EBRD supports modernisation of district heating and water supply systems in Semey, East Kazakhstan

By Svitlana  Pyrkalo

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EBRD supports modernisation of district heating and water supply systems in Semey, East Kazakhstan

The EBRD, government of Kazakhstan and regional authorities invest over 10 billion tenge in modern and efficient municipal services in the city of Semey

The European Bank for Reconstruction and Development (EBRD) is continuing its programme of modernising the infrastructure of crucial public utilities in Kazakhstan in partnership with the central government and local authorities.

The EBRD will lend up to 4.15 billion tenge for two important modernisation projects – the upgrade of the district heating and water and wastewater infrastructures – in the city of Semey, East Kazakhstan Oblast.

For the district heating modernisation, the Bank will lend up to 3 billion tenge (US$ 9.7 million) to the municipal district heating company, TeploKommunEnergo. In addition to these funds, the Bank will mobilise co-financing of up to US$ 6.4 million from the Clean Technology Fund for introduction of the modern energy-saving technologies. The government of Kazakhstan will provide concessional financing of 3.1 billion tenge for the project under the national infrastructure development programme, Nurly Zhol (which translates as “Way to the Future”).

For the water and wastewater services upgrade, the Bank will extend a loan of up to 1.156 billion tenge (US$ 3.9 million) to Semey Vodokanal, a municipal water and wastewater treatment company. For this investment, the government will also mobilise an investment grant of 925 million tenge (US$ 3.1 million) and the Oblast Akimat will provide a grant of 231 million tenge (US$ 0.8 million).

These investments will help the municipal companies undertake crucial work in the modernisation of pumping stations, the rehabilitation of depreciated district heating and water networks, the procurement and installation of modern equipment and a data control system (SCADA), as well as continuation of the metering programmes in both the district heating and water sectors.

These investments will result in enhanced energy efficiency and improved environmental standards, as well as reducing consumption and minimising losses in the systems.

In addition, the proposed modernisation programme will support the companies and local authorities to increase transparency in their operations by improving business standards through the introduction of regular financial and operational reporting as well as implementation of environmental and social protection action plans at the companies’ level.

 Ekaterina Miroshnik, EBRD Director for Infrastructure, Russia and Central Asia, said: “One of our highest priorities at the EBRD is energy and resource sustainability. We cooperate closely with the Kazakhstan on green economy projects such as the Semey water and wastewater modernisation, which will allow the city to save energy and reduce water losses.”

The EBRD is the largest international investor in the non-extractive sectors in Kazakhstan. In May 2014, the Bank and the government of Kazakhstan signed an Enhanced Partnership Framework Arrangement under which the parties agreed to jointly contribute to the development of the country’s economy, including investments in the municipal and environmental infrastructure sector.

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