DUSHANBE, July 24, 2008, Asia-Plus — The German Development Bank (KfW Entwicklungsbank) and the Government of Tajikistan will sign a loan and financing agreement of EUR 25 million for the project “Rehabilitation/Reconstruction of 220‑kV-Switchyards Nurek Hydroelectric Power Station (HPS),” press release issued by KfW office in Dushanbe said.
According to press release, subsidence in some areas of the 220 kV and 500 kV air insulated switchyards (AIS) of Nurek HPS has been going for many years and could not be stopped due to geological formations in the ground. Therefore and due to the increasing rate of failure of the outworn electrical equipment it is intended to replace and to relocate the existing switchgears by new ones in order to ensure the operation of the power plant. Because there are no suitable locations in the close vicinity of the Nurek HPS, it is proposed to replace the existing air insulated switchgears by the compact Gas Insulated Substation (GIS) which requires less space.
It is planned to perform the project in two stages. The project, financed by the German Government comprises all investment measures of the first stage and includes the scope for the 220‑kV-GIS and all auxiliary installations and buildings while the second stage will include the scope of the 500‑kV-GIS.
The total cost of stage one is estimated at EUR 26.1 million. Considering the importance of the project for a reliable power supply in Tajikistan, KfW on behalf of the German Government has increased the amount provided to EUR 25 million, thereof a grant of EUR 7 million.
Altogether, Germany has committed grants to the amount of more than EUR 81.6 million for technical and financial cooperation since 2002, in order to assist the development of Tajikistan.
In the meantime, the source at the Ministry of Finance (MoF) said that the funds are provided in two tranches: the first tranche amounts to 13 million euros and the second one – 5 million euros. The loan is repayable in 40 years, according to him.
KfW Entwicklungsbank finances investment and project-related consulting services in developing countries and countries in transition. It carries out its work on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and is committed to the primary goal of German development cooperation, namely to sustainable improve the economic and social conditions of the people in developing countries. Through its Financial Cooperation (FC) work it contributes to reducing poverty, protecting natural resources and securing peace worldwide.
