Integrated Approach MREK II



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

21 Jul 2021



PSD disclosed:

11 Nov 2020

Project Description

A senior loan of up to KZT 4.9 billion (equivalent to €9.5 million) to support balance sheet restructuring of Mangistauskaya Regional Distribution Company (MREK), a private electricity distribution company in Kazakhstan.

Project Objectives

The proceeds of the loan will be used to refinance existing FX-denominated liabilities, which will improve the overall risk profile of MREK making it well positioned for the implementation of its investment programme in the next regulatory period and more resilient against future uncertainties from the Covid-19 pandemic.

Transition Impact

ETI score: 75

The Project will support a private sector company in establishing partnership with local education institutions, developing and/or improving NOSS and engaging with public authorities to promote gender equality and youth inclusion.  This will unblock the systemic obstacle to economic inclusion that is represented by the substantial skills mismatch, low economic participation of women and unequal access to education and training opportunities attributable to Mangistauskaya oblast. In addition, the Project will support balance sheet restructuring of the Borrower making it more resilient to FX risks in the post-Covid-19 environment.

Client Information


MREK is a power utility responsible for electricity distribution in the Mangistauskaya oblast, western Kazakhstan. MREK is rated by B+ Fitch.

EBRD Finance Summary

KZT 4,899,999,744.00

KZT 4,900,000,000.00

Total Project Cost

KZT 4,899,999,744.00

KZT 4,900,000,000.00


Financing Structure: The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period. Such financing is necessary to structure the project. 

Standard-setting: helping projects and clients achieve higher standards: The Client will make use of EBRD expertise on higher inclusion, gender standards and equal opportunities. The dual-learning programme will aim to reach at least 30 per cent of female participants and will be developed with a gender lens. To narrow the gaps between young women and men in science, technology, engineering and maths (STEM) subjects, career advice to young people and outreach to local schools through female and male role models (chosen among successful MREK's employees) will be embedded in the programme to improve the awareness of equal opportunities in the industry.

Environmental and Social Summary

Categorised B (ESP 2019). The Project's use of proceeds is to support balance sheet restructuring and buy-back of FX bonds with an existing Client. The Bank undertook an independent Environmental and Social Due Diligence (ESDD) in 2018, including corporate environmental and social management systems review, assessment of the 2016-2020 investment programme and E&S audit of the key facilities. Based on the ESDD a comprehensive ESAP was developed to ensure compliance with the EBRD PR's. The Company is on track with implementing an existing ESAP with slight delays on a few items, including biodiversity related database and land plots registration. The current Project's ESDD was undertaken in-house in line with the ESD CV-19 ESDD Guidance, including additional ESDD Questionnaire, Covid related Questionnaire, interviews with the relevant staff, review of the corporate ESG management systems, annual E&S report and supporting materials for the ESAP implementation status. Based on the ESDD the ESAP remains still valid for the new Project to ensure compliance with the EBRD ESP 2019 requirements.

The Bank will continue to monitor the Client's performance, and an audit will be scheduled in due course over the next few years.

Technical Cooperation and Grant Financing

The Bank will provide a TC assignment on a cost sharing basis with the client to support MREK in integration of industry teaching practices into the programmes of educational institutions and promotion of workforce diversity to address operational challenges related to the skills-mismatch. 

Company Contact Information

Denisova Ekaterina Aleksandrovna
8 (7292) 200-225, 200-203, 202-666
JSC Mangistauskaya Regional Distribution Company 29a microdistrict, building 97 Aktau, Mangistauskaya oblast Kazakhstan 130000

PSD last updated

18 Aug 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

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.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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.

Specific requests for information can be made using the EBRD Enquiries form.

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 to get guidance and more information on IPAM and how to submit a request.


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