ATTACHMENT_J.9_2019_EL_QR1_Y5.pdf

CENAL ASIAN REPUBLICS

CENTRAL ASIAN REPUBLICS

ENERGY LINKS PROJECT

CONTRACT NO. AID-176-C-14-00004

QUARTERLY PROGRESS REPORT

FOR THE PERIOD OCTOBER 1, 2018 – DECEMBER 31, 2018

JANUARY 31, 2019

This document is made possible by the support of the American People through the United States

Agency for International Development (USAID). The contents of this document are the sole responsibility of ECODIT, LLC, and do not necessarily reflect the views of USAID or the United

States Government.

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CENTRAL ASIAN REPUBLICS ENERGY

LINKS PROJECT

CONTRACT NO. AID-176-C-14-00004

QUARTERLY PROGRESS REPORT

For the Period October 1, 2018 – December 31, 2018

January 31, 2019

DISCLAIMER

The authors’ views expressed in this publication do not necessarily reflect the views of the

United States Agency for International Development or the United States Government.

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REPRESENTATIVE PHOTOS FROM KEY EVENTS DURING THE REPORTING PERIOD:

CASA-1000 Secretariat facilitated a kick-off meeting for the Afghanistan Transmission Lines Construction Contracts in Delhi, India, October 25-26, 2018.

Energy Links COP and the CASA Secretariat facilitated negotiation meetings between the Tajik and Kyrgyz energy companies and the EIB in Luxembourg, November 9, 2018.

Energy Links facilitated a World Bank training on Contract Management for the CASA-1000 project in Almaty, December 4-6, 2018.

Energy Links Subcontractor DMCC conducted a kick-off meeting on power system plannning for CDC Energia and Uzbekenergo, in Tashkent, December 3-4, 2018.

Energy Links subcontractor DMCC presented a power system model developed on the DigSILENT PowerFactory software platform to Barki Tojik, in Dushanbe, November 8, 2018.

Energy Links implemented energy efficiency measures and improved water supply system for the Tanobchi orphanage in Tajikistan, December 22, 2018.

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TABLE OF CONTENTS

ABBREVIATIONS ························································································· 5

Background

A. SUMMARY OF PROGRESS AND ACCOMPLISHMENTS ······························ 8

B. PROJECT REPORTS AND DELIVERABLES ················································ 14

C. DETAILED DESCRIPTION OF PROGRESS DURING THE

REPORTING PERIOD ········································································· 17

C.1 Project Team

C.2 Cross-Cutting and Compliance Report

C.3 Detailed Assessment and Analysis of Progress Made on Each Task and Milestones

ACTIVITY 1.1 (CLIN 001): REGIONAL CASA-1000 SECRETARIAT

ACTIVITY 1.2 (CLIN 001): REGIONAL NON-CASA ASSISTANCE

ACTIVITY 3 (CLIN 003): TAJKISTAN BILATERAL ASSISTANCE

C.4 Performance Indicators

C.5 Costs

D. PROJECT SCHEDULES ············································································ 54

E. PROJECT IMPLEMENTATION CHALLENGES ············································ 55

F. PLANS FOR NEXT QUARTER ·································································· 56

ATTACHMENT 1 – WORK PLAN GANTT CHARTS FOR YEAR 5 ··················· 59

ATTACHMENT 2 – SUCCESS STORIES ························································ 63

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ABBREVIATIONS

Although an effort was made to reduce the number of acronyms used in this document, many are commonly used and are included here – specifically those for donors, government institutions, and commonly used technical terms. Whenever the acronym or abbreviation appears for the first time, it is defined in the text.

ADB Asian Development Bank

AMEP Activity Monitoring and Evaluation Plan

BER Bid Evaluation Report

BOQ Bill of Quantities

CAPS Central Asia United Power System

CAR Central Asian Republics

CAREC Central Asia Regional Economic Cooperation

CAREM Central Asia Regional Electricity Market

CASA-1000 Central Asia-South Asia 1000

CCN Cooperating country national

CO Contracting Officer

COP Chief of Party

COR Contracting Officer Representative

DABS Da Afghanistan Breshna Sherkat. DABS is an independent and autonomous energy company of the Islamic Republic of Afghanistan

DoE U.S. Department of Energy

DCOP Deputy Chief of Party

DFID UK Department for International Development

ED Executive Director of the CASA-1000 Secretariat

EBRD European Bank for Reconstruction and Development

EIB European Investment Bank

EL Energy Links Project funded by USAID

EPC Engineering, Procurement and Construction

ESIA Environmental and Social Impact Assessment

GGPAS USAID Good Governance and Public Administration Strengthening Project

HICD Human and institutional capacity development

HVAC High-voltage alternating current

HVDC High-voltage direct current

IDA International Development Association

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IFC International Finance Corporation

