CAEPCO Energy Efficiency Project



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

16 Apr 2013



PSD disclosed:

17 Jan 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing debt financing to Pavlodarenergo and Sevkazenergo, subsidiaries of CAEPCO, a private energy company in Kazakhstan. The loans will be used to finance the Company’s investment program in Pavlovdar and Petropavlovsk aimed at rehabilitation and improving energy efficiency. The projects will include modernization of generating assets as well as upgrade of the existing electricity distribution networks. The investments are expected to yield significant reductions in CO2 emissions, coal savings and reduced losses.

Transition Impact

The proposed project will support one of the few private companies in Kazakhstan in implementation of its investment program which will enhance energy efficiency and result in carbon emissions reduction going beyond existing standards. Installation of modern metering systems in the electricity distribution grids of the Company will be the first of this level in the sector in Kazakhstan and will promote best practices in the sector.

The Client

Pavlovdarenergo and Sevkazenergo are two principal subsidiaries of CAEPCO, a privately owned vertically integrated power company with 974MW of installed electric and 2881 GCal/h of heat capacity also owning local electricity and heat distribution networks.

EBRD Finance

Senior loans to Pavlodarenergo and Sevkazenergo in the total amount of up to EUR 107 million.

Project Cost

The Bank’s financing will contribute to the implementation of CAEPCO’s mid-term investment program estimated to cost approximately EUR 500m.

Environmental Impact

Category B, requiring an Environmental and Social Due Diligence (ESDD) consisting of a corporate environmental and social review of existing operations and an environmental analysis of the planned investment program. Environmental and social impacts from the operation and upgrade of combined heat and power plants as well as district heating and electricity distribution systems can be readily identified, assessed and mitigated.

The Bank has in the past provided financing to CAEPCO, and a comprehensive ESAP was agreed in 2009, which has outlined a number of key environmental investments as well as improvements to Environmental, Health and Safety (EHS) management systems. To date, the Company has been implementing the ESAP in accordance with the agreed schedule.

As part of the current ESDD, the Bank has retained an independent consultant to undertake additional ESDD. The ESDD will, among others, review the status of implementation of the existing 2009 ESAP and provide recommendations to update the ESAP were possible.

The PSD will be updated once the ESDD is completed.

Technical Cooperation

- TC funded technical and energy efficiency audit within the existing framework
- potential TC on tariff regulation


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

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Text of the PIP

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