Download pdf - REPUBLIC OF UZBEKISTAN NIZHNE-BOZSU HYDROPOWER PLANT ... · Nizhne-Bozsu Hydropower Plant Rehabilitation Project Terms Of Reference - Feasibility Studies Page 1 of 19 ... (HPPs) with

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.

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

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.

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 shall conclude on, inter

alia, the detailed scope and arrangements of the rehabilitation, the timeline and the CAPEX, as

well as the OPEX and generation figures of the HPPs upon completion.

All measures will be assessed against technical and economic criteria and their respective merits

with regard to increasing the HPPs’ reliability, safety and efficiency, benefits in terms of

improving avoided CO2 emissions potential and their resilience to climate change.

Furthermore, the Assignment will also call on an extensive environmental, health, safety, social

and environmental assessment, again with due consideration of climate change impacts and

resilience.

OFFICIAL USE



3. SCOPE OF SERVICES

The Consultant shall be responsible for carrying out all the necessary deskwork, fieldwork and

investigations to compile information and data required for the Assignment. This includes the

preparation of all required documents and the management and supervision of site investigation

works (topographic survey and mapping, hydrological data collection and validation, in-depth

tests and investigations of civil works and equipment). All of these services should be fully

included in the Financial Proposal of the Consultant. The scope of services for the assignment

includes the above and the items detailed below in this section.

Work Plan and Inception Report

The Consultant’s team leader shall jointly with the Consultant’s relevant key experts organise

a mission to Uzbekistan as soon as practicable after the signing of the Consultancy Agreement

for the Assignment with the main objectives being a kick-off meeting with the Client,

project/site familiarisation, and to agree with the Client the required actions in relation to the

scoping of the investments. Any need for further information and data shall be identified

including required technical analysis and the Consultant shall propose a plan to address such

needs.

The Consultant shall develop a Work Plan which shall detail the methodology, key steps,

deliverables and further information needs for completing the feasibility studies for the

rehabilitation of the HPPs. The Work Plan shall be discussed and agreed with the Client and

shall include, inter alia, the following:

i. identification of required key experts;

ii. identified tasks;

iii. expected delivery of tasks;

iv. further needs for information, investigation and analysis; and

v. planned completion of the Assignment.

Following the site visit, initial data review and initial discussions with the Client, the Consultant

shall submit to the Client and the Bank an Inception Report presenting: its initial findings and

conclusions; the main features of the projects in terms of the main parameters of the

rehabilitation of the HPPs and corresponding equipment, physical rehabilitation activities,

phasing of rehabilitation activities and operation; identifying the main environmental

sensitivities and constraints within the project areas; a critical review of the issues which could

impact the achievement of the Assignment objectives (including findings having an impact on

the time schedule); the final version of the agreed Work Plan for the Assignment, the proposed

actions required to complete the Project scoping; and any factors affecting these Terms of

Reference. The Client and Bank will provide comments on the Inception Report to the

Consultant.

Feasibility Studies

For each of the HPPs, (i.e. HPP-18, HPP-22 & HPP-23), the Consultant shall perform a

feasibility analysis of the replacement of hydro- and electric power equipment and measures to

increase the safety of the hydropower facilities to a level of detail necessary to undertake a

OFFICIAL USE



detailed design at a later stage. Detailed design is not part of this Assignment and will be subject

of a separate selection process and contract. Taking into consideration the synergies between

the three HPPs, the commonality of some of the input information, and the potential economies

that may be realised if some elements of their rehabilitation are considered collectively, it is

envisaged that the feasibility studies for all three HPPs will be carried out simultaneously.

The scope of work for the feasibility studies for each HPP shall include, but not be limited to,

the following:

review existing condition assessment reports and relevant technical documentation

relating each of the HPPs and the recently-prepared Pre-feasibility Study;

review the local feasibility study (TEO) (produced by others) for the rehabilitation of

HPP-19 and assess the implications of its post-rehabilitation design and operating

parameters and ensure that they are consistent with and taken into consideration in the

rehabilitations that are proposed for HPP-18, HPP-22 & HPP-23.

