Page  1
Document of
 
The World Bank 
 
Report No: 58624-TJ 
 
RESTRUCTURING PAPER 
 
ON A 
 
PROPOSED PROJECT RESTRUCTURING  
OF  
PAMIR PRIVATE POWER PROJECT  
 
CREDIT NO: 3682-TJ AND GRANT NO: H3810-TJ 
 
APPROVED ON JUNE 27, 2002 
 
TO THE 
 
REPUBLIC OF TAJIKISTAN 
 
December 29, 2010 
 
Sustainable Development Department 
Central Asia Country Unit 
Europe and Central Asia Region 
Page  2
2
ABBREVIATIONS AND ACRONYMS 
 
AF Additional 
Financing 
FY Fiscal 
Year 
IDA 
International Development Association 
GBAO 
Gorno Badakhshan Autonomous Oblast 
GOT 
Government of Tajikistan 
HPP 
Hydro Power Plant 
IP Implementation 
Progress 
ISR 
Implementation Status Report 
MWh Mega-Watt-Hour 
PDPG 
Programmatic Development Policy Grant 
PDO 
Project Development Objective 
PEC 
Pamir Energy Company 
PMU 
Project Management Unit 
PPPP 
Pamir Private Power Project 
SDR 
Special Drawing Rights 
USD 
United States Dollar 
 
Regional Vice President:
Philippe H. Le Houerou
 
Country Director:
Motoo Konishi
 
Sector Director:
Peter Thomson 
Sector Manager:
Ranjit Lamech 
 
Task Team Leader:
Imtiaz Hizkil / Mirlan Aldayarov 
Page  3
3
PAMIR PRIVATE POWER PROJECT 
RESTRUCTURING PAPER 
SUMMARY 
 
The proposed changes are to cancel part of the Grant proceeds of the Pamir Private 
Power Project Additional Financing (PPPP) (P075256; Credit No: 3682-TJ and Grant 
No: H3810-TJ) in an amount of about SDR 768,000 (equivalent of USD 1.2 million) that 
remains unutilized by the Closing Date of December 31, 2010. There will be funds 
remaining in the Pamir project to meet ongoing commitments. The request of the 
Government of Tajikistan (GOT) to recommit the cancelled funds will be forwarded for 
further consideration.  
 
PROJECT STATUS 
 
The Pamir Private Power Project was approved on June 27, 2002 with the Project 
Development Objective (PDO) to improve the reliability and enhance the quantity of 
electricity in the Gorno Badakhshan Autonomous Oblast (GBAO) region in a financially 
and socially sustainable way. 
 
The PDO are being achieved with supply of electricity grown to about 175,000 
MWh/year comparing to 135,000 MWh/year without the project and substantial 
reduction of power interruptions.  
 
Activities of the original credit have constantly been implemented satisfactory. However, 
due to a flooding and following serious accident in Pamir HPP-1 in early February 2007, 
the Government of Tajikistan and the Pamir Energy Company (PEC) requested an 
emergency additional financing and restructuring of the original PPPP. The amendments 
of the PPPP and additional financing in amount of SDR 1.6 million were approved on 
July 31, 2008 to ensure PEC is able to meet the costs of (a) certain repair and 
rehabilitation works at Pamir HPP-1 that has been considerably damaged due to the 
flooding and (b) the technical assistance to ensure the chances of such accidents 
occurring again are reduced and other safety accident are avoided.  
 
With AF support PEC has significantly progressed in implementation of the emergency 
action plan to restore the operation of Unit No.2 of Pamir HPP-1. A new generator has 
been contracted using PEC own funds although its delivery has been complicated and has 
taken a several months due to difficult terrain. The repair of the turbine runner for this 
unit is financed by the Bank (under AF). The replacement unit is expected to be 
commissioned by mid-January 2011. The commissioning of unit 2 is important for 
restoring the full plant capacity and will help reduce the power cuts in the system.  
 
While AF has guaranteed PEC financial ability to timely pay for supply of equipment and 
repair works, many restoration activities have been implemented using PEC own funds, 
Page  4
4
thus, leaving about US$ 1.2 million unutilized.  In the most recent Implementation Status 
Report (ISR), the Implementation Progress (IP) of activities of the Additional Financing 
is rated Moderately Satisfactory due to the slow disbursement of the Project activities 
financed out of the Additional Financing. Through the partial cancellation, the issue of 
slow disbursement will have been addressed. 
 
PROPOSED CHANGES  
 
Tajikistan was adversely impacted by the global economic crisis in 2008-09 and its 
consequences are still being felt by the country’s economy. Given that a sizable portion 
of scarce IDA resources remains unutilized under the project the GoT requested to 
recommit these funds to the proposed PDPG-5 operation that will enable deepen 
structural reforms. While USD 1.2 million under Grant H3810-TJ is proposed to be 
cancelled, no changes are proposed for Credit 3682-TJ, which has been fully disbursed 
under the project. 
 
