Uzbekistan: Namangan 500-Kilovolt Power Transmission Project

Sovereign Project | 46007-002

Summary

The impact of the project will be improved reliability of power supply in Uzbekistan. The outcome of the project will be an expanded transmission network providing adequate power supply to Fergana Valley.

The outputs of the Project include:

(i) construction of (a) 500 kV overhead transmission line of approximately 175 km between Novo Angren Thermal Power Plant (TPP) and Namangan Substation; and (b) rerouting of 220 kV overhead transmission lines of approximately 32 km between Kuzyl-Ravat-Sardor and Sardor-Crystal and Namangan Substation;

(ii) construction of 500 kV/220 kV Namangan Substation and reconstruction of outdoor switchgear 500 kV at the Novo Angren TPP; and

(iii) implementation of the Operational Improvement Program in transmission system planning and transmission asset management and preparation of a feasibility study for the supervisory control and data acquisition system (SCADA).

Latest Project Documents


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Project Name Namangan 500-Kilovolt Power Transmission Project
Project Number 46007-002
Country Uzbekistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2917-UZB: Namangan 500-Kilovolt Power Transmission Project
Ordinary capital resources US$ 18.00 million
Loan 2918-UZB: Namangan 500-Kilovolt Power Transmission Project
Asian Development Fund US$ 132.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming No gender elements
Description

The impact of the project will be improved reliability of power supply in Uzbekistan. The outcome of the project will be an expanded transmission network providing adequate power supply to Fergana Valley.

The outputs of the Project include:

(i) construction of (a) 500 kV overhead transmission line of approximately 175 km between Novo Angren Thermal Power Plant (TPP) and Namangan Substation; and (b) rerouting of 220 kV overhead transmission lines of approximately 32 km between Kuzyl-Ravat-Sardor and Sardor-Crystal and Namangan Substation;

(ii) construction of 500 kV/220 kV Namangan Substation and reconstruction of outdoor switchgear 500 kV at the Novo Angren TPP; and

(iii) implementation of the Operational Improvement Program in transmission system planning and transmission asset management and preparation of a feasibility study for the supervisory control and data acquisition system (SCADA).

Project Rationale and Linkage to Country/Regional Strategy

The Project will erect new high-voltage transmission assets to secure the power supply to Fergana Valley and implement institutional changes in the power utility company, Uzbekenergo. The project will increase energy security through the diversification and expansion of energy supply routes. It will improve power supply reliability in the country and, in particular, the Namangan, Fergana and Andijon provinces; reduce transmission losses; and improve operational efficiency of the power sector.

The establishment of a Central Asian transmission system started during the Soviet era in the 1960s. The transmission lines connecting the power plants and substations feeding the load centers are on the 500 kV and 220 kV levels. The transmission system was designed following the technical and geographical requirements so as to benefit from the diversified energy and water resources in Central Asia. Yet, the locations of the substations and the line routing did not consider the countries' borders, as these were considered not relevant at that time.

The power grid of Uzbekistan is a major component of the integrated and synchronized high-voltage power transmission network of the Central Asian Power System. Network operation and planning are managed by the Coordinating Dispatch Center in Tashkent. Trading arrangements between the countries are currently constrained by an ageing infrastructure, as well as varied energy sector development priorities of each participating country after the independence. The reliable and secured operation of the network is a prerequisite for power trade to reduce economic cost of electricity for Uzbekistan and its neighbors.

Poorly designed transmission grid and associated capacity constraint became an acute problem particularly for the most densely populated region of Uzbekistan, Fergana Valley. More than 8 million people and several large industries in the region are currently supplied from the main Uzbek grid (400 megawatt [MW]), Kyrgyz Republic (1,300 MW) and the generation in Fergana (100 MW). As demand increases, the underdeveloped local transmission grid impedes the reliable supply of power to domestic customers. During the three-month summer period, the peak demand reaches 2,000 MW, creating overload in the current 220 kV transmission system that leads to a voltage drop of 185 kV. This results in a responsive action by Uzbekenergo: disconnecting the customers on a daily basis to reduce the load by an average of 150 MW. Registered cases of voltage drops to 100 kV have resulted in disconnection of 80% of customers in Fergana and followed by a cascading effect of disconnections even in Kazakhstan. Regular maintenance of the grid is also impossible without disconnection of a significant number of customers. Additional transmission capacity is, therefore, urgently needed to satisfy current and future power demand and undertake proper maintenance, which contributes to high voltage grid stability in Uzbekistan and its neighbors.

Facing the challenges in the energy security, deteriorating infrastructure and unreliable power supply, the government has taken various initiatives. A five-year rolling investment plan amounting to $5 billion was approved by the government to rehabilitate and upgrade energy infrastructure. The government also commenced institutional improvements to increase transparency and operational efficiency of the electricity sector. It reorganized and reinforced the investment unit at the vertically integrated state-owned power utility company, Uzbekenergo, to implement new investment projects more effectively. A loss-reduction program was initiated by adopting advanced meters to increase financial sustainability. Cost centers for generation, transmission and distribution have been split. Each unit has a separate accounting department and implementation of International Financial Reporting Standards-based financial statements to improve financial management is ongoing. Electricity tariffs have been gradually increasing to ensure cost recovery level.

However, despite these institutional changes, external expertise and support are needed to improve the operational performance of Uzbekenergo. Uzbekenergo has requested assistance in the reorganization of the transmission asset management department to improve efficient budget provisioning for maintenance and optimize scheduling. The transmission system planning department is also inadequate to meet present sector needs. Lack of modern tools and skills makes it impossible to plan an optimal system and thus optimize investments. Both departments need to be restructured, equipped with modern technologies and trained personnel.