discuss with the Client the Pre-feasibility Study Report and the Client’s requirements

and preferred options for the rehabilitation of the HPPs and conclude on the final

solution to be developed in the Feasibility Study;

undertake on-site missions visiting all of the HPPs and any other relevant infrastructure

as necessary to inspect and review the arrangements and condition of the sites, plant

equipment and infrastructure, carry out investigations of civil works and equipment,

supervise tests and perform any other activities required for the Consultant successfully

to fulfil the requirements of this Terms of Reference;

develop preliminary layouts and basic designs for the rehabilitation of the HPP

including civil works (intake and weir, intake channel, penstock, turbine house, tailrace

channel, site access, construction details), generating equipment (turbine, generator,

control system, transformer and switchyard) and prepare detail cost estimates and

project schedule;

perform comprehensive project risk analysis including technical risks, delays, land

acquisition, government approval/permitting issues, off-take agreement, cost overrun,

etc;

conduct financial analysis of the project with rational assumptions of off-take prices,

other revenues, land acquisition, resettlement and livelihood restoration requirements;

examine the costs and benefits under present-day climate/hydrological conditions, as

well as under future conditions associated with climate change over the lifetime of the

facility;

take cognisance of and address the risks and conclusions made in the CRA Report

produced by Pöyry in the development of rehabilitation designs and proposals;

estimate the economic value (avoided cost) of any additional power capacity which the

HPP post-rehabilitation would provide the Uzbekistan power system and identify the

gap between the estimated value and the prevailing energy off-take tariff level;

provide a detailed estimate of capital costs (CAPEX), including inter alia costs of civil

and structural works, supply and installation of hydro-mechanical equipment, electro-

OFFICIAL USE



mechanical equipment, electrical equipment, auxiliary equipment and ancillary

equipment, local taxes, licences, royalties, and engineering and project management

fees;

provide a detailed estimate of operating costs (OPEX) including estimates of, inter alia,

expected labour costs including overheads, variable operating costs for consumables

and spare parts, fixed operating costs for O&M management, administration, and

overheads;

conduct extensive sensitivity analysis of project profitability against changes in all

critical project parameters to be identified by the Consultant including inter alia the

hydrological scenarios (including P90/P75), electricity demand, off-take price levels,

construction costs, operation & maintenance costs and construction delays;

perform financial/commercial as well as economic analysis, including calculation of the

financial/ economic rates of return, levelised costs of generation, as well as the return

on equity in order, to ensure the financial/commercial viability of the project for the

selected and technically feasible parameters;

develop a Procurement and Implementation Strategy for the implementation of the

rehabilitation works for the HPPs;

develop a Feasibility Study Report to the standard typically required by IFIs in relation

to the financing of international projects of this nature;

develop a separate Local Feasibility Study Report (“Local FS” or “TEO”) dedicated to

the approval process of the Republic of Uzbekistan by the Authorities;

update the Local FS Report in line with comments and recommendations made by

UzHydro as part of its internal approval process of the project prior to submission to

the Authorities; and

assist UzHydro in approval of the Project by the Authorities, including preparation of

replies to comments by the Authorities, and subsequent updates of Local FS Report.

Local Feasibility Study (TEO)

A copy of the Table of Contents for the TEO for HPP-19 (prepared by JSC Hydroproject, the

local technical design institute) that is about to be submitted to the Authorities by UzHydro, is

given at Annex A to this Terms of Reference for information to provide an indication of the

content and range of topics that are likely required to be addressed in the Local FS.

The Consultant will be required to engage a local consultant which is familiar with and able to

carry out local feasibility studies (TEOs) for hydropower plants. Please refer to Section 6 for

further information in relation to this requirement.

Procurement and Implementation Strategy

The Feasibility Study Report for each HPP shall include a Procurement and Implementation

Strategy, which the Consultant will prepare taking into consideration the Bank’s Procurement

Policies and Rules, (“PP&R”) which can be accessed via the EBRD website through the

OFFICIAL USE



following link: http://www.ebrd.com/work-with-us/procurement/policies-and-rules.html and

relevant laws of the Republic of Uzbekistan.

The Consultant will present and assess which procurement and implementation strategy would

best fit the scenario, outlining pros and cons for each alternative, and draft a preliminary

procurement plan, including detailed descriptions of all project components grouped into

categories by sub-sector and expected contracting packages. The Consultant will specifically

take account of how contracting packages are to be delivered effectively using local partners

and design institutes.

The Consultant will develop an implementation schedule for each project component,

describing the manner in which the construction or implementation activities will proceed and

providing assumptions about procurement, delivery and execution times.

