Kyrgyz Republic: Power Sector Improvement Project (formerly Transmission and Distribution Metering Project)

Sovereign Project | 43456-023 Status: Active

ADB is helping the Kyrgyz Republic improve the efficiency and reliability of its power sector. The project will introduce an automated metering and data acquisition system to help cut losses, upgrade substation equipment, and install a supervisory control system. It also includes building the capacity of state-run National Electric Grid of Kyrgyzstan and a study on electricity settlement systems.

Project Details

Project Officer
Eshenaliev, Mirdin Iskanderovich Central and West Asia Department Request for information
Country
  • Kyrgyz Republic
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Power Sector Improvement Project (formerly Transmission and Distribution Metering Project)
Project Number 43456-023
Country Kyrgyz Republic
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0218-KGZ: Power Sector Improvement Project (formerly Transmission and Distribution Metering Project)
concessional ordinary capital resources lending / Asian Development Fund US$ 28.10 million
Loan 2671-KGZ: Power Sector Improvement Project (formerly Transmission and Distribution Metering Project)
concessional ordinary capital resources lending / Asian Development Fund US$ 16.70 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description

While the entire power sector needs modernization, the Government places highest priority on loss reduction and strengthening governance. This is not only to improve commercial operations, but to regain the population's confidence in the power sector and to reestablish political stability. Energy security through generation capacity expansion is a priority, but the short-term solutions are to improve system efficiency and reliability, and to enhance regional power trade. The proposed Project contributes to attaining the goals through the following components:

(i)_Automated Metering and Data Acquisition system (AMDA) will bring transparency to the wholesale electricity transaction between the unbundled power companies as well as in regional power trade. AMDA will eliminate errors and rampant metering data manipulation that are untraceable by the current archaic technology. Loss reduction will make more power available domestically and also improve the financial performance of the power companies. Accurate power flow data is indispensible to improve the power companies' commercial operation performance. The system also enhances regional power trade through (i) meeting the CAPS metering accuracy requirement, and (ii) eliminating unauthorized export.

(ii)_Substation Rehabilitation will improve reliability of the Kyrgyz power system by replacing dilapidated circuit-breakers and instrument transformers that have reached their economic lives, are technologically obsolete, or do not meet the accuracy requirement for regional power trade. Since the Kyrgyz system is intricately interconnected with the Central Asia Power System (CAPS), rehabilitation increases reliability of the regional system and enhance regional power trade.

(iii)_Communications and Supervisory Control and Data Acquisition (SCADA) system will link seven major substations (estimated) and the control centers via optical fiber, and enables the system operator to make efficient dispatching based on real-time data. The scope is limited to system monitoring function of the northern loop. SCADA will reduce technical losses through avoidance of overloading, and also enable faster detection and restoration of faults. The system improves the overall efficiency and reliability of the Kyrgyz system and CAPS.

(iv)_Study on Electricity Settlement Center will study the settlement systems appropriate to bring about transparency and accountability to the Kyrgyz power sector, and to maximize the benefits of the AMDA. It will devise mechanisms to publish data on energy flows and manage distribution of sector revenues in a transparent manner.

(v)_Corporate and Financial Management Capacity Building for the National Electric Grid of Kyrgyzstan (NEGK) will improve corporate management through the preparation of a corporate business plan including the review of investment needs, operation and maintenance practices, organizational reforms, internal control, asset revaluation, and cost of transmission service. Financial management capacity will be strengthened through introduction of the International Financial Reporting Standards (IFRS) and appropriate corporate accounting software.

The project fits with ADB's Starategy 2020 and ADB's Energy Policy. The latter focuses on energy efficiency, cutting fossil fuel use, energy security, energy access, and regional cooperation. The project also promotoes capacity development and governance.

Project Rationale and Linkage to Country/Regional Strategy Years of neglect since independence have left the Kyrgyz power sector in a state of disrepair. Facilities are dilapidated, losses are high, tariffs are below cost-recovery, and financial performance is poor. The power sector needs an urgent overhaul before the functionality of the system is lost. It needs to improve energy efficiency, energy security, and regional power trade. The proposed project is critical to attaining these goals.
Impact Stronger reliability of national and regional power supply.

Project Outcome

Description of Outcome Better operational efficiency of the power companies
Progress Toward Outcome

The project outcome is likely to be achieved. All contracts have been awarded and project implementation is in substantial progress. Status of the components under the loan and grant are as follows:

Lot 1 (Equipment) - The Supply Contract was awarded on 5 March 2013 is ongoing. All equipment delivered by 17 Dec 2014. 97% disbursed. Ongoing installation work is being carried out by NEGK, and the Supply Contractor will provide installation supervision as included in the contract. Replacement of old equipment in NEGK substations is being done in accordance with EMP. Installation works are expected to be completed in Q3 2017.

Lot 2 (Turnkey Contract) - The revised bidding documents was approved by ADB. Invitation for Bids was posted on ADB website on 16 September 2013 with initial deadline of 3 December 2013. The dateline for submission has been extended until 12 February 2014. An initial technical bid evaluation report (TBER) was issued in May 2014, but required numerous clarifications from ADB. The revised TBER was submitted in Sep 2014, with additional clarifications made in Nov 2014. ADB issued its no objection on the technical evaluation on 8 Jan 2015. Financial evaluation had been completed in March 2015. Contract negotiation had been concluded with the contract awarded on 14 July 2015. The contract became effective on 9 December 2015, and design, manufacturing, delivery and installation of equipment started and progressed in 2016. In 2017, delivery and installation works for the optical ground wire, automotated metering data acquisition, and SCADA and communication systems have been continuing with about 40% of the contract amount disbursed as of end-March 2017.

The Consultants' Final Reports for the Settlement Center Study and Capacity Building of NEGK had been submitted to the Ministry of Energy and Industry in 2013. The consultants' contracts for both components had been completed.

Implementation Progress
Description of Project Outputs

(Physical)

AMDA linking 190 NEGK substations and EPP facilities commissioned

(Physical)

Over 50 selected substations are rehabilitated

(Physical)

SCADA (Phase 1: System Monitoring) developed for the northern transmission grid system

(Nonphysical)

Suitable settlement mechanism for wholesale electricity transactions is recommended

(Nonphysical)

Stronger financial management capacity of NEGK

(Nonphysical)

NEGK's business plan is prepared

Status of Implementation Progress (Outputs, Activities, and Issues)

Project implementation was delayed, and two extensions in aggregate of three years were approved with the project closure at end-2017. Implementation schedule was revised accordingly.

The supply contract under Lot 1 (rehabilitation of substations) was awarded in March 2013. All equipment delivered by Dec 2014. Equipment installation is ongoing under supervision of the contractor.

The turn key contract under Lot 2 (AMDA, SCADA and OPGW) was awarded in July 2015. Implementation had started in December 2015. OPGW installation works were started in July 2016 after LARP implementation. Factory test for SCADA was done in August 2016. Implementation of the AMDA subcomponent was behind the schedule because of replacement of the metering subcontractor in 2016, but is progressed well in 2017.

The Final Reports for the Settlement Center Study and Capacity Building of NEGK had been submitted to the Ministry of Energy and Industry in 2013. A Russian version of the latter report was published on NEGK website.

NEGK awarded external auditor contract to CJSC Jacobs-Audit on 26 June 2014. The auditor has been auditing the FY 2012 - FY 2015 APFSs for both NEGK and MOE (former MOEI).

Geographical Location Country wide

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

An initial environmental examination was prepared and posted in accordance with ADB's Safeguard Policy Statement (2009). The major anticipated impact on environment will come from the disposal of electrical equipment. The IEE was updated to include for testing of oil for PCB contamination and management plan for oil disposal for cases of oil with and without PCB contamination. NEGK submitted satisfactorily updated IEE on 25 June 2014. The IEE was endorsed by the State Agency on Environmental Protection and Forestry on 8 July 2014 and was posted on both ADB and NEGK websites. The Environmental Monitoring Reports (EMRs), detailing the status of follow up activities indicated in the Environmental Management Plan (EMP), are likewise posted regularly at the ADB and NEGK websites.

Laboratory tests did not identify PCB in NEGK's oil storage facilities. PCB tests are also being held for oil in current and voltage transformers at substations using portable PCB analyzers. As of 21 September 2016, 156 units of oil-filled equipment were tested for PCB. As a result, PCB above the norm is not detected in any of the tested equipment, which indicates that the contamination of PCB is absent.

Involuntary Resettlement Project investments will be implemented mostly in existing substations where land acquisition and resettlement (LAR) impacts are not envisaged. Work space and access is required only for stringing OPGW over the existing transmission towers to develop a modern communication system. The towers are mostly on farmland. Very limited temporary LAR impact such as crop losses during installation is expected. A LAR framework has been prepared and disclosed in accordance with ADB's Safeguard Policy Statement and Operations Manual F1/OP.12. The turnkey contractor has been preparing the LARP for each of nine transmission line sections in accordance with the LAR framework based on the contractor's approved design. Each LARP is approved by NEGK and project management consultants, submitted to ADB for endorsement, and posted. As of end-March 2017, three LARPs, one DDR and two implementation compliance reports were submitted to ADB, approved and posted on NEGK and ADB websites.
Indigenous Peoples The project is not expected to affect indigenous peoples as defined under ADB's Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design The Project does not involve sensitive social or participatory issues, but consultations were conducted during the S-PPTA.
During Project Implementation Consultations are conducted in the areas affected by the OPGW stringing works.

Business Opportunities

Consulting Services

(i) Project management. The project implementation contract was concluded in December 2014. NEGK engaged three individual consultants in December 2015 to augment the PIU staff for the rest of project implementation period.

