General Procurement Notice

GENERAL PROCUREMENT NOTICE Uzbekistan NAME OF PROJECT: Electricity Sector Transformation and Resilient Transmission (ESTART) Project Energy sector: Power Transmission GENERAL PROCUREMENT NOTICE Credit No.: 6943-UZ, 6944-UZ Grant No.: TF0B5804-UZ, TB0B5948-UZ Project ID No. P171683

• Background
• The Government of Uzbekistan (GoU) has initiated ambitious energy sector reforms that envisage introducing competitive market principles in the sector management and operations. GoU has prepared and approved an Electricity Sector Reform Implementation Plan, which outlines the priority power sector reform actions, their sequence and timeline, required resources for the effective corporatization and commercialization of the newly unbundled electricity companies, and key areas of electricity sector reform for IFI support.
• According to the sector reform plans, JSC National Electric Grid of Uzbekistan (NEGU) will be maintained as the government-owned central utility responsible for planning, designing, developing, operating, and maintaining the power transmission system in Uzbekistan. The company will also be the operational backbone of a new electricity market to be put in place in Uzbekistan. Further, with the rapid expansion of the power system in Uzbekistan, including large-scale Renewable Energy (RE) and gas-fired projects promoted and financed by the private sector, investments in modernization, expansion and digitalization of the aged transmission infrastructure will also need to be accelerated to keep pace with power generation expansion and growing electricity demand to ensure secured, reliable, and affordable electricity supply to households, businesses, and industries. Modern digital technologies shall be therefore embedded in transformation of the power grid infrastructure and commercialization of the transmission company.
• The GoU has also initiated transmission and distribution expansion and rehabilitation plans to 2030 (building on the generation expansion plan) aimed at improving the grid reliability, facilitating grid integration of large-scale RE and gas-fired IPPs as well as strengthening regional connectivity and trade. An Energy Sector Digitalization Strategy has also been developed and adopted by the GoU on May 30, 2019, which envisages the introduction of modern digital solutions, such as Supervisory Control and Data Acquisition (SCADA)/Energy Management System (EMS) for the transmission and system operations, advanced metering infrastructure, modernization of telecommunication systems, and integration of Enterprise Resource Planning (ERP), among others. This would also contribute to the corporate transformation and commercialization of newly unbundled utilities.
• In this context, the World Bank is developing the Electricity Sector Transformation and Resilient Transmission (ESTART) Project to improve the capacity and reliability of the national power transmission system and integrate large-scale renewable energy sources into the grid. The Project has the following four components to be implemented between 2021 and 2026 with a total estimated cost of US$500mln:
• Component 1: Digitalization of the electricity transmission sector: This component will take advantage of modern digital technologies to support the enhanced monitoring, automation, and control of the power system in Uzbekistan. Digital technologies to be deployed under this component would comprise SCADA, EMS, substation Remote Terminal Units (RTUs) and optical ground wire (OPGW). The component will also support an upgrade of JSC NEGU’s digital telecommunication network to enable those systems to be fully functional.
• Subcomponent 1.1 - Strengthening Power System Control and Dispatch. This subcomponent will finance introduction of a new SCADA/EMS for JSC NEGU’s central and regional control centers and installation of Remote Terminal Units (RTUs) in key transmission substations and power plants to replace the existing outdated control and dispatch systems installed during the Soviet era.
• Subcomponent 1.2 - Modernization of telecommunication networks. The development of a fast and broad bandwidth telecommunication network at the national level is key for successful introduction of modern management systems such as SCADA/EMS. This subcomponent will finance modernization and upgrade of JSC NEGU’s telecommunication network through installation of modern ground wires with embedded optical fibers in them, namely OPGW, and establishment of other telecommunication media including radio communication.
• Component 2: Power grid strengthening and renewable energy integration (Scope of the required Consultancy Services in this ToR). This component will finance a portion of the JSC NEGU’s priority investment program for 2021–2026, including rehabilitation, upgrade and expansion of existing high-v oltage substations and construction of a new 500/220 kV substation with related 500kV and 220kV overhead transmission lines to connect this new substation to the national grid. The investments would also enable the grid integration of approximately 1,500 MW of solar IPPs, including under the World Bank Group Scaling Solar Program. Details of the related works and investment plan are in Annex [1].