The procurement strategies and implementation schedules for the individual HPPs shall be

optimised to take into consideration the interdependence of the operations of HPP-18, HPP-22

and HPP-23 (and HPP-19) and potential economies that may be realised if some elements of

their rehabilitation are considered collectively. A procurement strategy and implementation

schedule particular to the rehabilitation each HPP as well as an integrated version that considers

the rehabilitation of all four HPPs (HPP-18, HPP-19, HPP-22, HPP-23) shall be provided.

In the preliminary procurement plan, the Project components included in the PIP will be broken

down into specific contracts with the aim of keeping the number of said contracts to a minimum.

The Consultant will take into account the services, supplies and works needed to implement the

required contracts. The Consultant will consider which procurement approach (e.g. based on

different supply and works contracts or a turn-key contract) would be the best way of

implementing each investment component. The Consultant shall assess the scope of

procurement and implementation support consultancy services required to implement the

Project.

The Consultant will also cover the following aspects with regards to project implementation:

Project risk matrix – a risk matrix outlining the key challenges and risks associated with

the project and the measures proposed to deal with them.

Project Implementation Unit (“PIU”) – opine on implementation arrangements (e.g.

suggest how UzHydro should organise and staff its PIU and advise with regard to the

roles and responsibilities of PIU staff that should be put in place).

http://www.ebrd.com/work-with-us/procurement/policies-and-rules.html

OFFICIAL USE



4. TIMETABLE, REPORTING AND DELIVERABLES

The work of the Consultant is expected to be performed during a period of up to 5 months from

the signing of the Consultancy Contract. It is expected that the Assignment will include several

missions by members of the Consultant’s team to Uzbekistan after the Consultancy Contract is

signed.

During the implementation of the Assignment, the Consultant will prepare and submit the

following monthly activity progress reports as well as several project reports.

Inception Report and Work Plan: Within one (1) month of the signing of the

consultancy agreement for the Assignment and following the initial mission, initial data

review and initial opinion as to a project proposal. The report must contain initial

findings, a critical review of the issues that could impact the achievement of the

Assignment objectives, and the final version of the agreed Work Plan. The Bank will

provide comments on the Inception Report to the Consultant.

The following are to be provided for each of HPP-18, HPP-22 & HPP-23:

Draft Feasibility Study Report: Within four (3.5) months of the signing of the

consultancy agreement for the Assignment. The report must contain the technical

feasibility study and results of the environmental, economic/financial and commercial

assessments of the relevant HPP. The report shall be suitable for the needs of EBRD’s

investment approval process. The Client and Bank will be given one month to comment

on the Draft Feasibility Study Report, such comments to be incorporated by the

Consultant in the final document;

Draft Local Feasibility Study Report: Within five (3.5) months of the signing of the

consultancy agreement for the Assignment. The report must contain the technical

feasibility study and results of the environmental, economic/financial and commercial

assessment and any other elements that are required to be considered as per the statutory

approval process. The report shall be suitable for submission for the approval process

of the Republic of Uzbekistan. The Client and Bank will be given one month to

comment on the Draft Local Feasibility Study Report, such comments to be

incorporated by the Consultant in the final document;

Final Feasibility Study Report: Within one 3 weeks of the receipt of comments on the

Draft Feasibility Study Report from the Client and EBRD. The report must contain all

the findings of the feasibility study and incorporate all input from the Bank and the

Client; and

Final Local Feasibility Study Report: Within 3 weeks of the receipt of comments on

the Draft Feasibility Study Report from the Client and EBRD. The report must contain

all the findings of the local feasibility study and incorporate all input from the Bank and

the Client.

In addition to the above, the Consultant shall prepare and deliver the following considering

more generally the feasibility studies all three HPPs:

Monthly Progress Reports: The Consultant will present brief monthly reports that will

provide the Bank and the Client with a summary of progress made within each calendar

month within one week of the end of the relevant month.

OFFICIAL USE



Final Public Workshop: following the submission of the Draft Project Feasibility

Study Reports. The Consultant will carry out a related workshop to outline and discuss

the findings in the Draft Project Feasibility Reports and disclose the project details to

the public.

5. IMPLEMENTATION ARRANGEMENTS

General

The Bank will contract the Consultant. The Client will provide suitable and experienced

counterpart staff, who will be assigned to work with the Consultant during site visits. The

Client’s team will be led by a person with appropriate experience who may not necessarily be

a fluent English-speaker. The Consultant’s site visit team shall therefore include an interpreter

or at least one team member who is fluent in Russian.

