Regional: Central Asia Regional Economic Cooperation: Power Sector Regional Master Plan

Sovereign Project | 43549-012

Summary

The TA intends to identify power sector deficiencies on regional level and resolve those through focusing on promotion of inter and intra regional electricity trade, increasing energy security and energy efficiency, and reducing emissions of greenhouse gases (GHGs), by optimizing integrated transmission and generation expansion. The TA will also prepare the technical study of Afghanistan prospective membership and connection to Central Asia Power System (CAPS).

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Project Name Central Asia Regional Economic Cooperation: Power Sector Regional Master Plan
Project Number 43549-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7558-REG: Central Asia Regional Economic Cooperation: Power Sector Regional Master Plan
Technical Assistance Special Fund US$ 500,000.00
Regional Cooperation and Integration Fund US$ 1.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector Energy - Conventional energy generation - Electricity transmission and distribution - Energy efficiency and conservation - Large hydropower generation - Renewable energy generation - small hydro
Gender Equity and Mainstreaming No gender elements
Description The TA intends to identify power sector deficiencies on regional level and resolve those through focusing on promotion of inter and intra regional electricity trade, increasing energy security and energy efficiency, and reducing emissions of greenhouse gases (GHGs), by optimizing integrated transmission and generation expansion. The TA will also prepare the technical study of Afghanistan prospective membership and connection to Central Asia Power System (CAPS).
Project Rationale and Linkage to Country/Regional Strategy

Regional energy trade can bring financial and economic benefits to participating countries. However, countries must also address the competing need for energy security, which

the CARs have largely focused on over the past decade. As this is being addressed, the CARs are now considering the advantages of intraregional and interregional trade. Meanwhile, Afghanistan is actively developing regional import projects to help solve its severe generation deficit. As reflected in the CAREC action plan, the four CARs of the Central Asian power system (Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan) and Afghanistan have now confirmed their wish to study the benefits from adopting a regional energy approach.

Impact Increased energy security and regional trade in Afghanistan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan
Project Outcome
Description of Outcome A series of regional investment power projects identified
Progress Toward Outcome

Contract with the TA consultant (firm) was signed on 29 Nov 2010. Missions were being fielded where discussions with the respective utilities in Kazakhstan, Kyrgyz Republic, Tajikistan, Uzbekistan and the Coordinating Dispatcher Center (CDC) were held. A Project Inception Report documenting the outcomes of the mission was presented at the CAREC-ESCC Pillar 1 Meeting in Mar 2011, and an Interim Report was at the CAREC-ESCC Pillar 1 Meeting in Jul 2011. A Draft Final Report was presented at the CAREC ESCC Pillar 1 Meeting in Oct 2011. A revised Draft Final Report was presented at the CAREC ESCC Meeting in May 2012 2012 where the members acknowledged its significant inputs in the preparation of an Energy Action Plan (EAP) and Energy Work Plan 2013-15 for the region. To support the EWP 2013-15, the TA Consultant also supported the CAREC ESCC Donors Meeting in Aug 2012.

The TA Consultant Report is available at: http://www.adb.org/projects/documents/central-asia-regional-economic-cooperation-power-sector-regional-master-plan-tacr

Implementation Progress
Description of Project Outputs

A Regional Power Sector Master Plan for Afghanistan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan

A technical study on connecting Afghanistan to CAPS

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Afghanistan, Kazakhstan, Krygyz Republic, Tajikistan and Uzbekistan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA was endorsed by the CAREC Energy Sector Coordinating Committee (ESCC) as part of the proposed Energy Sector Action Plan which is based on the approved CAREC Energy Strategy. It is included in the Action Plan Framework that was approved at the CAREC Ministerial Conference held in October 2009. The CAREC Power Sector Regional Master Plan, which is the TA output, was discussed at the ESCC meetings held in (i) Almaty in September 2009, (ii) Bangkok in July 2011, (iii) Bangkok in October 2011, and (iv) Manila in May 2012. The said document provided significant inputs in the preparation of an Energy Work Plan 2013-15 for the region which was endorsed at the Senior Officials' Meeting in June 2012 and presented at the CAREC Ministerial Meeting in Oct 2012.
During Project Implementation Power utilities and government bodies in the five countries (AFG, KAZ, KGZ, TAJ and UZB) will be consulted to, among others, (i) assess the appropriate planning software and hardware to be procured under the Project, (ii) review and evaluate the potentials of planned projects for construction and rehabilitation, (iii) identify alternatives including renewable energy options and the efficient use of power including load management and other demand-side management measures, (iv) analyze system technical requirements for Afghanistan's connection to the CAR system, and (v) assess the adequacy of existing regional energy trading arrangements.
Business Opportunities
Consulting Services

A Firm of Consultants or a consortium has been recruited through quality- and cost-based selection (QCBS) method using 80:20 technical:financial weighting with full technical proposal being required. The team is composed of international and national consultants who are experts in : (a) energy economics, (b) financial analysis, (c) system planning, (d) power generation, (e) power transmission, (f) environment, (g) social analysis, and (h) energy efficiency.

A Draft Report on the CAREC Power Sector Regional Master Plan was prepared and presented by the Consultant at the CAREC Energy Sector Coordinating Committee (ESCC) meeting in Oct 2011. The report covers analysis of the power sector in four Central Asian countries namely Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan. The analysis includes (i) forecast demand, and assess the conditions of existing power plants; (ii) assess alternatives for meeting the forecast demand, including new domestic generation and transmission plants, and import and export projects; and (iii) address policy measures that will promote security and efficiency. It also includes analysis on the technical requirements for the interconnection of the Afghan system with the Central Asian power system (CAPS).

After incorporating the comments from the ESCC members, the report was and presented by the Consultant at the CAREC-ESCC meeting in May 2012. The ESCC members acknowledged the report's significant inputs in the preparation of an Energy Action Plan (EAP) and Energy Work Plan 2013-15 for the region. To support the EWP 2013-15, a CAREC ESCC Donors' Meeting was held in Aug 2012 to strengthen cooperation among donors wherein the Consultant was likewise requested to provide technical expertise.

The TA Consultant Report is available at: http://www.adb.org/projects/documents/central-asia-regional-economic-cooperation-power-sector-regional-master-plan-tacr

Responsible ADB Officer Jim Liston
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 16 Nov 2009
Fact Finding 25 Mar 2010 to 26 Mar 2010
MRM -
Approval 30 Jun 2010
Last Review Mission -
Last PDS Update 30 Sep 2013

TA 7558-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2010 - 30 Jun 2010 31 Dec 2011 31 Dec 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 500,000.00 0.00 0.00 0.00 2,500,000.00 30 Jun 2010 1,899,962.01

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