Kyrgyz Republic : Uch-Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)

Sovereign Project | 49240-002

The proposed project will replace ageing electrical and mechanical equipment for power generation and transmission at the Uch-Kurgan hydropower plant (HPP) in the Naryn River cascade and undertake silt and sedimentation removal which hinders the proper operation of hydromechanical equipment of the HPP. This will (i) increase the availability of clean hydropower for domestic use and potential export to Uzbekistan and Kazakhstan, (ii) enhance the integrity of hydromechanical structures and, ensure safe and optimal reservoir operation, and (iii) contribute to multiyear water supply management from the Naryn River cascade, which is essential for downstream agriculture mainly in Uzbekistan.

Project Details

  • Project Officer
    Vogel, Johannes E.
    Central and West Asia Department
    Request for information
  • Country/Economy
    Kyrgyz Republic
  • Modality
  • Sector
    • Energy

Related Projects

Project Name Uch-Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
Project Number 49240-002
Country / Economy Kyrgyz Republic
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0643-KGZ: Uch Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
Asian Development Fund US$ 40.00 million
Loan 3778-KGZ: Uch Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
Asian Development Fund US$ 60.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Energy efficiency and conservation - Energy sector development and institutional reform - Large hydropower generation

Gender Some gender elements
Description The proposed project will replace ageing electrical and mechanical equipment for power generation and transmission at the Uch-Kurgan hydropower plant (HPP) in the Naryn River cascade and undertake silt and sedimentation removal which hinders the proper operation of hydromechanical equipment of the HPP. This will (i) increase the availability of clean hydropower for domestic use and potential export to Uzbekistan and Kazakhstan, (ii) enhance the integrity of hydromechanical structures and, ensure safe and optimal reservoir operation, and (iii) contribute to multiyear water supply management from the Naryn River cascade, which is essential for downstream agriculture mainly in Uzbekistan.
Project Rationale and Linkage to Country/Regional Strategy

The Kyrgyz Republic is rich in hydropower resources, which potentially can generate about 150 terra watt-hour (TWh) electricity per year of which only 10% has been exploited so far. For 2018, about 80% of its 3,920-megawatt (MW) electricity generation capacity is from hydropower, and the rest comes from two combined heat and power plants in Bishkek and Osh. Most of the country's hydropower generation comes from the Naryn River cascade, with total installed capacity of 2,870 MW.

Covering 150 kilometers (km), the Naryn River cascade is the powerhouse of the Kyrgyz Republic; its six HPPs produce 92% of the country's hydropower supply. The Toktogul HPP built in 1975 is the largest of the six plants with 1,200 MW of generation capacity, and the Uch-Kurgan HPP built in the early 1960s is the oldest; the other four plants are relatively new. Uch-Kurgan is 271 km southwest of Bishkek, near the Uzbekistan border. It was the first installation and is used as a baseload plant.

The Uch-Kurgan HPP has an earth fill dam and a concrete dam with an outdoor powerhouse of 180 MW equipped with four vertical Kaplan turbinessuitable for low head and high flow ratesof 45 MW each. Since its commercial operations in 1962, no major improvement has ever been undertaken. The HPP is in poor condition, is well past its useful economic and functional life, and needs immediate major rehabilitation and replacement. Replacing ageing equipment and modernizing is urgently needed to maintain the integrity of the power system in the cascade.

Replacing ageing equipment and modernization of power plant will provide potentially up to 20% of additional capacity and it is the least-cost option to add new capacity. Supply reliability (measured by frequency and duration of outages) and service quality (fluctuations in voltage, frequency, or harmonics that can damage equipment) are likely to worsen without new investments and are key concerns for the business community.

Impact

Operational performance of Kyrgyz Republic power sector improved (Concept for Development of Energy Sector of The Kyrgyz Republic 2030)

Project Outcome
Description of Outcome

Hydropower generation from Naryn River cascade improved

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Uch Kurgan HPP facility modernized

EPP's commitment to operational sustainability and diversity reinforced

Status of Implementation Progress (Outputs, Activities, and Issues) Progress of Output (i) Package 2: EPC contract for the Hydropower plant was awarded in June 2021. (ii) Project Implementation Consultant contract awarded in April 2021.Other activities: 1. Recruitment of women engineers is yet to be initiated, ongoing discussions with local and international universities. 2. Recruitment of external auditor on-going.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

An environmental assessment was conducted in accordance with ADB's Safeguard Policy Statement (SPS 2009). Anticipated environmental impacts of the project are related to construction and rehabilitation of dam structures. The project complies with public disclosure and consultation requirements. An initial environmental examination (IEE) including an EMP was prepared and disclosed on 26 Sep 2018. The IEE will be updated by the EA as needed.

Involuntary Resettlement During the project preparation stage, it was confirmed that all the civil works will be implemented within the confines of the existing Uch-Kurgan HPP where no land acquisition or livelihood impacts will occur and that all the lands for sediment disposal sites are public lands. Public consultation was conducted in August 2018 and Grievance Redress Mechanism was prepared which will be functional once the project is approved.
Indigenous Peoples

Any of the project components will neither impact any community of indigenous people, groups, or ethnic minorities nor interfere with their territories, livelihoods, customary properties, or natural / cultural resources.

Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultation was conducted during project design especially during the IEE preparation.
During Project Implementation Stakeholder consultation and participation will be promoted throughout project implementation.
Business Opportunities
Consulting Services

Consulting services under the project includes: (i) project implementation consultant (PIC); (ii) EPP PIU individual consultants (international and national); (iii) EPP women for EPP engineers' program (national); and (iv) external audit. The request for proposal for project implementation consultant (PIC) was issued on 31 May 2019 on which 6 international firms were requested to submit technical and financial proposals on 30 July 2019. PIC contract awarded in April 2021. Individual consultant to support EPP have been engaged in February 2022.

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). External auditing and public information program consultants will be selected using least-cost selection (LCS). PIU support consultant will be recruited using individual consultants selection (ICS).

Procurement

Procurement packages will include: (i) dredging equipment and related services; (ii) Civil structure repair and cam monitoring system; and (iii) hydropower electromechanical (HEM) generation equipment and hydraulic steel structure (HSS). Invitation for Bids on the HEM-HSS package was issued on 17 April 2019 on which 47 bidders purchased the Bid Documents. Seven (7) Bidders submitted Bids on the date of deadline (30 October 2019). Awarded in June 2021.

There were significant delays in implementation caused by global lockdown.

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).

Responsible ADB Officer Vogel, Johannes E.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Energy of Kyrgyz Republic (formerly State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic)
OJSC Electric Power Plants
Timetable
Concept Clearance 19 Apr 2017
Fact Finding 16 Jul 2018 to 27 Jul 2018
MRM 15 Oct 2018
Approval 26 Mar 2019
Last Review Mission -
Last PDS Update 17 Mar 2022

Grant 0643-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2019 01 Nov 2019 31 Mar 2020 30 Jun 2025 30 Jun 2027 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 40.00 21 Mar 2023 34.42 0.00 86%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 21 Mar 2023 7.02 0.00 18%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3778-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2019 01 Nov 2019 31 Mar 2020 30 Jun 2025 30 Jun 2027 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.00 Cumulative Contract Awards
ADB 60.00 21 Mar 2023 48.05 0.00 80%
Counterpart 15.00 Cumulative Disbursements
Cofinancing 0.00 21 Mar 2023 9.52 0.00 16%

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Uch-Kurgan Hydropower Plant Modernization Project: Audited Project Financial Statements (31 March 2020-31 March 2021) Audited Project Financial Statements Jun 2022
Uch-Kurgan Hydropower Plant Modernization Project: Updated Project Administration Manual Project/Program Administration Manual Oct 2021
Project Agreement for Loan 3778-KGZ and Grant 0643-KGZ: Uch-Kurgan Hydropower Plant Modernization Project Project/Program Agreements Nov 2019
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3778-KGZ: Uch-Kurgan Hydropower Plant Modernization Project Loan Agreement (Ordinary Resources) Nov 2019
Grant Agreement (Special Operations) for Grant 0643-KGZ: Uch-Kurgan Hydropower Plant Modernization Project Grant Agreement Nov 2019
Uch-Kurgan Hydropower Plant Modernization Project: Procurement Plan Procurement Plans Mar 2019
Uch-Kurgan Hydropower Plant Modernization Project: Report and Recommendation of the President Reports and Recommendations of the President Mar 2019
Uch-Kurgan Hydropower Plant Modernization Project: Project Administration Manual Project/Program Administration Manual Mar 2019
Проект модернизации Уч-Курганской гидроэлектростанции (ранее - проект энергетического сектора) : Информация о проекте Translated PDS Apr 2017
Үч-Коргон гидроэлектростанциясын модернизациялоо долбоору (мурунку Энергетика сектору долбоору) : Долбоор жөнүндө маалымат Translated PDS Apr 2017
Uch Kurgan Hydropower Plant Modernization Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Apr 2017

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.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
External Auditing Firm - Consulting Closed
Project Coordinator/Procurement Expert Individual - Consulting Closed
Financial Management Expert Individual - Consulting Closed
Environment Expert Individual - Consulting Closed
Environment Expert Individual - Consulting Closed
3778-KGZ: Uch-Kurgan Hydropower Plant Modernization Project [Package No. 2] Invitation for Bids Closed
KGZ: Uch-Kurgan Hydropower Plant Modernization Project Advance Notice Active
Uch-Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project) Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PKG2: HPP & HSS REPLACEMENT FOR UCH KURGAN HPP Loan 3778 16 Sep 2021 CHINA NATIONAL ELECTRIC ENGINEERING CO. LTD and DONGFANG ELECTRIC MACHINERY (JV) | 9 SOUTH SHOUTI ROAD HAIDIAN DISTRICT BEIJING100048 CHINA PEOPLE'SREP.OF OJSC Electric Power Plants 78,954,500.00 48,054,500.00
PKG 2:HPP & HSS REPLACEMENT FOR UCH KURGAN HPP Grant 0643 14 Jun 2021 CHINA NATIONAL ELECTRIC ENGINEERING CO. LTD | 9 SOUTH SHOUTI ROAD HAIDIAN DISTRICT BEIJING 100048 CHINA PEOPLE'S REP. OF OJSC Electric Power Plants 30,900,000.00
PKG2: HPP & HSS REPLACEMENT FOR UCH KURGAN HPP Loan 3778 21 Jun 2021 CHINA NATIONAL ELECTRIC ENGINEERING CO. LTD | 9 SOUTH SHOUTI ROAD HAIDIAN DISTRICT BEIJING 100048 CHINA, PEOPLE'S REP. OF OJSC Electric Power Plants 48,054,500.00 48,054,500.00

Procurement Plan

Title Document Type Document Date
Uch-Kurgan Hydropower Plant Modernization Project: Procurement Plan Procurement Plans Mar 2019