The Client will be responsible at its own expense for providing permanent office facilities for

the Consultant in the client office in Tashkent and local offices at each of the HPPs for the

duration of the Assignment. The tasks set out in these Terms of Reference will be the

responsibility of the Consultant but the Client will provide reasonable support when required

in order to facilitate the smooth execution of the Assignment.

It is expected that the Assignment will include several missions by members of the Consultant’s

team to Uzbekistan after the Consultancy Contract is signed.

The Consultant will be responsible for all out-of-pocket expenses incurred in undertaking the

Assignment, including, but not limited to communication, travel, accommodation, translation

services etc, all in accordance with the agreed budget.

Project Documentation

The Client will also provide access to or copies of, all relevant information for the Assignment,

free of charge, to the Consultant. This includes hydrological data, meteorological data,

technical drawings, maps/plans of the sites, roads, available areas and final layouts, existing

studies etc related to the Assignment,. The Client will facilitate obtaining historical data from

official authorities (e.g. Uzbekgidromet, Ministry of Water Resources etc) but the Consultant

shall bear the costs of providing such data. The documentation will be provided electronically

when possible and/or in paper format. Such information will be in the Russian language.

The Consultant will make a detailed review of information, either in the original language, or

by translating the information if required. The Consultant shall be responsible for arranging

and shall bear the cost of any necessary translations of documents as needed to complete the

work, and of any interpretation services as required in Uzbekistan. For the avoidance of doubt,

the translation requirements are understood to be for the Consultant’s own use and limited to

documents which are accepted by the Consultant in Russian. The Consultant will also associate

closely with other national and regional authorities in Uzbekistan. The Client will facilitate and

support this association.

The Consultant will organise a dedicated project website with restricted access to the

Consultant, the Client and the Bank, including at least all project documents provided by the

Client, the project timeline and organisation, and deliverables.

OFFICIAL USE



Reports and Communications

The Consultant shall submit all reports in electronic format (Word/Excel/PDF) both in the

Russian and English languages. The Final report will be submitted in electronic format and

hard copy (two sets) to the Client and electronic-only copy to the EBRD.

All written communication between the Consultant and EBRD and the Company should be in

English.

As the notes and details on some drawings and technical diagrams included in the reports may

be difficult to translate into English, it is understood such details will be kept in Russian on

such drawings but with a key via which the corresponding English translation can be referenced.

6. STAFFING

The implementation of the Assignment will require the services of a multi-disciplinary team

comprising international and local consultants. An international firm of consultants will be

engaged for this Assignment and is expected to procure the services of both international and

local experts as appropriate.

As the technical design institute, JSC Hydroproject, is the only qualified, competent

organisation in Uzbekistan that is able to carry out local feasibility studies (TEOs) for

hydropower plants, it is expected that the Consultant will enter into an agreement with

JSC Hydroproject, to which the Consultant will subcontract relevant parts of the scope of work.

It is expected that the services will require expertise and experience, at minimum and not limited

to, in the following areas:

a) Rehabilitation of small and medium run-of-river hydropower projects;

b) Civil design of design of hydraulic structures such cofferdams, concrete weirs and dams

c) Hydropower project hydraulics, including sediment transport, intake design to exclude

sediment, spillway design, tailrace design, water-hammer and surge analysis;

d) Civil design of hydropower developments including powerhouse layout;

e) Design and installation of mechanical equipment for hydropower projects, including

selection and setting of turbines, gates, valves, and hoists. Also, familiar with

powerhouse layout and space requirements for installation of equipment, ventilation and

fire safety standards;

f) Procurement and contracting for hydropower projects, and knowledge how to mitigate

risks in projects featuring multiple contracts;

g) Hydrological assessment and river basin water management for hydropower projects

h) Hydropower project hydraulics, including sediment transport, intake design to exclude

sediment, sand traps, spillway design, water-hammer and surge analysis;

i) Financial analysis; and

j) Experience in Uzbekistan is a plus.

OFFICIAL USE



The following lists the minimum experience and expertise for the key roles and ancillary that it

is envisaged will be required for the Assignment and which cover many of the areas listed

above:

Key Staff:

Hydropower Development Expert / Team Leader with a degree in a relevant

engineering discipline and at least 15 years’ experience in planning, design, construction

and rehabilitation of hydro power facilities and hydro power project finance;

Geotechnical Specialist with a degree in a relevant engineering discipline and at least

15 years’ experience in geological / geotechnical assessment for hydropower projects;

Hydrologist with a degree in a relevant scientific / engineering discipline with

specialisation in hydrology and at least 10 years’ extensive experience of performing

hydrological assessments and river basin water resource management for hydropower

projects;

Hydro-mechanical Engineers with a degree in a relevant engineering discipline and at

least 10 years’ experience design, engineering, construction and modernisation of hydro-

mechanical equipment.

