49253-003: Power Generation Efficiency Improvement Project | Asian Development Bank

Uzbekistan: Power Generation Efficiency Improvement Project

Sovereign (Public) Project | 49253-003 Status: Approved

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

Project Officer
Kim, Seung Duck Central and West Asia Department Request for information
Country
  • Uzbekistan
Modality
  • Loan
  • Technical Assistance
Sector
  • Energy
 
Project Name Power Generation Efficiency Improvement Project
Project Number 49253-003
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3621-UZB: Power Generation Efficiency Improvement Project
Ordinary capital resources US$ 450.00 million
Loan: Power Generation Efficiency Improvement Project
Uzbekistan Fund for Reconstruction and Development US$ 400.00 million
TA 9459-UZB: Power Sector Reform and Sustainability Support Program
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Energy / Energy efficiency and conservation - Energy sector development and institutional reform

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 proposed 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 proposed project considering that it is a strategic public asset that is best implemented through a turnkey contract.

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
Implementation Progress
Description of Project Outputs

Talimarjan TPP capacity increased

Uzbekenergo financial operation and performance improved

Institutional capacity enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
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 To be confirmed during the project design.
Responsible ADB Officer Kim, Seung Duck
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
UzbekEnergo
6 Istiklol Street
Tashkent, 100000, Uzbekistan
Timetable
Concept Clearance 19 Apr 2016
Fact Finding 25 Sep 2017 to 06 Oct 2017
MRM 24 Oct 2017
Approval 12 Dec 2017
Last Review Mission -
Last PDS Update 12 Dec 2017

Loan 3621-UZB

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,048.00 Cumulative Contract Awards
ADB 450.00 - 0.00 0.00 %
Counterpart 198.00 Cumulative Disbursements
Cofinancing 400.00 - 0.00 0.00 %

TA 9459-UZB

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 - 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.

The Public Communications Policy (PCP) 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.

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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.


The Public Communications Policy (PCP) 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
Power Sector Master Plan - Power Generation Efficiency Improvement Project Firm - Consulting Active 23 Nov 2017 22 Dec 2017
Roadmap for Tariff Reform for Improved Sector Sustainability - Power Generation Efficiency Improvement Project Firm - Consulting Active 22 Nov 2017 21 Dec 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan