Energy: Project Summary

UN DESA Helps Restore Power Infrastructure in Iraq

In August 1990 the Security Council adopted resolution 661, imposing comprehensive sanctions on Iraq following that country's short-lived invasion of Kuwait. Throughout 1991, with growing concern over the humanitarian situation in Iraq, the United Nations and others proposed measures to enable Iraq to sell limited quantities of oil to meet its people's needs. The Government of Iraq declined these offers, contained in particular, in resolutions 706 and 712, adopted in August and September 1991.

An Oil-For-Food Programme began at the end of 1996 under Security Council Resolution 986 (1995), which permitted Iraq to sell up to two billion dollars worth of oil in a 180-day period. The ceiling on oil sales was eased during 1998 and finally lifted in 1999, enabling the programme to move from a focus on food and medicine to repairing essential infrastructure, including the oil industry.

With the adoption of Security Council resolution 1330 (2000) on 5 December 2000, around 72 per cent of the oil revenue funds go to the humanitarian programme in Iraq (59 per cent for the centre and south and 13 per cent for the three northern Governorates) and 25 percent goes to the Compensation Commission in Geneva, while 2.2 per cent covers the United Nations costs for administering the programme and 0.8 percent for the administration of the UN Monitoring and Inspection Commission (UNMOVIC). The Government of Iraq is responsible for the purchase and distribution of supplies in the 15 Governorates in the centre and south. The United Nations implements the programme in the three northern Governorates of Dohuk, Suleimaniya and Erbil, on behalf of the Government of Iraq.

Role of DESA

In 1997 UNDP was officially entrusted by the UN Security Council with the rehabilitation of the electricity network in the three northern Governorates and for observation activities in the fifteen Governorates of south and central Iraq. UNDP in turn appointed DESA as its Executing Agency.

Northern IraqEarly in 1997, DESA took on the massive task of rehabilitating the run down power system in northern Iraq, damaged by the war of 1991 and subsequent lack of maintenance. Initially, with limited funding available from the 13% account of the Oil-for-Food Programme, the emphasis of the project was placed in the procurement of plant, equipment and tools required for the urgent repair/replacement of

existing power distribution, transmission and generation facilities. As further funding became available, larger, more comprehensive contracts were undertaken in various fields. A listing of the works undertaken by DESA since 1997 is annexed.DESA's responsibilities in northern Iraq spanned the first three, and a portion of the fourth phase of the distribution plan, totaling an outlay of US$ 78 million. In July 1999 the responsibility for the project reverted to UNDP for implementation under Direct Execution Modality from site, with a mandate for DESA to complete all its ongoing contracts and other responsibilities. The following major responsibilities currently remain with DESA in northern Iraq:

1. Contract PD/CO005/00 with ABB Switchgear AB, Sweden, for the turnkey construction of North Erbil 132kV Substation and the integrated equipment supply for the Azmar 132kV Substation valued at approximately $ 20 million. This contract, originally expected to be completed by end October 2001, is now likely to go on into 2002 to complete additional works required by the Local Authorities and due to delays caused by the stoppage of Iraqi visas for expatriate personnel

2. Contract PD/CON/304098 with Technopromexport, Russia, for the rehabilitation of the Dokhan Hydropower station valued at $ 6 million. Major works related to the overhaul of the generating units have been completed. However, a part of the original contract for modifications to four of the units to enable them to be run as synchronous condensers and additional works on amendments to the contract, remain. Again, delays by the Iraqi Government in issuing visas and releasing equipment imports is a source of concern. Other ongoing responsibilities currently with UNDESA are:

1. Administering warranty repairs/replacements of four 2150kVA diesel engine sets procured under a supply, install and commission contract no. PD/CON/28/97 with Wartsila NSD Corporation, France. Following the failure of some units early in their history, meetings were held with Wartsila in New York in April 2000 and again in March 2001, to discuss warranty obligations and future operation of the sets. Currently, two of four sets purchased are out of commission, awaiting repairs by Wartsila.

2. Closing out of Contract PD/0359/99 with HECEC, Australia, for the emergency repairs of the turbines at Derbandikhan Hydropower station. This contract ran into problems very early in its implementation, leading to cost over-runs by the contractor and claims for variations. The works were finally concluded in early 2000. Negotiations to determine an acceptable level of reimbursement to the Contractor are still inconclusive.

South and Central Iraq

In addition to its involvement in northern Iraq, DESA is also responsible for observation activities in 15 Governorates of southern and central Iraq for plant and equipment procured by the Government of Iraq in the electricity sector under SCR 986. UNDESA implements this responsibility through a team of six International Observers and a staff of 20 nationals under Project IRQ/97/Z02. Currently the DESA Chief International Observer also chairs the Inter-agency Electricity Sectoral Working Group in Baghdad, providing advice on technical matters to the programme.