Hydraulic and Civil Works Engineers with a degree in a relevant engineering

discipline and at least 15 years’ experience in the studies, design, inspection & structural

integrity assessment, and construction & rehabilitation of civil structures and buildings

for hydropower plants;

Electro-mechanical Engineers with a degree in a relevant engineering discipline and

at least 15 years’ experience in the design, engineering, construction and modernisation

of hydropower electro-mechanical equipment;

Electrical Engineers with a degree in a relevant engineering discipline and at least 15

years’ experience in hydropower engineering (switchyards, switchgears, control,

protection and relays, SCADA and all electrical equipment);

Procurement/Contract Management Specialist with a degree in a relevant

engineering discipline and at least 15 years’ experience in procurement and contract

management for hydropower construction projects and knowledge and experience of

EBRD/IFI procurement procedures.

Environmental Specialist with a degree in a relevant environment related discipline

and at least 10 years’ experience in environmental assessment and due diligence on large

and small HPP projects in accordance with the Environmental and Social Policies of

EBRD or other international financial institutions;

Health and Safety Specialist with a degree in a relevant discipline and at least 10 years’

experience in health and safety auditing, monitoring and management during

construction and operation of hydropower projects

Social Specialists with a degree in a relevant discipline and at least 10 years’ experience

(including experience in Uzbekistan), including public consultation in the local context,

gender expertise, and/or resettlement expertise, and labour issues.

OFFICIAL USE



Project Economist with a degree in a relevant financial discipline and at least 10 years’

experience in economic and financial analysis of the construction and rehabilitation of

hydropower plants;

Legal Expert with a degree law and at least 10 years’ legal experience in power projects

including hydropower as well as drafting commercial contracts/agreements;

Ancillary staff:

Health and Safety Specialist with a degree in a relevant engineering discipline at least

10 years’ experience in the monitoring and management of health and safety at

hydropower facilities during construction, rehabilitation and operation;

Climate Change Impacts Specialist with a degree in a relevant scientific discipline and

experience in assessing climate impacts on hydrology and hydropower facilities;

Local Hydropower Specialists with a degree in a relevant engineering discipline at

least 10 years’ experience of the preparation and implementation of hydropower

development projects in Uzbekistan and experience of working with international

consultants;

Local experts with at least 5 years’ experience in a) local integrated water resource

management, b) economic and financial analysis of power sector investment projects,

b) local environmental requirements, d) local social issues and requirements, and e) local

statutory and legal requirements.

OFFICIAL USE



ANNEX A

TABLE OF CONTENTS FOR

LOCAL FEASIBILITY STUDY (TEO) FOR HPP-19

Composition of the Feasibility Study of the Project

Document name Document reference

General explanatory note. Book 1, chapters 1-7 2007-Т1.1

General explanatory note. Book 1, chapters 8-14. 2007-Т1.2

Attachment B.

Financial reports, experts’ and other documentation.

Book 2

2007–Т2

Blueprints (folder) 2007–П1

№ Section name Archive #

1.

1.1.

1.2.

General explanatory note

Volume 1. Sections 1 ÷ 7

Volume 2. Sections 8 ÷ 12

2007 – Т 1.1

2007 – Т 1.2

2. Album of blueprints (drawings) 2007 – А 1.3

3.

FS attachment

Accounting reports

Contractual documentation

2007 – Т 2.3

4.