IFIs International Financial Institutions

IEC International Electrotechnical Commission

IGC Inter-Governmental Council of CASA-1000

IsDB Islamic Development Bank

JWG Joint Working Group of CASA-1000

JSC Joint Stock Company

LSC Legal Subcommittee of CASA-1000 Joint Working Group

LTTA Long-term technical assistance

MDM Metered data management

MEWR Ministry of Energy and Water Resources of the Republic of Tajikistan

MoE Ministry of Economy of the Kyrgyz Republic

MOU Memorandum of Understanding

NEGC National Energy Grid Company of the Kyrgyz Republic

NTCs National Transmission Companies

O&M Operations and Maintenance

PGI Power Grid of India, IFC Technical Procurement Consultant

PPA Power purchase agreement

PIUs Project Implementation Units

SCADA Supervisory control and data acquisition system

SOW Statement of work

SPMF State Property Management Fund of the Kyrgyz Republic

STTA Short-term technical assistance

TA Technical assistance

TW01-TW06 CASA-1000 codification of procurement packages

TW01 Procurement package for Converter Stations tender

TW02 Procurement package for HVDC/AC transmission lines in Pakistan tender

TW03 Procurement package for HVDC transmission lines in Afghanistan tender

TW04 Procurement package for HVDC/AC transmission lines in Tajikistan tender

TW05 Procurement package for HVAC transmission lines in the Kyrgyz Republic tender

TW06 Procurement package for HVAC transmission lines and AC bay extensions in the Kyrgyz Republic and Tajikistan tenders

TCN Third-country national

WB World Bank

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BACKGROUND

On September 30, 2014, USAID signed a contract with ECODIT, LLC, for the Central Asian Republics

(CAR) Energy Links Project (AID-176-C-14-00004). Through Energy Links, USAID/Central Asia (CA) is uniquely positioned to address various power sector and water management challenges, as described below, and seize existing opportunities to achieve increased national energy security for countries in Central Asia via four supporting outcomes:

1. Increased transparent intra- and inter-regional energy trade

2. Improved legal and regulatory framework and investment climate for the countries’ energy sectors

3. Improved corporate governance, operations, and commercialization of the energy companies

4. Improved energy efficiency (EE) and demand-side management (DSM).

Certain countries in Central Asia, including Kyrgyz Republic (KR), and Tajikistan (TJ), and Afghanistan (AF) and Pakistan (PK) in South Asia, regularly experience severe electricity shortages and poor electricity supply. Uneven generation sources, combined with poor transmission infrastructure and a regionally fragmented grid, represent the most critical realities for the gap between demand and supply.

Both KR and TJ heavily rely on hydropower to satisfy local demand in the winter periods, which reduces the volume of water available for irrigation in the downstream countries of Kazakhstan (KZ), Turkmenistan (TM), and Uzbekistan (UZ). KR and TJ can better utilize their hydropower generation, with TJ ranking eighth in the world for hydropower potential. The two countries have excess supply during the warm summer months, which cannot be utilized locally, while PK has an increasing demand for electricity to support its growing economy. The regional grid in Central Asia was not designed with cross-regional export in mind, therefore, its infrastructure gaps exacerbate electricity shortages in parts of the region and end up squandering millions of dollars of potential export revenues to the wider regions, including AF and PK, that could improve the financial bottom line of the electric companies and contribute to power sector investment and maintenance. Weak and underdeveloped regulatory environments augment revenue and infrastructure deficits. As a result of low electricity tariffs, large losses and poor bill collection, power utilities fail to generate revenue necessary for upgrading or replacing degrading generation and transmission infrastructure. A massive institutional capacity and skills deficit within public and private institutions, along with widespread corruption and theft of service, prevent government regulators from effectively monitoring electricity flows and enforcing rules, reducing the ability of electricity companies to manage and disclose finances and operations in an effective way. Partly as a result of these challenges, inefficient energy use, especially by large industrial and government facilities, is also an issue.

The ECODIT LLC Consortium embraces USAID’s vision of a sustainable upward trajectory for national energy sectors in the Energy Links countries and for the region as a whole. Our technical approach is designed to move these countries up the maturity curve of regional trade and investment, toward an integrated, competitive regional energy market. Currently, lack of reliable power infrastructure and the risks associated with cross-border electricity trade in the region discourage investments in a regional power market. To reduce these risks, we are supporting CASA-1000 power infrastructure project, and continue facilitating a robust framework of institutions that address key political and regulatory barriers to market development. The project also addresses underlying capacity deficits that prevent effective management of energy trade, regulatory bodies, and the energy companies.

This is the First Quarterly Report for the Energy Links Project in Year 5 / FY 2019, covering the period from October 1, 2018 to December 31, 2018. Per Contract No. AID-176-C-14-00004, the Quarterly Report presents details on major activities and achievements, progress toward achievement of milestones in accordance with the approved Annual Work Plan, success stories, and progress toward standard indicators of the Activity Monitoring and Evaluation Plan (AMEP).

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A. SUMMARY OF PROGRESS AND

ACCOMPLISHMENTS

REGIONAL CASA-1000 SECRETARIAT

Energy Links project is supporting implementation of CASA-1000 electricity transmission and trade project that will supply summer surplus hydroelectricity from Central Asia to South Asia. Once implemented, the $1.2 billion CASA-1000 project will bring 1300 MW of power from Tajikistan and Kyrgyz Republic to Afghanistan and Pakistan. It will create a major new source of revenue in the regional electricity market. Upon completion of construction, 4.6 billion kWh/year would be transmitted from KR and TJ generating sources to PK and AF. Energy Links supports operations of CASA-1000 Intergovernmental Council’s (IGC) Secretariat to ensure smooth CASA project implementation, by coordinating procurement, facilitating contractual negotiations, supporting legal and financial activities, and administering many other important project processes and business flows. During the First Quarter of Project Year 5, the CASA-1000 project entered into the implementation phase, unfolding the new page in the CASA project history after the CASA-1000 IGC declared September 21, 2018 as the Construction Start Date.

