Bishkek District Heating Network

Location:

Kyrgyz Republic

Project number:

47948

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

30 Nov 2016

Status:

Signed

PSD disclosed:

15 Aug 2016

Translated version of this PSD: Russian

Project Description

EBRD is considering providing a sovereign loan of up to USD 7.2 million to be on-lent to Bishkek District Heating Network company (the "Bishkek DH" or "Company"), a joint stock company responsible for provision of heating services to households, private enterprises and public buildings in Bishkek.

The EBRD will also seek an investment grant from international donors of USD 3.9 million to facilitate implementation of the project which will address urgently needed district heating infrastructure rehabilitation needs.

The Project will finance the Priority Investment Programme (PIP) of the Bishkek DH which includes modernisation of pumping stations with replacement of the main-line pumps with variable frequency
drive, installation of remote control as well as introduction of water and heat distribution monitoring and heat network mode control (SCADA system modernisation).

In addition to the investment part of the Project, the Bank will provide TC grants for the project implementation support and financial and operational performance improvement programme (FOPIP) for the Company in order to ensure its long-term sustainable development.

Project Objectives

The Project aims to achieve modernisation and automation of current facilities which will help to reduce operational costs as well as increase reliability of the heating network and Company's clientele. The Project will also introduce better contractual arrangements to run the system.

Transition Impact

The expected transition impact objectives of the project are: (i) energy efficiency; (ii) meterbased billing; (iii) the tariff increases and reforms; (iv) demonstration effect of replicable activities through improved operational performance and environmental compliance; (v) CO2 reduction; (vi) behavioural changes through strengthening incentives for the consumers to conserve energy through the on-going metering programme and the expansion of consumption-based billing; (vii) improvement of corporate management standards and business conduct.

The transaction will introduce appropriate corporate governance standards with the Company. A performance based Public Service Contract ("PSC") will be developed and signed between the Company and the City, which will promote efficiency of the sector.

Client Information

KYRGYZ REPUBLIC

BISHKEK DISTRICT HEATING NETWORK "BISHKEK DH".

Bishkek District Heating Network "Bishkek DH", a joint stock company 93% of which is owned by various government agencies and entities, is the ultimate beneficiary of the Project. The State Committee on industry, energy and subsoil use of the Kyrgyz Republic will provide the overall institutional support for the Project implementation and facilitation of sector reforms.

EBRD Finance Summary

EUR 6,500,000.00
USD 7,215,000

A sovereign loan of up to USD 7.2 million to be on-lent to the Company.

Total Project Cost

EUR 10,000,000.00
USD 12,100,000

The total sub-project cost is USD 12.1 million including technical cooperation. The sub-project will be co-financed by an investment grant from international donor(s).

Environmental and Social Summary

Categorised B in accordance with EBRD's 2014 Environmental and Social Policy. The project will contribute to improved life quality of the population of the city of Bishkek, significantly reduce electricity consumption, decrease accident rate and improve overall reliability of the network.

The environmental and social due diligence is on-going and will include a review of the Company's environmental and social management systems, facilities and operations, as well as envisaged priority investments for compliance with the Bank's Performance Requirements ("PR"s). The Environmental and Social Action Plan ("ESAP") will be developed to address any environmental and social issues identified during the due diligence to achieve and maintain compliance with the Bank's PRs within a reasonable time-frame. The Company will also develop a Stakeholder Engagement Plan ("SEP"), including a grievance mechanism, and will release information on environmental and social performance and a summary of the agreed Action Plan to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

The following technical co-operation ("TC") assignments are envisaged as part of this project:

  • Feasibility Study. To review of the existing priority investment plan with financial, technical, environmental and social due diligence (USD 78,000 financed by the EU funded Central Asian Technical Assistance Framework for the Preparation and Implementation of EBRD MEI Projects).
  • Project Implementation Support. International consultant to support the Project Implementation Unit with detailed engineering design and approval, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting. The estimated cost of the assignment is up to USD 670,000 proposed to be financed by an international donor, the ETC Fund or the SSF.
  • Corporate Development Support Programme. The estimated cost of the assignment is up to USD 240,000 proposed to be financed by an international donor, the ETC Fund or the SSF.

Company Contact Information

Mr. Uran Raimbekov
raimbekov.u@mail.ru
+ 996772539793

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.