Tajik Government Flounders as Electricity Threatens to Run

UNCLAS SECTION 01 OF 02 DUSHANBE 000168 SIPDIS SIPDIS SENSITIVE DEPT FOR SCA/CEN E.O. 12958: N/A TAGS: PGOV ENRG ECON TI SUBJECT: Tajik Government Flounders as Electricity Threatens to Run Out DUSHANBE 00000168 001.2 OF 002 ¶1. (SBU) Summary: The Government of Tajikistan has announced that the reservoir feeding the Nurek power station, the country's largest source of electricity, might run out of water by February 6. Extreme low temperatures have reduced inflow, causing the reservoir to drop to critical levels. A Nurek shutdown would lead to a nationwide blackout. Even if this does not occur, severe energy shortages are probable for the next two months. The Government has no particular plan to deal with this situation, except to declare a "state of emergency" and possibly close more businesses and educational institutions. The government will likely try to keep the Tajik Aluminum Company (Talco) running for as long as possible; it accounts for 40 percent of Tajik electricity consumption, and is the government's main source of income. The World Bank and UN are considering staff draw downs if this situation continues. End summary. Dire Predictions and Contradictions -------------- ¶2. (U) On January 22 the Director of Barki Tojik, the national power monopoly, announced that due to the coldest winter in 40 years, the water flow in the Vakhsh River had sharply decreased, and because of this the water level in the Nurek hydropower reservoir was approaching the point at which the power station would cease to function. He estimated that current energy consumption would bring the Nurek station to a halt by February 5 or 6. Without Nurek, Tajikistan is largely in the dark, as the few smaller power stations currently in operation cannot power much of the country, and certainly could not power Talco. The Director of Barki Tojik said the government might then declare a national emergency, with unspecified consequences. There has been talk of closing educational institutions and businesses. However, on January 24 Deputy Energy Minister Pulot Muhiddinov denied that there would be an emergency situation, but warned that there would still be serious limitations on power use this winter. ¶3. (U) Some numbers: Nurek Hydropower station's installed capacity is 11.2 billion Kilowatt Hours (KWH) annually, or 30 million KWH per day on annual average. This is fully two thirds of Tajikistan's total annual power production. The Tajik Aluminum Company consumes 18 million KWH per day on average. This month Tajikistan's electricity daily demand is estimated at over 70 million KWH daily; total production is much lower, hence the power cuts everywhere. The World Bank told embassy on January 28 that Barki Tojik's latest figures for Nurek were that the reservoir was 6.5 meters above the power cutoff point, with consumption drawing the reservoir down by 50 centimeters per day. This suggests that, absent a thaw, the power station may operate until February 10. We note that at this time last year the water level was within 10 meters of shutting off power production; but the weather was not as cold, allowing neighbors Uzbekistan and Kyrgyzstan to supply more power to Tajikistan. Scattershot Response -------------- ¶4. (U) On January 23, 2008 President Rahmon announced the reduction of electricity supplies to Talco by 1 million KWH. Later the same day Barki Tojik reported energy supplies to Talco would be reduced by 2 million KWH. The next day the Mayor of Dushanbe ordered the disconnection of all industrial enterprises in Dushanbe except the Qdisconnection of all industrial enterprises in Dushanbe except the Cement Plant and Milk Factory. Small shops, service centers, public bath houses and restaurants, and all Dushanbe markets were ordered to disconnect from electrical lines. ¶5. (U) At a partially televised meeting of the government on January 25-26, President Rahmon complained about the performance of the Ministry of Energy, Barki Tojik, and Tajikgaz. He called for faster construction of small hydropower plants, and called for Tajikgaz and the Dushanbe city administration to refurbish the Dushanbe and Yovon heat and power plants. He also ordered Talco to provide funding for this refurbishment. International Organizations Worried -------------- ¶6. (SBU) World Bank resident manager Chiara Bronchi met January 27 with Minister of Energy Sherali Gul to discuss the current power crisis. She characterized him as "completely in denial." The Minister confirmed the press reports that there are only a few days of water left in the Nurek reservoir. Once the reservoir reaches the critical level, the country will be in a blackout. The DUSHANBE 00000168 002.2 OF 002 record-breaking cold temperatures have resulted in a significantly larger than normal amount of the reservoir's water freezing, which will delay the thaw needed to run the turbines. How long this blackout will continue is difficult to predict. ¶7. (SBU) According to Ms. Bronchi, the Ministry of Energy has no crisis management plan and is "sitting around doing nothing." She noted that Talco uses 40 percent of the country's electricity, but due to the nature of aluminum production cannot be shut down overnight. Bronchi asked the Minister specifically about diverting more energy from the plant to the population, but the Gul said there are no plans to do this. Just Give Cash -------------- ¶8. (SBU) When Ms. Bronchi offered to bring in World Bank engineering experts to look at the possibility of rehabilitating unused, old hydropower facilities, the Minister responded that the only aid the Ministry needed was cash. When she said they'd have to give any financial assistance to the Ministry of Finance, not directly to the Barki Tojik electrical utility, the Minister said "then we don't want it." Bronchi will meet with Presidential Economic Advisor Davlatov today and may raise the issue directly to the President. The World Bank is also looking at a staff drawdown; Bronchi is more concerned about clean water than electricity because in a complete blackout, the water pumps supplying the city and individual homes will fail. ¶9. (SBU) The United Nations is also making plans to draw down staff, or close up shop altogether. On January 26 the chief UN representative, Michael Jones, called together UN staff to discuss evacuation, as the UN does not have the infrastructure to support staff living here if there is no power or water. The UN is looking at moving staff to Almaty, and possible departing the country in an evacuation convoy to Uzbekistan. ¶10. (SBU) Embassy called Talco, Barki Tojik, and the Ministry of Energy directly on January 28, to get their views of the situation. Talco contacts were reluctant to speak to us, asking us to contact their press department for details on their plans regarding the current energy shortage. The press department didn't return our calls. No one at the Energy Ministry answered the phones either. At Barki Tojik, Mr. Salamsho, chief of the international department, discounted statements of alarm about the situation, saying that strict limitations on electricity use would help to maintain the water level in the Nurek reservoir, and he did not expect the Nurek power station to close. ¶11. (SBU) As temperatures rise in the Central Asian region, Salamsho said, Uzbekistan and Turkmenistan would be able to resume some electricity supplies to Tajikistan. (On January 28 media reported that Kyrgyzstan had agreed to sell 11 million kilowatt hours of electricity to Tajikistan in return for increased Tajik power supplies to Kyrgyzstan in summer.) He believed the situation in Tajikistan would "not be pleasant" until the end of March, with strict electricity limitations in place, but said Barki Tojik definitely would not allow the Nurek station to reach a crisis level where it would cease to operate. ¶12. (SBU) Comment: The government's response to the power shortage has been to blame the weather, neighboring countries, excessive energy use by households and small businesses, and mismanagement by government ministries. The President blames his subordinates, but Qgovernment ministries. The President blames his subordinates, but this crisis has been brewing for as long as Rahmon has been president. He has overseen years of little progress on new hydropower projects while large resources from Talco and other revenue makers, which could have been invested in new power infrastructure, instead were wasted on subsidies to a non-competitive cotton sector and on palaces and lavish entertainments. Rising temperatures in the next few weeks will probably alleviate the worst aspects of this crisis, but if they don't rise fast enough, Talco will have no power to operate. End Comment. ¶13. (SBU) Post will hold an Emergency Action Committee meeting on January 29 to examine our posture and tripwires for further steps if the power and water shortage worsens. JACOBSON