Capacity Development Consultants

Item Description:

Objectives: To support the Government of Georgia in creating an enabling environment for increased private sector participation in financially, economically and environmentally sustainable gas infrastructure projects;

Perceived benefits:
a. Capacity building support to the Georgia National Energy and Water Sector Regulatory Commission (GNERC) on tariff methodology for underground gas storage operations with the objective of ensuring efficiency and sustainability for underground gas storage operations and promoting private sector participation in their development;
b. Capacity building support to the Ministry of Energy on development of new regulatory framework for gas market to encourage private sector participation in the development of the Georgian gas market; and
c. Technical and corporate capacity building for the Georgian Oil and Gas Company (GOGC) for enhancing its ability to develop underground gas infrastructure with private sector participation and providing reliable service to independent gas distribution companies through improved SCADA.

Target beneficiaries: a. End users of gas, especially uninterruptible consumers; b. GNERC; c. Ministry of Energy; d. GOGC; e. Selected private sector parties (DISCOs, industrial consumers); and f. Georgia Gas Transmission Company (GGTC).

Major components
a. Gas market tariff modeling.
- Developing gas storage tariff methodology in compliance with Georgia’s accession to the European Union Energy Community, and ensuring commercial viability and uninterrupted supply to independent gas distributors.
– Developing a methodology for price regulation and calculation of required storage access to ensure uninterrupted supply to gas distribution operators.

b. Legal, regulatory, and institutional reforms.
– Review of the relevant legal and regulatory frameworks identifying gaps and areas for improvements that impede private sector participation in the development of the gas industry and drafting needed amendments;
– Institutional diagnostics of respective state agencies and the regulator (GNERC) and recommendations for improving their capacity to foster private sector participation in the development of gas industry.
– Preparing rules for third party access (TPA) to storage, the Capacity Allocation Mechanism and Congestion Management Procedure, etc.

c. Technical and corporate capacity building.
– Identifying options for structuring the UGS project with private sector participation including gas storage as an extension of gas transmission system operations (TSO) or as a stand-alone storage service operation (SSO).
– Developing corporate capacity of GOGC as a financially stable and commercially managed corporation with the objective of enhancing its ability to attract private sector participation in gas storage.
– Preparing technical specification for SCADA system for high and medium pressure gas pipeline network with the objective of enhancing the ability of GOGC and GGTC to monitor performance of the existing public and private gas transmission and distribution operators.
– Reviewing and analyzing cost estimates and the financial and economic viability of the proposed UGS project following ADB’s guidelines, and preparing a financing plan and ensuring its
sustainability through introduction of private sector O&M arrangements.

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