditions, and objectives. Each approach carries with it a set of issues and roles that must be considered carefully by regulators, in light of international and regional experience.

A key problem in most CAREC countries is the high commercial losses and poor bill collection rates of distribution companies. In combination with the inadequacy of regulated tariffs to cover costs, this has undermined the cash-flow in the sector and adversely affected the financial health of the utilities. The resulting financial fragility of the utilities severely compromises their attractiveness as trading partners, and has led to a large-scale deterioration of existing infrastructure and inability to finance new infrastructure.

Rigid industry structures, and the entrenched monopolies they sustain, are having a stifling effect on competition. Regional trade is a form of competition. Restructuring of these sectors is vital for regional trade to progress. CMERF aims to empower regulators to provide policy advice and supervision of such reforms that will counter the anti-competitive instincts of entrenched players.

Finally, as each of these changes improves the financial position and economic signals operating in the sectors, regional trade will emerge as a least cost solution to meeting electricity demand. Regulators will be required to facilitate such trade through harmonization of regulations, particularly as they relate to access to the grid and pricing of transmission.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Consulting requirements will include a total of 47 person-months of domestic consultant time to collect and verify numerical data and facts; and

12 person-months of international consultant time to supervise domestic consultants, analyze data in the context of international best practice in economic regulation, and prepare the reports. Three studies to be funded under this RETA

A. Designing and approving efficient and Adequate Tariff Structures Appropriate to Different Consumer Categories, and involving lifelines, reliability premiums, discounts for prepayment, and/or wattage limitations, participating country: Tajikistan

(person months are in parentheses)

International energy economist (3)

Domestic Tajikistan power sector specialist (5)

Domestic survey design expert (1)

4 domestic enumerators for 1 month each (4)

B. Possibilities and Pitfalls in Privatizing Distribution Company management

Team leader-international economist/regulatory/public-utilities specialist (4)

International legal expert (1)

Domestic Kyrgyz Republic power sector specialist (5)

Domestic Mongolia power sector specialist (5)

Domestic Azerbaijian power sector specialist (2)

Domestic Kazakhstan power sector specialist (2)

C. Costs and Input Requirements of Power Utilities across Member Countries

One international consultant (power engineer) working for 4 person-months will be required.

Domestic consultants in each member country each working for 3 person-months (21 person-months total) will be required to collect data.

Procurement TBD
Responsible ADB Officer Bayanjargal Byambasaikhan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Asian Development BankBayanjargal Byambasaikhan6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 10 Mar 2005
Fact Finding 03 Feb 2005 to 21 Mar 2005
MRM -
Approval 03 Nov 2005
Last Review Mission -
PDS Creation Date 28 Feb 2006
Last PDS Update 27 Aug 2007

TA 6267-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Nov 2005 - 03 Nov 2005 30 Nov 2006 31 Aug 2007 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 242,800.00 0.00 0.00 0.00 0.00 742,800.00 03 Nov 2005 669,165.25

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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