|
EBRD breaks new ground in Central Asia with restructuring of the Kyrgyz energy sector
To ensure a more reliable electric power supply in Kyrgyzstan, the European
Bank for Reconstruction and Development (EBRD) is extending a US$ 24.7 million
(ECU 22.7 million) sovereign-guaranteed loan to Kyrgyzenergo. The state-owned
power company is responsible for power generation, transmission and
distribution, as well as national heating systems in the Central Asian
republic of Kyrgyzstan.
"This project sets a major precedent by the EBRD in the Central Asian energy
sector by privatising a key service provider," said Ananda Covindassamy, the
EBRD's Power and Energy Team Director. "The EBRD's focus is to improve the
quality of the power supply to both residential users and small and
medium-sized industries. Also, privatising the distribution system will
improve collection of electricity payments, and will encourage substantial
private financing in the power sector."
The loan proceeds will be used to modernise the power system in the touristic
area of the Talas valley. It will also improve the country's energy efficiency
by cutting power transmission losses significantly. Some 150 jobs are expected
to be created as a result of the loan.
The project is the EBRD's second loan to Kyrgyzenergo. The first, the
"Transmission Network Improvement Project", inaugurated on 2 December 1997,
was completed ahead of schedule and below cost estimates and supports the
development of the Kumtor gold mine.
|
