Translated version of this PSD: Russian
The EBRD is considering providing financing for Phase I of the priority rehabilitation of hydro-mechanical and electrical equipment of two units out of six at the Kairakkum hydro power plant in Tajikistan. The rehabilitation will increase the currently installed capacity of the plant from 126MW to 142MW by installing two new turbines with greater rated capacity. Turbines with greater capacity will prevent unnecessary discharge of water through spillways and generate more electricity with the same flow of water. The project will also raise the safety level of the power plant and strengthen its resilience against the projected impacts of climate change.
The project is expected to have the following transition impact:
- Provide assistance through comprehensive regulatory technical cooperation (TC) to be implemented in two phases. Phase I focuses on strengthening technical capacity of the power sector officials and preparing a regulatory action plan. Phase II concentrates entirely on the implementation of the action plan with particular emphasis on providing support for developing a new tariff methodology, building policy and regulatory capacity and assisting with drafting relevant regulatory legislation;
- Support improvements in corporate governance and business conduct of Barki Tojik. The project aims to support the adoption of a new organisational structure which is consistent with the scale of operations of Barki Tojik, establishment of a Board of Directors with one independent director, adoption of Code of Corporate Governance and annual development of a five-year business and a five-year financing plan.
- Demonstrate an innovative approach by incorporating climate change analytical studies and structural climate resilience measures into Kairakkum plant rehabilitation. The Bank also offers an associated TC package which will enable Barki Tojik and other relevant institutions such as Tajik Hydromet to develop and adopt improved practices for assessing the impacts of climatic variability and climate change on hydropower operations, and for using such information in improved management tools.
Open Stock Holding Power Company Barki Tojik is a 100% state owned vertically integrated power utility responsible for generation, transmission and distribution of electricity in Tajikistan.
Up to US$ 50 million sovereign-guaranteed loan to Barki Tojik for Phase I of the rehabilitation. Phase I will be co-financed with funds from the Pilot Program for Climate Resilience. This co-financing includes a US$ 11 million grant and a US$ 10 million concessional loan.
Approximately US$ 75 million.
The project is categorised B under the EBRD Environmental and Social Policy 2008. Environmental and social issues associated with the proposed rehabilitation works and replacement of electromechanical equipment are site specific and can be readily addressed through the implementation of the mitigation measures. The rehabilitation will increase current installed capacity of the plant from 126MW to 142MW by installing two new turbines with greater rated capacity.
The Bank commissioned an independent consultant to undertake an Environmental and Social Due Diligence (ESDD) of the project. This has confirmed that the rehabilitation will not be associated with any extension of the reservoir size and dam height, or with any substantial change of the operating regime. The ESDD has confirmed that the project is structured to comply with the Banks Performance Requirements (PRs).
Based on the ESDD report, a Non-Technical Summary (NTS), a Stakeholder Engagement Plan (SEP) and a draft Environmental and Social Action Plan (ESAP) have been prepared by the consultant and reviewed by ESD before being submitted for review to Barki Tojik. The SEP includes, among others, the disclosure of the NTS on Barki Tojik’s website for public information and development of grievance mechanisms for the public and employees. The main measures included in the ESAP are:
- introduction of E&S management system at the Kairakkum HPP level and OHS and pollution prevention measures for the construction period;
- preparation of an Emergency Response Plan to manage emergency situations and inform directly downstream stakeholders in Uzbekistan and Kazakhstan. The Emergency Response Plan corresponds to international good practice and would be the first one for a large dam in Tajikistan;
- an assessment and implementation of measures for reduced fish mortality. The ESAP will need to be reviewed and agreed by Barki Tojik.
€800,000 was provided by the Austrian Technical Cooperation Trust Fund to prepare the feasibility study for the plant rehabilitation. In addition, the following technical assistance is envisaged:
- International assistance to the Project Implementation Unit during implementation of Phase I;
- Capacity building support to Barki Tojik for improving the resilience of hydropower operations to climate change;
- Regulatory assistance to strengthen technical capacity of power sector officials and preparation of regulatory action plan.
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