49240-002: Uch-Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project) | Asian Development Bank

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

Sovereign (Public) Project | 49240-002 Status: Approved

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
Hasnie, Sohail Central and West Asia Department Request for information
Country
  • Kyrgyz Republic
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Uch-Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
Project Number 49240-002
Country Kyrgyz Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0643-KGZ: Uch Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
concessional ordinary capital resources lending / Asian Development Fund US$ 40.00 million
Loan 3778-KGZ: Uch Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan 8354-KGZ: Uch Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project)
Eurasian Development Bank US$ 45.00 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 Equity and Mainstreaming 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 turbines suitable for low head and high flow rates of 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)
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; EPP PIU individual consultants; EPP women Engineers program; and external audit.

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 dam monitoring system; and (iii) Electromechanical generation equipment and hydraulic steel structure.

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 Hasnie, Sohail
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
OJSC Electric Power Plants
326 Jibek Jolu Prospect,
Bishkek
Kyrgyz Republic
State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic
[email protected]
Erkindik Avenue,
2 Bishkek, 720740
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 26 Mar 2019

Grant 0643-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2019 - - 30 Jun 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 40.00 26 Mar 2019 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Mar 2019 0.00 0.00 0%

Loan 3778-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2019 - - 30 Jun 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.00 Cumulative Contract Awards
ADB 60.00 26 Mar 2019 0.00 0.00 0%
Counterpart 15.00 Cumulative Disbursements
Cofinancing 0.00 26 Mar 2019 0.00 0.00 0%

Loan 8354-KGZ

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 45.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 45.00 - 0.00 0.00 %

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
3778-KGZ: Uch-Kurgan Hydropower Plant Modernization Project [Package No. 2] Invitation for Bids Active 17 Apr 2019 31 May 2019
KGZ: Uch-Kurgan Hydropower Plant Modernization Project Advance Notice Active 15 Apr 2019
Uch-Kurgan Hydropower Plant Modernization Project (formerly Energy Sector Project) Firm - Consulting Closed 08 Mar 2019 08 Apr 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan