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Tajikistan: Power Sector Development Program

Sovereign (Public) Project | 53315-001 Status: Proposed

The proposed Power Sector Development Program (PSDP) will accelerate the implementation of on-going reforms and restore financial sustainability of the power sector in Tajikistan. ADB has supported Tajikistan power sector reforms through the ongoing Sector Operation Performance Improvements (SOPI) program, which has built the basis for the fundamental reform program of PSDP that includes unbundling of the vertically integrated power utility company, restructuring of the utility's excessive liabilities, establishment of a regulator, adoption of a tariff methodology, and establishment of a new centralized cash control system among unbundled entities. As a part of reforms and institutional capacity building, a newly established power distribution company will be given a 5-year management contract. Investments in the retail advanced metering system in Dushanbe and 6 other cities will also fill the key deficiencies in the sector's power loss accounting and bill collection systems.

Project Details

Project Officer
Inoue, Yuki Central and West Asia Department Request for information
Country
  • Tajikistan
Sector
  • Energy
 
Project Name Power Sector Development Program
Project Number 53315-001
Country Tajikistan
Project Status Proposed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant: Power Sector Development Program
concessional ordinary capital resources lending / Asian Development Fund US$ 85.00 million
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution - Energy sector development and institutional reform

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Power Sector Development Program (PSDP) will accelerate the implementation of on-going reforms and restore financial sustainability of the power sector in Tajikistan. ADB has supported Tajikistan power sector reforms through the ongoing Sector Operation Performance Improvements (SOPI) program, which has built the basis for the fundamental reform program of PSDP that includes unbundling of the vertically integrated power utility company, restructuring of the utility's excessive liabilities, establishment of a regulator, adoption of a tariff methodology, and establishment of a new centralized cash control system among unbundled entities. As a part of reforms and institutional capacity building, a newly established power distribution company will be given a 5-year management contract. Investments in the retail advanced metering system in Dushanbe and 6 other cities will also fill the key deficiencies in the sector's power loss accounting and bill collection systems. The program is included in the Country Operations Business Plan, 2019-2021. A separately approved transaction technical assistance facility (FTRTA) will be used to finalize due diligence activities.
Project Rationale and Linkage to Country/Regional Strategy The mix of policy-based and investment components of a sector development program is ideal in resolving the severe financial distress faced by the Tajikistan power sector, which requires a combined approach of institutional and regulatory reforms and investments. The sector's financial sustainability and competitiveness will be vital in benefitting from reviving regional integration. Management contract promotes public private partnership and future private sector participation. The program will be designed to align with operational priorities 1 (address poverty and inequality), 2 (accelerate gender equality), 3 (tackle climate, disasters, environment), 6 (strengthen governance, institutions) and 7 (foster regional cooperation, integration).
Impact Sustainable access to energy resources (National Development Strategy of the Republic of Tajikistan for the period up to 2030)
Outcome Power sector financial sustainability improved
Outputs

Financial stability of power utilities improved

Power sector governance structure strengthened

Sustainable corporate management introduced in the new distribution company

Retail billing and collection system modernized

Female participation in energy sector activities increased

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Inoue, Yuki
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Energy and Water Resources
Shamsi Street 5/1
Dushanbe, Tajikistan
Ministry of Finance
3, Academic Rajabovs
Dushanbe
Tajikistan
Open Stock Holding Company "Barqi Tojik"
64 Ismolili Somini Avenue, Dushanbe
Tajikistan, Postal Code 734026
Timetable
Concept Clearance 27 Apr 2020
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 28 Apr 2020

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Tajikistan Distribution Company Management Contract Firm - Consulting Closed 20 Feb 2020 20 Mar 2020
Project Implementation Consultant Firm - Consulting Closed 07 Jan 2020 05 Feb 2020
53315-TAJ: Power Sector Development Program Other Notice Active 16 Dec 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.