Tajikistan : Wholesale Metering and Transmission Reinforcement Project

Energy / Electricity transmission and distribution

The objective of the proposed project preparatory technical assistance is to prepare the Wholesale Metering and Transmission Reinforcement Project.

The TA is necessary on the following grounds:

(i) The Project needs to be prepared urgently in order to meet the investment needs of Tajikistan.

(ii) There is a need to prepare feasibility study and undertake technical, financial, economic, social and environmental due diligence required to process a grant for the Project.

(iii) There is a need for expertise from competent international consultants considering the Project's technical complexity.

The major outputs of TA are:

- Updated summary sector assessment

- Initial Environmental Examination report

- Land Aquisition and Resettlement Plan

- Economic and financial analysis report

- Fund flow analysis report

- Updated financial management assessment report

- Updated procurement capacity assessment report

- Final Feasibility Study

The total installed generation capacity of Tajikistan is 5,055 megawatts (MW). In 2012 it generated 16.9 terra-watt hours (TWh) of which only 13.2 TWh was billed. The difference is a sum of the power system's own consumption and losses. Total transmission and distribution system losses in Tajikistan, as in any power system, are a combination of technical and non-technical (or commercial losses). Both types of loss are a cost to the state power utility, Barki Tojik, as they reduce the amount of electricity for which payment is received from the customers.

Total transmission/distribution system losses in Tajikistan are currently estimated at around 22%, of which transmission system technical losses accounted for 5% in 2012. Distribution system losses are 17% and have remained virtually unchanged since 2006. Barki Tojik does not recognize commercial losses and therefore applies technical losses _norms_ to the amount of energy received into the distribution networks from transmission. These are unreliable figures and probably understated due to absence of proper methodology and relevant metering system.

Actions are needed to reduce the losses. Reduction of technical losses requires capital investment. However, the actions needed to reduce non-technical losses, representing a financial loss to the company, are different and require capital investment as well as effective/efficient management of the utility's commercial activities, such as metering, billing, and collections. Reduction of non-technical losses is a priority for the government and number of steps has already been initiated.

The financing of the project was requested by the Government of Tajikistan. The proposed project is in line with ADB's country partnership strategy, 2010 2014. The project is included in the country operations business plan, 2013 2014 for Tajikistan. It will be the seventh project intervention in the power sector of Tajikistan.

The main objective of the consultants assignment is to undertake technical, financial, economic, environmental and social due diligence and prepare a feasibility study to ensure ADB financing of the Project. The Project will be implemented using two turnkey contracts: one for installation of wholesale meters and billing system, and another for contraction of 220 kV transmission line and substation expansion.

The TA will employ a firm of consultants. There are 9 positions and 30 person-months for international consultant, and seven national consultant positions with 28 person-months. Certain international consultants will be assisted by national consultants. All national consultants will have at least a bachelor's degree from an established university in Tajikistan or other countries and two years of experience in their area of expertise.

The consultants will be responsible for personal computers and other facilities for producing reports. The consultants will procure the equipment to be financed under the TA in accordance with ADB's Procurement Guidelines. All disbursements under the TA will be made in accordance with ADB's Technical Assistant Handbook (2010, as amended from time to time). All equipment purchased under the TA will be passed over to the EA at the end of the TA.