• Subcomponent 2.1 - Power Grid Modernization. This subcomponent aims to modernize 22 priority substations of JSC NEGU. According to a technical audit conducted by the GoU, 62 obsolete substations, out of the existing 78 high-voltage electricity transmission substations, require immediate rehabilitation and modernization. Those aged substations have deteriorated reliability, quality, resilience, and efficiency of electricity supply and hence increased losses and maintenance costs and are a barrier for integration of large-scale renewable energy projects to the grid.

In this context, the GoU has requested the World Bank to support the modernization of additional 22 priority 110kV, 220kV, and 500 kV substations located in Andijan, Bukhara, Fergana, Kashkadarya, Khorezm, Navoi, Samarkand, Surkhandarya, Syrdarya, Tashkent regions and Tashkent city. The subcomponent will finance rehabilitation of these substations including replacement and expansion of substation transformers and introduction of modern technologies such as gas-insulated circuit breakers and digital relay protection, which will ensure reliable and efficient operations of those substations. Subcomponent 2.2 - Power Grid Expansion. This subcomponent aims to support construction of the new 500 kV ‘Koltsevaya’ substation with related 500kV and 220kV overhead transmission lines for the connection of this new substation to the grid. The proposed substation would increase the capacity of the transmission network to meet increasing demand and improve the reliability and resilience of electricity supply for residential, industrial, commercial, and public consumers in the central parts of Uzbekistan, where the transmission networks are currently overloaded with a lot of outages and interruptions during the last years. The proposed new 500 kV ‘Koltsevaya’ substation to be located in Tashkent region will be equipped with two 500/220/10 kV autotransformers in the capacity of 801 MVA each. The substation will be connected with the Tashkent 500 kV substation and Syrdarya TPP by new 500 kV overhead transmission lines with the total length of 72 km, and with Keles, Ozodlik, and Yuksak 220 kV substations by new 220 kV overhead transmission lines with the total length of 213 km. Details of the related works for Component 2 are in Annex 1.

• Component 3: JSC NEGU’s institutional development and project implementation support. This component will support developing and improving the institutional capacity, financial substantiality and technical capabilities of JSC NEGU to ensure it can effectively carry out its functions of reliable operation of the transmission system and electricity market in Uzbekistan. It will also support the preparation of feasibility studies, Environmental and Social assessments and capacity building, preparation and implementation of priority investments, especially for integration of RE sources. The component will include the following subcomponents: (i) Modernization of JSC NEGU’s business process. This subcomponent will finance the procurement, installation and integration of an Enterprise Resource Planning (ERP) system at JSC NEGU and its subsidiaries as well as support capacity development of JSC NEGU’s key staff; (ii) JSC NEGU’s financial sustainability and preparatory work to access commercial financing; (iii) JSC NEGU’s institutional capacity building and project implementation support; and (iv) Technical supervision consultancy. This subcomponent would finance activities, including consultancies, related to implementation and technical supervision of the project digitalization solutions (SCADA/EMS/RTU, telecommunications systems, and ERP) and infrastructure investments for the transmission network/grid, which are covered under this ToR for the Power grid strengthening and renewable energy integration related works of Component 2 described above.