During the first Quarter of Project Year 5, the Secretariat continued providing full-scale administrative and technical support, organized and facilitated activities and meetings of the Procurement Committee (PC), the Joint Working Group (JWG), and the work of its subcommittees by providing procurement and technical consultants, including Legal Counsel, Contract Advisor, and Financial Advisor. The Secretariat managed preparation of the project documentation in English and Russian, facilitated communication with the national transmission companies (NTCs) and Project Implementation Units (PIUs), the Engineering, Procurement and Construction (EPC) Contractors, the Owner’s Engineers, to provide clarifications for ongoing contractual negotiations and construction start-up activities. It successfully facilitated kick-off meetings for the four construction packages, coordinated bid evaluation process for High Voltage Direct Current (HVDC) Operator Strategy consulting services, developed the guidelines for Account Bank selection and forming of the Implementation Subcommittee, delineated steps for developing the CASA -1000 project communication strategy with the involvement of a consultant, carried out actions for the completion of the remaining procurement activities, and oversaw the overall timely implementation of construction packages. During the reporting period, the Secretariat organized 14 CASA meetings, including four PC and one JWG meeting, six training sessions on Document Management System (DMS) with the country PIUs, EPC Contractors and Owner’s Engineers, supported the World Bank Contract Management training, kick-off meetings and several contract implementation meetings in Dushanbe, Delhi, Lahore and Islamabad.

Development of Coordination Mechanisms for CASA Project Implementation: During the reporting period, the CASA Secretariat made significant efforts to effectively support transition into construction and implementation stage of the majority of the EPC contracts. For such a complex project that is CASA-1000, the effective coordination among the various stakeholders is critical to avoid any delays in the implementation phase. This involves engineering design, studies and surveys, mobilization activities, supply and transportation, construction and testing works, compliance with social and environmental safeguards, and many others. In collaboration with the project partners and implementers, the Secretariat established the common vision and ensured their commitments on joint procedures for the effective project coordination, management, communication and documentation. It reviewed and refined the project decision-making and approval processes and communication lines between the different project stakeholders – Employers (NTCs), PIUs, Owner’s Engineers and EPC Contractors, the countries’ governing bodies (Ministries) and international funding institutions (IFIs). The Secretariat assisted in preparing the project administrative guidelines and project coordination manual for

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construction of the HVDC Converter Stations; established the Project Coordination Mechanism and Coordinating Team, drafted the Project Master Schedule, combining the critical project activities and milestones with the detailed schedules.

Support on Procurement Activities and Construction Kick-Offs: In October, the Secretariat jointly with the CASA-1000 PC established a schedule for the kick-off meetings to support initiation of the project EPC contracts. Well-organized and thoughtfully prepared project kick-off meetings are a necessary pre-requisite for establishing the transparent and effective project implementation environment. The successful kick-off meetings help set priorities, nurture the teamwork, refine communication and coordination processes, and establish clarity about the goals, deliverables and time lines. The Secretariat successfully organized and implemented the construction kick-off meetings for the four construction packages: HVDC Converter Stations (TW01); HVDC transmission lines in Afghanistan (TW03); transmission lines in Tajikistan (TW04 and TW06), with full participation from the EPC contractors, Owner’s Engineers, NTCs and PIUs. During the kick-off meetings, the Secretariat introduced a common communication procedure through the centralized DMS, and HVAC and HVDC Owner’s Engineers, country PIUs, as well as EPC Contractors all agreed to use this system to ensure the proper coordination that is essential to avoid delays in the implementation.

The current status of the procurement and construction packages is reflected below:

Procurement/ Construction Packages

Status

TW01: Two Convertor Stations, in Tajikistan and Pakistan (WB/IDA/DFID funding)

The kick-off meeting with ABB/Cobra held on November 1-3, 2018 in Dubai. The administrative guidelines and contract management manual developed.

TW02: HVDC lines in Pakistan (IsDB funding)

Revised tender documents for TW02 HVDC lines in Pakistan, incorporating changes on the route line length and cost, were submitted for IsDB approval.

TW03: HVDC lines in Afghanistan (WB funding)

The kick-off meeting with two Indian companies, KEC and KPTL, held on October 25-26, 2018 in Delhi.

TW04; TW05: HVDC

transmission lines in Tajikistan, and 125 km of HVAC transmission line in Kyrgyz Republic (IsDB funding)

The kick-off meeting for TW04 for the Tajik portion of the HVDC line between Barki Tojik (BT) and Indian company KPTL held on November 20-21, 2018 in Dushanbe. The kick-off meeting for TW05 between Turkish company MITAS and the National Electric Grid Company (NEGC) of Kyrgyz Republic planned for February 2019.

TW06: HVAC transmission lines in Kyrgyz Republic and Tajikistan and re-enforcement of the grid in Tajikistan (EIB and WB funding)

The kick-off meeting for the WB/EIB-funded HVAC transmission line procurement package for Tajikistan held between BT and KPTL of India on November 20-21, 2019 in Dushanbe.

Signing of the contract for KR portion is planned for February 2019.

EIB provided its No Objection on December 6, 2018, after revision of modifications agreed with MITAS in September’s negotiations in Bishkek due to currency (Turkish Lira) volatility in the Contractor’s home country.

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HVDC Owner’s Engineer (WB funding)

The services of HVDC Owner’s Engineer activated. The country Employers issued the notification letters on the beginning of CESI company services. The signing of the Contract with CESI for HVDC OE Services by Afghanistan national transmission company DABS – took place in October 2018.