Project statement on environmental

impact (draft EIS)

2007 – Т 3

OFFICIAL USE



TABLE OF CONTENTS № 2007– Т 1.1

I PROJECT EXECUTIVE SUMMARY 8

1.1 Project title ....................................................................................................... 8

1.2 Initiator name .................................................................................................. 8

1.3 Total estimated cost of the project ................................................................. 9

1.4 Project components ....................................................................................... 10

1.5 Location of the project .................................................................................. 10

1.6 Project aims and goals .................................................................................. 11

1.7 Project beneficiaries ...................................................................................... 11

1.8 Sources and structure of funding ................................................................ 12 1.8.1 Project implementation schedule with annual funding specifications ............ 12

II INTRODUCTION 14

2.1 History and prerequisites for project creation ........................................... 14

2.2 Project location. Characteristics of chosen site .......................................... 14

2.3 Physical and geographical characteristics .................................................. 15

III MARKETING SECTION 16

3.1 Market location, market segmentation ....................................................... 16

3.2 Expected competition from existing potential local and foreign

producers ....................................................................................................... 16

3.3 Programme and organisation of sales ......................................................... 16

3.4 Trademarks used and patent clarity of products ....................................... 16

3.5 Marketing costs estimation .......................................................................... 17

3.6 Evaluation of production and social infrastructure................................... 17

3.7 Accounting of the peculiarities of socio-economic development of the

region, advantages and limitations .............................................................. 17 3.7.1 Availability of raw materials, existing raw materials reserves ....................... 17 3.7.2 Requirements for quality of raw materials and methods of its preparation,

compliance of local raw materials with required standards ............................ 17

IV TECHNOLOGICAL SECTION 18

4.1 Analysis of technological solutions of project implementation ................. 18

4.2 Project location .............................................................................................. 18

4.3 Scope of the project ....................................................................................... 19

4.4 The rationale for choosing technologies and equipment ........................... 19

4.5 Assessment of technological risks ................................................................ 20

V ENVIRONMENTAL SECTION 21 5.1.1 Surface watercourses and groundwater ........................................................... 22

OFFICIAL USE



VI INSTITUTATIONAL SECTION 23

6.1 Governance structure of the project ........................................................... 23

6.2 Project management structure .................................................................... 24 6.2.1 Organisational structure of JSC "Uzbekhydroenergo" ................................... 24 6.2.2 General project organisation ........................................................................... 24

6.3 Assessment of financial costs ........................................................................ 24

VII ARCHITECTURAL-CONSTRUCTION SECTION 25

7.1 Contingency plan........................................................................................... 25

7.2 Scheme of master plan .................................................................................. 25

7.3 Characteristics of construction site ............................................................. 26 7.3.1 Physical and geographic conditions ................................................................ 26 7.3.2 Climate conditions .......................................................................................... 26

7.3.3 Engineering and geological conditions ........................................................... 28 7.3.4 Hydrogeological conditions ............................................................................ 29 7.3.5 Data on seismic activity. ................................................................................. 29

7.4 Principal volume-planning and architectural-construction solutions and

their basic parameters .................................................................................. 29 7.4.1 Parameters and conditions of existing equipment and its layout in knowledge

of HPPs… ....................................................................................................... 29 7.4.1.1 Dam ................................................................................................................. 31 7.4.1.2 Basin (pressure pool) ...................................................................................... 32

7.4.1.3 HPP building ................................................................................................... 32 7.4.1.4 Spillway (water outlet) .................................................................................... 32

7.4.1.5 Downstream (lower pond) of HPP building ................................................... 33 7.4.1.6 Hydropower turbines....................................................................................... 34

7.4.1.7 Hydro generators ............................................................................................. 37 7.4.1.8 Auxiliary equipment ....................................................................................... 39

7.4.1.9 Bulk handling conveying technologies. .......................................................... 39

7.4.1.10 Mechanical equipment of auxiliary equipment ............................................... 40 7.4.1.11 Mechanical equipment .................................................................................... 44

7.4.1.12 Electrical equipment ....................................................................................... 47 7.4.2 Project architectural-planning solutions .......................................................... 55 7.4.2.1 Master plan of on-station court (space) ........................................................... 55

7.4.2.2 Location of buildings and installations ........................................................... 55 7.4.3 Project architectural-constructing solutions .................................................... 55 7.4.3.1 Supply and discharge channels ....................................................................... 55 7.4.3.2 Basin (pressure pool) ...................................................................................... 55 7.4.3.3 HPP building ................................................................................................... 55

7.4.3.4 Downstream (lower pond) of HPP building ................................................... 56 7.4.3.5 Spillway (water outlet) .................................................................................... 56

7.4.3.6 Test equipment (TE). ...................................................................................... 56 7.4.3.7 Landscaping. ................................................................................................... 56

7.4.3.8 Hydro-power equipment ................................................................................. 56 7.4.3.9 Hydromechanical equipment .......................................................................... 56 7.4.3.10 Bridge cranes of engine room (mainframe site) .............................................. 57 7.4.3.11 Electrotechnical equipment and relay protection ............................................ 57

