|
|
 |
 |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
| |
| Project number | 10255 |
| Project name | Pamir Energy Development |
| Country | Tajikistan |
| Sector | Utilities |
| Department | Infrastructure |
| Company name | Open Joint Stock Company Pamir Energy Company |
| Environmental category | B |
| Date SPI disclosed | February 22, 2002 |
| Projected board date | March 28, 2002 |
| Status | Active |
| Previous Events | Invested: July 21, 2003
Signed: September 16, 2002
Approved: June 27, 2002 |
|
| Project sponsor and major shareholders of project company |
The Aga Khan Fund for Economic Development (AKFED) is one of the agencies of the Aga Khan Development Network (AKDN). It is a for-profit institution that promotes sustainable economic development particularly in Asia and Africa by investing in projects in industry, tourism, and financial services, often acting as a catalyst for mobilization of other foreign institutional investors into the projects. Its approach is to help build economically viable enterprises through a long-term equity participation combined with competent professional management, technical expertise and support.
AKDN, including AKFED, has been very active in Tajikistan, providing a wide range of development programs focusing on support for reconstruction of the country after the collapse of the Soviet Union and the subsequent civil war. Its programs include rural development, health and education, microfinance, and the development of the University of Central Asia, and it has a comprehensive organizational network throughout the region.
AKFED is the sole sponsor of the project, and will be a 70% equity holder in the project company. IFC will hold the remaining 30%. |
|
| Total project cost and proposed IFC investment |
| The total project cost is estimated at US$25.0 million. In addition, the project includes additional funding of $8.8 million for a tariff subsidy. IFC is expected to invest up to $4.3 million in the form of an A loan for IFC's own account, and up to $3.2 million in the form of an equity stake of 30% of the project company. |
|
| Location of project and description of site |
| The project will be located in the Gorno-Badakhshan Autonomous Oblast (GBAO), in the eastern part of Tajikistan. |
|
| Description of company and purpose of project |
GBAO is one of the most isolated and impoverished areas of the world. It experiences long cold harsh winters. During the Soviet period, diesel power plants with subsidized fuel provided electricity to the majority of the population. With the collapse of the Soviet Union, and the subsequent civil war and sharp economic decline, fuel deliveries ceased and the plants have deteriorated beyond repair. As a result, the population has come to depend on fuel wood for cooking and heating. An estimated 70% of the region’s tree cover has been cut down over the decade, schools and other public institutions must be closed during the coldest periods, indoor pollution is acute, and economic activity is stifled. The household income survey undertaken for the project estimated average monthly income for a household of six at $27.
The project will generate and supply electricity under a 25-year concession. It will (i) take control of the assets of the state utility (around 40 MWs generation capacity in total) serving 200,000 people, (ii) expand the main Soviet era hydro-plant from 14 MWs to 28 MWs, and construct a river regulating structure at an upstream lake (to provide better winter flows), and (iii) rehabilitate other generation, transmission and distribution assets. In addition, the project will provide tariff subsidy mechanisms to ensure a minimum level of electricity for the poorest. In order to lower the project tariff and provide tariff subsidy mechanisms, IDA is expected to fund the project together with a grant from the Government of Switzerland. |
|
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
|
|
| Location of environmental documents in locally affected community |
| Info Shop at the World Bank Group, World Bank Group Dushanbe Office in Tajikistan, Pamir Energy Company office in Dushanbe, Tajikistan, the Ministry of Energy in Dushanbe, Tajikistan, and the Hukamats of Khorog, Ishkashim, and Vanj in Tajikistan. |
|
| To contact the project company, please write to: |
Pamir Energy Company
Att. Matt Scanlon
3 Hakimzoda Street, Dushanbe, Tajikistan, 734 001
Satelite phone: 0873 761844875-8
Fax: +992 372 246565
E-mail : scanlon@tajnet.com |
|
|
|