HVAC Owner’s Engineer (WB funding)

The contract was awarded to Monenco of Iran in 2016. WB is providing its clearance for the contract activation and clarification of payment schemes (selecting the transit bank).

The Secretariat coordinated reviews, comments and translation of voluminous procurement documentation (technical, commercial, administrative/procedural, and legal texts) that facilitated significant and timely progress with the development and evaluation of project procurement and construction packages (TW01 through TW06 and HVDC OE).

Support on CASA Project Financial Activities: The Secretariat provided effective support to the country teams for clearance and waiver of the conditions prior to disbursement in the CASA Countries’ financing agreements with IFIs such as World Bank (WB), European Investment Bank (EIB), European Bank of Reconstruction and Development (EBRD), and Islamic Development Bank (IsDB). The Secretariat facilitated negotiations and refining of the contracts’ payment terms, schemes and necessary financial procedures with the EPC Contractors and the funding institutions that led to clearance of different IFIs requirements for receiving the first project advance and intermediate payments, and ensuring the future uninterrupted financial flows, without delays and other defaults.

During the reporting period, the Secretariat updated a comprehensive matrix with the WB and EIB requirements and conditions for disbursement to be addressed by the countries. To resolve all pending issues related to the EIB 140 million Euro loan to the KR and TJ NTCs, the CASA-1000 Secretariat facilitated and participated in negotiation meetings between representatives of the EIB and NTCs of KR (National Electric Grid Company - NEGС) and TJ (Barki Tojik), in Luxembourg. The face-to-face negotiation meetings at the EIB offices were critical to ensure that all conditions to disbursement would be satisfied. As a result, the Project Implementation Agreements between the KR NEGC and EIB, and the TJ Barki Tojik and EIB were accomplished. With substantial support of the Secretariat, Tajikistan successfully completed all requirements to enable the first disbursement of funds from the EIB to the transmission line contractor for construction package TW06, Lot-1. In relation to the Kyrgyz Republic Lot-2, all the payment terms, disbursement protocols and cost division between the WB and EIB related to this contract were clarified, and the NTC and PIU capacity to administer this contract was strengthened. On December 6, the EIB clearance of No Objection for the KR Transmission Line Contract TW06, Lot-2 was issued for the KR NEGC to enter into the contract with the EPC contractor.

Capacity Building of Country PIUs on Project Management: On December 4-6, 2018, in Almaty, the CASA Secretariat successfully facilitated and participated in the Contract Management training related to CASA-1000 project implementation. The training was delivered by the World Bank experts and featured approximately 30 participants from the CASA countries’ PIUs as well as representatives of the Secretariat, Owners Engineers and the World Bank staff. Pakistan participated via a video conference (VC) for all three days. During the training session, the participants received in-depth knowledge on the core principles of organizing coordination, supervision and management activities for two HVDC Converter Stations’ construction contracts, as well as contracts for construction of the transmission lines.

The participants debated risks and challenges associated with the contracts’ implementation for complex infrastructure projects, reviewed conditions and technical aspects of HVDC Converter Stations’ contracts that involve the engineering design, construction, and commissioning works, including maintenance of HVDC facilities after commissioning. During the training session, the participants identified and reviewed potential risks such as delays in contractor’s right to access the site, to get timely

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design approvals, payment delays and other defaults in borrower’s contractual obligations that could potentially lead to contractual disputes, and the mitigation measures. The training topics included review of case studies of similar contracts in the power sector. Upon completion of the training course, the participants were awarded Certificates of Completion.

Operation of CASA-1000 DMS: One of the critical tools to ensure the integrated and smooth project implementation is the centralized CASA-1000 Document Management System (DMS), which was placed into active operation during the reporting period. The initial forecast for document flow estimated that more than 200 technical or commercial documents would be sent each month by the EPC contractors to the PIUs, OEs, and yet to be established Implementation Subcommittee, with data requests to countries’ working groups to respond to. During the reporting period, the Secretariat continued to roll out training sessions for the country PIUs, Contractors and Owner’s Engineers and significantly enhanced their capacity and skills to apply the CASA DMS for establishing a rigorous document control and effective document exchange. Several training sessions on the DMS, its structure, purpose, key components, its integration with the Contractors and Employers’ systems were carried out by the Secretariat from October to December 2018 in Dushanbe, Delhi, Dubai, Lahore and Islamabad, targeting the different project audiences and establishing a common platform for handling the vast amount of the project documentation, including legal, technical, commercial, and administrative documents. Each organization participating in the training nominated a responsible officer – Document Controller - responsible for document management and control. A Document Control Manual was finalized and shared with the project stakeholders. The DMS is already in use for the transfer and approval/review of documents related to the Converter Stations that comprise approximately 6,000 drawings and technical documents. Pakistan and the HVDC Owner’s Engineer have assigned recently their Document Controllers. Last party to engage will be the contractor in KR due to an outstanding contract.

Other Support: The Secretariat also supported the following business activities:

facilitated the process for selection of the Account Bank, identified 35 eligible banks with high ratings, and discussed the next steps with the countries;

supported the selection of the consultant for developing the DC Operator Strategy;

established steps for increasing project visibility by engaging the consultant for development of CASA-1000 Communication Strategy;

established the vision and necessary actions, jointly with the country teams, to form the Implementation Subcommittee as an important step in the construction phase of the project;

and started preparations for the next in-person JWG to be tentatively held in February 2019 in Almaty, to advance the next set of CASA business activities.

