ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of August 3, 2002 No. 318

About approval of the Concept of development of industries of fuel and energy complex of the Republic of Tajikistan for 2003-2015

For the purpose of determination of perspectives of development of industries of fuel and energy complex of the republic for 2003-2015 the Government of the Republic of Tajikistan decides:

1. Approve the enclosed Concept of development of industries of fuel and energy complex of the Republic of Tajikistan for 2003-2015.

2. To Department of Energy of the Republic of Tajikistan:

accept to management the Concept of development of industries of fuel and energy complex of the Republic of Tajikistan for 2003-2015 in case of realization of state policy in the field of power;

till January 1, 2004 to develop target five-year development programs of industries of fuel and energy complex on the basis of provisions of this Concept.

3. For the purpose of the state support of the coal industry of the Republic of Tajikistan to the Ministry of Economy and Trade of the Republic of Tajikistan, to the Ministry of Finance of the Republic of Tajikistan in case of project development of the forecast of functioning of economy of the Republic of Tajikistan and the government budget of the Republic of Tajikistan to provide financing of the specified industry.

4. To the Ministry of Economy and Trade of the Republic of Tajikistan, the Department of Energy of the Republic of Tajikistan to take specific measures for attraction of domestic and foreign investments in development of fuel and energy complex of the Republic of Tajikistan.

Approved by the Order of the Government of the Republic of Tajikistan of August 3, 2002 No. 318

The concept of development of industries of fuel and energy complex of the Republic of Tajikistan for 2003-2015

INTRODUCTION

After independence acquisition the Republic of Tajikistan nowadays performs transition from the managing centralized to market methods. This task difficult in terms of the scope of passes in conditions of crisis and financial and economic difficulties, gap of life-supporting, commercial and economic ties. In these conditions achievement of economic safety which compound and most important part is the energy security including providing continuity of deliveries of energy carriers and achievement of the maximum energy independence of fuel and energy complex of the republic becomes the main objective of the state. The Fuel and Energy Complex (FEC) is the set of the interconnected economy industries including the government and non-state institutions occupied in coal - oil, gazo-, the warm and electrosupplying and consuming systems and territorial subsystems.

The Republic of Tajikistan has considerable inventories of fuel and energy resources. The main part of water resources of the region of Central Asia is created in Tajikistan (53%). In structure of fuel and energy balance of the republic hydroenergy resources constitute more than 90%. General potential inventories of hydroenergy resources constitute 527 bln kWh a year. The modern production rate of the electric power constitutes 6,5 of % of technically suitable hydropower potential. The explored reserves of oil which are available today, gas and condensate constitute less than 1 total % of resources which is estimated by 1033 million tons. conditional fuel. For increase in oil and gas extraction the big costs connected using new technologies, difficult mining-and-geological conditions and depth more than 5-7 km are required. Forecast inventories of coals are estimated at 4-5 billion tons now (from which insignificant part is got, in 2001 only 25 thousand tons are extracted). Inventories of coal fuel are practically available in all regions of the republic, but many fields are located in hard mountain to reach areas. Despite the available inventories of various fuel and energy resources, Tajikistan imports practically all its types. The problem of providing with energy resources in the country is particularly acute very. Achievement of providing with fuel and energy resources the most important task of economic policy of Tajikistan. Realizing importance of this problem, the management of the state takes measures for fuel and energy complex conclusion from crisis.

I. Energy situation and condition of industries of fuel and energy complex in the Republic of Tajikistan

The Republic of Tajikistan endures general crisis of social and economic system now. Today there is no need to prove that deficit of fuel and energy resources is restraining factor in development and economic recovery of the republic.

Production analysis of fuel and energy resources in the Republic of Tajikistan shows that in 2001 in comparison with 1990 there was decrease in gas production more than twice, oils, including gas condensate - in 8,8 of time, power generation - for 14%, coal productions more, than in 28,6 of times. At the same time consumption of natural gas in 4,5 of time, oil and oil products - by 6 times, uglyaboly than by 70 times decreased. Import of products of industries of fuel and energy complex to the republic was reduced on oil and oil products by 1,5 of one million tons, on natural gas - by 1,6 of one billion m 3, on the liquefied gas - by 100 thousand tons, coal is delivered in insignificant amount.

In critical situation there is question of calculations for the consumed electrical and heat energy, natural gas. Fund raising for goods sold of energy resources does not exceed 60%, and all this in case of very low in comparison even with the neighboring republics rates. Therefore the power supplying organizations are not able to make rehabilitation of the sources generating the electric power, to increase coal production, oil and gas extraction in the republic.

Specific place is held by question of low solvency of the population of the republic. Non-payments in the domestic markets and in interstate trade within the Commonwealth catastrophically reduce receipt of funds in industry of fuel and energy complex and as a result remove them on the negative level of profitability.

In general the analysis of condition of industries of fuel and energy complex shows that over the last ten years in the republic there were negative tendencies caused by the following factors:

- decrease in level of reliability of operation of the equipment in all industries of fuel and energy complex, including sources of generating electrical energy, power lines, pipeline systems of gas supply in connection with depreciation of the capital equipment;

- decrease in necessary general reserve of capacities of production of electrical and heat energy, gas production, oil and coal;

- decrease in amount of mutually supply of energy resources;

- sharp reducing exploration works and amounts of production and conversion of energy resources;

- lack of investments on recovery and development of industries of fuel and energy complex;

- irrational and inefficient use of energy resources by consumers of all categories;

- non-payments for the consumed electric power and gas in the republic.

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