BISHKEK, Kyrgyzstan, June 11. The European Bank for Reconstruction and Development (EBRD) is pledging a financing package of up to 14 million euros to improve the efficiency of electricity supply in Kyrgyzstan, Trend reports.
According to the bank, the funds will be provided to the government and then lent to the state-owned National Electric Grid of Kyrgyzstan company. This financing program is supported by the government of Japan through the Japan-EBRD Cooperation Fund.
Specifically, the EBRD will provide a sovereign loan of up to 4.84 million euros and an investment grant of up to 2.75 million euros for the modernization and voltage upgrade (from 35 kV to 110 kV) of the Rechnaya substation in the Osh region. This project aims to increase the reliability of energy supply, improve substation efficiency, reduce power losses, and cut annual CO2 emissions by at least 5,300 tonnes.
Additionally, a sovereign loan of up to 4.16 million euros and the EBRD investment grant of 2.25 million euros will be used to reconstruct 110 kV switchgear, install new transformers, and replace associated equipment at the Dolinka substation in the Issyk-Kul region. This project will strengthen the local grid to integrate renewables, reduce annual CO2 emissions by at least 5,800 tonnes, and improve overall substation efficiency.
As of February 29, 2024, the loan portfolio of the EBRD's projects in Kyrgyzstan was estimated at 232 million euros, covering 81 active projects. The bank has invested a whopping 970 million euros in a total of 242 projects in Kyrgyzstan.