Additional Financing to Rural Electrification Project

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The project would have the following key components:Component 1: Provision of Electricity Access to Target Settlements and Improvement of Reliability of Electricity Supply in the GBAO Region (US$35.2 million IDA grant). This component will have the following sub-componentsSub-component 1.1: Construction of micro-grids, and connection of consumers to micro-grids and centralized distribution network of PEC (US$23.8 million IDA grant). This sub-component will finance the provision of electricity supply to 61 settlements in GBAO region. The investments will cover: (a) construction of micro-grids comprised of solar PV, small hydro, wind, and battery energy storage systems; (b) electricity distribution infrastructure; and (c) connections and internal wiring for households to alleviate consumer affordability barriers.Sub-component 1.2: Project implementation support to PEC, technical assistance for additional geological site investigation works for Sebzor HPP, and promotion of energy efficiency (US$1.4 million IDA grant). This will include financing of: (a) Project Management Consultant (PMC) costs to support PEC with procurement of contractors for construction of micro-grids and connection of the target settlements to the distribution grid of PEC and technical supervision of works; (b) geotechnical site investigation works for Sebzor HPP; (c) awareness raising program on EE; (d) technical assistance to PEC for the development of a financing mechanisms to support the local communities to purchase efficient appliances; (e) piloting EE measures in selected public buildings; (f) monitoring and evaluation costs related to efficiency of citizen engagement and addressing gender gaps under the Project; and (g) incremental operating costs of PEC.Sub-component 1.3: Construction of a selected portion of 110 Kilovolt (kV) Khorog-Qozideh OHL and related consultancy services (US$10 million IDA grant). This sub-component will finance: (a) construction of 63 km 110 kV Khorog-Qozideh single circuit OHL with optical ground wire (OPGW) for communication; (b) consultancy costs for preparation of bidding documents for procurement of the contractor to design and construct the OHL; and (c) consultancy costs for preparation of biodiversity assessment and management plan for the target OHL. Component 2: Provision of electricity access to target settlements in Khatlon region (US$6.5 million IDA grant). This component will have the following sub-components.Sub-component 2.1: Connection of target settlements to the centralized distribution network of BT (US$6 million IDA grant). This sub-component will finance connection to the electricity distribution network of 74 settlements, bordering Afghanistan, in the Khatlon region. The investments will cover the cost of distribution infrastructure, including construction of 35/10/0.4 kV distribution lines, installation of additional distribution transformers in existing substations, and connection of households and public facilities. Sub-component 2.2: Project implementation support to BT (US$0.5 million IDA grant). This sub-component will finance the cost of: (a) PMC to help BT with procurement of contractor for connection of target settlements to its distribution grid and technical supervision of works; and (b) monitoring and evaluation costs related to measuring availability of electricity service, efficiency of citizen engagement and addressing gender gaps under the Project.