The provision of two senior loans totaling up to € 244 million in local currency equivalent to the state-owned companies Intergas Central Asia JSC ("ICA") and KazTransGas Aimak JSC ("KTGA"), the Bank's long-standing clients and fully owned subsidiaries of KazTransGas JSC - the national gas operator.
Through the Project the Bank will help the subsidiaries of KazTransGas optimise the balance sheet, continue energy efficiency improvemenets and develop a Corporate Governance Action Plan.
ETI score: 67
The Project's primary TI quality is "Resilient" and secondary "Well-Governed". The project will support energy efficiency improvements and privatisation of KTGA
INTERGAS CENTRAL ASIA JSC
Owned by KazTransGas JSC and, ultimately, Samruk-Kazyna Sovereign Welfare Fund,
Intergas Central Asia JSC (ICA) is a designated operator of Kazakhstan's natural gas transmission system. Gas pipelines under ICA's management include the Russia-bound Central Asia - Centre pipeline, Bukhara - Ural (8 bcm), Orenburg- Novopskov (15 bcm) and Bukhara-Tashkent-Bishkek-Almaty trunk lines (5.8 bcm) and other assets. In addition, the company operates three underground gas storage facilities, provides technical and maintenance services to third parties. ICA employs around 7,000 staff in Kazakhstan.
KazTransGas-Aimak JSC is a natural gas distribution monopoly and a 100 per cent subsidiary of KazTransGas JSC, Kazakhstan's national gas pipelines operator.
Overall, KazTransGas group operates over 17,000 km of transmission gas pipelines, 40 000 km of distribution lines, 31 compressor stations, 3 underground gas storage facilities. The group employs over 10,000 staff.
EBRD Finance Summary
Two senior loans of up to € 244 million in local currency equivalent
Total Project Cost
The EBRD will provide (i) long-term local currency (LCY) funding to support the company during the economic downturn and Covid-19 outbreak (ii) expertise, innovation, knowledge tools and/or capabilities that are material to the timely realisation of the project's objectives.
Environmental and Social Summary
Category B (2019) with low to medium risk. This project requires little to no physical expansion and the client has proven their ability to comply with our requirements during the existing loan. Built upon the understanding of the Client's operations from the existing project, additional Environmental & Social Due Diligence (ESDD) is currently being carried out by the Bank's environmental staff. Based on this, the existing ESAP will be updated as required. This section will be updated upon the completion of the ESDD.
Technical Cooperation and Grant Financing
Potential TC package may include support in Development of the Methane Emissions Reduction Programme; and corporate governance gap analysis with a view to develop a Corporate Governance Action Plan.
Company Contact Information
David Kruz, Assel Abilkhairova
8 (717) 292 71 60
PSD last updated
06 Apr 2020
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.