Investment programme to ensure sustainable development for heating services in Aktobe
The European Bank for Reconstruction and Development (EBRD) and the government of Kazakhstan are providing financing to modernise and upgrade district heating facilities and infrastructure in the city of Aktobe in north western Kazakhstan.
The EBRD is lending up to 3.1 billion tenge (US$ 11.5 million equivalent) to JSC Transenergo, a municipal district heating company to support the modernisation programme.
A further 3.6 billion tenge in concessional funding is being provided by the government of Kazakhstan under the national programme of infrastructure support, Nurly Zhol.
The programme will increase energy efficiency, reduce losses and improve environmental standards.
Janet Heckman, the EBRD Director for Kazakhstan, and Mr Berdybek Saparbayev, Akim (Governor) of Aktobe Oblast, signed the financing agreements today in Aktobe.
The project will be carried out under the umbrella of the Enhanced Partnership Arrangement between the EBRD and the government of Kazakhstan. Under that agreement , the government and the Bank are joining forces to modernise municipal and environmental infrastructure across the country.
The Akimats (governments) of the Aktobe Oblast and the City of Aktobe welcomed the modernisation project, which will also include the institutional modernisation of Transenergo. This is the second EBRD investment this year in the city’s public utilities: a project to modernise the water supply was signed in June.
Mrs Heckman said at the signing: “We are proud of our cooperation with the authorities of Oblast and the city of Aktobe. Our partnership with the government of Kazakhstan enables us to scale up our work to improve lives in Kazakhstan. I appreciate the support by the regional authorities on progressing the modernisation agenda.”
Mr Saparbayev added: “We are very pleased with the high level of cooperation with the Bank. We hope both projects signed in Aktobe this year will help to improve the lives of the city’s residents, as well as serve as the best examples of effective cooperation between the government of Kazakhstan and an international financial institution.”
To date, the EBRD has invested over US$ 7 billion in Kazakhstan’s economy. In 2015 the EBRD is planning to invest close to US$ 1 billion into various sectors of the country’s economy, with a focus on diversification.