The project is a priority for the government. A recently prepared power sector master plan for Central Asia assessed the project as the least-cost solution for Fergana since the region does not have hydro or fossil fuel reserves for new local generation and no additional power import is available from the Kyrgyz Republic. The master plan identified the project as having principal importance for the Central Asian transmission grid.

The government requested the Asian Development Bank (ADB) to provide financial support. The Project is included in ADB's Country Operation Business Plan 2011-2013 and consistent with ADB's Strategy 2020. It will be the third project loan intervention in the power sector of Uzbekistan.

Impact Improved reliability of power supply in Uzbekistan
Project Outcome
Description of Outcome An expanded and modernized high voltage transmission grid in Fergana Valley
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Overhead transmission line between Novo Angren TPP and Namangan energized

New high voltage Namangan Substation energized

Operational Improvement Program implemented

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Fergana,Namangan,Andijon
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental categorization of the project is B in accordance with ADB's Safeguard Policy Statement 2009. An initial environmental examination (IEE) was prepared, and potential affected people were consulted. Uzbekenergo cleared the IEE report and it was disclosed via ADB's website on 1 August 2012. The transmission lines run through areas with low environmental sensitivities. No significant or irreversible impacts are expected with the operation of the new lines. There will be some temporary impacts during the construction phase but mitigation measures have been developed. The environmental management plan has also been prepared as part of the IEE to ensure that adequate resources are allocated to handle the impact. Mitigation measures could be included as part of the construction costs. Implementation of the environmental management plan will be recorded and reported through a project quarterly report, and a stand-alone environmental monitoring report will be submitted annually to ADB.
Involuntary Resettlement The project is category B for involuntary resettlement safeguard. A land acquisition and resettlement plan (LARP) for the transmission lines has been prepared based on the preliminary design of the project, in close consultation with affected households. A detailed socioeconomic survey was carried out. Uzbekenergo submitted the LARP to ADB and it was disclosed via ADB's website on 1 August 2012. Uzbekenergo will update the LARP after finalizing the detailed design and sibmit it to ADB for approval.
Indigenous Peoples The project is categorized C for indigenous peoples safeguard. The field social survey found no ethnic minority, as described in ADB's Safeguard Policy Statement 2009, involved or affected by the project.
Stakeholder Communication, Participation, and Consultation
During Project Design 271 people (146 males and 125 females) directly affected by this project were consulted as part of the initial resettlement investigations and, in the second round of consultations scheduled for August 2012, all APs will be consulted via a series of focus group discussions and other community-based consultations. A total number of 77 stakeholders (including 54 females) not directly affected by involuntary resettlement, including other villagers, members of mahalla, civil society groups and local experts, were also consulted. Some 10.2% of affected peoples consulted were living below the current income poverty line and 26.7% were elderly people or otherwise disadvantaged.
During Project Implementation None. During implementation of LARP and EMP, continued consultations with affected households will be carried out.
Business Opportunities
Consulting Services Uzbekenergo will employ a project implementation consultant. This consultant will provide technical, financial and administrative support to the PMU during the entire project implementation period. Two other consultant firms will be recruited under the Operational Improvement Program. The first consulting firm will be responsible for preparation of detailed design, procurement and installation of the transmission system planning software and hardware, preparation of feasibility study for SCADA, and procurement and installation of video wall for the National Dispatch Center. The second firm will prepare detailed designs and specifications for transmission asset management system, and assist in procurement and supervise installation. The consultant recruitment will follow ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Quality- and cost-based selection (QCBS) method with a quality:cost ratio of 90:10 will be the default method for recruiting the consulting firms due to complexity of assignment and application of modern technologies.
Procurement Procurement of goods from ADB loan proceeds will be undertaken following ADB's Procurement Guidelines (2010, as amended from time to time). The procurement will follow International Competitive Bidding (ICB) procedures using standard bidding documents for Goods (Single-Stage: Two-Envelope). An international procurement specialist will assist the PMU in preparation of bidding documents and bid evaluation and also provide hands-on training to the procurement staff of the PMU. The government has requested a waiver from the procurement eligibility requirement to allow it to procure one good-supply contract, a relay protection system, from nonmember countries. This will ensure full component compatibility with the existing system. Such procurement will still be carried out through competitive bidding following ADB rules.
Responsible ADB Officer Levan Mtchedlishvili
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
UzbekenergoGRP_TAL_TES@MAIL.RU6 Khorezmskaya St.Taskhent,100000,Uzbeki
stan,Talimarjan,Thermal Power Station,
Nuristan Settlement,Nishan,Kashkadarya
Timetable
Concept Clearance 03 Apr 2012
Fact Finding 17 Jun 2012 to 29 Jun 2012
MRM 31 Jul 2012
Approval 11 Oct 2012
Last Review Mission -
Last PDS Update 30 Sep 2013

Loan 2917-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Oct 2012 - - 30 Nov 2017 - 10 Oct 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 156.00 Cumulative Contract Awards
ADB 18.00 11 Oct 2012 0.00 0.00 0%
Counterpart 138.00 Cumulative Disbursements
Cofinancing 0.00 11 Oct 2012 0.00 0.00 0%

Loan 2918-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Oct 2012 - - 30 Nov 2017 - 10 Oct 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 132.00 Cumulative Contract Awards
ADB 132.00 11 Oct 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 11 Oct 2012 0.00 0.00 0%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Namangan 500 kV Power Transmission Project Resettlement Plans Jul 2012
Namangan 500 kV Power Transmission Project Initial Environmental Examination Jun 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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