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Kazakhstan power sector modernised with EBRD finance
Cleaner air is an additional benefit
A US$ 45 million (EUR 45 million) loan from the European Bank for Reconstruction and Development (EBRD) to the Kazakhstan Electricity Grid Operating Company (KEGOC) will increase the availability and quality of electricity for businesses and families throughout Kazakhstan. The loan was signed today in Almaty by EBRD President Horst Köhler.
"The EBRD is confident in Kazakhstan’s future, and this loan clearly demonstrates our support for the Government’s bold restructuring programme. The project will help to advance the privatisation of the distribution companies and lay the foundation for an efficient, competitive electricity market, which is fundamental to a market economy," said President Köhler as he signed the loan. "The EBRD will continue to develop projects that enhance competition and contribute to a healthy market economy and an attractive climate for foreign investment."
Modernisation of KEGOC’s assets and communications is at the core of the project. This includes replacement of high-voltage switching and metering equipment, replacement of protective relaying, automation of control systems and the installation of modern telecommunications systems at a number of sub-stations throughout the network. This will enable KEGOC to function effectively as a transmission service company, providing efficient access to the electricity network. The project will be implemented over a five-year period starting in 2000.
The project brings environmental benefits as well by, reducing energy losses in the transmission systems and lowering the country’s dependence on coal-fired power generation. This in turn will reduce air pollution from carbon dioxide emissions. "Clean air benefits everyone," said Mr Köhler. "A more efficient electricity system will bring environmental rewards to all the people of Kazakhstan."
The loan is guaranteed by the Republic of Kazakhstan and co-financed with the World Bank. KEGOC is an open joint-stock company that is 100 per cent state owned. Created in 1997 to ensure the reliability of the high-voltage grid in Kazakhstan, the company is also responsible for the management and transmission of national and interstate electricity.
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