AEAI Projects in CEE/NIS

Armenia
Russia
Turkey
Bulgaria
Croatia
Czech Republic
Kazakhstan
Kyrgyzstan
Kosovo
Poland
Slovak Republic
Tajikistan
Ukraine
Uzbekistan

Armenia

USAID ARMENIA ENERGY EFFICIENCY, DEMAND-SIDE MANAGEMENT
AND RENEWABLE ENERGY PROGRAM

OUR GOAL

To develop local companies to provide energy services
To build pilot projects that demonstrate energy efficiency and renewable energy in Armenia

WHAT WE DO

Energy efficiency/renewable energy pilot projects with the total budget of 830 000 USD
We build gas heating systems, solar hot systems and biogas generators.
We do weatherization, monitoring and controls.
Training: project development, monitoring and evaluation, energy audit, practical weatherization skills, Certified Energy Manager training
Outreach: Energy curricula for school children and public service announcements

BENEFITS FOR ARMENIA

Economic development through energy
Exploiting renewable energy resources
Switching from expensive electricity to gas
Saving Lake Sevan and preventing tree cutting.

New gas line for heating in residential building in Gyumri.
New boiler house at 33 Sayat-Nova Street: heat and hot water for residents.
Biogas digester in Agroservice farm: free fuel from waste.
2nd grade school pupil prepared an energy poster and now presents it to her classmates.

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Russia

Coal Sector Restructuring - The Government of the Russian Federation/World Bank/US Agency for International Development/European Union - this 5-year activity encompassed a variety of components required for restructuring that including serious measures for corporatization and privatization. The project commenced with minimal donor funding and has resulted in leveraging approximately $2 billion in donor and Russian Government funding. AEAI staff led the program design for this activity and implemented a number of actions including:

Subsidy management
Management and operations training
Pricing and tax; trust management/valuing assets
Social and economic impacts/development at regional and local levels
Labor-government-management relations.

Community Development

As the evolution of the new "internet economy" continues to bring rapid change and new developments to the makeup of the national and international economic infrastructure, a number of critical issues must be addressed to assure both the well-being of the public and the overall community economic framework are being protected.

Important steps can be taken that will enable communities to transition, develop and retool in response to the demands of this new economy and to mitigate the ever widening and well-publicized "information gap" between different segments of society.

For any Community Development Activity, Advanced Engineering Associates International (AEAI) maintains in-house staff and also maintains a reliable and available list of individual and corporate resources that will bring a combination of Community Development approaches that have worked in various communities worldwide.

For much of the past decade, AEAI's core work has included support to governments in the design of energy sector restructuring strategies, social monitoring during restructuring, public information at local, regional and national levels and targeted employment and training programs to support affected communities during restructuring. These activities have included:

Incubators
Business training centers
Job training/re-training
Computer and basic job skills' training
Leadership training
Finance options information

The establishment of incubators, credit unions and revolving loan funds.

Highlighted Community Development activities include:

Russia - Novokuznetsk Business Assistance and Incubator - Funded initially by USAID and then supported by the World Bank and TACIS, AEAI staff worked in this coal/steel city with the city government, local community groups and NGOs and local small and medium businesses as well as individuals. This activity had three critical components:

1. Provision of assistance in preparing business plan including financial/managerial
2. Small lending and grant programs that, pursuant to perspective recipients' presentation of business plans and committee review, were available on a regular basis with 100% payback
3. For up to 30 small businesses, "incubator" space was available in a city-donated building from which tenants paid electricity, telephone and general repair. Average tenant remained 6-18 months before moving business out into separate venue; estimated 60% success in carry on business.

Russia, Nuclear Cities Program - AEAI staff is currently working as part of the "Community Development Program" of the US Department of Energy grant/lending activity to support the growth of new business and job opportunities in closing nuclear cities. We have assisted in the development of project criteria and assistance in project plan development, followed by evaluation of project viability and provision of financing. We are working with counterparts to establish regular project evaluation and monitoring capacity so as to institutionalize process at local level. So far more than 30 projects have received funding in these extremely difficult venues. One of the activities being funded is a business incubator based near St. Petersburg.

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Turkey

Turkish Power Sector System Least-Cost Investment Program - Turkish Ministry of Energy/World Bank - for this transmission sector restructuring project, AEAI staff evaluated the power sector system's least-cost investment program and advised in the development of a new one based on World Bank assumptions, demand forecast and investment parameters. AEAI conducted LRMC calculations and analyses of the energy balances.

