Tajikistan : Wholesale Metering and Transmission Reinforcement Project

Energy / Electricity transmission and distribution - Energy efficiency and conservation

The proposed project will improve: (i) electricity wholesale metering and billing all over the Republic of Tajikistan; and (ii) electricity supply in Panjakent region through reinforcement of high voltage transmission network. The outcome of the project will be an expanded and metered transmission system. The outputs of the project include: (i) installation of 2,700 wholesale meters and billing system; and (ii) 90 km of new 220kV transmission line interconnecting the Panjakent and Ayni regions.

In 2001 the government initiated a three phase (commercialization, separation, privatization) restructuring process of Barki Tojik. The first phase, commercialization, is extensively supported by ADB through Sector Operational Performance Improvement Program (SOPI). The program addresses the issues of governance, financial management, control and audit, legal and regulatory frameworks, management systems, organizational structure and technical operations. On 11 June 2013, the government approved the restructuring action plan and new structure of Barki Tojik, with three departments under the same legal entity; generation, transmission, and distribution. Heads of these departments have already been appointed and formation of new structure, based on international practices of modern power utility, is ongoing.

Restructuring of Barki Tojik, requires capital investments. The government undertook steps in this direction as well. The turnkey contract for installation of supervisory control and data acquisition system (SCADA) and associated telecommunication system, financed by ADB, is expected to be awarded in the first quarter of 2014. The World Bank and EBRD are financing the installation of the retail (end-user) meters in the two biggest load centers, Dushanbe and Khujand. The remaining gap is the bulk electricity metering from generation, through transmission and up to retail meters. There is a need of installation of wholesale meters and associated billing system, which will enable the management of Barki Tojik to: (i) account all electricity flows and associated costs; (ii) quantify technical and non-technical losses at the wholesale level of the entire grid, and plan actions for their reduction; and (iii) support the restructuring through definition of clear borders between generation, transmission and distribution.

At the same time, certain parts the Tajikistan transmission grid of still suffer from disconnection from the Central Asian Power System in November 2009. Prior to the disconnection, the Penjikend region of Tajikistan, with population of 261,000 (39,122 customers), was supplied from two 220 kilovolt (kV) lines from Uzbekistan. From Panjakent electricity was further transmitted to Ayni region with population of 75,000 (2,100 customers). Peak demands of Panjakent and Ayni are 75 MW and 20 MW, respectively. From Panjakent to Ayni electricity was transmitted over 102 kilometers through 110 kV line built in 1965 and with maximum rating of 67 MW. After 2009, these two regions became isolated from the main transmission grid of Tajikistan.

Barki Tojik addressed the issue and in 2011 energized new 'Sugd-Ayni 220 kV line which interconnected Ayni with main transmission grid. From Ayni electricity is currently supplied further to Panjakent using old 110 kV line. However, since the demand in Panjakent is higher than the capacity of the line, households and industry in the region suffer from load shedding even in summer time, which is energy surplus period in Tajikistan. Additional transmission capacity is, urgently needed to satisfy current and future power demand, which is expected to grow to 100 MW in next 3-5 years primarily caused by industrial development.

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, 20132014 for Tajikistan. It will be the seventh project intervention in the power sector of Tajikistan.

Improved electricity supply to households and industry in Tajikistan

Expanded and metered transmission network

Rudaki-Ayni transmission line operational

Wholesale metering and settlement system functional and upgraded

Lot 1: Turnkey contract with Huawei-TBEA Consortium was signed on 30 September 2016 and became effective on 1 December 2016.

Works are ongoing. Factory acceptance inspections and tests for hardware and delivery of some equipment are completed. Completion of factory acceptance test for software components delayed for more than 9 months and scheduled to complete in Q4 2018.

Lot 2: Turnkey contract with TBEA company limited was signed on 28 December 2015 and became effective on 16 February 2016.

Works are ongoing as scheduled. Installation works at 110 kV Rudaki switchyard are completed and commissioning is scheduled by end of September 2018.

Classified as category B under ADB's Special Safeguards Policy (SPS). The Project will entail permanent and temporary land acquisition, including impacts to crops and trees. The initial environmental examination and environmental management plan (EMP) were prepared by Barki Tojik in accordance with ADB's Safeguard Policy Statement (2009). There are two legally protected areas and one important bird area located in the project area or its proximity. An approximately 1.5 km section of the transmission line passes outside the northern boundary of the Say Vota Botanical Reserve (International Union for Conservation of Nature category 4) conserving juniper. The environmental field survey found that no significant impacts on the reserve are expected. 20 The Rudaki substation and the power line in Panjakent are located in close proximity to the Sarazm Important Bird Area. The mitigation measures proposed in the project design include bird diverters to prevent collision of birds with conductors, and bird spikes that have been effective on other transmission lines in Tajikistan. The Zarafshan Complex Reserve (International Union for Conservation of Nature category 4) is 3 km from the project area and is not impacted by the project. Other anticipated adverse environmental impacts of the project are 19 World Bank. 2005. Energy Loss Reduction Project, 20052014. Tajikistan. The International Union for Conservation of Nature is an international organization dedicated to finding pragmatic solutions to our most pressing environment and development challenges related to soil erosion, noise and dust generation during construction, and electromagnetic fields during operation. Adequate mitigation measures were designed and will be implemented through the EMP. The safeguard capacity of the PMU is limited; therefore, the EMP includes

training of PMU personnel in environmental management. Public consultations were conducted in the project area from 25 to 28 July 2014. The initial environmental examination and the EMP were disclosed on the ADB website on 16 September 2014.

Classified as category B under ADB's Special Safeguards Policy (SPS). The Project will entail permanent and temporary land acquisition, including impacts to crops and trees. Based on the project's preliminary design, approximately 0.70 hectares of farmland will be permanently acquired, and approximately 20 hectares will be temporarily acquired for various activities such

as stringing towers and building access roads. The temporary land acquisition will have an impact on crops and trees. Entitlements for the various impacts, such as permanent land acquisition, crop and tree loss, and allowances for vulnerable and severely affected persons, have already been defined in the draft land acquisition and resettlement plan (LARP), which

was disclosed on the ADB website on 16 September 2014. Once the final design is available, a more detailed survey of impacts will be undertaken to determine the extent of actual involuntary resettlement impacts. Public consultation with the potential affected persons and the general public has been undertaken for purposes of the draft LARP. Another round of public

consultations will be done during the finalization of the LARP.