OFFICIAL USE



7.4.3.12 HPP management system ................................................................................ 57

7.4.3.13 Auxiliary farms (management) ....................................................................... 57 7.4.3.14 Communication and automated information and measurement system of

commerical energy accounting (AIMSCEA) .................................................. 57 7.4.3.15 Input data for selecting hydraulic power equipment ....................................... 57

7.4.3.16 Water and energy estimates ............................................................................ 59 7.4.4 Technology and equipment ............................................................................. 68 7.4.4.1 The rationale for choosing technology and equipment, process flow diagrams,

benefits and limitations, equipment reliability and supplier guarantee ......... 68 7.4.4.2 Hydropower equipment................................................................................... 68

7.4.4.3 Mechanical equipment .................................................................................... 71 7.4.4.4 Electrical equipment ....................................................................................... 75 7.4.4.5 Electric lighting ............................................................................................... 78 7.4.4.6 Automatisation ................................................................................................ 81 7.4.4.7 Communication ............................................................................................... 89

7.4.5 Construction and installation .......................................................................... 89 7.4.5.1 Site preparation and development ................................................................... 89

7.4.5.2 Engineering connectivity ................................................................................ 89 7.4.5.3 Main volumes of construction and installation works. ................................... 94 7.4.6 Estimated cost of the project ........................................................................... 95 7.4.7 Amount of funds planned for attraction and development - source of

financing.......................................................................................................... 95

OFFICIAL USE



TABLE OF CONTENTS № 2007– Т 1.2

VIII FINANCIAL SECTION 5

8.1. General investment costs ................................................................................ 5

8.2. Production (operation) costs .......................................................................... 7 8.2.1. Demand and availability of labour .................................................................... 7 8.2.2. Total cost of product sold.................................................................................. 8

8.3. Other expenses of the project. ...................................................................... 10 8.3.1 Necessity and organisation of personnel training ........................................... 10 8.3.2 Overhead costs ................................................................................................ 10

8.4. Financial indicators of the project ............................................................... 16 8.4.1. COGS and selling tariff................................................................................... 16 8.4.2. Sales revenue and net profit ............................................................................ 16

8.4.3. Cash flow ........................................................................................................ 18

8.5. Financial assessment ..................................................................................... 18

8.6. Sensitivity analysis to main risks and analysis of break-even ................... 19 8.7. Project liquidity ............................................................................................... 21

8.8. Current financial status of project participants who are credit or budget

recipients ........................................................................................................ 22

8.8.1. Analysis of economic activities of JSC "Uzbekhydroenergo" ........................ 22 8.9. Analysis of financing scheme, sources and conditions of funding and their

alternatives ...................................................................................................... 26

8.10. Assessment of financial risks .......................................................................... 26

IX ECONOMIC SECTION 27 9.1. Project analysis from the prespective of economy of the republic and the

region .............................................................................................................. 27

9.2. Assessment of economic benefits and costs ................................................... 27 9.3. Least-cost analysis .......................................................................................... 28

9.4. Budgetary efficiency ........................................ Error! Bookmark not defined. 9.5. Feasibility of the project within the framework of implementation of approved

Concepts of industry development .................................................................. 29

9.6. Existing and prospective demand for expected production ............................ 29

X SOCIAL SECTION 30 10.1. Social aspects of the project and benefits from the project on beneficiaries .. 30 10.2. Justification of the project in terms of cultural and demographic

characteristics of the population ..................................................................... 30

10.3. Project’s requirement for labour and its impact on employment .................... 31 10.4. Real availability of labour resources of corresponding qualification ............. 31

10.5. Training and retraining program for workers and specialists ......................... 31 10.6. Safety and health regulations .......................................................................... 31

10.7. Assessing social risk, key risk factors, range of changes, potential risk

mitigation activities ......................................................................................... 32 10.8. Social significance of the project in view of the compliance with government

decisions taken and Concepts of industry development and regioms in social

environment within the existing production capacity utilization and their

optimal location............................................................................................... 32

OFFICIAL USE



XI GENERAL CONCLUSIONS 33 11.1. Main advantages and disadvantages of the project ......................................... 33 11.2. Conclusions on the optimal project implementation option ........................... 34 11.3. Main risks of the project ................................................................................. 34 11.4. Other conclusions ............................................................................................ 34

ATTACHMENT 37