OTHER REGIONAL ACCOMPLISHMENTS

The cross-border energy trade represents an opportunity for increased Central Asian intra- and inter-regional cooperation that has been a focal theme at various technical and policy forums, and promoted at different political and industry levels. Creating open markets, diversifying energy resources and ensuring sustainable development are commonly accepted and supported USAID policy objectives. During the reporting period, Energy Links was instrumental in enhancing the regional power trade efforts by organizing capacity building workshops on regional power system planning with an aim to develop a cross-border regional electricity trading framework that will provide economic benefits to all participating countries in Central Asia.

Energy Links Supported Implementation of Central Asian Regional Transmission Planning:

Power systems of the four Central Asian countries – Kazakhstan, Kyrgyz Republic, Uzbekistan, and Tajikistan – are interconnected through the united Central Asian Power System (CAPS). Pursuant to its

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mandate, the Coordinating Dispatch Center (CDC) Energia, located in Tashkent, Uzbekistan, plays an important role in coordinating and monitoring power system operations in the Central Asia Region.

Energy Links provides technical assistance to CDC Energia to enhance its role as the regional system operations coordinating entity and is strengthening its capacity in transmission system modeling, power flows analyses and planning. On December 3-4, 2018 in Tashkent, Energy Links COP Andriy Mitskan and DCOP Michael Bekker participated in a kick-off meeting on implementation of DigSILENT PowerFactory transmission planning software for CDC Energia and Uzbekenergo. During the meeting, the project experts delivered presentations on the features of the power system modeling software and agreed on the most suitable software configuration. The meeting participants agreed that the first training session will be scheduled for mid-January 2019. Upon the completion of the capacity building and power system modeling process, the fully functional model of the regional transmission system of Central Asia will be created to support analyses of power system operation, planning and expansion under various scenarios. On December 4, Energy Links COP and DCOP met with the World Bank representative in Uzbekistan, Mitsunori Motohashi and USAID Uzbekistan’s Economic Growth team to brief them on transmission system modeling activities and assistance to CDC Energia and Uzbekenergo.

Solicitation of Proposals to Equip a Regional Training Center of CDC Energia: Energy Links prepared a Request for Proposals (RFP) to solicit professional services to equip a Regional Training Center at CDC Energia. This Regional Training Center (RTC) will be established with the joint support of the World Bank and USAID, and will provide professional training services to CDC Energia and Uzbekenergo experts and national power system operators from Central Asia and Afghanistan. Energy Links coordinated with the WB and USAID the scope of the assistance to establish the RTC that can include development of technical training curricula, creating dedicated training facilities, and identifying and implementing other priorities needed to enhance capacity building and training of regional system operators for supporting and revitalizing the regional cross-border electricity trade. Energy Links assessed the needs of CDC Energia in procurement and installation of the necessary equipment to ensure adequate functioning of its RTC, consistent with the industry standards and latest technological developments. The RFP was concurred by USAID in late December 2018 and was published on the web sites of Energy Links, ECODIT, and Uzbekenergo in early January 2019.

BILATERAL TAJIKISTAN ACCOMPLISHMENTS

The USAID/Energy Links provides targeted assistance in Tajikistan to promote greater energy security and more efficient energy resource planning and operations under the framework of the Memorandum of Understanding (MOU) between USAID and the Ministry of Energy and Water Resources (MEWR) of the Republic of Tajikistan. During the reporting period, the project advanced the following activities:

Assistance to BT on Power System Planning including Planning of Relay Protection System:

Energy Links subcontractor DMCC from Ukraine completed a series of interactive trainings supporting Barki Tojik (BT)’s in-house capacities in power system modeling and system planning. The DMCC trainers supported the power system planning and modeling capacities at BT using the DigSILENT PowerFactory platform, the leading tool for modeling application in the power industry. On November 5 - 7, 2018 in Dushanbe, the DMCC experts conducted the workshop on calculation of losses and loss reduction methodology utilizing the software tools. The main focus of the workshop was to create an interactive training platform where BT and DMCC engineers were able to review the grid losses calculation methodology, equipping the BT engineers with power system modelling, system planning and electricity loss reduction capacities. Five BT leading specialists from the relevant departments involved in calculation of losses, including one female engineer, strengthened their capacity and acquired skills for operating DigSILENT Power Factory application for calculating losses and optimizing the grid model.

On November 8, 2018 Energy Links and the DMCC experts presented to the BT senior management the power system model developed on the platform of DigSILENT PowerFactory software. Energy

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Links conveyed to BT the DigSILENT licenses for using PowerFactory software and awarded the training completion certificates to the BT specialists.

In response to the request of Tajik counterparts, Energy Links procured an additional DigSILENT module on relay protection and conducted an additional training session for the BT specialists. Seven energy specialists from BT attended the training workshop in Kyiv in late December and learned functionality of the relay protection module during practical exercises using the DMCC training facilities and software installations. Under the guidance of the DMCC experts, BT specialists conducted calculations and analyses under the short circuit current conditions and learned different types of the relay protection equipment and installations applicable for Tajikistan.

