Oshelectro Rehabilitation Project

Location:

Kyrgyz Republic

Project number:

47118

Business sector:

Energy

Notice type:

Public

Environmental category:

B

Approval date:

14 Oct 2015

Status:

Repaying

PSD disclosed:

07 Apr 2015

Translated version of this PSD: Russian

Project description and objectives


The EBRD is considering providing a loan of up to EUR 4 million to finance an Oshelectro investment program for the period 2015-2017. The program is aimed at the rehabilitation and modernization of low and medium voltage networks, including installation of number of smart meters in Osh and Batken regions in the south of Kyrgyzstan.  The project will improve the reliability of the power supply and will significantly reduce technical and commercial losses.

Transition impact

With this investment the Bank will initiate a restructuring process of a public utility in order to improve operating efficiency and restore financial health.  On top of the expected improvement in the operating performance, the Project will entail commercialisation of the Company’s operations and increased transparency.  This will be achieved via a TC support to review current billing and collection practices, as well as help with implementation of the restructuring process.  In addition, the Bank will request an annual IFRS audit by a reputable audit firm and compliance with the ESAP.  The Project will increase revenue collections and introduce more commercial business practices.  It will also address energy efficiency improvements, reduction of commercial losses and increasing reliability of power supply.
 
The expected transition impact rating is ‘good’.

The client

The loan is made to the Kyrgyz Republic, to be on-lent to state-owned Oshelectro electricity Distribution Company.

EBRD finance

A sovereign loan of up to EUR 4 million to the Ministry of Finance of the Kyrgyz Republic.  It is expected that the project will be co-financed by international donor’s funds.

Total project cost

The total project cost is EUR 6 million including technical cooperation fund. 

Environmental and social categorisation, impact, and mitigation

Category B Environmental and social issues associated with the upgrade of existing distribution networks and smart metering can be readily assessed and mitigated as part of an Environmental and Social Due Diligence (“ESDD”).  The ESDD will focus on social issues (quality of service, increase of tariffs), work conditions and occupational health and safety.  The Bank will work with the Company in developing effective stakeholder engagement procedures.  An ESAP will be prepared and agreed with the Company before signing of Loan Agreement.

Technical cooperation

The following technical cooperation is envisaged to go along with the project:
 
  • TC technical and EE audit and project preparation will be provided using the existing framework programme for the sustainable development of the power sector
  • TC to conduct legal and environmental due diligence
  • TC to hire a consultant to help implement the project
  • TC to hire a consultant to develop a Corporate Development Program to improve billing and collection and other management practices.

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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