Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB5155 Project Name EMERGENCY ENERGY ASSISTANCE PROJECT - ADDITIONAL FINANCING Region EUROPE AND CENTRAL ASIA Sector Power (60%);District heating and energy efficiency services (40%) Project ID P119227 Original Project Name: Emergency Energy Assistance Original Project ID: P101392 Borrower(s) GOVERNMENT OF KYRGYZ REPUBLIC Implementing Agency Joint Stock Company Power Plants Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared September 29, 2009 Estimated Date of Appraisal Authorization October 13, 2009 Estimated Date of Board Approval November 19, 2009 1. Key development issues and rationale for Bank involvement The Kyrgyz Republic has been facing severe winter shortages of energy for the last several years. The situation become critical in 2007, when the winter was very severe and the Government faced strong criticism for not being able to mitigate this hardship. This resulted in serious socio-economic consequences. The management of electricity and heat supply in winter became more difficult due to the extremely low water level of the main hydro power station’s reservoir (Toktogul). Toktogul, as per agreement with other Central Asian countries is supposed to be the mainstay of supply of water during the summer vegetation season and this affects the availability of water for power generation in winter. The thermal facility (BCHP 1), which caters to part of the winter electricity and heating needs, is in severely dilapidated condition. It serves a bulk of the Bishkek city’s heat and part of the electricity needs. Only a third of BCHP 1 boilers are currently in a position to operate during 2009/10 winters. One boiler could be repaired to its full operational capacity and the capacity of the other four boilers could be increased by 20 to 30 percent after rehabilitation. In response to the pre-crisis situation, the Kyrgyz Government developed in 2008, the Energy Emergency Mitigation Action Plan (EEMAP) with objectives of (i) sustaining thermal power and heat energy supply in the shortest possible timeframe; (ii) initiating preparatory actions for the following two winters (2008/2009 and 2009/2010) when the energy supply is likely to remain in deficit; and (iii) identifying actions to be implemented over the medium- and long-term to improve the energy security of the country. These efforts need to be continued to mitigate the severe hardship faced by people and continue efforts to fill up the Toktogul reservoir to sustainable operational levels. Page 2 The original EEAP IDA-financed project (SDR 7 million) has been made available to respond to the urgent request made by the Kyrgyz Government to support implementation of the Government’s EEMAP and improve energy security in the country. The Project was approved in November 2008 and became effective in February 2009. The development objective of the Project “…to increase the volume and reliability of the national energy supply, especially, thermal power in the winter season, thereby supporting the implementation of the EEMAP”, was met. The Bank continues to provide analytical and policy advice to the Government on management of energy supply as needed, including help to improve reservoir management at Toktogul and thereby improve management of priority needs for energy supply and avoid similar crises in the future. The volume of the Toktogul reservoir has increased from 6.5 bcm in April 2008 to 12.5 bcm in September 2009 (compared to 9.5 bcm in September 2008). 2. Proposed objective(s) The objective of the original Project (EEAP) is to assist the Kyrgyz Government, in accordance with the Government’s Energy Emergency Mitigation Action Plan (EEMAP), to increase the volume of energy supply, especially, the supply of thermal power in the winter season, within the Kyrgyz Republic and to improve the sustainability of such energy supply. This Objective remains valid without amendments or changes. 3. Preliminary description The design, components, and development objectives of EEAP will not be modified as a result of the Additional Financing; however the project indicators and targets would be altered to include the additional activities in accordance with the updated EEMAP. Annex 3 provides details of the updated project indicators and targets. The parent, original project consists of the following parts: Part 1 : Rehabilitation of the Electricity and Heating Systems Carrying out the rehabilitation of the electricity and heating systems of the Recipient’s Power Plant Company, including the rehabilitation of electrostatic precipitators and the provision of low sulfur fuel oil to the Bishkek and Osh combined heat and power plants as well as the provision of brass pipes and coal handling equipment, such as bulldozers, in support of such rehabilitation. Part 2 : Capacity-Building to Support Project Implementation Strengthening the institutional capacity of the Recipient’s Power Plant Company to carry out project management, monitoring and evaluation, including the capacity to carry out activities pertaining to environmental management and safety, procurement, disbursement and financial management. The proposed Additional Financing would support the Government’s efforts to address urgent needs of the upcoming 2009/10 winter through additional technical rehabilitation works at Page 3 Bishkek CHP. Specifically, the Additional Financing would cover funds (Component 1) to supply spare parts, materials, and works to repair and rehabilitate five boilers (with the aim to put at least three boilers into full working condition this upcoming 2009/2010 winter) and related assets as well as supply of coal handling equipment. Managing these additional activities will also require some additional financing for the PMU through the PMU Project Management and Capacity-Building component (Component 2). 4. Safeguard policies that might apply For Environmental and Social Safeguards, current practices and procedures will continue to apply. The original Project was assigned an environmental category of B (Limited Assessment); the Environmental Review was disclosed at the time of the original project preparation. The additional works involve routine civil, mechanical and electrical rehabilitation, concerning existing structures only. No additional structures or buildings are planned and no land will be acquired for any of the project activities. PS JSC is proposing to carry repair of Electrostatic Precipitators’ (ESP) bodies for four out of the five of the boilers proposed for rehabilitation from the proposed AF project. A contract for spares for the electrostatic precipitators (ESPs) was already signed under the ongoing project. The deliveries are expected during early winter and the ESPs will then be fully operational by end- 2009. According to the Bank’s assessment, the ESP efficiency after rehabilitation would reach the initial designed values. Therefore, the planned works under additional financing are considered to remain within environmental category B, and the previous EA documents for the EEAP remain largely valid. Although minor updates are likely to be made they do not need to be disclosed again. The proposed scale up does not trigger any new safeguard policies. The environmental measures required for boiler rehabilitation are fully covered by the environmental management provisions established in the original project design. The Borrower’s implementation agency has confirmed that the rehabilitated boilers will be compliant with Kyrgyz national emission standards (if combined with compatible ESPs) and will thus not constitute an additional negative impact on ambient air quality in the CHP area. In this context the putting into operation of the new boilers is contingent of the ESPs being installed/rehabilitated and operational and the team has clearly communicated this to the Borrower and will make this a covenant for effectiveness. Safeguard Policies Triggered by the Project Yes No Environmental Assessment ( OP / BP 4.01) [X] [ ] Natural Habitats ( OP / BP 4.04) [ ] [ X] Pest Management ( OP 4.09 ) [] [ X] Physical Cultural Resources ( OP/BP 4.11 ) [ ] [ X] Involuntary Resettlement ( OP / BP 4.12) [ ] [ X] Indigenous Peoples ( OP / BP 4.10) [ ] [ X] Forests ( OP / BP 4.36) [ ] [ X] Safety of Dams ( OP / BP 4.37) [ ] [ X] Page 4 Projects in Disputed Areas ( OP / BP 7.60) * [ ] [ X] Projects on International Waterways ( OP / BP 7.50) [ ] [ X] 5. Tentative financing Source: ($m.) BORROWER/RECIPIENT 0 International Development Association (IDA) 2 IDA Grant 2 Total 4 6. Contact point Contact: Mirlan Aldayarov Title: Sr Urban Spec. Tel: 5775+268 / 7-727-298-0580 Fax: Email: maldayarov@worldbank.org Location: Almaty, Kazakhstan (IBRD) Page 5