November Electronic Bulletin
High Level International Conference on Energy Sector Reforms
RESET, at the request of the Ministry of Energy and Industry of the Kyrgyz Republic and USAID, organized a successful International Conference on Energy Sector Reforms in the Kyrgyz Republic to advance the recently adopted Action Plan of the Ministry.
The Conference took place on October 30 – November 1, 2013. This high-level event was co-sponsored by USAID, ADB, IFC, the World Bank, KfW, and the Swiss Office in Kyrgyzstan. Mr. Jantoro Satybaldiev, Prime Minister of the Kyrgyz Republic, opened the Conference. He delivered a welcome speech and emphasized the significance of the Conference.
The Conference was chaired by the Mr. Osmonbek Artykbaev, Minister of Energy and Industry of the Kyrgyz Republic and was attended by 146 participants. The participants represented Office of the President of The Kyrgyz Republic, Office of the Government, Parliament, line ministries, energy companies, civil society, international organizations, the US Embassy, the Ministry of Energy and Industry and the Energy Regulator.
The speakers from RESET, World Bank, ADB and IFC discussed the issues and challenges of the energy sector’s reform, corporate governance and its improvement, IT infrastructure for management modernization at utility companies, management contracts, establishing a settlement center, energy tariff and subsidy reforms, and establishing a strong regulator and its role in the energy sector.
Special guest speakers discussed reforms from the international perspectives of Georgia, Armenia and Bulgaria. Mr. Nika Gilauri, former Prime Minister of Georgia, and Mr. Sulkhan Zumburidze, CEO of Georgian State Electrosystems, shared Georgia’s experience in reform of its electricity sector. Mr. Armen Arshakyan, former Head of the Tariffs Committee of ERRA, and Mr. Nikodim Stamov, former Vice Chairman of the Bulgarian State Energy Regulatory Commission, spoke on the need for and role of a strong independent regulator in the energy sector.
The Conference Participants discussed and approved a draft Resolution which calls for:
- Improving the legal framework and creating conditions for diligent management in the sector in general, and in electricity companies;
- Reforming the regulatory body and assigning it an independent status;
- Providing a legislative framework for a System Operator and establishing an Independent Settlement Center, which will gradually evolve into a Market Operator;
- Modernizing management in energy companies, promoting public-private partnerships, attracting investments and technologies, improving the legislative framework in the area of regulation, pre- and post-licensing, and performing oversight of energy security;
- Addressing the international donors with proposals for the continued funding of the energy sector reforms in the Kyrgyz Republic;
- Establishing an interagency working group with the involvement of concerned ministries, agencies and international organizations to develop specific measures and draft legal and regulatory acts to reform the energy sector;
- Conducting international conferences on energy sector reforms on a regular basis to achieve the best possible results of reforms.
Fifth Meeting of CASA-1000 Legal Subcommittee
RESET conducted the fifth meeting of the Legal Subcommittee of the CASA-1000 Joint Working Group on October 1-4, 2013 in Almaty. The meeting considered the core CASA commercial agreements—a Coordination Agreement, a model Power Purchase Agreement (PPA) and a Master Agreement for the Project. The sessions conducted during the first two days were Sellers-only and were confined to deliberations on the Coordination Agreement. The sessions on October 3 and 4 included all four countries and concentrated on the model PPA.
The Legal Subcommittee was briefed on the recent Inter-Governmental Council meeting in Islamabad and on the need for haste in completing the project Agreements.
Material progress was made on the agreements and the timetable through the end of 2013 was presented by Dr. Thomas C. Breuer, Executive Director of CASA-1000 Secretariat.
CASA-1000 High-Level Meeting at Washington, D.C.
Dr. Breuer participated in meetings held in Washington, D.C. as adjuncts to the World Bank’s October meetings of Finance Ministers (October 7-11). He was accompanied to most meetings by Ms. Laura Gonzalez of USAID Central Asia.
Dr. Breuer briefed USAID's Office of Afghanistan and Pakistan Affairs and World Bank’s CASA-1000 team members on the Project’s status. The briefing included discussion of the Project’s recent progress, outstanding and unresolved funding issues, and work needed to go forward.
Dr. Breuer also met with the Kyrgyz delegation to the World Bank meetings, headed by their Minister of Finance, Ms. Olga Lavrova, and including their Ambassador to the United States, Mr. Muktar Djumaliev, and Ms. Nadira Dzheenbekova, designated CASA-1000 contact in the Kyrgyz Ministry of Finance. This meeting was chaired by Senior Deputy Assistant Administrator, Denise Rollins, and focused on the CASA funding needs of the Kyrgyz Republic.
The World Bank’s official CASA-1000 event took place on Friday evening (October 8). Highlights included:
- Declarations by representatives of the U.S. State Department and by DFID of their respective governments’ intent to provide some capital funding for the Project conditional on conclusion of the project agreements and formulation of a suitable security plan.
- Statement by Afghan Deputy Minister of Finance, Mustafa Mansoor, that the Afghan finance ministry was taking leadership of the country’s contract negotiation efforts and other aspects of Project development.
First Meeting of the Procurement Committee
The initial meeting of the newly created CASA-1000 Procurement Committee was held the first week in October by video conference and hosted by the IFC.
The meeting introduced the committee members to the team from Power Grid Corporation of India that is preparing the Engineering-Procurement-Construction/Operation bid packages. The Committee members and Power Grid representatives discussed the draft Prequalification documents for the package that will include the AC/DC converters and DC System Operator.