Component 4: Electricity Market Development. This component will provide technical assistance for the design and implementation of the electricity sector’s transition plan toward the establishment of a wholesale electricity market and will include preparation of secondary legislation, market rules, institutional capacity building as well as design and implementation of systems required for market operation and management. Procurement of contracts financed by the World Bank will be conducted through the procedures as specified in the World Bank’s Procurement Regulations for IPF Borrowers (Procurement Regulations), and is open to all eligible firms and individuals as defined in the Procurement Regulations. After project negotiations, the World Bank shall arrange the publication on its external website of the agreed initial procurement plan and all subsequent updates once it has provided a no objection. Specific procurement notices for contracts subject to open international competitive procurement are announced on the World Bank’s external website, https://www.uzbekistonmet.uz/en/lists/category/14 and others. Interested eligible firms and individuals who would wish to be considered for the provision of goods, works, non-consulting services and consulting services for the above-mentioned project, or those requiring additional information, should contact the Borrower at the address below: JSC National Electric Grid of Uzbekistan Osiyo street 42, Yunusabod district, Tashkent 100084, Uzbekistan, Floor 2, Room 208. Phone: +99871 236 66 33. e-mail: pmu.modernization@gmail.com Notice type: General Procurement Notice Status: Published

GENERAL PROCUREMENT NOTICE Uzbekistan NAME OF PROJECT: Electricity Sector Transformation and Resilient Transmission (ESTART) Project Energy sector: Power Transmission GENERAL PROCUREMENT NOTICE Credit No.: 6943-UZ, 6944-UZ Grant No.: TF0B5804-UZ, TB0B5948-UZ Project ID No. P171683 Background The Government of Uzbekistan (GoU) has initiated ambitious energy sector reforms that envisage introducing competitive market principles in the sector management and operations. GoU has prepared and approved an Electricity Sector Reform Implementation Plan, which outlines the priority power sector reform actions, their sequence and timeline, required resources for the effective corporatization and commercialization of the newly unbundled electricity companies, and key areas of electricity sector reform for IFI support. According to the sector reform plans, JSC National Electric Grid of Uzbekistan (NEGU) will be maintained as the government-owned central utility responsible for planning, designing, developing, operating, and maintaining the power transmission system in Uzbekistan. The company will also be the operational backbone of a new electricity market to be put in place in Uzbekistan. Further, with the rapid expansion of the power system in Uzbekistan, including large-scale Renewable Energy (RE) and gas-fired projects promoted and financed by the private sector, investments in modernization, expansion and digitalization of the aged transmission infrastructure will also need to be accelerated to keep pace with power generation expansion and growing electricity demand to ensure secured, reliable, and affordable electricity supply to households, businesses, and industries. Modern digital technologies shall be therefore embedded in transformation of the power grid infrastructure and commercialization of the transmission company. The GoU has also initiated transmission and distribution expansion and rehabilitation plans to 2030 (building on the generation expansion plan) aimed at improving the grid reliability, facilitating grid integration of large-scale RE and gas-fired IPPs as well as strengthening regional connectivity and trade. An Energy Sector Digitalization Strategy has also been developed and adopted by the GoU on May 30, 2019, which envisages the introduction of modern digital solutions, such as Supervisory Control and Data Acquisition (SCADA)/Energy Management System (EMS) for the transmission and system operations, advanced metering infrastructure, modernization of telecommunication systems, and integration of Enterprise Resource Planning (ERP), among others. This would also contribute to the corporate transformation and commercialization of newly unbundled utilities. In this context, the World Bank is developing the Electricity Sector Transformation and Resilient Transmission (ESTART) Project to improve the capacity and reliability of the national power transmission system and integrate large-scale renewable energy sources into the grid. The Project has the following four components to be implemented between 2021 and 2026 with a total estimated cost of US$500mln: Component 1: Digitalization of the electricity transmission sector: This component will take advantage of modern digital technologies to support the enhanced monitoring, automation, and control of the power system in Uzbekistan. Digital technologies to be deployed under this component would comprise SCADA, EMS, substation Remote Terminal Units (RTUs) and optical ground wire (OPGW). The component will also support an upgrade of JSC NEGU’s digital telecommunication network to enable those systems to be fully functional. Subcomponent 1.1 - Strengthening Power System Control and Dispatch. This subcomponent will finance introduction of a new SCADA/EMS for JSC NEGU’s central and regional control centers and installation of Remote Terminal Units (RTUs) in key transmission substations and power plants to replace the existing outdated control and dispatch systems installed during the Soviet era. Subcomponent 1.2 - Modernization of telecommunication networks. The development of a fast and broad bandwidth telecommunication network at the national level is key for successful introduction of modern management systems such as SCADA/EMS. This subcomponent will finance modernization and upgrade of JSC NEGU’s telecommunication network through installation of modern ground wires with embedded optical fibers in them, namely OPGW, and establishment of other telecommunication media including radio communication. Component 2: Power grid strengthening and renewable energy integration (Scope of the required Consultancy Services in this ToR). This component will finance a portion of the JSC NEGU’s priority investment program for 2021–2026, including rehabilitation, upgrade and expansion of existing high-v oltage substations and construction of a new 500/220 kV substation with related 500kV and 220kV overhead transmission lines to connect this new substation to the national grid. The investments would also enable the grid integration of approximately 1,500 MW of solar IPPs, including under the World Bank Group Scaling Solar Program. Details of the related works and investment plan are in Annex [1]. Subcomponent 2.1 - Power Grid Modernization. This subcomponent aims to modernize 22 priority substations of JSC NEGU. According to a technical audit conducted by the GoU, 62 obsolete substations, out of the existing 78 high-voltage electricity transmission substations, require immediate rehabilitation and modernization. Those aged substations have deteriorated reliability, quality, resilience, and efficiency of electricity supply and hence increased losses and maintenance costs and are a barrier for integration of large-scale renewable energy projects to the grid. In this context, the GoU has requested the World Bank to support the modernization of additional 22 priority 110kV, 220kV, and 500 kV substations located in Andijan, Bukhara, Fergana, Kashkadarya, Khorezm, Navoi, Samarkand, Surkhandarya, Syrdarya, Tashkent regions and Tashkent city. The subcomponent will finance rehabilitation of these substations including replacement and expansion of substation transformers and introduction of modern technologies such as gas-insulated circuit breakers and digital relay protection, which will ensure reliable and efficient operations of those substations. Subcomponent 2.2 - Power Grid Expansion. This subcomponent aims to support construction of the new 500 kV ‘Koltsevaya’ substation with related 500kV and 220kV overhead transmission lines for the connection of this new substation to the grid. The proposed substation would increase the capacity of the transmission network to meet increasing demand and improve the reliability and resilience of electricity supply for residential, industrial, commercial, and public consumers in the central parts of Uzbekistan, where the transmission networks are currently overloaded with a lot of outages and interruptions during the last years. The proposed new 500 kV ‘Koltsevaya’ substation to be located in Tashkent region will be equipped with two 500/220/10 kV autotransformers in the capacity of 801 MVA each. The substation will be connected with the Tashkent 500 kV substation and Syrdarya TPP by new 500 kV overhead transmission lines with the total length of 72 km, and with Keles, Ozodlik, and Yuksak 220 kV substations by new 220 kV overhead transmission lines with the total length of 213 km. Details of the related works for Component 2 are in Annex 1. Component 3: JSC NEGU’s institutional development and project implementation support. This component will support developing and improving the institutional capacity, financial substantiality and technical capabilities of JSC NEGU to ensure it can effectively carry out its functions of reliable operation of the transmission system and electricity market in Uzbekistan. It will also support the preparation of feasibility studies, Environmental and Social assessments and capacity building, preparation and implementation of priority investments, especially for integration of RE sources. The component will include the following subcomponents: (i) Modernization of JSC NEGU’s business process. This subcomponent will finance the procurement, installation and integration of an Enterprise Resource Planning (ERP) system at JSC NEGU and its subsidiaries as well as support capacity development of JSC NEGU’s key staff; (ii) JSC NEGU’s financial sustainability and preparatory work to access commercial financing; (iii) JSC NEGU’s institutional capacity building and project implementation support; and (iv) Technical supervision consultancy. This subcomponent would finance activities, including consultancies, related to implementation and technical supervision of the project digitalization solutions (SCADA/EMS/RTU, telecommunications systems, and ERP) and infrastructure investments for the transmission network/grid, which are covered under this ToR for the Power grid strengthening and renewable energy integration related works of Component 2 described above. Component 4: Electricity Market Development. This component will provide technical assistance for the design and implementation of the electricity sector’s transition plan toward the establishment of a wholesale electricity market and will include preparation of secondary legislation, market rules, institutional capacity building as well as design and implementation of systems required for market operation and management. Procurement of contracts financed by the World Bank will be conducted through the procedures as specified in the World Bank’s Procurement Regulations for IPF Borrowers (Procurement Regulations), and is open to all eligible firms and individuals as defined in the Procurement Regulations. After project negotiations, the World Bank shall arrange the publication on its external website of the agreed initial procurement plan and all subsequent updates once it has provided a no objection. Specific procurement notices for contracts subject to open international competitive procurement are announced on the World Bank’s external website, https://www.uzbekistonmet.uz/en/lists/category/14 and others. Interested eligible firms and individuals who would wish to be considered for the provision of goods, works, non-consulting services and consulting services for the above-mentioned project, or those requiring additional information, should contact the Borrower at the address below: JSC National Electric Grid of Uzbekistan Osiyo street 42, Yunusabod district, Tashkent 100084, Uzbekistan, Floor 2, Room 208. Phone: +99871 236 66 33. e-mail: pmu.modernization@gmail.com Notice type: General Procurement Notice Status: Published