Eurasian Integration Yearbook 2012

Advanced Economic Cooperationin Sectors and IndustriesProgramme for the Construction of Small Hydropower Plants for 2009-2020was prepared on its basis.The Programme includes three stages:• a short-term stage (2009-2011): 66 plants with a total installed capacity of43.53 MW and an estimated cost of $51.593 million;• a medium-term stage (2012-2015): 70 plants with a total installed capacityof 32.85 MW and an estimated cost of $39.38 million; and• a long-term stage (2016-2020): 53 plants with a total installed capacity of26.801 MW and an estimated cost of $32.161 million.The Programme is expected to be financed by local and foreign investors.Industrial enterprises are provided with certain preferences if they build theirown small hydropower plants. Electricity produced by these plants will becheaper than that purchased from the power system. The price of electricityproduced by a small power plant, which is owned by an enterprise, will notexceed its prime cost. The experience of constructing small plants in Tajikistanhas shown that the cost of construction does not exceed $1,100-$1,200per kW.The investment needed for all three stages of the programme exceeds $123million and is being sought from international financial institutions. The IslamicDevelopment Bank (IsDB), the Asian Development Bank (ADB), the InternationalFinance Corporation (IFC), UNDP, and Iran are financing the construction of 23small hydropower plants in Tajikistan.Kyrgyzstan has also developed and is implementing a programme toconstruct new large and small hydropower plants, which lists Kambarata-1 andKambarata-2 HPPs as priorities.The prospective trade in electricity envisioned by Kyrgyzstan and Tajikistantargets primarily South Asian countries. In 2006 the CASAREM (CentralAsia/South Asia Regional Electricity Market) programme was launched withassistance from the ADB to develop the sub-regional electricity market. TheCASA-1000 (Central Asia/South Asia) project was launched in the framework ofthe programme, providing for the export to South Asia of electricity producedin summer by Tajikistan’s and Kyrgyzstan’s active hydropower plants. CASA-1000 creates a system to transmit electricity from Kyrgyzstan and Tajikistanto Afghanistan and Pakistan, which will make it possible to export up to1,000 MW during the first phase with subsequent increase in supplies. Theparticipants in the CASA-1000 project and the CASAREM programme areAfghanistan, Kyrgyzstan, Pakistan and Tajikistan. The total expenditures,including contingencies and interest for the period of construction, reach $953million. They include the improvement of domestic transmission grids for theCASA project and preliminary environmental and social costs.224 EDB Eurasian Integration Yearbook 2012