TEK Restructuring Project - World Bank/OECF lending - this project required examination of transmission and distribution investment components, company restructuring, privatization of the management of distribution companies and efficiency improvement through Performance Agreement. AEAI staff worked in World Bank project preparation that included: transmission system planning (selection of an optimal voltage level and optimization of transmission network), power system least cost investment, LRMC and tariffs. We also conducted procurement activities: material and equipment; consultant services; supply and erection; turnkey contracts for substations. The project included least cost investment program for Turkey.

Iskenderum IPP Project - World Bank - AEAI staff conducted evaluation of economic justification of the Iskenderum IPP Project for the preparation of the Project Initial Documents. The project is now in the World Bank power program.

Macedonia/Turkey

Energy Sector Development - World Bank - AEAI is providing on-going support to local authorities in form of in-country advisory services, as well as through white papers, suggesting options for long-term development and strategic planning. Visits to the region to assess technical, financial and staffing of local power entities and willingness to support interconnection. This project includes collaborative efforts with local partners and World Bank officials.

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Kosovo

KOSOVO DISTRIBUTION PRIVATIZATION ASSISTANCE PROJECT (KDPA)

Project Description

Kosovo Distribution Privatization Assistance project (KDPA) is
implemented by American People through US Agency for International
Development (USAID)
.

The overarching goal of this planned 2-year assistance program of advisory services is to assist Kosovo so as to ensure that transaction-specific commitments undertaken by the Government, energy sector regulator, and for market, technical and financial operations effectively support and contribute to realize the successful privatization of the recently unbundled distribution company, Korporata Energjetike e Kosoves (KEK) Network and Supply Company - hereafter KEK DistCo - and help to ensure Kosovo's development needs and interests.

Project Objectives

To achieve this high level goal, the Advisory Services have been divided into two broad task areas:

To provide assistance to the Energy Regulatory Office (ERO) to strengthen clarify or develop as needed key regulatory or legislation-related documents so that energy regulatory transaction-specific commitments effectively support privatization of KEK DistCo while ensuring Kosovo's interests, including post-privatization implementation support to help ensure effective implementation of agreed arrangements for sustainable success.
To provide assistance to the Market and Transmission System Operator (KOSTT) and its Working Group(s) of relevant sector and market stakeholders to review and revise as needed proposed implementation arrangements related to market rules, grid and other technical codes, and related financial settlement mechanisms between and among market participants to support privatization of KEK DistCo and ensure effective post-privatization implementation.

It should be noted that the support to these two beneficiaries, ERO and KOSTT, is focused on facilitating a successful privatization transaction.  Both of these organizations have benefited, and continue to benefit, from expert support provided by other donor organizations, notably the European Commission, with whom AEAI maintains close coordination.

This project aims to assure a successful transaction through three broad approaches:

through a detailed review the legal and regulatory framework established by ERO, and the technical and market arrangements established by KOSTT to ascertain whether these are clear, complete and consistent to support a private sector investor in Kosovo’s electricity distribution and retail sector; then
in the event that there are any gaps or inconsistencies, or if any clarification may be needed, through support to the relevant beneficiary organization to modify the documentation; and
during the process of the privatization transaction, through support to the two beneficiaries in understanding the role that they will be required to play in the process, and in responding to the Transaction Advisor’s requests for clarification or explanation.

Power sector privatization is a complex task and in carrying out its own discrete role, AEAI is working in close coordination with other organizations and consultancy teams working on the privatization, including:

Deloitte Consulting LLP, who are providing USAID funded support to the Ministry of Economy and Finance in the privatization of KEK division "distribution and supply", support to the Privatization Committee established by the Government of Kosovo and who are also establishing the Project Implementation Unit (PIU) which will implement the transaction;
The International Finance Corporation (IFC) which is part of the World Bank Group and which has been selected by MEF to run the transaction process and also will be appointing more consultants to carry out the legal, technical and financial due diligence; and
PA Government Services Inc. who are under another USAID funded project supporting KEK in readiness for the privatization process.

Address: “Musine Kokollari” street, No. 14, Prishtina 10 000, Kosovo
Telephone: +381 38 552 820
Email address: info@kdpa.info

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