Kyrgyz Republic: Power Sector Rehabilitation Project

Sovereign Project | 44198-012

Summary

The PPTA, in preparation for the ensuing Power Sector Rehabilitation Project, will undertake necessary due diligence and assist pre-implementation activities which include among others: (i) conduct of economic and financial analysis with sensitivity analysis; (ii) perform financial management assessment of Severelectro; (iii) conduct environmental safeguard due diligence including public consultations and/or information dissemination; (iv) conduct social safeguard due diligence including social analysis, and public consultations and/or information dissemination; and (v) prepare the Project RRP.

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Project Name Power Sector Rehabilitation Project
Project Number 44198-012
Country Kyrgyz Republic
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7704-KGZ: Power Sector Rehabilitation
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description The PPTA, in preparation for the ensuing Power Sector Rehabilitation Project, will undertake necessary due diligence and assist pre-implementation activities which include among others: (i) conduct of economic and financial analysis with sensitivity analysis; (ii) perform financial management assessment of Severelectro; (iii) conduct environmental safeguard due diligence including public consultations and/or information dissemination; (iv) conduct social safeguard due diligence including social analysis, and public consultations and/or information dissemination; and (v) prepare the Project RRP.
Project Rationale and Linkage to Country/Regional Strategy The goal of the Government of the Kyrgyz Republic is provided in its National Energy Program (NEP) 2008-2010. It aims for the financial strengthening and modernization of the energy sector while at the same time emphasizes on ensuring reliable and uninterrupted energy supply, reduction of losses, revising tariff structure, strengthening management of utilities, and enhancing regional power trade. The Country Development Strategy 2009-2011 places strategic importance on the energy sector and echoes NEP's development needs. The Government also issued a presidential decree on "Fuel and Energy Sector Transparency Initiative" on 20 July 2010 to accelerate the strengthening of governance and performance of the sector. Similarly, the energy sector development strategy of ADB is to boost energy security, energy efficiency, and regional power trade which is aligned with that of the Government.
Impact Project readiness of Power Rehabilitation Project
Project Outcome
Description of Outcome Conduct of project due diligence following ADB requirements, and pre-implementation activities
Progress Toward Outcome

Concept paper was approved on 15 Dec 2010 to prepare the detailed feasibility study for the Power Rehabilitation Project as well as conduct the necessary due diligence in accordance with ADB requirements.

A Financial and Risk Management Consultant (individual) has been recruited to assess the (i) suitability of the effectiveness of financial management systems and controls, and (ii) financial reporting standards and policies relating to management and control of project funds in four distribution companies (DISCOs). In addition, the Consultant will prepare a risk assessment (RA) and risk management plan (RMP) for the Kyrgyz energy/power sector.

A consulting firm has been likewise recruited to prepare the the feasibility study for the rehabilitation of hydropower plant (HPP) of the Naryn River cascade and installation of a modern billing and collection system for Severelectro. The consulting firm is expected to provide inputs on the preparation for the ensuing Project which includes among others: (i) EA and IA capacity assessment, (ii) proposed procurement plan, and (iii) indicative implementation schedule. The Project Inception Meeting is tentatively scheduled by end-July 2011.

Implementation Progress
Description of Project Outputs

1. economic and financial analysis with sensitivity analysis

2. financial management assessment of Severelectro

3. environmental safeguard due diligence, including public consultations and/or information dissemination

4. social saefguard due diligence, including social analysis, and public consultations and/or information dissemination

5. inputs to RRP

6. RFP and bidding documents

7. final report

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location National
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The Ministry of Energy (MOE), Electric Power Plant Company (EPP), and Severelectro were consulted during the project design. Activities being undertaken by other development partners (e.g., Kredtanstalt fur Wiederaufbau) in the sector are also considered.
During Project Implementation

Public consultations were held to identify and assess the potential poverty reduction, social, and environmental impacts of the ensuing Project. The results of such consultations are shared to the relevant government agencies and disseminated to the public. These documents are available at the ADB website (http://www.adb.org/projects/44198-013/main).

Close coordination are likewise made with the implementing agencies namely, EPP and Severelectro, all throughout the project implementation.

Business Opportunities
Consulting Services

The PPTA consultant will be a firm. There are seven positions each for international (27 person-months [p-m]) and national consultants (30 p-m) comprising of: (i) hydropower expert/team leader, (ii) electrical engineers, (iii) electro-mechanical engineer, (iv) billing and collection system experts, (v) procurement experts, (vi) economic and financial analysis experts, and (vii) environmental and social safeguard experts. Quality- and cost-based selection (QCBS [80:20]) will be used for the selection method with simplified technical proposal.

The consultant, among other tasks, needs to adequately address the following aspects relating to the ensuing loan project: (i) detailed loan executing agency /implementing agency capacity assessment, and suggested remedial action plan to build executing agency and implementing agency capacity to minimize procurement and financial management risks; (ii) proposed or indicative loan related procurement plan with suggested level of priority or, if applicable, post review based on executing agency and implementing agency capacity assessment; and (iii) indicative implementation schedule with proposed sequencing of consultant recruitment and procurement bidding and awarding.

Expressions of Interest (EOIs) were submitted and short-listing was made on 21 January 2011. Request for Government concurrence was sent on 2 February 2011, and on a no-objection basis a Request for Proposal (RFP) was issued on 9 February 2011. The Consultant Selection Committee (CSC) evaluated the technical proposals on 25 March 2011, and subsequently COSO evaluated the financial proposals on 4 April 2011. Contract negotiations were held on 4-5 May 2011. Engagement commenced on 9 May 2011 and will be completed by 23 Dec 2011.

In August 2011, the Consultant's ToR was expanded to include tests and analysis to determine the status of the 500kV low pressure oil-filled cable of the Toktogul Hydropower Plant. The said cable was cross-linked to a polyethylene cable which is said to have exhausted its economic life.

In May 2012, the Consultant's ToR was further expanded to assist the EA in the (i) preparation of a full set of bidding documents (commercial and technical) for Toktogul HPP rehabilitation; (ii) conduct a rapid dam safety assessment; and (iii) preparation of ToR for Project Implementation Consultant to implement Dam Safety Monitoring.

Responsible ADB Officer Jim Liston
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Energy and IndustryAhunbaev Str. 119, Bishkek City
720055, Kyrgyz Republic
Timetable
Concept Clearance 10 Dec 2010
Fact Finding 19 Mar 2013 to 26 Mar 2013
MRM -
Approval 15 Dec 2010
Last Review Mission -
Last PDS Update 16 Nov 2012

TA 7704-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2010 28 Jan 2011 28 Jan 2011 30 Nov 2011 30 Nov 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 100,000.00 0.00 0.00 0.00 1,100,000.00 15 Dec 2010 776,111.13

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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