The BT participants expressed high satisfaction with the theoretical part of the training and practical exercises and rated very highly the training’s organization, quality of teaching and instructors’ input, explanation of complex issues and customized training approach. With this training session, Energy Links completed its technical assistance to Barki Tojik on power system planning and modeling. As a result of provision of the necessary equipment, assistance in determining the optimal configuration and purchasing of optimal number of DigSILENT PowerFactory licenses, BT has been able to transition from the outdated software tools and upgrade to the modern system planning architecture, which will help to ensure reliable operation of the Tajikistan electric power system and integration with the future grid expansions and reinforcements through the prospective regional projects, including CASA-1000 and others.

Implementation of EE Pilot Project in the Tanobchi Orphanage: During the reporting period, Energy Links completed the construction and installation works for implementation of energy efficiency measures at the Tanobchi orphanage and water pumping station located in the Temurmalik District of the Khatlon Province, about 200 km from Dushanbe. On December 22, Minister of Energy and Water Resources Usmonali Usmonzoda, Charge d’Affairs of US Embassy in Tajikistan Kevin Covert, local state administration and representatives of USAID attended an opening ceremony of the improved water supply system in the Tanobchi orphanage. 134 children and 64 faculty and service personnel in the Tanobchi orphanage are now able to enjoy a reliable water supply as a result of energy efficiency measures supported by USAID. Energy Links COP Andriy Mitskan presented on the energy efficiency improvements that have resulted in improved social, educational and health conditions of the orphanage residents and helped eliminate 15% in water losses inside the orphanage, reduce electricity consumption, and CO2 emissions. In close cooperation with the Ministry of Energy and Water Resources, local authorities from the Temurmalik District, and the local Water Supply Company, USAID Energy Links Project has procured, delivered and installed the energy efficient equipment at the Tanobchi orphanage and water pumping station. The implemented measures were divided into two groups - water saving measures and energy saving measures. This technical assistance established a model that can be replicated in at least 70 other social and public institutions throughout Tajikistan with similar conditions in water and energy consumption. These additional energy efficiency pilots can significantly reduce Tajikistan’s energy intensity, measured as energy consumed per unit of GDP, and which is known to be twice the world average and three times the intensity of typical developed countries.

Adoption of ISO 50001 Standard Energy Management Systems: Energy Links developed the draft ISO 50001 Standard on Energy Management, in Tajik and Russian languages, that was adapted to Tajikistan’s regulatory and legal framework and submitted to the MEWR for review. Energy Links is planning to present the draft standard to the Inter-Departmental Working Group on Renewable Energy Sources (RES) and Energy Efficiency (EE), organized under the chairmanship of the MEWR, for its further review and adoption by the State Agency on Standardization, Metrology and Certification of the Republic of Tajikistan.

Support on Update of Technical Energy Rules and Regulations in Tajikistan: Energy Links initiated technical assistance to the MEWR in reviewing the outdated Electrical Installations Code and

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the Rules for Use of Electrical and Thermal Energy. Energy Links experts will provide technical recommendations for updating the rules. This technical assistance was initiated on request of the MEWR to review and update the old Soviet era energy sector technical rules and regulations. These rules are still used in the Tajik energy sector today, including the Electrical Installation Code from 1985, and do not reflect the new installations and technical requirements. Through its subcontractor Deloitte Consulting, Energy Links is assisting the MEWR in modernizing the technical codes and regulations in the energy sector. A local electricity expert engaged by Colibri Law is supporting the Deloitte expert in providing local data, organizing meetings with the MEWR Working Group and managing the stakeholder consensus.

B. PROJECT REPORTS AND DELIVERABLES

The following reports and deliverables were submitted to USAID and project stakeholders during the reporting period:

# Activity Country Month, 2018 Title of Report Language

1 Cross - Cutting October Annual Report for Project Year 4 English

2 Cross - Cutting October Monthly bulletin, October 2018 English/Russian

3 Cross - Cutting November Monthly bulletin, November 2018 English/Russian

4 Cross - Cutting December Monthly bulletin, December 2018 English/Russian

5 Regional CASA-1000 October Minutes of the Procurement Committee VC Meeting, October 3, 2018

English/Russian

6 Regional CASA-1000 October Minutes of the Procurement Committee VC Meeting, October 11, 2018

English/Russian

7 Regional CASA-1000 October Minutes of the Procurement Committee VC Meeting, October 23, 2018

English/Russian

8 Regional CASA-1000 October Minutes of the Kick-off Meeting on TW03 with KPTL, KEC, CESI/WAPCOS, Afghanistan DABS and PMU, October 25 – 26, 2018

English/Russian

9 Regional CASA-1000 November Minutes of the Kick-off Meeting on TW01 with ABB/Cobra, CESI/WAPCOS, Barki Tojik, NTDC, November 1 – 3, 2018

English/Russian

10 Regional CASA-1000 November Minutes of the Procurement Committee VC Meeting, November 12, 2018

English/Russian

11 Regional CASA-1000 November Minutes of the Kick-off Meeting on TW04, TW06 with ABB/Cobra, CESI/WAPCOS, Barki Tojik, November 20 – 21, 2018

English/Russian

12 Regional CASA-1000 December Presentations of the WB experts reviewed by the CASA Secretariat at the Contract

English/Russian

CAR ENERGY LINKS – CONTRACT AID-176-C-14-00004 – QUARTERLY PERFORMANCE REPORT 15

Management Workshop, December 4-6, 13 Regional CASA-1000 December Presentations of the CESI experts reviewed by the CASA Secretariat at the Contract Management Workshop, December 4-6, 2018

