Asian Development Bank – Power Sector Improvement Project (formerly Transmission and Distribution Metering Project)

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Project Status: Closed
Project at-a-glance
Project Name Power Sector Improvement Project (formerly Transmission and Distribution Metering Project)
Project Number 43456-023
Sector/Subsector Energy
Country Kyrgyz Republic
Project Opening Date 27 Sep 2010
Project Closing Date 31 Dec 2017
Responsible Institution
Responsible International Financial Institution Asian Development Bank
Responsible Executive Agencies

National Electric Grid of Kyrgyzstan

Objectives
Strategic Agenda

Inclusive economic growth Regional integration

Description

While the entire power sector needs modernization, the Government places highest priority on loss reduction and strengthening governance. This is not only to improve commercial operations, but to regain the population’s confidence in the power sector and to reestablish political stability. Energy security through generation capacity expansion is a priority, but the short-term solutions are to improve system efficiency and reliability, and to enhance regional power trade. The proposed Project contributes to attaining the goals through the following components:

(i) Automated Metering and Data Acquisition system (AMDA) will bring transparency to the wholesale electricity transaction between the unbundled power companies as well as in regional power trade. AMDA will eliminate errors and rampant metering data manipulation that are untraceable by the current archaic technology. Loss reduction will make more power available domestically and also improve the financial performance of the power companies. Accurate power flow data is indispensible to improve the power companies’ commercial operation performance. The system also enhances regional power trade through (i) meeting the CAPS metering accuracy requirement, and (ii) eliminating unauthorized export.

(ii) Substation Rehabilitation will improve reliability of the Kyrgyz power system by replacing dilapidated circuit-breakers and instrument transformers that have reached their economic lives, are technologically obsolete, or do not meet the accuracy requirement for regional power trade. Since the Kyrgyz system is intricately interconnected with the Central Asia Power System (CAPS), rehabilitation increases reliability of the regional system and enhance regional power trade.

(iii) Communications and Supervisory Control and Data Acquisition (SCADA) system will link seven major substations (estimated) and the control centers via optical fiber, and enables the system operator to make efficient dispatching based on real-time data. The scope is limited to system monitoring function of the northern loop. SCADA will reduce technical losses through avoidance of overloading, and also enable faster detection and restoration of faults. The system improves the overall efficiency and reliability of the Kyrgyz system and CAPS.

(iv) Study on Electricity Settlement Center will study the settlement systems appropriate to bring about transparency and accountability to the Kyrgyz power sector, and to maximize the benefits of the AMDA. It will devise mechanisms to publish data on energy flows and manage distribution of sector revenues in a transparent manner.

(v) Corporate and Financial Management Capacity Building for the National Electric Grid of Kyrgyzstan (NEGK) will improve corporate management through the preparation of a corporate business plan including the review of investment needs, operation and maintenance practices, organizational reforms, internal control, asset revaluation, and cost of transmission service. Financial management capacity will be strengthened through introduction of the International Financial Reporting Standards (IFRS) and appropriate corporate accounting software.

The project fits with ADB’s Starategy 2020 and ADB’s Energy Policy. The latter focuses on energy efficiency, cutting fossil fuel use, energy security, energy access, and regional cooperation. The project also promotoes capacity development and governance.

Source of Funding

Asian Development Fund

Amount of Funding

US$ 44.80 million

Project Outcome

Better operational efficiency of the power companies

Business Opportunities
Consulting Services

(i) Project management. The project implementation contract was concluded in December 2014. NEGK will engage individual consultants to augment the PIU staff for the rest of project implementation period.

(ii) NEGK capacity development. The Consultants’ Final Report for the Capacity Building of NEGK have been submitted to MOE. Consultant’s contract has been completed.

(iii) Settlement mechanism study. The Consultants’ Final Reports for the Settlement Mechanism Study has been submitted to MOE. Consultant’s contract has been completed.

Procurement

(i) Plant – design, supply, and install contract for AMDA and SCADA systems and communications. Bidding documents were issued in September 2013. Bids were received in February 2014. Technical bid evaluation report (TBER) was approved in January 2015. Financial evaluation is ongoing, and contract award is expected by June 2015.

(ii) Goods for substation rehabilitation and equipment. Supply contract was awarded on 5 March 2013 is ongoing. Complete delivery of good is expected by Q1 2015, with 95% disbursed under the contract.

Contact Information of International Financial Institution
Organization/Department Central and West Asia Department, Asian Development Bank
Name Mirdin Eshenaliev
Address 52-54 Orozbekov Street
Province/State Bishkek
Postal Code 720040
Country Kyrgyz Republic
Phone +996 312 624195, +996 312 900445
E-mail

Online E-mail Form

Website

Link to project site

Contact Information of Project Implementer
Organization/Department National Electric Grid of Kyrgyzstan
Name Medetbek Aitkulov
Address 326 Jibek Jolu,
Province/State Bishkek
Postal Code 720070
Country Kyrgyz Republic
Phone 996 (312) 661001
E-mail

nesk@elkat.kg

Website

www.energo.kg