Baku, Azerbaijan, June 4
By Elena Kosolapova - Trend:
The European Bank for Reconstruction and Development (EBRD) will lend up to €10 million ($1 = €0.9) to a private water utility, Vodnye Resoursy Marketing, which provides water and wastewater services to Kazakhstan's southern city of Shymkent, the bank reported.
The loan will be used for modernising the water and wastewater services in the city.
Meanwhile the government of Kazakhstan will provide a capital grant in tenge equivalent to €8 million, and Vodnye Resoursy Marketing will invest the equivalent of €500,000 into the modernization project.
"Privately-owned Vodnye Resoursy Marketing is among the best utility companies in the country in terms of its operational and financial performance, despite working in a low-income city. The new project will further demonstrate the benefits of involving private companies in providing public services in Kazakhstan," the bank said.
The loan agreement between the EBRD and the company was signed in Astana during the visit of EBRD President, Sir Suma Chakrabarti.
The EBRD and Kazakhstan are working on several other joint projects under the Water and Wastewater Infrastructure Modernisation Framework under the Enhanced Partnership umbrella.
Since the beginning of its operations in Kazakhstan 22 years ago, the EBRD has invested over $7 billion in the country's economy.
Edited by S.I.
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