Aktobe District Heating

Location:

Kazakhstan

Project number:

47569

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

22 Jul 2015

Status:

Repaying

PSD disclosed:

30 Apr 2012

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a senior loan of up to KZT 2.5 billion to Joint Stock Company “Transenergo” (the “Company”), a district heating company in the city of Aktobe, in Kazakhstan, to support the rehabilitation and upgrade of the district heating (DH) production facilities and distribution network in Aktobe.

The project aims to rehabilitate and modernise the district heating production facilities and the main networks operated by the Company. This would resultin enhanced energy efficiency, reduction in technical and commercial losses and improvements in environmental standards.

Transition Impact

This project would deliver:

(i) Energy efficiency improvements, including CO2 emission reductions, in the Company’s operations, through the modernisation of district heating production facilities and distribution network;

(ii) Introduction of commercial tariffs in collaboration with the regulator, which will cover the full cost of service for all customer groups as agreed in the Priority Investment Programme and the commercialisation of the Company by means of a public service contract and business planning;

(iii) Contribution to modern energy supply business practices through the demonstration of new replicable products and processes to manage district heating companies in Kazakhstan;

iv) Higher environmental standards.

Additionally, the transaction aims to increase transparency and improve business standards through the introduction of International Financial Reporting Standards (IFRS) and the implementation of an Environmental and Social Action Plan (ESAP).

The expected transition impact rating is ‘good’.

The Client

Joint Stock Company “Transenergo”, a municipally owned DH company in the city of Aktobe, Kazakhstan.

EBRD Finance

Senior corporate loan to the Company in the amount of KZT 2.5 billion (€11.6 million equivalent).

It is expected that the EBRD loan will be co-financed by a KZT 0.7 billion (€3.25 million equivalent) loan on concessionary terms from the Clean Technology Fund.

Project Cost

KZT 4.07 billion.

Environmental Impact

Categorised B in accordance with the EBRD’s Environmental and Social Policy (2008). Due diligence of the Project, consisting of an environmental and social analysis of the proposed investment and an environmental, health and safety audit of the existing operations and facilities of the Company, is in progress. The Project is expected to result in environmental improvements associated with the reduction in loss of water and heat, lower air emissions and increased energy efficiency. However, the Project might also be associated with increased noise and dust levels, generation and disposal of construction waste and wastewater during the construction phase. There might also be some disruptions of supply of heat and hot water to the community and restricted access to the residential areas during the excavation and pipe replacement works. Due diligence on the Project will need to be finalised and an environmental and social action plan agreed prior to the Final Review of the Project.

Technical Cooperation

  • Preparation of a detailed Feasibility Study including the DH priority investment programme and the development of a comprehensive Environmental and Social Action Plan (ESAP) (up to €280,000);
  • Project Management Consultants for the project management, design, procurement, engineering and supervision of works (up to €500,000);
 

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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