Project features

The Government of the Kyrgyz Republic (GoKR) has requested WB to support RE deployment through PPPs. In this context, GoKR is looking to implement urgent measures in the energy sector to address supply shortages, contain technical and financial losses, and undertake broader sector reforms. Project will focus on financial recovery levels and tariff reforms, ensuring energy security, achieving operational efficiency and creating an enabling environment for widescale RE deployment by attracting private investors. Within this framework, WB hired the Consultant with an objective to provide technical assistance to the GoKR in the design and implementation of specific initiatives referring to the ‘Financial Recovery and Tariff Reforms’ strategy.

Services provided

Juru will collaborate with consortium partners to deliver the following:

Task 1: Cost of service analysis

• Conduct a cost-of-service study of the entire energy supply industry to 2030 and separation of these costs amongst generation, transmission, distribution & supply;
• Establish the cost of providing electricity to various categories of customers, including residential, commercial (small and large), industrial and institutional, based on cost allocation analysis.

Task 2: Tariff Design

• Develop optional tariff structures by consumer category, taking into account economic efficiency, financial viability, and social objectives;
• Draft an Energy Tariff Cost Recovery Program envisaging gradual and systematic tariff adjustments toward the full cost;
• Perform Distributional Impact Assessment and provide recommendations on social mitigation of proposed tariff changes.

Task 3: Energy Sector Financial Analysis

• Develop an economic and financial model that allows to define the sector ‘status quo’ and projected scenarios and evaluate their impact on sector financials and economics;
• Review the current sector debt book and assess the sustainability of the energy sector debt. Propose a set of actions to reduce the debt vulnerability of the sector.

Task 4: Capacity Enhancement

• Conduct two workshops to present the findings of the cost of service, tariff design, and financial assessments; 
• Train 4-5 client officials throughout the course of the study and provide guidance for future tariff calculation exercises.