EBRD organises €64 million financing package for Bishkek utilities

• EBRD supporting its first district heating project in Kyrgyz Republic
• Financing package of up to €64 million for public utilities in Bishkek
• Project supported by concessional financing from Green Climate Fund

The European Bank for Reconstruction and Development (EBRD) is supporting the environmental sustainability of the Kyrgyz Republic’s capital, Bishkek, and helping to improve air quality in the city by organising a financing package of up to €64 million for its two district heating utilities, Bishkekteploset (BTS) and Bishkekteploenergo (BTE) – the first time that the Bank has financed a district heating project in the country.

As part of that package, the EBRD is lending up to €27.3 million to the two district heating companies, providing sovereign loans of up to €17.2 million and €10.1 million to BTS and BTE, respectively.

These loans will be supported by concessional financing of up to €22.7 million from the Green Climate Fund’s Green Cities Facility (€16.8 million for BTS and €5.9 million for BTE) and investment grants of up to €10.7 million in total (€6.5 million for BTS and €4.2 million for BTE). In addition, the EBRD will grant €3.3 million for project implementation support and the development of equal opportunities action plan.

This funding will help BTS to modernise its pumping stations (including the installation of small-scale solar photovoltaic batteries), while BTE investments will include large scale district energy heat pumps (first such installations in Central Asia) and modernisation of its boiler houses (including new renewable energy installations). Both companies will also upgrade their wider district heating networks, install supervisory control and data acquisition systems and acquire special-purpose vehicles.

These measures will spearhead a strategic shift from reliance on fossil fuels to cleaner energy solutions. They are expected to deliver substantial reductions in greenhouse gas emissions in Bishkek, which is one of the seven worst-performing cities in the world in terms of air quality in winter.

In 2024 Bishkek, a member of the EBRD Green Cities programme, launched an action plan aimed at addressing the city’s environmental, climate and economic inclusion priorities. The modernisation of Bishkek’s district heating system was identified as the city’s most urgent priority.

The EBRD has been active in the Kyrgyz Republic since 1992, investing more than €1.16 billion in the country through 286 projects, mostly in sustainable infrastructure and the private sector.