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Tajikistan : Nurek Hydropower Rehabilitation Project Phase 2

SUMMARY

STATUS
Proposed
MEMBER
Tajikistan
SECTOR
Energy
E&S CATEGORY
Category B
PROJECT NUMBER
001141

FINANCING

PROPOSED FUNDING AMOUNT
USD220 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
July 3, 2026

OBJECTIVE

The project development objective is to rehabilitate and increase the generating capacity of five power generating units of the Nurek hydropower plant (HPP) and improve their efficiency, thereby ensuring greater stability of green energy supply across Tajikistan.

DESCRIPTION

The P001141 Nurek Hydropower Rehabilitation Project Phase 2 (the Project) is a continuation and scale-up of the ongoing World Bank (WB)-led multi-financier rehabilitation project under the P000018 Tajikistan: Nurek Hydropower Rehabilitation Phase 1

The Project is designed to deliver substantial development benefits by preserving low-cost renewable generation, increasing annual electricity output through efficiency gains, improving system reliability during both winter and summer months, and supporting continued expansion of electricity exports. 

The Project includes the rehabilitation of the Nurek Bridge located downstream of the HPP dam and spillways. The rehabilitation of the bridge has been included in the Project primarily to improve access to the Nurek HPP and to reduce the volume of Project vehicles in Nurek town. 

The proposed Project components are as follows: 

Component A: Rehabilitation of Five Generating Units - Key Infrastructural Components of the Plant (to be jointly financed by AIIB and WB)

Summary of Contracts Planned under Component A

(a) Package 1:

1. Rehabilitation of two generating units

2. Rehabilitation of three generating units

(b) Package 5: Penstock inspection and emergency repair works (Phase 1 financing gap carryover)

(c) Package 5-2: Full rehabilitation of penstocks (Zone IV manifold, and remaining sections of Zone II and III)

(d) Package 3b: Installation of intake service gate

(e) Package 6: Rehabilitation of powerhouse facilities, associated Nurek HPP buildings

(f) Package 7: Reconstruction of Nurek Bridge

(g) Package 8: Procurement of heavy machinery for Nurek HPP

Component B: Technical Assistance (to be jointly financed by AIIB and WB)

This component is a technical assistance intended to support project implementation and strengthen the institutional capacity of Barqi Tojik (BT). This includes continued support from an experienced Project Management Consultancy (PMC) for the design review, procurement, supervision, and contract management; capacity building for utility and plant staff in dam safety, operations and maintenance, project management, and compliance with environmental, social, and occupational health and safety (OHS) requirements; and the conduct of studies to enhance sector resilience, including hydrological risk and climate adaptation analyses. 

Component C: Enhancement of Dam Safety (to be parallel financing by EFSD)

This component will finance activities to improve the operational safety of the Nurek HPP. The scope of work that will be undertaken under this package is expected to be finalized by August 2026 and will depend on the results of the investigations to be carried out under the previous contract. This component will be entirely financed by the Eurasian Fund for Stabilization and Development (EFSD).

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Categorization. Consistent with Phase 1, the WB is the lead co-financier of this Project and the WB’s Environmental and Social Framework (ESF) and relevant Environmental and Social Standards (ESSs) will apply to this Project in lieu of the Environmental and Social Policy (ESP) of the Asian Infrastructure Investment Bank (AIIB). AIIB has reviewed the WB’s ESF and ESSs and is satisfied that: (a) the ESF and ESSs are consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of its ESP, including the relevant ESSs and the Environmental and Social Exclusion List (ESEL); and (b) the monitoring procedures in place are appropriate for the Project. The WB has assigned an environmental and social (ES) risk rating of Substantial to this Project (equivalent to Category B under AIIB’s ESP) due to the scale and magnitude of ES impacts, which can be avoided or mitigated by adhering to relevant ESSs, procedures, and guidelines. 

