Provision of a sovereign loan of up to EUR 8.8 million to the Kyrgyz Republic ("KR") to finance the reconstruction and rehabilitation of Lebedinovskaya HPP unit owned by Chakan GES, a local power plant operation with a total installed capacity of 38.5 MW, fully-owned subsidiary of the Kyrgyz Republic.
The project is aimed to utilize the full potential of the HPP units that would increase the electricity output and support mitigating the hydrology risk.
ETI score: 67
The Transition Impact of the project will be derived from:
The Project will contribute to the efforts in solving the long-lasting operational issues in the aged and inefficient HPP infrastructure through the rehabilitation program. Modernization of renewable energy sources will result in a more resilient power sector in the country, ensuring a more reliable power supply.
The Project will help materializing policy dialogue activities with the government and power sector players, such as developing regulatory framework for the renewable energy sector.
KYRGYZ REPUBLIC SOVEREIGN
EBRD Finance Summary
Total Project Cost
The Bank's additionality mainly derives from: (i) long tenor structure suitable for the long-term nature of the project that is not available in the market from commercial sources, (ii) the Bank's expertise on the best international procurement standards and the Project will adhere to the EBRD's procurement policies and rules, and (iii) triggering a change in the policy and regulatory framework in the country.
Environmental and Social Summary
The project has been Categorised B in line with EBRD's 2019 Environmental & Social Policy with medium low risk. As it is a rehabilitation project that it is not greenfield nor a major expansion, the proposed project does not meet the definition of a Category A project as per the ESP. This approach is consistent with EBRD's Guidance Note on Hydropower Projects.
The E&S due diligence (ESDD), carried out by an independent consultant, confirmed that there are no major and long term environmental or social impacts or risks associated with the Project. However, ESDD identified some areas that the Company needs to focus on and an ESAP has been developed and agreed with the Company. The construction and operation of the HPPs does not expose surrounding communities to major industrial accidents or flood risks in normal operation conditions. However, the HPPs flood routing capacity should be re-assessed in the context of the rehabilitation, considering modern standards and also climate change.
Key ESAP actions include: establishing and run a corporate ESMS covering the operation of all HPPs operated by Chakan GES, including annual internal performance audits and continuous improvement action, measures for contractor management and monitoring, measures to align the client labour provisions to EBRD PR2 (Update of the Human resource Policy, worker grievance mechanism, promotion of non-discrimination and equal opportunity actions, improve workers accommodation) as well as enhancing workers and contractor health and safety, public safety, waste management, air quality, traffic management and development of an internal and external grievance mechanism.
The Company will be required to provide annual reporting on the implementation of the ESAP and compliance with the PRs.
Technical Cooperation and Grant Financing
Following TC supports have been obtained:
- Technical Due Diligence including feasibility study and early stage engineering design, funded by Sustainable Infrastructure Fund (the "SIF");
- Environmental and Social Due Diligence including preparation of Environmental Social and Action Plan ("ESAP"), funded by the SIF.
It is also envisaged that other TC supports for this project will be provided to assist the Client with the (i) procurement and the implementation of the project to ensure timely and cost effective implementation and compliance with EBRD's Procurement Policies and Rules, and (ii) implementation and development of an enabling policy framework for small-scale HPPs in Kyrgyzstan.
Furthermore, subject to availability, the EBRD intends to mobilize grant funding of up to EUR 5 million from international donors and/or the EBRD Shareholder Special Fund.
Company Contact Information
Bishkek city, Suvorov street 113 Kyrgyz Republic
PSD last updated
01 Nov 2022
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Environmental and Social Policy (ESP)
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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).
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