The proposed project is to finance the implementation of the Supervisory Control and Data Acquisition/Energy Management System (“SCADA/EMS”) at the central dispatch (CDU), the supra-regional dispatch (ODUs) and the regional dispatch (RDU) levels of the hierarchical control system of the System Operator of the Unified Power System of Russia (“System Operator” or “SO”).
The project aims at providing a state-of-the art single operational platform for the management of the SO controlled Unified Power System network. In addition, the new system aims at integrating present systems and systems under development at SO, dedicated to specific operational functions within the company.
The original transition impact of the Project derives from the following:
Promoting Competitive Markets Development
Efficient power dispatching is a core function of any System Operator. The absence of a single operational platform for SO is a substantial risk factor, which could adversely affect the transition to competitive relations in the power sector. Such platforms are used internationally by most system operators and there is sufficient experience and expertise available in its development and implementation. The introduction of SCADA/EMS systems will reduce risk of failure of the recently implemented liberalised market.
Transfer and dispersion of skills
The Project will partially implement and mainly catalyze improvements and technological upgrade to the industrial telecom sector. The associated transfer of skills through the training component is also expected to contribute to the transition impact of the transaction.
OJSC “System Operator of the Unified Power System” (“System Operator” or “SO”) – the power dispatch operator of the Unified Power System of Russia, a 100% owned by Russian Government.
The long term debt financing of the supply and install conrtact for SCADA/EMS.
The estimated cost of the remaining project is EUR 88.4 million, including the estimated EUR 60 million cost of the supply and install contract with a new contractor. The new contract will be selected under EBRD procurement rules and will be financed by the Bank’s loan.
The original Project has been rated C/1. However, under a new classification in the Bank’s Environment and Safety Policy, the Project falls under Category B.
The installation and adaptation of a specialized SCADA/EMS software and equipment is not associated with significant environmental issues. The project will enhance energy management and may indirectly bring about some environmental benefits through improved efficiency across the power transmission and distribution system.
A corporate health, safety, social and environmental review of SO showed that its assets consist mainly of buildings and IT equipment and software with limited environmental and social impacts. The environmental and social due diligence was focused on health and safety aspects of SO’s operations. SO has established an operational health and safety management system in compliance with Russian Occupational health and safety regulations. SO also has initiatives underway to further improve workplace conditions and medical services for its staff. Folloiwng the due dilligen undertaken at present, the SO initiatives described above will be included in the new Environmental and Social Action Plan (ESAP) for the Client.
SO will provide annual reports to the Bank of its health and safety performance and of its progress in implementing the initiatives included into the ESAP.
In 2005-2006, the Bank implemeted the Technical Cooperation study to review the regulatory aspects of the System Operator’s tariff structure. The results of the study have been shared with the Federal Tariff Service (FTS).
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Text of the PIP