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  • OFFICIAL USE

    Nizhne-Bozsu Hydropower Plant Rehabilitation Project

    Terms Of Reference - Feasibility Studies Page 1 of 19 OFFICIAL USE

    REPUBLIC OF UZBEKISTAN

    NIZHNE-BOZSU HYDROPOWER PLANT REHABILITATION PROJECT

    TERMS OF REFERENCE

    FEASIBILITY STUDIES

    1. BACKGROUND

    UzbekHydroEnergo (“UzHydro”) is a state enterprise and was established in May 2017 and

    consolidated under its operation all the existing hydropower plants in the Uzbekistan, which

    were spun off from the vertically-integrated JSC “Uzbekenergo” (“Uzbekenergo”). In total,

    UzHydro operates 37 hydropower plants (HPPs) with the installed capacity of 1,853 MW, of

    which 11 have an installed capacity of greater 30 MW, 11 have between 10 MW and 30 MW,

    and 15 have less than 10 MW. In 2017, the Company’s annual electrical power generation

    amounted to 5.9 TWh, which constituted ca. 11% of total electrical power generation in

    Uzbekistan.

    The majority of UzHydro’s installed hydro capacity (1,207 MW or 65%) is concentrated in the

    Tashkent region in the basin of the Chirchik river. This region accounts for 70% of total

    hydropower generation. The largest HPP in the Country is also located here – the Urta-Chirchik

    HPP Cascade (Charvak HPP) with 636 MW installed capacity and 2.7 GWh generation in 2017

    (corresponding to 48% capacity factor).

    The majority of UzHydro’s HPPs are 40-50 years old and require urgent rehabilitation.

    Rehabilitation of the existing the HPPs is a key target for UzHydro, and the Company is

    pursuing an extensive investment program of rehabilitation of all 37 of its HPPs. The Company

    requested the European Bank for Reconstruction and Development (“EBRD” or the “Bank”) to

    provide sovereign debt financing for the rehabilitation of 11 small and medium HPPs with a

    total capacity of 90.1 MW. EBRD proposes to adopt a staged approach to financing the

    rehabilitation of these 11 HPPs under a five-year financing framework, the “Uzbekistan Climate

    Resilience Framework”, starting in 2019, in order to support the modernization of the

    hydropower sector of Uzbekistan and thus support an increased share of renewable energy in

    the country’s energy mix. The proposed 11 HPPs fall into three distinct clusters defined by

    river valley and geography. Of these, four (4) run-of-river HPPs in the Nizhne-Bozsu Cascade

    in the eastern port of the country, to the southwest of Tashkent, have been identified as the first

    cluster to be considered for financing (“the Project”).

    The Nizhne-Bozsu Cascade is located in Tashkent region on the Nizhne-Bozsu Channel in the

    eastern part of the Republic of Uzbekistan. The Nizhne-Bozsu Channel is the lower part of the

    Bozsu Channel into which part of the flow of the Chirchik River is diverted to provide water

    for irrigation needs. The HPPs on the Bozsu Channel were designed to generate electricity

    taking advantage of the water flow in the channel. Figure 1 below shows the general location

    of the four HPPs in Uzbekistan.

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    Nizhne-Bozsu Hydropower Plant Rehabilitation Project

    Terms Of Reference - Feasibility Studies Page 2 of 19 OFFICIAL USE

    Figure 1 – Map of Uzbekistan showing general location (highlighted) of the four Nizhne-Bozsu HPPs

    (map taken from Google Maps)

    The investment also offers an opportunity to build resilience to climate change into the facilities, to ensure that they will continue to operate as intended over their lifetimes.

    Figure 2 – Map showing the location of the four HPPs on the Bozsu channel

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    Nizhne-Bozsu Hydropower Plant Rehabilitation Project

    Terms Of Reference - Feasibility Studies Page 3 of 19 OFFICIAL USE

    There is a high degree of interdependence of the operation of all HPPs on the Bozsu Channel,

    and the operation of all of them is heavily influenced by the flow of water diverted in to the

    channel and the flows of water that are subsequently diverted from the channel at various points

    for irrigation purposes. The interdependence is more evident when considering HPPs that are

    consecutive and in the same cascade such as the four HPPs in the the Nizhe-Bozsu Channel of

    which three are the subject of this Terms of Reference.

