Kyrgyz Republic: Toktogul Rehabilitation Phase 2 Project

Sovereign Project | 46348-003

Summary

The project will (i) continue the phased rehabilitation of Toktogul hydroelectric power plant (HPP) by replacing two of the four existing generator and turbine units and associated auxiliary equipment; (ii) implement a business process improvement project for the main generation company, open joint-stock company Electric Power Plants (EPP); (iii) prepare an asset inventory and revaluation for the seven power companies, and Bishkekteploset (heat and hot water distribution company); and (iv) prepare a power sector master plan to include a due diligence study for the rehabilitation of Uch Kurgan HPP. The project will increase domestic energy supply and international electricity trade, improve asset management and sector planning, and strengthen sector operational performance.

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Project Name Toktogul Rehabilitation Phase 2 Project
Project Number 46348-003
Country Kyrgyz Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0419-KGZ: Toktogul Rehabilitation Phase 2 Project
Asian Development Fund US$ 44.50 million
Loan 3212-KGZ: Toktogul Rehabilitation Phase 2 Project
Asian Development Fund US$ 65.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector Energy - Energy efficiency and conservation - Large hydropower generation
Gender Equity and Mainstreaming No gender elements
Description The project will (i) continue the phased rehabilitation of Toktogul hydroelectric power plant (HPP) by replacing two of the four existing generator and turbine units and associated auxiliary equipment; (ii) implement a business process improvement project for the main generation company, open joint-stock company Electric Power Plants (EPP); (iii) prepare an asset inventory and revaluation for the seven power companies, and Bishkekteploset (heat and hot water distribution company); and (iv) prepare a power sector master plan to include a due diligence study for the rehabilitation of Uch Kurgan HPP. The project will increase domestic energy supply and international electricity trade, improve asset management and sector planning, and strengthen sector operational performance.
Project Rationale and Linkage to Country/Regional Strategy

The Kyrgyz Republic power sector is characterized by ageing assets, high commercial losses, below-cost tariffs, and poor performance of sector companies. The project addresses these issues by (i) continuing the phased rehabilitation of the 1,200-megawatt (MW) Toktogul HPP, which is a critical element of the national and regional power supply; (ii) improving asset management of the power sector and the Bishkek Heat Company; (iii) improving operational performance of EPP; and (iv) assisting the government in optimizing system development through the preparation of a 20-year power sector master plan, which includes the preparation of a due diligence study for the rehabilitation of Uch Kurgan HPP. The project complements ongoing sector developments in asset rehabilitation, system loss reduction, tariff policy, and sector governance.

The complete rehabilitation of Toktogul HPP is planned over a three-phase program. The first ongoing phase under ADB financing covers replacement of secondary electrical and mechanical equipment, which was identified as the top priority. The current project constitutes the second phase, and will rehabilitate two of the four turbine and generator units. The third phase, which is included in ADB's country operations business plan for processing in 2016, will rehabilitate the two remaining turbine and generator units. The third phase will also carry out repairs to civil structures as may be identified by an ongoing dam safety assessment study being financed by ADB. Each phase is a standalone project that is independent of future phases.

Ongoing ADB and donor projects are assisting the government address (i) loss reduction by establishment of an independent electricity settlement center and installation of wholesale and retail meters; (ii) policy reform through establishment of an independent regulator, introduction of a cost-recovery tariff, and implementation of an information program to inform the public of the need for tariff increases; (iii) sector-wide asset rehabilitation; and (iv) commercial strengthening of sector companies through improved governance and business processes.

The government has identified development of the energy sector as a major component of its development plan. The government's strategy is to (i) improve sector financial performance and corporate management, (ii) increase energy security by development of domestic resources, (iii) expand regional power exports, and (iv) phase in cost-recovery tariffs by 2017. This is consistent with the country partnership strategy of the Asian Development Bank (ADB), and is included in ADB's country operations business plan for Kyrgyz Republic, 2014 2016.

Impact Kyrgyz power system reliability for national and regional purposes enhanced
Project Outcome
Description of Outcome Improved operational performance of EPP
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Toktogul HPP rehabilitated

2. Asset inventory and revaluation prepared

3. Kyrgyz Republic power sector master plan developed

4. EPP business process improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location whole country of the Kyrgyz Republic
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects B
Involuntary Resettlement C
Indigenous Peoples C
Stakeholder Communication, Participation, and Consultation
During Project Design Rehabilitation of the Toktogul HPP will require consultation with the people/population residing near the project site to be carried out by the PPTA consultants.
During Project Implementation During Project Implementation Consultation with the Ministry of Energy and Industry, OJSC EPP, and local residents will be held in determining the possible technical, financial, social and environmental implications of replacing two turbine-generator units and associated auxiliary systems in Toktogul hydroelectric power plant (HPP).
Business Opportunities
Consulting Services

Consulting services

(i) Toktogul project implementation consultant

(ii) EPP business process improvement project

(iii) Asset inventory and revaluation

(iv) Power sector master plan

(v) External audit

(vi) Individual consultants

Procurement

Procurement

(i) Toktogul turbine and generator units 2 and 4

(ii) Toktogul hydraulic steel structures

(iii) EPP business process improvement Method

Responsible ADB Officer Sohail Hasnie
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
State Property FundBAKYT1416@MAIL.RU151, Moskovskya Street, Bishkek,
Kyrgyz Republic
Ministry of Energy and IndustryAhunbaev Str. 119, Bishkek City
720055, Kyrgyz Republic
OJSC Electric Power Plants326 Jibek Jolu Prospect,
Bishkek
Kyrgyz Republic
Timetable
Concept Clearance 16 Aug 2013
Fact Finding 30 Jun 2014 to 11 Jul 2014
MRM 19 Aug 2014
Approval 02 Dec 2014
Last Review Mission -
Last PDS Update 30 Mar 2015

Grant 0419-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2014 26 Dec 2014 - 30 Jun 2022 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 44.50 Cumulative Contract Awards
ADB 44.50 02 Dec 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Dec 2014 0.00 0.00 0%

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 41.68 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 41.68 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 3212-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2014 26 Dec 2014 - 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 107.18 Cumulative Contract Awards
ADB 65.50 02 Dec 2014 0.00 0.00 0%
Counterpart 41.68 Cumulative Disbursements
Cofinancing 0.00 02 Dec 2014 0.00 0.00 0%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Toktogul Rehabilitation Phase 2 Project Initial Environmental Examination Jul 2014

Evaluation Documents

See also: Independent Evaluation

No documents found.


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