Kazakh Grid Enhancement Project: Ontustik Distribution

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior loan to Ontustik Zharyk Tranzit ("OZHT", the "Company") to finance the Company's 2025-2029 investment programme (the "Project"). The Project includes modernisation of 0.4-10 kV transmission and distribution lines, substations, integration of digital solutions (SMART meters and feeders) and other auxiliary infrastructure to address aging assets, reduce losses and meet rising demand.

Project ID 56409

Status Exploratory

Location

Kazakhstan

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Nilufar Rassulmatova
n.rassulmatova@kus.kz
+7 706 412 8238
Specialist of the Prospective Development Department

Project ID 56409

Status Exploratory

Location

Kazakhstan

Business Sector

Energy

Notice Type

Private

Approval Date

19 Nov 2025

Disclosure date

16 Oct 2025

Project Description

Project Objectives

The primary objective of the Project is to modernise OZHT's transmission and distribution infrastructure in the Turkestan region to support growing electricity demand and facilitate reduction of losses as well as integrate digital solutions.

Transition Impact

ETI score: 62

Primary TI: Resilient, Secondary TI Green: The Project is aligned with the EBRD's Green Economy Transition (GET) approach and will deliver transition impact through both resilience and climate change mitigation. Under the Resilient quality, the Project supports the modernisation of critical electricity infrastructure in Kazakhstan, enhancing system reliability, operational efficiency, and regulatory sustainability. Under the Green quality, the Project contributes to climate change mitigation by reducing losses resulting in lower greenhouse gas (GHG) emissions from generation.

Client Information

ONTUSTIK ZHARYK TRANSIT LLC

Project Entity: OZHT is a major private regional electricity distribution company in the Turkestan region, Kazakhstan. OZHT is owned by Kazakhstan Utility Systems ("KUS", rated BB-) (100%). OZHT operates over 23,885 km of 0.4-110kV of transmission lines, covering over 70,2% of transmission and 100% of distribution of the local demand.

KUS (BB-) is a private vertically integrated energy holding in Kazakhstan encompassing the entire production chain from electricity and heat generation to their distribution to end consumers.

EBRD Finance Summary

KZT 22,000,000,000.00

Total Project Cost

KZT 22,000,000,000.00

Additionality

The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions. The Bank will also support OZHT in achieving higher environmental and social standards (e.g. ESAP).

Environmental and Social Summary

Category B (ESP 2024).

Environmental and social risks associated with the installation of smart meters, reconstruction of 0.4i10 kV lines, replacement of conductors with high-temperature wire, and modernisation of substations as part of the investment programme are site-specific and can be readily assessed and managed through the implementation of an Environmental and Social Action Plan (ESAP). The Project and associated infrastructure have been screened by the Competent Authorities, who confirmed that an Environmental Impact Assessment (EIA) is not required under national legislation.

Environmental and Social Due Diligence (ESDD) is ongoing and undertaken by an independent consultant retained by the Bank. It focuses on key E&S risks, including the client's management capacity, impact assessment and monitoring systems, and overall environmental and social performance. The review also examines the adequacy of the client's Environmental and Social Management System (ESMS) and stakeholder engagement processes to ensure transparency, fairness, and the protection of affected workers and communities. Key issues include managing workforce impacts arising from smart meter installation, ensuring digital meter quality and accurate billing, and strengthening stakeholder engagement and grievance mechanisms, with job impacts addressed through timely resourcing and retrenchment planning in line with the Bank's ESP 2024 requirements.

A Stakeholder Engagement Plan (SEP) and Non-Technical Summary (NTS) will be developed for the Project in line with ESR 10 (Stakeholder Engagement) and will be disclosed accordingly in English, Russian and Kazakh. Early engagement with local communities and customers has already been undertaken by the client through regional offices, and a dedicated Community Liaison Officer (CLO) has been appointed to oversee implementation of the SEP, including public communications, consultations, and the management of external grievances throughout the lifetime of the Project. An ESAP is planned to be agreed prior to Board consideration.

Technical Cooperation and Grant Financing

The following technical co-operation ('TC') assignments are ongoing as part of this Project:

Environmental and Social Due Diligence: undertaken by independent consultants to assess the Project's compliance with the EBRD Environmental and Social Policy (ESP) and Performance Requirements (PRs). Total amount earmarked for the assignment is EUR 50,000 and is funded by the EBRD Shareholder Special Fund ("SSF").
Technical Due Diligence: Technical Due Diligence will be carried out by independent experts to evaluate the technical feasibility, cost-effectiveness, and implementation readiness of the Project. Total amount earmarked for the assignment is EUR 75,000 and is funded by the EBRD Shareholder Special Fund ("SSF").

Company Contact Information

Nilufar Rassulmatova
n.rassulmatova@kus.kz
+7 706 412 8238
Specialist of the Prospective Development Department

Implementation Summary

PSD Last Updated

16 Oct 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Kazakh Grid Enhancement Project: Ontustik Distribution

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

Implementation Summary

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)