Project description
and objectives:
|
The proposed project will finance urgent rehabilitation of gas distribution
pipeline network and meters installation in Southern Kazakhstan to reduce
losses, improve collection rates and continue safe supply of gas to domestic
consumers.
|
Transition
impact:
|
The project will achieve transition impact in three main areas:
(i) Demonstration effects through greater efficiency and successful
restructuring,
(ii) Strengthening of regulatory body and improvement of tariff regulation, and
(iii) Improving standards for corporate governance and business conduct.
|
The client:
|
The borrower will be Joint Stock Company KazTransGas Distribution (KTGD), a
fully owned subsidiary of Joint Stock Company KazTransGas (KTG) registered in
Kazakhstan, responsible for domestic gas supply and distribution within the
KTG group. KTG will provide a project completion guarantee to KTGD.
|
EBRD
finance:
|
A senior secured A/B loan of USD 66 million to KTGD with an A loan of USD 31
million and a B loan of USD 25 million to be syndicated to commercial banks.
|
Total project cost:
|
The total project cost is currently estimated at about USD 51 million.
|
Environmental impact:
|
The project is screened C/1.
The environmental issues associated with gas distribution are not considered
major. A Lender’s Engineer assisted the Bank during environmental due
diligence which reviewed, inter alia potential liabilities which may be
associated with soil and groundwater pollution from former gasworks/gas
operations. Due diligence also established the current status of compliance
with Kazakhstan and EU requirements and investigate potential for Greenhouse
Gas reduction as a result of gas leaks. There are likely to be significant
environmental opportunities associated with the rehabilitation process and
potential for Greenhouse Gas reduction.
|
Technical
cooperation:
|
Kazakhstan Network Infrastructure Regulatory Development TC (ID: 34896): A TC
to the Anti-Monopoly Agency (AMA) currently under implementation to, inter
alia, review gas distribution tariff methodology in line with international
practice.
Funding is provided by the Japanese government.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
EBRD contact:
|
Eric Peter, Operation Leader: petere@ebrd.com
|
Procurement or tendering
opportunities:
|
Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
|
General
enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
