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41289 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Project Name Region Sector Project ID Borrower(s) Implementing Agency Environment Category Date PID Prepared Estimated Date of Appraisal Authorization Estimated Date of Board Approval I. Uzbekneftegaz Associated Gas Project (CF) Europe and Central Asia Energy (100%) P108155 Uzbekneftegaz National Holding Company [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) October 16, 2007 July 2008 October 2008 Key development issues and rationale for Bank involvement The threat of climate change poses to long-term development and the ability of the poor to move out from poverty is of particular concern to the World Bank. The carbon finance activities of the World Bank are a natural extension of the Bank’s mission to reduce poverty. The Bank makes every effort to ensure that poor countries can benefit from international responses to climate change including the emerging carbon market for GHG emission reductions. The Bank as trustee to a number of carbon funds intends to purchase Emission Reduction (ER) resulting from the collection and improved utilization of associated gases generated during the extraction of petroleum hydrocarbons in the North Shurtan, Garmiston, Kumchuk, and Shakarbulak fields and thereby eliminating their flaring. II. Proposed objective(s) The project aims to eliminate flaring of associated gases at the North Shurtan, Garmiston, Kumchuk, and Shakarbulak fields, and to collect and use associated gases for energy production, therefore reducing GHG emissions. III. Preliminary Description The current technology for oil collection and treatment in small fields in Uzbekistan entails flaring the associated gases on site that causes environmental pollution and waste this valuable fuel. The proposed project will properly utilize the associated gases by introducing a closed system for oil treatment that will allow Uzbekneftegaz to accumulate passive low-pressure gases (0.4-2.0 MPa) at the small fields and supply them to the complex gas treatment plants (CGTP) of nearby fields and further to the main gas pipeline to consumers. The capture and utilization of low-pressure gases through the closed system for oil collection and treatment in the North Shurtan, Garmiston, Kumchuk, and Shakarbulak fields will require pipes, pipe fittings, two-stage booster compression plants (with a pressure of 0.4-1.2 MPa for 21.4 thousand cubic meters of gas/day, and 1.2-10.5 MPa for 262.6 thousand cubic meters of gas/day), and installation of gas-turbine equipment (GTU) for power generation. Total output capacity of the BCP to ensure the injection gas pressure of 10.0 MPa at the CGTP should be 1035 kW. The project also requires 8 kilometers of pipes with a diameter of 148 х 8 mm to capture and supply gas. IV. Safeguard Policies that might apply Safeguard Policies Triggered by the Project Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Involuntary Resettlement (OP/BP 4.12) Indigenous Peoples ( OP/BP 4.10) Forests (OP/BP 4.36) Safety of Dams (OP/BP 4.37) Projects in Disputed Areas (OP/BP 7.60)* Projects on International Waterways (OP/BP 7.50) Piloting the Use of Borrower Systems to Address Environmental and Social Issues in Bank-Supported Projects (OP/BP 4.00) V. Yes [X] [] [] [] [] [] [] [] [] [] No [] X Total X X X X X X ($m.) $ 7.30 $ 5.95 $13.25 Contact point Contact: Title: Tel: Fax: Email: Location: * X X X Tentative financing Source: Borrower/Recipient World Bank Carbon Funds VI. TBD Mr. Franz Gerner Sr. Energy Economist (202) 473-5019 (202) 614-1569 [email protected] 1818 H St. NW Washington, D.C. U. S. A. 20433 By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas