Kazakh city of Aktau to modernise heating

By Svitlana  Pyrkalo

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As Kazakhstan strives to cut energy waste and make its municipal service more commercially viable, the EBRD is supporting a modernisation programme for the district heating system in the city of Aktau preparing to finance several other municipal projects in the fast-developing Mangystau region.

The project was signed in Astana by EBRD President Thomas Mirow and the Deputy to Akim Mr. Kaneshev from Mangystau oblast.

The city of Aktau is planning to modernise the district heating infrastructure, which will reduce energy losses and improve environmental standards.  Current heating networks are operating at around 70 per cent capacity and have not been upgraded in decades.

The Aktau water and district heating company, State Communal Enterprise “Heating, Water Networks and Wastewater”, or TVS&V, will receive an EBRD loan of up to 1.2 billion Kazakh tenge (€6 million) and a loan of up to US$ 4.3 million (€3.2 million equivalent) from the Clean Technology Fund (CTF). CTF is a multi-donor fund managed by the World Bank and regional development banks. In Kazakhstan, CTF programmes are implemented by EBRD and IFC.

Announcing the investment, President Mirow said, “Kazakhstan's economic and agricultural potential is becoming increasingly important throughout the world. It is vital that economic development and further global integration are matched by reform and improved quality of life locally. The EBRD is proud to support one of several planned projects in the Mangystau region which will modernise services and improve people's lives".

The EBRD is also considering investments in modernisation of solid waste management services and rehabilitation of the desalination plant in Aktau. Together, these projects will help the municipal companies to improve the quality of the services to the population of the city of Aktau via commercialisation, reduction of technical and financial losses and improved operations efficiency, but also reduce emissions in this busy urban area.

Since the beginning of its operations in Kazakhstan, the EBRD has invested about US$ 5.4 billion in 150 projects with 37 per cent invested in municipal infrastructure and transport sectors, mobilising additional US$ 10 billion from other investors.

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