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Azerbaijan: Preparing an Enabling Environment for Private Sector Participation in the Power Sector

Sovereign (Public) Project | 48200-001 Status: Closed

The TA will reference international best practice for private sector participation in the power sector and assess the potential application and benefits specific to Azerbaijan. It is structured as a sequential program of tasks. Phase 1 includes the identification of the benefits of private sector participation in the power sector and any current restrictions, followed by the recommendation of a road map for private sector participation. In parallel, a detailed review of the existing policy, legal, and regulatory framework will be undertaken, and recommendations provided to enable private sector participation. Once the Government commences the implementation of Phase 1 recommendations, one or more demonstration project(s) will be identified and structured under Phase 2 of the TA.

Project Details

Project Officer
Fong Chin Choon Central and West Asia Department Request for information
Country
  • Azerbaijan
Modality
  • Technical Assistance
Sector
  • Energy
 
Project Name Preparing an Enabling Environment for Private Sector Participation in the Power Sector
Project Number 48200-001
Country Azerbaijan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8730-AZE: Preparing an Enabling Environment for Private Sector Participation in the Power Sector
Technical Assistance Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description The TA will reference international best practice for private sector participation in the power sector and assess the potential application and benefits specific to Azerbaijan. It is structured as a sequential program of tasks. Phase 1 includes the identification of the benefits of private sector participation in the power sector and any current restrictions, followed by the recommendation of a road map for private sector participation. In parallel, a detailed review of the existing policy, legal, and regulatory framework will be undertaken, and recommendations provided to enable private sector participation. Once the Government commences the implementation of Phase 1 recommendations, one or more demonstration project(s) will be identified and structured under Phase 2 of the TA.
Project Rationale and Linkage to Country/Regional Strategy The Government's annual budget cannot meet the total projected investments required to efficiently deliver electricity to all customers and meet the country's socioeconomic development targets. Enabling private sector participation in Azerbaijan's power sector will assist the Government meet the significant investment requirements for the sector, improve overall sector efficiency, and prepare a pilot project to catalyze potential future power sector reforms.
Impact Private sector participation in the power sector promoted.
Project Outcome
Description of Outcome The business environment for private sector participation in the power sector is improved.
Progress Toward Outcome Phase 1 of the TA commenced in March 2015 and was completed in February 2016. The Government has implemented certain Phase 1 recommendations and has established a Working Group to select a demonstration project to be implemented under Phase 2.
Implementation Progress
Description of Project Outputs

Road Map for private sector participation in Azerbaijan's power sector

Report recommending policy, legal, and regulatory changes required to create enabling environment

Project structure and development plan for a demonstration private sector participation project

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

Phase 1 has been completed with the submission of a Road Map and a Report recommending changes to create the proper enabling environment.

Work on Phase 2 will commence upon Government selection of a demonstration project with private sector participation.

At the request of the Government, the TA completion date has been extended until 30 June 2018.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders have been suitably consulted during project design (i.e., during reconnaissance and fact-finding missions).
During Project Implementation A stakeholder communication and management plan has been developed during the early stages of implementation to ensure effective stakeholder participation and consultation throughout project implementation.
Business Opportunities
Consulting Services

An international firm has been selected and has been mobilized.

The firm of consultants (or consortium) has been recruited in accordance with ADB's Guidelines on the Use of Consultants (April 2013, as amended from time to time) using Quality- and Cost-Based Selection (with 90:10 Technical: Financial ratio) and simplified technical proposal. The firm will provide 9.25 person-months inputs of international and 9 person-months inputs of national consultants.

Responsible ADB Officer Fong Chin Choon
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Office of the Director General, CWRD
Executing Agencies
Ministry of Finance
83, Same Vurgun Street AZ1022 Baku, Azerbaijan
Timetable
Concept Clearance 10 Apr 2014
Fact Finding -
MRM -
Approval 26 Sep 2014
Last Review Mission -
Last PDS Update 27 Mar 2018

TA 8730-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2014 24 Oct 2014 24 Oct 2014 30 Apr 2016 30 Jun 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 0.00 0.00 0.00 0.00 800,000.00 26 Sep 2014 622,062.53

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.

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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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Policy and Advisory Technical Assistance 8730 03 Feb 2015 Power Planning Associates Ltd. (United Kingdom) in association with Dentons Ukmea LLP (United Kingdom) Old Bakery Mews, 156-B Rectory Road, Farnborough, Hampshire GU14 8AL, United Kingdom Ministry of Finance 723,377.00

Procurement Plan

None currently available.