English/Russian

14 Regional CASA-1000 December Minutes of the Joint Working Group VC Meeting, December 10, 2018

English/Russian

15 Regional CASA-1000 December Presentation for the Joint Working Group Video Conference, December 10, 2018

English/Russian

16 Regional CASA-1000 December Presentation: Implementation Subcommittee Proposal, December 10, English/Russian

17 Regional CASA-1000 December Minutes of the Implementation Meeting on TW01 PK Converter Station with NTDC PIU, December 11 – 12, 2018

English/Russian

18 Regional CASA-1000 December Administrative Guidelines and Contract Management Manual for PK-TJ Converter Stations, with 9 Annexes. Prepared by CESI and reviewed by the Secretariat, December 12, 2018 Annexes: CASA-1000 Risk Register; FAT Certificate; FAT Inspection Notification;

Shipment Clearance Certificate; Shipment Notification; Site Commissioning Notification; Site Delivery Notification;

Site Work Notification; Trial Operation Notification

English/Russian

19 Regional CASA-1000 December Revised Re-tender Package on Construction of TW02 Transmission Lines in PK submitted for IsDB review

English

20 Regional CASA-1000 December Draft Contract for Package TW06 –Lot-2 for HVAC Transmission Lines and Associated Bay Extensions in Kyrgyzstan with incorporated changes

English/Russian

21 Regional CASA-1000 December Minutes/Record notes of Pre-award Contract Meetings held on various dates from 26/10/2018 to 13/12/2018 with MITAS Inc., Turkey on TW06, Lot-2 Package

English/Russian

22 Regional CASA-1000 December Draft CASA-1000 Project Master Schedule

English

23 Regional Non-CASA December Minutes of the Kick-off Meeting with DMCC of Ukraine, CDC Energia, Uzbekenergo in Tashkent, December 3-4, 2018.

Russian

CAR ENERGY LINKS – CONTRACT AID-176-C-14-00004 – QUARTERLY PERFORMANCE REPORT 16

24 Regional Non-CASA December Presentations on DMCC Technical Assistance to CDC Energia and Uzbekenergo on Regional Power System Planning delivered at the Kick-off Meeting in Tashkent, December 3-4, 2018.

Russian

25 Regional Non-CASA December Intermediate Report on Procurement and Installation of DigSILENT Power Factory Software for CDC Energia and Uzbekenergo, prepared by DMCC of Ukraine, December 28, 2018

English

26 Regional Non-CASA December RFP for Services, Materials and Equipment to Assist Coordinating Dispatch Center Energia Located in Uzbekistan on Equipping its Regional Training Center, December 26, 2018.

English/Russian

27 Regional Non-CASA December Revised TM White Paper on Opportunities for Electricity Trade, December 27, 2018

English

28 Tajikistan Bilateral November Intermediate Report on the Workshop on Loss Reduction Methodology and Loss Reduction Study, conducted on November 5 - 7, prepared by DMCC of Ukraine, November 14, 2018

English

29 Tajikistan Bilateral November Presentation on Losses Calculation and Reduction in the Tajik Power System, prepared by DMCC of Ukraine, Dushanbe, November 8, 2018

Russian

30 Tajikistan Bilateral November Report on “Analysis of the Tajikistan Regulatory and Legal Framework on Energy Management and Adaptation of ISO 50001:2018”, prepared by Energy Links Consultant Mr. Rosen, December

Russian/ Tajik

31 Tajikistan Bilateral December Draft ISO 50001 Standard on Energy Management, adapted to Tajikistan’s regulatory and legal framework, submitted to the MEWR, December 27, 2018

Russian/ Tajik

32 Tajikistan Bilateral December Intermediate Short Report on the Workshop on Planning the Relay Protection, prepared by DMCC of Ukraine, December 27, 2018

English

33 Tajikistan Bilateral December Final Report “Technical Support and Building In-house Capacity to State Utility Barki Tojik on Power System Modeling, System Planning and Electricity Loss Reduction”, prepared by DMCC of Ukraine, December 28, 2018

English

CAR ENERGY LINKS – CONTRACT AID-176-C-14-00004 – QUARTERLY PERFORMANCE REPORT 17

C. DETAILED DESCRIPTION OF PROGRESS

DURING THE REPORTING PERIOD

C.1 PROJECT TEAM

ECODIT implements the Energy Links project in the consortium with several subcontractors, including Deloitte Consulting, Energy Law International (ELI), University of Central Asia (UCA), Colibri Law, and others. As work on the project progresses, Energy Links may attract additional local and international partners to respond to emerging technical needs.

The current Energy Links project field and home office management team includes:

• Andriy Mitskan, Chief of Party (COP);

• Michael Bekker, Deputy Chief of Party (DCOP);

• Gregory Osadetz, CASA-1000 Secretariat Executive Director; and

• Martina Schwartz, Home Office Sr. Energy Project Manager, ECODIT LLC.

During the reporting period, Energy Links continued providing support to the CASA-1000 Secretariat.

