The European Bank for Reconstruction and Development (EBRD) has expressed interest in financing a 4.6 billion tenge (US$ 25 million equivalent) programme to modernise electricity distribution networks in the Kyzylorda region of Kazakhstan.
The mandate letter – a document confirming mutual intent to consider the deal – has been signed in Kyzylorda by the EBRD Director for Infrastructure, Russia and Central Asia, Ekaterina Miroshnik, and the Akim of Kyzylorda oblast, Krymbek Kusherbayev, in the presence of the Prime Minister of Kazakhstan, Karim Massimov.
Ekaterina Miroshnik said: “This project is the Bank’s first engagement with an electricity distribution company in Kazakhstan targeting modernisation of networks, reduction of losses and improvements to billing. These measures will lead to greater reliability and sustainability of the electricity supply in Kyzylorda. We are very proud of our cooperation with the Akimat of Kyzylorda oblast and hope it will become a model for our involvement in other cities and regions of Kazakhstan.”
During the potential project, the Kyzylorda Regional Electricity Company would upgrade low and medium-voltage distribution networks in the oblast, install electricity meters, increase the capacity of transformers and make other improvements that would reduce losses and increase energy efficiency.
In May 2014, the EBRD and the Republic of Kazakhstan signed a far-reaching Partnership for Re-Energising Reform in Kazakhstan, which envisages boosting reform and investment in areas such as municipal infrastructure.
Since the beginning of its operations in Kazakhstan, the EBRD has invested close to US$ 6.5 billion in the country’s economy, with more than half of the Bank’s projects supporting the private sector.