Nikolai Kravtsov Public Foundation «Youstin» (Consumer Association) Washington, USA April, 2010 ELECTRICITY GOVERNANCE INITIATIVE AND REGIONAL ELECTRICITY MARKET DEVLOPMENT

Public Foundation «Youstin» (Consumer Association)IN” Non governmental, non for profit organization established in 2002 Active in the field of the consumer rights protection on receiving of good quality of energy supply and communal services Analyse and assessment of the legislative documentations in these areas Preparation and delivering of the proposals on legislation and implementation improvement 2

CASAREM – Central Asian and South Asian Regional Electricity Market Development THE 4th CASAREM Conference, August 2008 (Islamabad, Pakistan) – approved: To promote electricity export from Kyrgyzstan and Tajikistan with the amount of 5 billion kWh/year, (Kyrgyzstan -2 billion kWh/year); The length of the concessive period is years.

ROUTE OF ELECTRIC ITY TRANSMISSION ACCORDING TO CASA 1000 PROJECT

Financing of the Project CASA-1000 (preliminary arrangement, according the WB Report № АВ 3686 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT $50 mln. INTERNATIONAL DEVELOPMENT ASSOCIATION $200 mln. ISLAMIC DEVELOPMENT BANK (to be confirmed) $125 mln. Other IFIs (to be confirmed) ADB? $325 mln. TOTAL $700 mln.

Defined main risks of CASA-1000 Project (Report № АВ 3686 of the World Bank) - Generation of the electricity; - The partner option and payment for energy; - Determination of export price and tariff; - War and political (civil) instability in the Project Areas(Afghanistan and North-Western Pakistan).

Absence of the open processes of the decision making: ― Сonference in Pakistan, August 2008 ― Internal country discussions Absence of the alignment of export with National Programme of Energy Development up to and Strategy of the Fuel Energy Complex up to 2025;

Recommendations Public dissemination and discussion ― of draft law about ratification of the agreement on CASAREM project; ― open parliamentary and public hearings on the project; Elimination of the civil society well-grounded doubts by the government and management bodies responsible for the project decision taken; Suppoting proportionate information review on mass media, including analyse, well-reasoned conclusions and proposals; Transparency of the credit agreement concluded on the project with a financing bank; Guarantee for access to the information about the results of CASAREM (CASA 1000) project realization

CSOs concerns on the CASAREM Project 1. Ensuring Security of the Supply of the Internal Market of Electricity: - Openness and transparency - Regulatory Body involvement in determination of the export price and development of Tariff methodology 2. Price of the Electricity which covers all the costs related generation, transmission and costs of loan; 3. Regulation and Management of water resources of Vaksh and Naryn Rivers will not bring the interstate conflicts with neighboring countries.

THANK YOU FOR YOUR KIND ATTENTION! NIKOLAI KRAVTSOV Head of Public Society Unit “YOUSTIN” Kyrgyz Republic