The CASA-1000 project shifted its focus to coordinate the timely completion of procurement and implementation of construction activities which are anticipated for a period of 42 months, and surpassing the life of the Energy Links project. Beginning with the reporting period, the Secretariat’s role was to assist with establishing of the Implementation Sub-committee (ISC) that may succeed the Procurement Committee (PC). In order to support implementation phase of CASA-1000 project, USAID issued a contract modification #7 to ECODIT LLC to extend the period of performance until March 31, 2020. During the implementation phase, the Secretariat will be monitoring and reporting on all construction activities, implementation of social and environmental safeguards, as well as coordinating and facilitating the resolution of issues that may potentially arise during the construction phase. The Secretariat will also conduct occasional site visits by the Country Coordinators and other Secretariat staff, including the Executive Director and/or his Deputy, as needed, to obtain first-hand information on the ongoing construction activities and preparing regular informational progress reports. Based on these reports, the Secretariat will collect from each stakeholder the information related to the status of construction activities and regularly update the IGC/JWG/ISC on pending issues. It will also facilitate, on as needed basis, problem-solving meetings to ensure the timely completion of outstanding actions.

Status of the CASA-1000 Secretariat Country Coordinators: As of the end of the reporting period, CASA-1000 Secretariat employed three CASA Country Coordinators: Amin Lashkari (AF), Kairat Djumaliev (KR), and Furugzod Usmonov (TJ). The Secretariat continued coordinating with the CASA- 1000 PK Working Group for the selection of its Country Coordinator. In December 2019, the CASA ED prepared and submitted to the PK JWG the new short list of candidates with recommendation to interview the most qualified candidate, Bilal Hussain, who is currently seconded to the Pakistan Research Institute from NTDC. This candidate has a good combination of technical and commercial experience and is well known by NTDC management. He also has worked in the Power Market Entity “CPPA”.

The second best qualified candidate is an experienced technical expert, Furukh Mian, who had worked on CASA technical and commercial issues on behalf of the World Bank in 2013 – 15, and also has USAID experience. It is expected that the PK WG will interview these candidates and make a decision.

The CASA ED held several discussions with the members of the PK WG regarding finalization of this recruitment.

Other CASA-1000 Secretariat Staff Recruitment: On November 16, 2018, Energy Links initiated the reclassification of the position of Technical and Administrative Assistant II (TAA) of the CASA Secretariat to CASA-1000 Secretariat Document Management and Information Systems Controller. This

CAR ENERGY LINKS – CONTRACT AID-176-C-14-00004 – QUARTERLY PERFORMANCE REPORT 18

reclassification was due to the increased and pressing needs to establish an efficient CASA electronic document management system (“eDMS”) in the four CASA countries’ PIUs, the five EPC contractors’ offices and the project’s two Owner’s Engineer consultants. Energy Links advertised the new position in local media through Headhunter online recruiting database as well as at the Project’s two web sites. The expected start date for this new position will be January 1, 2019 and it will be assumed by TAA II Zarina Mirabdullayeva.

Summary of Signed Subcontracts, Purchase Orders and Consulting Agreements

The following service agreements were signed during the reporting period:

Consultant’s Name Activity Area Start Date End Date Contract Amount, USD

Mr. Jamshed Kodirkulov

Interpretation services for CASA-1000 meetings in Dushanbe, Tajikistan

10.22.2018 11.21.2018 1,500

Mr. Abos Kasymov

Review and update of “The Rules of Use of Electric and Thermal Energy” and “The Rules of Electrical Installations” in the Republic of Tajikistan

11.08.2018 01.31.2019 3,009

Mr. Olifta Oliftaev Consultancy to develop energy building standards in the Buildings Code in the Republic of Tajikistan

11.09.2018 01.31.2019 3,009

Sole Proprietorship Zemskov

Translation services for CASA-1000 Secretariat

11.09.2018 11.09.2018 110

Infotex & Service LLC Annual subscription to the "Paragraph" legal & accounting database

12.20.2018 12.20.2019 257

The following fixed price subcontracts were signed during the reporting period:

Vendor Activity Area Start Date End Date Contract Amount, USD

DMCC Engineering Assistance to the CDC Energia (Uzbekistan) in Central Asia regional power system planning

10.17.2018 05.17.2019 239,096

DMCC Engineering Expanded assistance to BT on planning of relay protection system in TJ (modification)

11.30.2018 12.31.2018 21,189

Limited Liability Company “Municipal Development Institute”

Technical services to assist the Ministry of Energy and Water Resources of the Republic of Tajikistan in organizing an Energy Efficiency Public Awareness and Information Outreach Campaign

10.26.2018 07.31.2019 73,039

CAR ENERGY LINKS – CONTRACT AID-176-C-14-00004 – QUARTERLY PERFORMANCE REPORT 19

C.2 CROSS-CUTTING AND COMPLIANCE REPORT

COORDINATION WITH HOST GOVERNMENTS AND DONORS

During the reporting period, Energy Links closely coordinated its project bilateral activities with the host governments, including TJ and UZ. Engagement with GoUZ took place via a diplomatic note that was sent by the US Embassy in UZ to the GoUZ regarding planned technical assistance to CDC Energia. In addition, Energy Links coordinated closely with the representatives of governments of TJ, KR, AF, and PK on CASA-1000 activities. Energy Links established close coordination and cooperation with donors and IFIs working in the Central Asia region, including WB, IFC, ADB, EBRD, IsDB, DFID, and others.

This dynamic cooperation is key to a successful implementation of all Energy Links project tasks, with particular focus on CASA-1000 coordination.

Robust cooperation and coordination on all levels manifested itself in the organization of video conferences and face-to-face meetings with government representatives of CASA-1000 countries, potential bidders and supporting activities related to the CASA-1000 procurement process, including distribution of meetings minutes, facilitation of required approvals related to the procurement process, and other issues.