EBRD and Kyzylorda Oblast in Kazakhstan to modernise municipal infrastructure in main city

By Svitlana  Pyrkalo

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EBRD President Suma Chakrabarti and the Akim of Kyzylorda Oblast, Krymbek Kusherbayev at the signing ceremony
EBRD and three municipal infrastructure companies in Kazakhstan launch investment programmes to ensure sustainable development
The European Bank for Reconstruction and Development (EBRD) is launching an integrated approach to modernise municipal infrastructure facilities in Kyzylorda, the capital of the Kyzylorda region in southern Kazakhstan.
Several financing agreements, worth over US$ 70 million in total, were signed at the Bank’s Headquarters in London by EBRD President, Sir Suma Chakrabarti, and the Akim of Kyzylorda Oblast, Krymbek Kusherbayev, on 18 December 2014. The funds will be used to finance improvements in water and wastewater, heating, electricity and street lighting.
Sir Suma Chakrabarti said at the signing: “We are proud of our cooperation with the authorities of Kyzylorda Oblast and that our Enhanced Partnership Framework Arrangement with the government of Kazakhstan enables us to scale up our work to improve lives in Kazakhstan, including in Kyzylorda. During my last visit to Kyzylorda, I was impressed by the regional authorities’ work on progressing the modernisation agenda, and I am glad that the Bank is signing these projects today.”
The Akim of Kyzylorda Oblast, Mr Kusherbayev added: “We are very pleased with the high level of cooperation with the EBRD. We hope the Kyzylorda region will take a central place in the Bank’s activities in Kazakhstan.”
The EBRD will provide financing to three municipal companies in the city of Kyzylorda.  
Up to US$ 10 million will be lent to Kyzylorda Su Zhuyesi, a municipal water management company, to rehabilitate and upgrade its infrastructure network. The project will result in better water and wastewater services, greater energy and water efficiency, reduced losses and improved environmental standards.
In addition, up to US$ 24 million, comprising an EBRD tranche of up to US$ 18.5 million and a tranche of up to US$ 5.5 million from the Clean Technology Fund, will be lent to Kyzylordateploelektrocentr, a municipal district heating and electricity production company. The financing will not only help to modernise the district heating network and production facilities, but will also introduce individual building-level heating substations to improve energy efficiency, cut losses and reduce CO2 emissions.
Lastly, up to KZT 4.5 billion (US$ 24.7 million equivalent) will be lent to the Kyzylorda Regional Electricity Company, a power utility company responsible for distributing electricity to the entire Kyzylorda region. Funds will be used to modernise the electricity distribution network, including installing modern metering and automated control systems, and upgrading electricity transformers and distribution lines. The project is expected to cut annual electricity losses by 30 million kWh, which is the equivalent of 30,000 tonnes of CO2 emissions.
The Bank is also considering lending up to KZT 2.3 billion (US$ 12.5 million equivalent) for modern, energy efficient street lighting in the city of Kyzylorda. The EBRD has already signed a pre-financing agreement with the oblast and city authorities to start preparing the project.
This wide-ranging modernisation programme in Kyzylorda is also supported by the government of Kazakhstan, which is providing a grant of up to KZT 3.9 billion (US$ 21.7 million equivalent) to co-finance water and district heating modernisation projects. This support comes as part of the Enhanced Partnership Framework Arrangement, which was signed between the Bank and the government of Kazakhstan in May this year.
To date, the EBRD has invested over US$ 6.7 billion in Kazakhstan’s economy
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