Uzbekistan: Power Generation Efficiency Improvement Project
1. The project will construct two units of 450 MW energy efficient combined cycle gas turbines at the Talimarjan Thermal Power Plant located in Kashkadarya region, contributing to energy saving, greenhouse gas emission reduction, and reliable power supply in Uzbekistan. The project will build on the experience gained through Talimarjan Power Project (phase 1 project) by further improving the corporate governance and promoting commercialization of the energy sector.
Project Details
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Project Officer
Kim, Seung Duck
Central and West Asia Department
Request for information -
Country/Economy
Uzbekistan -
Modality
- Loan
- Technical Assistance
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Sector
- Energy
Related Projects
| Project Name | Power Generation Efficiency Improvement Project | ||||||||||||||||
| Project Number | 49253-003 | ||||||||||||||||
| Country / Economy | Uzbekistan |
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| Project Status | Active | ||||||||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships |
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| Sector / Subsector | Energy / Energy efficiency and conservation - Energy sector development and institutional reform |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||||||||||
| Description | 1. The project will construct two units of 450 MW energy efficient combined cycle gas turbines at the Talimarjan Thermal Power Plant located in Kashkadarya region, contributing to energy saving, greenhouse gas emission reduction, and reliable power supply in Uzbekistan. The project will build on the experience gained through Talimarjan Power Project (phase 1 project) by further improving the corporate governance and promoting commercialization of the energy sector. | ||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | 2. Uzbekistan economy has experienced growth averaging 8% per annum in 2011 -2015. Medium-term growth prospect beyond 2016 remains above 6.5%. The government embraces an ambitious investment plan and industrialization strategy, and the power demand is expected to rise. However, the power supply has grown at less than 2% on average for 2011- 2015. More than 75% of power generation units are 30 years or older with limited availability and low efficiency. Power shortage and high energy intensity may soon become a critical bottleneck for national welfare and economic growth. 3. While diversifying the energy sources with renewable energy, the government's strategy is to modernize the power generation infrastructure that is energy efficient with high availability to ensure reliable power supply at an affordable cost. Thermal power plants contribute 85% of the total power generation, with 11,500 MW installed capacity. However, only 470 MW uses combined cycle gas turbine (CCGT) technology, a modern efficient power unit with thermal efficiency of above 50% --the average efficiency of existing plants is only 32.6%. The government plans to install additional ten CCGT projects with 7,000 MW capacity in the next five years, including this proposed project. 4. ADB has been the leading international financial institution in supporting the adoption of energy efficient CCGT in Uzbekistan. The implementation of the Talimarjan Power Project is satisfactory with 82% completed (as of February 2016); its substantial completion is expected by the end of 2016. The Takhiatash Power Plant Efficiency Improvement Project bidding concluded and contract awarded. The key successful factors identified for project implementation include: (i) the ownership and the capacity of the project executing agency; (ii) appropriate guidance and close supervision by ADB; and (iii) close cooperation among the project executing agency, consultant, and ADB with shared common objectives. These lessons will be incorporated in the preparation and implementation of this proposed project. 5. Sector reforms are under way in the energy sector. The government has passed a decree to encourage foreign investment and foreign managers in the state-owned enterprises. It has also introduced key performance indicators to ensure accountability and financial performance. Uzbekenergo has adopted auditing based on the International Standards on Auditing, and financial statements compliance with the International Financial Reporting Standards, as an effort to improve transparency and financial management. Tariff analysis is under way jointly by the government, the World Bank, and ADB. Further, restructuring is ongoing for project management units (PMU) to increase PMU capacity and knowledge retention. However, further support is required for improving corporate governance, financial management, and sector commercialization for private sector participation. 6. The project follows ADB''s strategy for Uzbekistan, which includes a focus on energy efficiency and reliable power supply. The government requested for stand-alone sovereign lending for the project considering that it is a strategic public asset that is best implemented through a turnkey contract. |
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| Impact | Reliable energy supply increased and energy intensity reduced | ||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Efficiency and reliability of clean power supply improved |
| Progress Toward Outcome | ADB no objection to bidding documents for EPC contract issued on 22 June 2020. IFB and BD to be issued in Q3 2020. |
| Implementation Progress | |
