DUSHANBE, December 26, 2008, Asia-Plus — Today, the Government of Tajikistan and the Asian Development Bank (ADB) signed legal agreements for a project to rehabilitate an ageing facility in Tajikistan’s electricity supply network which is in danger of collapse, according to pres release issued by the ADB Dushanbe Office.
Safarali Najmuddinov, Minister of Finance, and Sharifkhon Samiyev, Chairman of Barqi Tojik signed the agreements for the Government, while Makoto Ojiro, ADB’s Country Director in Tajikistan signed on behalf of ADB.
ADB is providing a grant of $54.77 million from its Special Funds for the Norak Switchyard Reconstruction Project. The funds will be used to replace outdated equipment in the 500 kilovolt (kV) switchyard, with new switchgear moved to a more stable area of the plant. The Government and Barqi Tojik will provide counterpart fund of $12.1 million for the project.
The proceeds of the ADB’s grant will be loaned to state-owned utility, Barqi Tojik, which will award a single contract for the reconstruction work. The project will be implemented over a five-year period starting February 2009.
The Norak Hydroelectric Power Plant produces over 70% of the country’s electricity. It also plays a key role in regulating the frequency of power transmitted through the interlinked electricity networks of four other Central Asian countries — Kazakhstan, Kyrgyz Republic, Turkmenistan, and Uzbekistan.
However, the plant’s two switchyards — containing equipment that allows a transmission grid operator to clear faults in the system and to switch off parts of the grid to allow maintenance work to be done — were built more than 30 years ago and can no longer deliver a stable supply of power. In addition, some areas in the switchyards have been submerging due to unstable ground conditions, presenting a further threat.
The ADB’s grant follows an earlier government loan agreement under which Germany’s Credit Institute for Reconstruction, or Kreditanstalt für Wiederaufbau, agreed to finance replacement equipment in the 220kV switchyard.
“The project will ensure a sustainable and reliable electricity supply to support economic development. It will also mitigate the risk of natural disasters disabling the switchyard and will stabilize the flow of electricity coming from this strategically important power plant,” said Makoto Ojiro, ADB’s Country Director in Tajikistan. “The project will also support the regional energy sector development plans as part of the ADB’s Central Asia Regional Economic Cooperation (CAREC) Program.”