(ii) NEGK capacity development. The Consultants' Final Report for the Capacity Building of NEGK have been submitted to MOE. Consultant's contract was completed in 2013.

(iii) Settlement mechanism study. The Consultants' Final Reports for the Settlement Mechanism Study was submitted to MOE. Consultant's contract was completed in 2013.

Procurement

(i) Plant - design, supply, and install contract for AMDA and SCADA systems and communications. Bidding documents were issued in September 2013. Bids were received in February 2014. Technical bid evaluation report (TBER) was approved in January 2015. Financial evaluation was completed, and contract was awarded in July 2015.

(ii) Goods for substation rehabilitation and equipment. Supply contract was awarded on 5 March 2013 is ongoing. Goods delivery was completed in 2015, with 95% disbursed under the contract. Installation works will be completed in 2017.

Responsible Staff

Responsible ADB Officer Eshenaliev, Mirdin Iskanderovich
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Kyrgyz Resident Mission
Executing Agencies
Ministry of Energy and Industry
119 Ahunbaev Street
Bishkek, 7200
Kyrgyz Republic
National Electric Grid of Kyrgyzstan
Mr. Medetbek Aitkulov, General Director
326 Jibek Jolu, Bishkek 720070, Kyrgyz Republic
State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic
Erkindik Avenue,
2 Bishkek, 720740

Timetable

Concept Clearance 23 Apr 2010
Fact Finding 26 May 2010 to 14 Jun 2010
MRM 06 Aug 2010
Approval 27 Sep 2010
Last Review Mission -
PDS Creation Date 05 Oct 2010
Last PDS Update 23 Mar 2017

Grant 0218-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Sep 2010 08 Dec 2010 15 Jun 2011 30 Jun 2014 31 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 39.30 Cumulative Contract Awards
ADB 28.10 27 Sep 2010 24.60 0.00 88%
Counterpart 11.20 Cumulative Disbursements
Cofinancing 0.00 27 Sep 2010 20.11 0.00 72%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Loan 2671-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Sep 2010 08 Dec 2010 15 Jun 2011 30 Jun 2014 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.70 Cumulative Contract Awards
ADB 16.70 27 Sep 2010 14.48 0.00 92%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Sep 2010 11.76 0.00 74%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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.

Title Document Type Document Date
Проект по улучшению энергетического сектора: план освоения и переселения высоковольтных линий электропередачи Кемин-Ала-Арча Resettlement Plans May 2017
Проект по совершенствованию энергетического сектора: «Главная-Карагачева» Отчет о проверке надежности высоковольтных линий электропередач Safeguards Due Diligence Reports May 2017
Power Sector Improvement Project: Kemin-Ala Archa High-voltage Power Lines Land Acquisition and Resettlement Plan Resettlement Plans May 2017
Power Sector Improvement Project: Glavnaya-Karagacheva High-voltage Power Lines Safeguards Due Diligence Report Safeguards Due Diligence Reports May 2017
Power Sector Improvement Project: Chuiskaya-Kemin OHL Land Acquisition and Resettlement Plan Resettlement Plans Mar 2017
Проект по совершенствованию энергетического сектора: План по приобретению и переселению (Chuiskaya-Kemin OHL) Resettlement Plans Mar 2017
Проект по совершенствованию энергетического сектора: План по приобретению и переселению высоковольтных линий электропередачи Парковая-Ала-Арча Resettlement Plans Mar 2017
Power Sector Improvement Project: Parkovaya-Ala Archa High-voltage Power Lines Land Acquisition and Resettlement Plan Resettlement Plans Mar 2017
Power Sector Improvement Project: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Feb 2017
Power Sector Improvement Project: Frunzenskaya-Kara Balta 2 High-voltage Power Lines Safeguards Due Diligence Report Safeguards Due Diligence Reports Oct 2016
Power Sector Improvement Project: Safeguards Due Diligence Report (Russian Translation) Safeguards Due Diligence Reports Oct 2016
Power Sector Improvement Project: Kara Balta – Glavnaya OHL Land Acquisition and Resettlement Plan Resettlement Plans Aug 2016
Проект энергетического сектора Улучшение: Приобретение земель и План переселения Resettlement Plans Aug 2016
Power Sector Improvement Project: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Aug 2016
Power Sector Improvement Project: Land Acquisition and Resettlement Plan Resettlement Plans Jul 2016
Проект энергетического сектора Улучшение: Приобретение земель и План переселения Resettlement Plans Jul 2016
Power Sector Improvement Project: Biannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
Power Sector Improvement Project: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Sep 2015
Power Sector Improvement Project: Environmental Monitoring Report (July - December 2014) Environmental Monitoring Reports Jan 2015
Power Sector Improvement Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Dec 2014
Power Sector Improvement Project Initial Environmental Examination Jun 2014
Power Sector Improvement Project Initial Environmental Examination Aug 2010
Power Sector Improvement Project Resettlement Frameworks Jul 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.