Turkmenistan: Afghanistan and Turkmenistan: Regional Power Interconnection Project

Sovereign Project | 44184-012 Status: Closed

Summary

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Project Name Afghanistan and Turkmenistan: Regional Power Interconnection Project
Project Number 44184-012
Country Turkmenistan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7853-TKM: Afghanistan and Turkmenistan: Regional Power Interconnection Project
Technical Assistance Special Fund US$ 1.30 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Energy - Conventional energy generation - Electricity transmission and distribution - Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome A consulting firm has been engaged to undertake preliminary assessment of TKM investment needs and a financial analysis. In parallel, another team of consultants is currently prepraring the AFG Power Sector Master Plan, which will include a preliminary assessment of the power demand in AFG and investment needs for possible interconnections with TKM. The findings of these two consulting teams will form part of the Pre-Feasibility Report for consideration by AFG, TKM and ADB. An Inception Report will be presented in early-April 2012.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Ashgabat,Kabul

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Initial consultation has taken place in TKM with the Ministry of Energy and Industry (MEI) and with the power utility Turkmenenergo (TE). Similarly, consultations were held in AFG with the Ministry of Electricity and Water (MEW) and with the power utility Da Afghanistan Breshna Sherkat (DABS). Consultations with potential affected persons will take place during the project processing when the Land Acquisition and Resettlement Framework is prepared.
During Project Implementation

TA 7853 was coordinated with AFG Power Sector Master Plan being conducted under separate technical assistance (TA 7637). TA 7853 Project Inception Report was presented to and commented by the AFG and TKM energy officials in April 2012. Negotiations for Power Purchase and Sale Agreement (PPSA) between AFG and TKM was held in June 2012, February 2013 and February 2014.

A feasibility study has been prepared detailing the technical specifications for the proposed TKM power plant project and interconnection between AFG and TKM, in close consultation and coordination with the energy officials from both countries. The study identified the interconnection project was justified on technical, financial and economic grounds while complying with ADB safeguard requirements.

ADB financing for the AFG component of the interconnection was approved by ADB Board in Dec 2012 with Financing Agreement signed in March 2013. The project became effective in June2013. Financing for the TKM component of the interconnection is under preparation.

Business Opportunities

Consulting Services

Under the project, a consulting firm was recruited following ADB Guidelines on the Use of Consultants to conduct the technical, economic, financial, poverty and social, and safeguard assessment of the Project. Such study will be executed in two phases. The first phase, the Pre-Feasibility stage, will confirm the basic technical parameters of the Project, refine the cost estimates, and calculate indicative financial returns. A Pre-Feasibility Report will cover the findings of Phase 1 and will recommend if the PPTA study should proceed to the second phase, the Due Diligence stage. AFG and TKM will approve the Pre-Feasibility Report before proceeding to the Due Diligence stage.

Contract between ADB and PPTA Consultant was signed on 16 Dec 2011 and consulting services commenced on 16 Jan 2012. The Consultant presented an Inception Report in April 2012 detailing preliminary results of the pre-feasibility study. A Draft Final Report is submitted in Nov 2012 with a conclusion that the proposed combined cycle gas turbine (CCGT) project is financially and economically viable and brings strong regional benefits. In Dec 2012, TKM advised that it had revised its requirements and therefore requested that open cycle gas turbine (OCGT) technology be utilized. As such, the feasibility report was revised in Mar 2013.

A Power Purchase Pricing Expert was likewise engaged by the consulting firm to provide advise on the power tariff design for PPSA. In addition, an Individual Consultant (Legal Advisor) was recruited in April 2012 to facilitate negotiations and provide legal counsel in the preparation of a power purchase and sale agreement (PPSA) between the two countries.

All consulting services have been completed.

Responsible Staff

Responsible ADB Officer Jim Liston
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 30 Sep 2014

TA 7853-TKM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Sep 2011 - 05 Sep 2011 31 Oct 2012 30 Apr 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,300,000.00 0.00 100,000.00 0.00 0.00 0.00 1,400,000.00 05 Sep 2011 1,138,902.44

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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