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Kyrgyzstan holds the tender on the construction of 14 SHPPs

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The demand for new HPPs is conditioned by the considerable amount of republican HPPs being technically outdated. So, the republic needs the capacity build up.
Construction of SHPPs will allow enhancing the reliability of electricity supplies to remote mountainous areas, with high exposure to HV line emergency risks due to avalanching. Besides, using hydropower plants will ensure to embrace ample opportunities of Kyrgyz rivers and runoffs.
Above all, small HPPs will enable saving up to 120 k tpa of fuel, as remote regions will be less dependent upon it.
Small-HPP efficiency stems from the following factors:

  • relatively low cost of equipment and services for the construction of a hydro plant;
  • shorter PBP;
  • reduced civil works period.

Development of SHPPs is addressing the following challenges:

  • hydro systems are scarcely explored, as the process needs a lot of investment;
  • issues of sedimentation, rise of water table, flooding, and hydro capacities reduction associated with small hydro facilities operation – in montane and sub-montane areas, particularly;
  • poor research on seismic activity affecting SHPPs hydraulic works and structures;
  • electricity generation seasonality, depending on the river regimes.

The authorities have opened a tender for the promising project implementation. Moreover, a standard agreement on electricity supplies to secure potential contactors in terms of generated electricity selling.
The investment interest to projects for the construction of small HPPs in the republic comes from both local and foreign investors: China, South Korea, Turkey, Russia, Czech Republic, Iran and more.
Today Kyrgyzstan relies on imported energy, as it lacks energy sources for covering the power demand at large. Furthermore, a large share of country’s sources is still untapped, and the use of the existing potential has considerably reduced within a crisis.
Coal and gas production has shown an 80% decrease since the 90-s which promoted a 30% gain in energy consumption. High electrification rate has caused breakdowns.
Consequently, the projected construction of a few SHPPs will provide electricity to the agriculture infrastructure.
Tender is held in 2 stages:

  • document expert review;
  • detailed analysis of programmes, bids, economic and financial opportunities of bidders and other aspects defined by the board.

The contest winner is anticipated to:

  • Start civil works two months at the latest after the project documentation approval and land allocation.
  • Commission facilities on or before the agreed deadline.
  • Present the programmes for regional social and economic development, local infrastructure investment, and local population employment.

In accordance with requirements, the contractor is also entitled to contracting maximum 30% of foreign employees for the construction, and 10% at most after the commissioning.
The acquisition of services and commodities necessary for project implementation should be performed within Kyrgyzstan solely. The exception is products and services which are not produced in the country, or more expensive than imported ones.
The board will determine the winner after ranging applications on the scale from 3 to 10. Among the appraisal criteria, are:

  • Financial capabilities;
  • Infrastructure development;
  • Social package (construction and repair of social infrastructure, such as healthcare and education);
  • Building and commissioning period.

This year will register the increase in new employment opportunities for residents, and will feature initial purchase of construction materials.

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