The following activities are undertaken: observation of electrical equipment arriving at the warehouses, tracking the equipment up to the end users, follow up of equipment implementation at the intended locations and assessment of the impact of implementation on the entire electricity system.

With the growth of the project, resulting from additional funds becoming available from the sale of Iraqi oil, there has been a sharp increase in the volume of goods entering the country and consequently in observation activities. The expected increase of materials to arrive within the next phase is over US$200 million, which will require considerable additional efforts in observation activities to cover 21 power plants and distribution sites.

Summary

DESA has played an important role in the implementation of SCR 986. It went into northern Iraq in early 1997 with limited resources and an objective to rehabilitate a run down, war damaged electricity power system. It accurately appraised the situation, prioritised the areas requiring the most urgent attention and installed an operational base to implement the programme. With the limited funding available from the first three phases and a portion of the fourth phase of the Oil-for-Food Programme distribution plan, DESA succeeded in assisting the Local Electricity Authorities in rehabilitating the most severely affected sections of the network, thereby significantly improving the living conditions of large sections of the local population. Additionally, it carried out major rehabilitation works on the hydropower stations and substations while also attending to the safety of the dams. A key contribution of DESA has been the timely condition assessment of the worst affected segments of the system, through authoritative investigative studies, and installing the infrastructure required to implement the remedial measures indicated. In southern and central Iraq, DESA's role in observation of Government of Iraq imports continues to play an important part in the implementation of UN sanctions.

SCR 986: Rehabilitation of the Electricity Sector in northern Iraq Implementation by UNDESA since 1997 (US$ 78mi)

1. Technical Studies Undertaken

1.1 Inspection of Derbandikhan Dam and framework implementation plan for safety works: Binnie and Partners 1.2 Inspection of Dokhan Dam and framework implementation plan for safety works: Binnie and Partners 1.3 Inspection of Derbandikhan Hydro Power Station Turbines, Generators and Ancillaries: Tata Consulting Engineers 1.4 Inspection of Derbandikhan 132kV GIS Substation: Tata Consulting Engineers 1.5 Condition Assessment of Dokhan Hydro Power Station Turbines, Generators and Ancillaries: Technopromexport 1.6 Transmission and Distribution Survey covering all 3 Governorates: SMEC 1.7 Feasibility Study on the Options for the Addition of Generation Capacity in the northern Governorates of Iraq: SMEC

2. Dams and Hydro Power Stations

2.1 Derbandikhan Draft tube gate hoist column repairs and replacement of crane 2.2 Repairs to Derbandikhan Spillway Gates: Black and Veatch 2.3 Replacement of Derbandikhan spillway gate anchor rods: Black and Veatch 2.4 Overhaul of Derbandikhan Dam erosion prevention Wells 2.5 Supply of tools and equipment for restoration of damaged Derbandikhan Hydro Power Station Control Room 2.6 Repairs to Derbandikhan Turbine Runners and Upper Draft tube liners: HECEC 2.7 Overhaul of Dokhan Generators and Turbines: Technopromexport 2.8 Modification of Dokhan generating units for operation as synchronous condensers: Technopromexport (on going).

3. Diesel Power Stations

3.1 Supply and commissioning of North Erbil 2.15MW Diesel Power Station Erbil 3.2 Supply and commissioning of Badawa 2.15MW Diesel Power Station 3.3 Supply and commissioning of Azadi 2.15MW Diesel Power Station 3.4 Supply and commissioning of Kori 2.15MW Diesel Power Station

4. Substations

4.1 Turnkey construction of North Erbil 132/33/11kV Substation (on-going) 4.2 Integrated package supply with supervision for construction of Azmar 132/33/11kV Substation (on-going) 4.3 Supply of 14 Power Transformers for 10 major substations in Sulemaniya 4.4 Supply of 132, 33 and 11kV switchgear and ancillaries for substations in Sulemaniya 4.5 Supply and commissioning of three 33/11 kV Mobile Substations (2x5MVA, 1x10MVA) in Dohuk and Erbil Governorates

5. Transmission and Distribution

5.1 Supply and erection of 31km of double 33kV transmission line for Irfraz Water Project 5.2 Repair of damaged 132kV transmission towers in Dohuk 5.3 Supply and installation of over 500 distribution transformers in the three Governorates 5.4 Supply and installation of 11kV and 0.4kV overhead lines to feed off grid rural communities 5.5 Re-conductoring and rehabilitation of damaged/deteriorated 11kV and 0.4kV overhead lines 5.6 Supply of state-of -the-art Distribution Planning software 5.7 Supply of transformer oil treatment units 5.8 Supply of tools, measuring instruments and safety equipment for erection, commissioning and maintenance works by the Local Electricity Authorities.

6. Equipment Procurement

A total of $40 million worth of equipment has been procured and delivered to site.