New HPP: Why the Chinese are not in hurry?

For several years, one tries to reconstruct the old lady-Bishkek Heating Power Plant. First Medium-Term Strategy for development of the electricity for the years 2012-2017 was scheduled to start work two years ago, but then the timeline was moved. Now the National Strategy for Sustainable Development in Kyrgyzstan noted that the reconstruction of the capital district heating should be made in 2014-2017 and it will cost $150 million.

However, in fact the modernization of Enterprise will cost almost three times more. It should be recalled that the government signed an agreement with the Chinese company TBEA, which was recommended by the government of China, allocating $386 million to the installation of new equipment. No tender and selection of participants were held. Power engineers signed an agreement with the organization imposed from the outside, which has never built heating plants before.

As people say in such cases, soft loan is allocated. The Ministry of Finance should provide Electrical Stations OJSC for borrowed funds to the 11-year grace period. Rate on the loan is determined - 2 percent per annum. Financial penalties for delay of payment are 5 percent per annum. They are calculated on the amount of the overdue debt. Debt should be given twice a year: on March 21and September 21. Final maturity date in borrowings - September 21, 2034. In addition, Kyrgyzstan will have to pay the management fee of the loan - 0.18 percent of the principal amount - in the form of a lump payment.

Obligations of the Kyrgyz party are written details, what can't be said about investors. The project includes the dismantling of boilers №1-8 and turbo №1-4. Instead, they will have two coal-fired boiler units and two ultra-high pressure turbine unit with a capacity of 150 MW each.

Earlier, the Minister of Energy and Industry Osmonbek Artykbayev loudly declared that, in fact, TBEA will build a new HPP. However, the timing of work is unknown, power engineers hide it.

At a meeting in April, the team leader on management of the modernization of the capital district heating Temirlan Brimkulov said that the dismantling of the equipment is scheduled to begin in September. In the spring, they say, to develop project on technical modernization of HPP. Modernization project is divided into three parts and runs for three years. "On September 1 Chinese company is ready to begin the dismantling of old equipment. In the autumn of 2016 the launch of the first unit, adapted for the Kara-Keche fuel is planned," he explained.

Before the beginning of large-scale works on the heating plant, 24.kg news agency again appealed to Brimkulov to know whether everything is ready for dismantling. It turned out that the plans have changed and power engineers don't have such a cheerful mood, as in the spring.

According to the head of the group, the work plan of the company "is not ready yet". "First we need to ensure reliable operation of the remaining equipment. It is no secret that the winter will be difficult, so everything is done to get through the cold period without a hitch," Temirlan Brimkulov said. And he added: "It's hard to call the beginning of the modernization of the district heating periods. The work won't start on September 1. We have the main task - to prepare HPP for the winter."

The Deputy Minister of Energy and Industry Aibek Kaliyev has other information. He told deputies that the removal will begin in November 2014.

Even if the republic expects a difficult winter, and the management of Bishkek HPP and Electrical Stations continue to fever from lack of fuel, prosecutions and arrests of colleagues, the Chinese contractors don't have to worry about internal problems. Old boilers are not involved in providing consumers; they are worn out, but occupy a large area on the HPP. Personnel and attracted companies that conduct repairs deal with preparation of basic equipment to extremely heavy winter. In this regard, it is unclear why Brimkulov says that all forces left to prepare for the heating season? Or Chinese company "helps" us here too?

On the second request the team leader on management of the modernization of the capital district heating said more covertly, what caused only more suspicion, because the first ten days of October are almost passed, and the question remains open. "Work on phase agreement of executed projects and solutions to ensure reliable operation of the rest of the equipment and the dismantling of the equipment, not affecting the autumn-winter period 2014/2015 are being held. Work on preparing the land for the storage and collection of incoming materials and equipment has been completed. Offices, dormitories, dining room are built, and work on finishing and connecting communications is being held," he said through Electrical Stations OJSC.

So, the Chinese company is building offices and a hostel for itself, but doesn't think about the modernization of HPP? It remains a mystery, what do the country's power engineers, if draft work time is not agreed yet. Preparing for winter? But then why they say that Capital heating plant will be a reliable source in providing consumers not only warm, but also electricity, considering that the problem of mismanagement of water use will only worsen in the coming years? Brimkulov refuses to answer these questions. The officials of the Ministry of Energy, who lobbied interests of TBEA in the parliament, are also silent.

Meanwhile, the same company that is already building Datka - Kemin in Kyrgyzstan was given one more project. Negotiating a preferential loan for the modernization of Bishkek HPP, power engineers managed to negotiate an additional $20.3 million to be spent on the construction of schools, purchase of office equipment, furniture and electrical equipment. In addition, $3 million the company has allocated on a feasibility study for the project "Construction of the Kara-Keche Thermal Power Plant." It can be assumed that the construction of a lucrative object will also be given to Chinese TBEA and it will be estimated at an exorbitant price. And representatives of the Chinese company don't hurry to fulfill their already made commitments. This fact, for some reasons, doesn't bother our officials...