Qairokkum HPP Climate Resilience Upgrade

Location:

Tajikistan

Project number:

47253

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Target board date:

18 Jul 2017

Status:

Board Approved

PSD disclosed:

10 Mar 2016

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing financing for the priority rehabilitation and modernization program at the Qairokkum hydro power plant (the "Qairokkum HPP"), the only power generation facility in the Sugd region of Northern Tajikistan.

The proceeds of the Bank's loan will be used to finance replacement of the remaining four out of six generation units at the Qairokkum HPP and rehabilitation of related infrastructure, following replacement of two units as part of the Qairokkum Hydropower Rehabilitation project. The Project will complete rehabilitation and modernisation of the Qairokkum HPP with resulting improvements in productivity, dam safety and resilience against the projected impacts of climate change of the Qairokkum HPP. The Project fully supports the Bank's Green Economy Transition Approach which fosters scaling up climate financing and resource efficiency activities.

Project Objectives

The Project is expected to:

  • increase the installed capacity by 32 MW which, together with the 16 MW increase under the first
    phase (OPID 41553), will result in an increase of the existing installed capacity from 126MW to
    174MW by installing new turbines;
  • prevent unnecessary discharge of water through spillways and allow generation of more electricity with the same flow of water;
  • raise the safety level of the power plant and the dam;
  • strengthen the power plant's resilience to the expected impacts of climate change through continued physical upgrades designed to take into account projected increases in climatic and hydrological variability.

Transition Impact

The Project is expected to have the following transition impact:

  • The rehabilitation will increase resource efficiency, preventing unnecessary discharge of water through spillways and allowing generation of more electricity with the same flow of water. The Project will also improve reliability and safety of the Qairokkum HPP, ensuring reliable and uninterrupted service to domestic consumers in the Northern Tajikistan. Implementation of the complex rehabilitation and modernisation of the Qairokkum HPP applying best international practices (in particular, integrating detailed analysis of the projected climate change impacts into the rehabilitation design) will have a replicable impact with the potential to be adopted in future hydropower investments and infrastructure upgrades across the region.
     
  • The Project will enhance the Client's ability to manage climate change related risks to hydropower operations by strengthening the transboundary coordination of hydropower cascade management through institutional capacity development and skills transfer. These improvements will play an important role in dispersing new skills across the industry and across the region.

Client Information

TAJIKISTAN

The loan will be on-lent to Open Stock Holding Company "Barki Tojik" (OSHC Barki Tojik), an
existing client of the Bank, a 100% state-owned vertically integrated power utility accounting for about
80% of domestic power output and responsible for transmission and distribution of electricity almost
in the entire Tajikistan.

EBRD Finance Summary

USD 38,000,000.00

Up to USD 38 million sovereign loan.

Total Project Cost

USD 126,000,000.00

The total project cost is estimated at USD 126 million. The Bank is in discussion with potential cofinanciers with regards to the Project co-financing.

Environmental and Social Summary

Categorised B (2014).  The works associated with the Project consist in extending the rehabilitation works planned on two turbines under the Qairokkum Hydropower Rehabilitation Project (“Qairokkum 1”, Project ID 41553, categorized B under EBRD 2008 environmental and social policy) to the four remaining turbines of the Qairokkum hydropower scheme.

The environmental and social due diligence (ESDD) for Qairokkum 1 was carried out in 2014 by an independent consultant. The Qairokkum 1 Project is presently at a very early stage of development (the PIU and the design consultants have been mobilized in 2016 Q1).  The ESDD that was carried out for the Qairokkum 1 Project was not turbine-specific and therefore did cover the activities that will be implemented under the Project. The ESDD of the Project was therefore carried out with ESD internal resources, together with a site visit aimed at monitoring the beginning of the implementation of the Qairokkum 1 Environmental and Social Action Plan (ESAP).

The site visit and monitoring indicated that no material change requiring additional assessments occurred in relation to the Project. The main change is that Qairokkum hydropower plant (HPP) obtained ISO 9001 certification in 2015, which will ease the preparation of an integrated SIO9001-ISO14001 and OHSAS18001 management system at the HPP level. No additional studies are required and the Project does not require an environmental impact assessment.

After the site visit, a revised version of the Qairokkum 1 ESAP was prepared and agreed with the Client: this revised version will cover both Qairokkum 1 and the Project, and the changes that were made in the ESAP were limited to timeline adjustments to reflect the new Project’s schedule. The Stakeholder Engagement Plan and the Non-Technical Summary that were prepared for Qairokkum 1 will also be used to cover both Qairokkum 1 and the Project.

The Project does not require a Greenhouse Gas Assessment.

Monitoring will comprise annual environmental and social reporting, including on implementation of the action plan, and site visits, when appropriate. The annual environmental and social reporting format was agreed with the Client. The main actions included in the ESAP refer to the implementation of a certified and integrated environmental and social management system.

Technical Cooperation

The following post-signing TC assignments are envisaged to ensure success of implementation:

  • Project Implementation Support to assist the project implementation unit with procurement, preparation and evaluation of tenders, contract award and administration, financial control and reporting. The estimated cost of this assignment is USD 1,500,000, proposed to be financed by the SSF.
     
  • Corporate Development Programme to provide capacity building support to the Client for improving the resilience of hydropower operations to climate change and development of institutional capacity for promoting the transboundary coordination with regards to the hydropower cascade management. The estimated cost of this assignment is up to USD 1,000,000, proposed to be financed by the SSF.

Company Contact Information

Mr. Saidov Saidmumin, Executive Director of Project Realisation Group for Energy Loss Reduction Project
elrpbt@gmail.com
+992-37-235-87-64
www.barqitojik.tj
64, I.Somoni Street, Room 302, Dushanbe 734026, Republic of Tajikistan
 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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