Project number:


Business sector:

Information and Communication Technologies

Notice type:


Environmental category:


Approval date:

29 Jul 2003



PSD disclosed:

10 Jun 2003

Project Description

The proposed project is a senior secured syndicated loan (the Facility) to Kazakhtelecom.The operation will enable the Company to rationalise its financing structure, alleviating constraints on network capital expenditure and provide additional funds for the development of the Company’s telecoms network in Kazakhstan.

Transition Impact

The project represents a further stage of EBRD’s involvement in the Kazakh telecoms sector, that has included the successful implementation of a loan and technical cooperation focused on the development of a transparent regulatory framework. This combination of measures has already achieved significant results through: (i) the development of the Company’s network infrastructure and operation as a commercial entity with relevant management accounting and (ii) the elaboration of the Government’s Action Plan for regulatory reform.

The Client

Kazakhtelecom is the national incumbent telecoms operator and the main provider of fixed line services in Kazakhstan. The Company provides a full range of local, domestic long distance and international communication services, including basic services of voice telephone communication, data transmission, satellite communication.
Company contact: 
Daniyal Mukhametkaliev, Director, Project Finance
Fax: + 3272 587 457
E-mail: daniyal@telecom.kz 
Web site: www.telecom.kz

EBRD Finance

The Facility will (i) consolidate and partly refinance Kazakhtelecom’s indebtedness (including the existing EBRD loan) on terms that reflect the Company’s strong performance and investment requirements, and (ii) provide new funds for the continuing modernisation and expansion of the network.  

Project Cost

The amount of the Facility is US$ 110 million consisting of an A-Loan of US$ 60 million and a B-Loan of US$ 50 million. The B Loan will be co-lead arranged by Standard Bank London Limited.

Environmental Impact

The Project was screened C/1 requiring an audit and review of the Company’s environmental impacts.  Environmental due diligence, undertaken in 1999 for the preceding project, confirmed that there are no significant environmental issues associated with the operations  and that  KTC is in compliance with all relevant regulatory requirements. Recent Annual Environmental Monitoring Reports confirmed the above.
The Company will continue to adhere to the environmental requirements, including compliance with national environmental, health and safety and public consultation regulations, as set out in the Loan Agreement for the existing facility. In addition, the Company will undertake its activities in accordance with relevant EU standards and best international industry practices, and will report annually to the Bank on the environmental issues.

Technical Cooperation


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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