BISHKEK, Kyrgyzstan, September 28. The European Bank for Reconstruction and Development (EBRD) is currently exploring the possibility of providing a sovereign loan of up to 13.5 million euros to Kyrgyzstan, Trend reports.
This loan aims to fund the acquisition and installation of household smart electricity meters in the Osh, Jalal-Abad, Tupe, and Chuy regions. The approval date is scheduled for November 28, 2023.
The loan will be provided to Kyrgyzstan with the intention of onward lending to the OJSC National Electric Grid of Kyrgyzstan. The total cost of the project is estimated to be 18.5 million euros.
The primary objectives of the project are to enhance the reliability of the electrical service, improve service quality, implement demand-side management measures, and facilitate the integration of consumers into the distribution system.
This project aligns with the EBRD's Green Economy Transition (GET) Approach and is expected to contribute to environmental sustainability by mitigating climate change through the implementation of smart metering technology.
As of July 31, 2023, the cumulative EBRD investment in Kyrgyzstan was 887 million euros for 231 projects. EBRD contributed 41 million euros to Kyrgyzstan in 2022, the country's biggest funding amount since the bank gave it 46 million euros in 2019.
EBRD has been engaged in cooperation with Kyrgyzstan since 1992. The bank's efforts in the country are centered around promoting sustainable growth, supporting the development of small and medium-sized enterprises (SMEs), enhancing the sustainability of public utilities, and strengthening the financial sector.