| Description of Project Outputs | Talimarjan TPP capacity increased JSC Talimarjan TPP financial operation and performance improved Institutional capacity enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | IFB for EPC contract projected in Q3 2020, contract signing in Q3 2021, and commissioning in Q2 2024. The loan will be extended. IFB for EPC contract projected in Q3 2020, contract signing in Q3 2021, and commissioning in Q2 2024. The loan will be extended. MOF gave no objection to the power sector master plan on 8 Aug 2019 (ref letter 02/19-04-32/1207). New tariff methodology approved on 13 Apr 2019 (ref. Resolution of the Cabinet of Ministers 312). Financial recovery plan prepared in 2018 and initially implemented by JSC Talimarjan TPP in 2019. At least 20 JSC Talimarjan TPP staff trained by 2019. The project mgt and supervision consultant (PMSC) will assist in the training. JSC Talimarjan TPP's IFRS-based AEFS from FY 2019 to be submitted in 2021. The maintenance and service agreement will be secured after commissioning the two CCGTs in 2024. To divest their non-core assets, JSC Talimarjan TPP is planning to hand over the community social center to the local government. After transferring ownership, the operation plan will be developed. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | It is a large scale gas-fired thermal power plant although it adopts energy efficient combined cycle gas turbine technology. An environmental impact assessment will be conducted to abide by ADB's Safeguard Policy Statement (SPS) (2009). |
| Involuntary Resettlement | Based on the EA/IA's preliminary information, the power plant will be constructed within the territory of the existing Talimarjan TPP and there is no need for any land acquisition. As a part of project preparation due diligence, the project team will reconfirm if there is any land acquisition and/or involuntary resettlement, and if there is, appropriate measures will be discussed and agreed with the EA/IA. |
| Indigenous Peoples | The project is about constructing two units of 450 MW energy efficient combined cycle gas turbines within the existing Talimarjan Thermal Power Plant. The project area does not have IP communities as described in the SPS for operational purposes. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | As a part of the preparation of environmental impact assessment, at least two stakeholder consultations will be conducted by the project implementation agency with the assistance of project preparatory technical assistance consultant. In addition, as a part of rapid poverty and social assessment, PPTA consultant will organize Focus Group discussions (FGD) and structured interviews in Nuristan town. |
| During Project Implementation | A grievance redress mechanism (GRM) to handle both environmental and social safeguard issues will be established after the project effectivity. Consultations were carried out at preparatory stage of the project and during resettlement due diligence preparation, however Uzbekenergo through its Project Management Unit shall ensure continued meaningful consultations with the stakeholders during project implementation. |
| Business Opportunities | |
|---|---|
| Consulting Services | Project management and supervision consultant was engaged to support JSC Talimarjan Thermal Power Plant (formerly Uzbekenergo) during project implementation with an estimated 512 person-months input. Quality- and cost-based selection (QCBS) method was used with quality:cost ratio of 90:10. All consultants will be recruited according to ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers. |
| Procurement | A turnkey contractor will be engaged to construct the CCGT units in Talimarjan Thermal Power Plant. The procurement will follow open competitive bidding procedure using ADB's two-stage bidding method without pre-qualification. ADB's standard bidding document for Plant: Design, Supply and Install will be used. All procurement of goods, and works will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers. |
| Responsible ADB Officer | Kim, Seung Duck |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Energy Division, CWRD |
| Executing Agencies |
JSC Talimarjan TPP [email protected] Kashkadarya Province, Nishan District Nuristan City Uzbekistan |
| Timetable | |
|---|---|
| Concept Clearance | 19 Apr 2016 |
| Fact Finding | 04 Sep 2017 to 06 Oct 2017 |
| MRM | 24 Oct 2017 |
| Approval | 12 Dec 2017 |
| Last Review Mission | - |
| Last PDS Update | 30 Sep 2020 |
Loan 3621-UZB
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 12 Dec 2017 | 20 Jun 2018 | 12 Apr 2019 | 30 Jun 2023 | 31 Dec 2025 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 828.60 | Cumulative Contract Awards | |||
| ADB | 450.00 | 26 Jul 2022 | 7.97 | 0.00 | 2% |
| Counterpart | 201.60 | Cumulative Disbursements | |||
| Cofinancing | 177.00 | 26 Jul 2022 | 3.78 | 0.00 | 1% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
TA 9459-UZB
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 12 Dec 2017 | 03 Jan 2018 | 03 Jan 2018 | 31 Mar 2019 | 31 Dec 2019 | 01 Jun 2020 |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 0.00 | 2,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,000,000.00 | 26 Jul 2022 | 1,867,409.39 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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.
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.
| Title | Document Type | Document Date |
|---|---|---|
| Power Generation Efficiency Improvement Project: Environmental Monitoring Report (June-December 2021) | Environmental Monitoring Reports | May 2022 |
| Power Generation Efficiency Improvement Project: Environmental Impact Assessment (Final) | Environmental Impact Assessments | Nov 2017 |
| Power Generation Efficiency Improvement Project: Environmental Impact Assessment | Environmental Impact Assessments | Jun 2017 |
| Power Generation Efficiency Improvement Project: Environmental Impact Assessment (Russian Translation) | Environmental Impact Assessments | Jun 2017 |
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.
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ADB Loan to Help Modernize Power Generation in Uzbekistan
ADB has approved a $450 million loan to help install 850 MW to 950 MW in additional generation capacity in the Talimarjan TPP, which will help improve power generation efficiency and energy security in Uzbekistan.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| PROJECT MANAGEMENT AND SUPERVISION CONSULTANT | Loan 3621 | 03 Oct 2019 | JV AF-CONSULT (SWI) AND BC BUSINESS CONSULTIN | TAEFERNSTRASSE 26 BADEN, AG 5405 SWITZERLAND | Joint-Stock Company Uzbekenergo | 7,967,550.00 | 7,967,550.00 |
| Policy and Advisory | Technical Assistance 9459 | 10 May 2018 | CORPORATE SOLUTIONS CONSULTING LTD.(UNITED KINGDOM) | CHURCH HOUSE, 36 BYRON HILL ROAD HARROW-ON-THE-HILL, MIDDLESEX HA2 OHY UNITED KINGDOM | UzbekEnergo | 900,000.00 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Power Generation Efficiency Improvement Project: Procurement Plan | Procurement Plans | Jun 2022 |