Environmental and Social Instruments. The following instruments will be in place for the Project: (a) an Environmental and Social Impact Assessment (ESIA); (b) a Stakeholder Engagement Plan (SEP); (c) Labor Management Procedures (LMP); (d) an Environmental and Social Commitment Plan (ESCP), and (e) an Environmental and Social Management Plan (ESMP) for the reconstruction of the Nurek Bridge under Package 7. The instruments have been accepted and disclosed by the WB.[1]

Environmental Aspects. Environmental impacts and risks of the HPP works include the presence of asbestos in the equipment to be refurbished, the disposal of hazardous waste, air quality and noise emissions (potentially affecting workers), and potential impacts on the reservoir or downstream water quality from spills of hazardous materials or the release of sanitary waste. Studies are ongoing to determine whether downstream work will be required as these may entail potential short-term erosion and/or water quality risks. Potential risks and impacts of the Nurek Bridge rehabilitation works include traffic disruption; noise emissions, vibration and dust; water contamination from the accidental release of oils, chemicals, and other hazardous materials; bank-side erosion and increased sediment runoff; damage to riverbed habitats and the release of riverbed sediments and long-term risks linked to design, including accommodating maximum releases from the HPP, riverbed scour around bridge abutments and piers, and landslides. The Nurek Bridge ESMP will be reviewed at the appraisal stage to confirm that all potential risks and impacts are addressed. None of the potential risks and impacts are considered significant at this stage and will be managed through the ES Instruments. 

Social and Gender Aspects. Project activities will be undertaken within a confined area and are not expected to result in resettlement or significant community impacts. Works at the HPP will be limited to existing structures. Risks to communities around the Nurek Bridge will be managed through robust stakeholder engagement and key community health and safety management plans, including the management of construction traffic. No large labor influx is anticipated, resulting in low labor-related risks. The contractors’ ES performance will be further assessed as part of ES due diligence during appraisal. In addition, the risk of gender-based violence (GBV) and sexual harassment (SH) associated with the Project is considered low due to the limited labor influx, the urban setting of Nurek City, and the absence of reported GBV and SH incidents during previous Nurek works. Preventive and mitigation measures are, however, in place as a precaution. 

Occupational Health and Safety and Labor and Employment Conditions (LWC). Works at the HPP and the Nurek Bridge will involve high-risk activities for health and safety, including working with asbestos; working in confined spaces; exposure to dust, hazardous fumes, and noise; working with electricity; working with hazardous materials; exposure to electromagnetic fields; working at height; working on or near water; hot works; falling objects; snake bites (cobras); and traffic and road safety hazards. Risks could be further increased where multiple contractors are working in close proximity. Worker accommodations may also present additional risks, including fire hazards and poor living and sanitation conditions, which in turn could increase the risk of diseases. As part of the ES due diligence during appraisal, the Project Team will assess the OHS, Emergency Preparedness and Response (EPR), and LWC policies, procedures, and practices implemented by the Borrower, contractors, and subcontractors involved in ongoing civil works. In general, these risks will be managed through OHS management plans, appropriate resources and robust supervision arrangements. Emergency scenarios include the potential for workers to be exposed to flood waters, and construction-phase EPR plans will be required. 

Stakeholder Engagement and Information Disclosure. The SEP for Phase 1 was updated in 2020. It serves as practical guidance to support public consultation and engagement activities as well as to document previous stakeholder engagement, including ES instrument disclosure and scheduled future engagement activities. Project-specific information was disclosed on the Borrower’s website and in BT’s local offices, including the project-specific Project Grievance Redress Mechanism (GRM). The ES instruments were disclosed in English and local languages on the Borrower’s and the lead co-financier’s websites. AIIB will disclose them on its website at least 30 days prior to financing approval. 

Project Grievance Redress Mechanism and Monitoring Arrangement. A GRM is established at both the national level through BT and the local level at the power plant. During Phase 1, the GRM was mainly used by stakeholders to seek information and clarification, and no formal complaints were received. To facilitate access, multiple channels will continue to be available for submitting grievances, including online submissions through BT’s website, phone submissions, and written submissions at local BT offices. In addition, Project-affected people may raise concerns through traditional channels via local community leaders and the Nurek City administration. Functional two-tier worker GRMs are also in place for Phase 1 and will be required for Phase 2. Information about the established GRMs will be disclosed in a timely and appropriate manner. Monitoring and reporting arrangements and measures to ensure AIIB’s full and equal access to Project ES information and documentation will be further discussed.

[1] World Bank. Nurek Hydropower Rehabilitation Project Phase 2.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Edzwan Redza bin Anwar

Senior Investment Officer

edzwan.anwar@aiib.org

 

World Bank

Chris Trimble

Senior Energy Specialist

ctrimble@worldbank.org

BORROWER

Republic of Tajikistan

Faiziddin Qahhorzoda

Minister of Finance, Republic of Tajikistan

investdiv@mail.ru

IMPLEMENTING ENTITY

Barqi Tojik (BT)

Farkhod Shukurzoda

Executive Director of PRG Energy Loss Reduction, OJSC BT

elrpbt@gmail.com

PROJECT DOCUMENTS