Baku, Azerbaijan, Dec. 19
By Elena Kosolapova - Trend: The European Bank for Reconstruction and Development (EBRD) will finance the modernization of municipal infrastructure facilities in Kyzylorda, the capital of the Kazakhstan's Kyzylorda region, the bank reported on Dec. 19.
Several financing agreements worth over $70 million were signed at the Bank's Headquarters in London by EBRD President, Sir Suma Chakrabarti, and the head of Kyzylorda region, Krymbek Kusherbayev, on 18 December 2014.
"The funds will be used to finance improvements in water and wastewater, heating, electricity and street lighting," the bank said.
The EBRD will provide financing to three municipal companies in the city of Kyzylorda.
Up to $10 million will be lent to Kyzylorda Su Zhuyesi, a municipal water management company, to rehabilitate and upgrade its infrastructure network. The project will result in better water and wastewater services, greater energy and water efficiency, reduced losses and improved environmental standards.
In addition, up to $24 million, comprising an EBRD tranche of up to $18.5 million and a tranche of up to $5.5 million from the Clean Technology Fund, will be lent to Kyzylordateploelektrocentr, a municipal district heating and electricity production company. The financing will not only help to modernize the district heating network and production facilities, but will also introduce individual building-level heating substations to improve energy efficiency, cut losses and reduce CO2 emissions.
Lastly, up to 4.5 billion tenge ($24.7 million equivalent) will be lent to the Kyzylorda Regional Electricity Company, a power utility company responsible for distributing electricity to the entire Kyzylorda region. Funds will be used to modernize the electricity distribution network, including installing modern metering and automated control systems, and upgrading electricity transformers and distribution lines. The project is expected to cut annual electricity losses by 30 million kWh, which is the equivalent of 30,000 metric tons of CO2 emissions.
The Bank is also considering lending up to 2.3 billion tenge ($12.5 million equivalent) for modern, energy efficient street lighting in the city of Kyzylorda. The EBRD has already signed a pre-financing agreement with the regional and city authorities to start preparing the project.
This wide-ranging modernization program in Kyzylorda is also supported by the government of Kazakhstan, which is providing a grant of up to 3.9 billion tenge ($21.7 million equivalent) to co-finance water and district heating modernization projects. This support comes as part of the Enhanced Partnership Framework Arrangement, which was signed between the Bank and the government of Kazakhstan in May.
To date, the EBRD has invested over $6.7 billion in Kazakhstan's economy.
Edited by CN
Elena Kosolapova is Trend Agency's staff journalist, follow her on Twitter: @E_Kosolapova