The Project Development Objectives (PDO) would remain unchanged. 
 
Page  5
A
N
N
E
X
2
:
P
a
r
t
i
a
l
C
a
n
c
e
l
l
a
t
i
o
n
o
f
P
r
o
c
e
e
d
s
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
T
A
J
I
K
I
S
T
A
N
—
P
A
M
I
R
P
R
I
V
A
T
E
P
O
W
E
R
P
R
O
J
E
C
T
P
0
7
5
2
5
6
C
R
E
D
I
T
N
O
:
3
6
8
2
-
T
J
A
N
D
G
R
A
N
T
N
O
:
H
3
8
1
0
-
T
J
R
e
s
t
r
u
c
t
u
r
i
n
g
P
a
p
e
r
1
.
P
r
o
c
e
e
d
s
f
o
r
T
a
j
i
k
i
s
t
a
n
,
P
a
m
i
r
P
r
i
v
a
t
e
P
o
w
e
r
P
r
o
j
e
c
t
,
C
r
e
d
i
t
N
o
:
3
6
8
2
-
T
J
a
n
d
G
r
a
n
t
N
o
:
H
3
8
1
0
-
T
J
,
P
0
7
5
2
5
6
w
i
l
l
b
e
p
a
r
t
i
a
l
l
y
c
a
n
c
e
l
l
e
d
a
s
f
o
l
l
o
w
:
C
a
t
e
g
o
r
y
A
m
o
u
n
t
o
f
t
h
e
C
r
e
d
i
t
A
l
l
o
c
a
t
e
d
(
e
x
p
r
e
s
s
e
d
i
n
S
D
R
E
q
u
i
v
a
l
e
n
t
)
%
o
f
E
x
p
e
n
d
i
t
u
r
e
s
t
o
b
e
F
i
n
a
n
c
e
d
A
m
o
u
n
t
o
f
t
h
e
G
r
a
n
t
A
l
l
o
c
a
t
e
d
(
e
x
p
r
e
s
s
e
d
i
n
S
D
R
E
q
u
i
v
a
l
e
n
t
)
%
o
f
E
x
p
e
n
d
i
t
u
r
e
s
t
o
b
e
F
i
n
a
n
c
e
d
C
u
r
r
e
n
t
R
e
v
i
s
e
d
C
u
r
r
e
n
t
R
e
v
i
s
e
d
(
1
)
W
o
r
k
s
2
,
7
0
0
,
0
0
0
2
,
7
0
0
,
0
0
0
1
0
0
%
o
f
f
o
r
e
i
g
n
e
x
p
e
n
d
i
t
u
r
e
s
a
n
d
9
0
%
o
f
l
o
c
a
l
e
x
p
e
n
d
i
t
u
r
e
s
8
0
,
0
0
0
8
0
,
0
0
0
1
0
0
%
(
2
)
G
o
o
d
s
(
a
)
c
e
m
e
n
t
a
n
d
s
t
e
e
l
(
b
)
o
t
h
e
r
g
o
o
d
s
1
6
3
,
8
3
9
.
8
9
4
,
4
8
6
,
1
6
0
.
1
1
1
6
3
,
8
3
9
.
8
9
4
,
4
8
6
,
1
6
0
.
1
1
1
0
0
%
o
f
f
o
r
e
i
g
n
e
x
p
e
n
d
i
t
u
r
e
s
,
1
0
0
%
o
f
l
o
c
a
l
e
x
p
e
n
d
i
t
u
r
e
s
(
e
x
-
f
a
c
t
o
r
y
c
o
s
t
)
a
n
d
9
0
%
o
f
l
o
c
a
l
e
x
p
e
n
d
i
t
u
r
e
s
f
o
r
o
t
h
e
r
i
t
e
m
s
p
r
o
c
u
r
e
d
l
o
c
a
l
l
y
0
1
,
5
0
0
,
0
0
0
0
7
3
2
,
0
0
0
1
0
0
%
Page  6
6
(
3
)
T
e
c
h
n
i
c
a
l
A
s
s
i
s
t
a
n
c
e
2
0
0
,
0
0
0
2
0
0
,
0
0
0
1
0
0
%
2
0
,
0
0
0
2
0
,
0
0
0
1
0
0
%
(
4
)
E
m
e
r
g
e
n
c
y
A
s
s
i
s
t
a
n
c
e
3
5
0
,
0
0
0
3
5
0
,
0
0
0
1
0
0
%
0
0
(
5
)
U
n
a
l
l
o
c
a
t
e
d
0
0
0
0
T
O
T
A
L
A
M
O
U
N
T
7
,
9
0
0
,
0
0
0
7
,
9
0
0
,
0
0
0
1
,
6
0
0
,
0
0
0
8
3
2
,
0
0
0
Page  7
7