    EBRD intends to engage a consulting firm to carry out feasibility studies for three of the four

    HPPs of the Nizhne-Boszu Cascade that EBRD is proposing to finance (the “Assignment”).

    The preparation of the feasibility study for the fourth HPP is currently in progress and is being

    funded separately by UzHydro. The feasibility studies are required in accordance with the

    statutory approval process of the Republic of Uzbekistan and EBRD’s requirements for the

    purposes of financing of the projects. All of the HPPs are owned and operated by UzHydro,

    which will be acting as the Client for the Assignment.

    The three HPPs which are the subject of this Terms of Reference (ToR) are the following:

     HPP-18 – installed capacity of 7.0 MW

     HPP-22 – installed capacity of 4.4 MW

     HPP-23 – installed capacity of 17.6 MW.

    These HPPs were constructed during the period 1949-1955. Their combined installed capacity

    is 29 MW and in 2017 they generated 110.1 TWh with an average capacity factor of 43%. The

    envisaged design and rehabilitation works are planned for the period of 2019-22

    The fourth HPP that is being considered for financing by EBRD in this cluster of HPPs is

    HPP-19 “Khalkabad”, rated at 11.2 MW, also of a similar age, and located between HPP-18

    and HPP-23. UzHydro has already engaged a local technical design institute to carry out the

    local feasibility study for HPP-19 using its own funds. The feasibility study report for HPP-19

    is almost complete and it is expected that it will soon be ready to submit to the appropriate

    statutory authorities.

    Some studies have been undertaken in the recent past to review condition the plant and assess

    the need for investments. Most recently, the EBRD commissioned the international

    hydropower consultant, Stucky S.A., to carry out a pre-feasibility appraisal assessment of the

    four HPPs of the Nizhne-Boszu Cascade that EBRD is proposing to finance. The results of the

    assessment and the conclusions and recommendations were summarised in a Pre-Feasibility

    Study Report, a copy of which is available upon request. The international consultant, AF

    Pöyry, carried out a Climate Change Assessment (CRA) and produced a CRA Report which is

    available upon request. These and other relevant reports commissioned by the Client which

    will be made available at the beginning of the assignment should form the basis of the

    Consultant’s work.

    The Assignment will involve a consultant (the “Consultant”) who will perform comprehensive

    technical, economic and financial feasibility studies for the rehabilitation of each of the three

    HPPs with due consideration given to the coordination of rehabilitation activities of the three

    HPPs with those of HPP-19 and the post-rehabilitation operating characteristics of HPP-19.

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    Nizhne-Bozsu Hydropower Plant Rehabilitation Project

    Terms Of Reference - Feasibility Studies Page 4 of 19 OFFICIAL USE

    2. OBJECTIVES

    The objective of this Assignment is to perform a technical, economic, financial, socio-

    environmental feasibility study of the condition of the three HPPs of the Nizhne-Bozsu cascade

    (HPP-18, HPP-22 & HPP-23), their water intake and tailwater channels, spillways, switchyards

    and ancillary structures and equipment, identify the investment measures required to

    rehabilitate the HPPs and associated facilities and bring them in compliance with best

    international standards, and improve their availability, reliability, safety and environmental

    performance. The ultimate aims are that the feasibility studies will: (a) provide the information

    and will be of of the quality necessary to satisfy statutory requirements and thus enable

    rehabilitation of the three HPPs to be approved by the Government of the Republic of

    Uzbekistan; and (b) provide EBRD with sufficient technical and economic information and

    justification to allow it to proceed with financing of the Project

    The Assignment will include the following main tasks:

     Carry out a technical feasibility assessment and related document (Local Feasibility Study or TEO) suitable for the statutory approval process by the competent authorities

    of the Republic of Uzbekistan; and

     Carry out a technical feasibility assessment and related document (Feasibility Study) suitable to meet the EBRD’s requirements for approval of the Project for financing.

    The scope of services shall includes civil works and equipment investigations, assessment of

    related facilities required for the three HPPs, and safety, environmental & social screening

    reports and all documents needed to ascertain the techno-economic feasibility of a project for

    their rehabilitation. After exploring alternatives, the feasibility studies

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