43151-012: CASAREM-Talimarjan Power Generation and Transmission Project

Project Data Sheet (PDS): Details


Description

The original aim of the TA was to prepare the Talimarjan Power Project for ADB financing. The Project will increase the generation capacity and strengthen the transmission network in Uzbekistan. The TA scope was expanded to include assistance to the EA in procuring the main power plant contract. Consultants were recruited using ADB grant funds to (i) conduct Project due diligence in order to prepare the Report and Recommendation of the President (RRP) for submission to ADB Board; (ii) assist the EA in preparing bidding documents for procurement of contractors to construct the Project, and in preparing Request for Proposals (RfP) for Implementation Consultants to audit the design and supervise the works of the contractor(s); and (iii) assist the EA in evaluating technical and price proposals for the contractor, bid evaluation, and contract negotiations.

Project Rationale and Linkage to Country/Regional Strategy

During the Soviet era, Central Asian Republic (CAR) countries conducted extensive trade in electricity whereby surplus energy was exported from hydro rich countries in summer with their winter deficits covered by imports from fossil fuel rich countries. Since 1990, this trade has collapsed to 10% of historical levels. The Talimarjan Power Project aims to help in restoring regional trade by removing transmission network constraints and increasing generation capacity in Uzbekistan (UZB). The Project will also improve UZB domestic electricity supply and reduce GHG emission per unit generated. The TA aimed to support the development of a Central Asian South Asian Regional Electricity Market (CASAREM). CASAREM will help resolve regional power capacity and power supply/demand mismatch through a phased series of regional investment and technical assistance projects. Due to the network design, UZB serves as a regional electricity hub for Central Asia Power System (CAPS) and stability of the UZB grid plays an important role for power supply in all CAPS member countries. The Project prepared under the TA will increase the generation capacity, and strengthen the transmission network in UZB. The Project will (i) allow UZB to increase its exports of electricity to regional markets such as Afghanistan (AFG) and Tajikistan (TAJ), (ii) remove transmission constraints currently restricting transit of electricity from Turkmenistan (TKM) to TAJ via UZB, (iii) eliminate load shedding in UZB during winter peak period when there is currently insufficient generation and (iv) increase average generation efficiency thereby reducing emissions of green house gases per megawatt (MW) generated.

Impact

" Increased regional trade in electric energy " Reliable domestic and regional electric supply.

Project Outcome

Description of Outcome

Project design, sector roadmap and policy framework agreed by ADB and the Government

Progress Towards Outcome

Achieved.

Implementation Progress

Description of Project Outputs

1. Analysis of electric sector including justification of project need 2. Assessment of appropriateness of project technical design 3. Project financial and economic analysis and financial assessment of Uzbekenergo 4. Environmental Impact Assessment 5. Social safeguard assessment to include LARP, Poverty and Social analysis, and IPDP (if required) 6. Bid specifications for project implementation 7. Tender evaluation

Status of Operation/Construction or Implementation Progress

Outputs 1 to 7 completed. Following the procurement schedule for the EPC contract of the ensuing Project, the TA was extended from the original completion date of 31 Dec 2010 to (i) 19 May 2011, (ii) 31 Dec 2011, (iii) 30 Sep 2012, and (iv) 31 Dec 2012. On 11 Jan 2011, minor changes in scope were approved to expand the consulting firm and financial consultant's inputs. On 10 March 2011, the TA amount was increased by $600,000 to engage commercial, procurement, and legal experts. Another minor change in scope was approved on 13 Jan 2012 to allow the financial analyst to help the EA recruit the auditor for the ensuing Project.

Safeguard Categories

Environment: A
Involuntary Resettlement: C
Indigenous Peoples: C

Stakeholder Participation and Consultation

During Project Design
Consultations were carried out with the Executing Agency, Management of Talimarjan Power Plant, and the Government. Adequate field investigations, surveys, and stakeholder consultations with central and local governments,NGOs, the private sector, consumers including vulnerable groups and major development partners in the power sector, were conducted during the preparation of the Project.

During Project Implementation
Consultations continued to be carried out with the Executing Agency, Management of Talimarjan Power Plant, and the Government.



Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

Project Data Sheets (PDS)

Timetable

Concept Clearance
19 Aug 2009

Board Approval
21 Sep 2009

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