Translated version of this PSD: Russian
The EBRD is considering existing loans extension KZT 9.3 billion to the district heating subsidiaries of CAEPCO, a private energy company in Kazakhstan. The projects will finance extension of the priority investment programmes in Pavlodar, Ekibastuz and Petropavlovsk aimed at rehabilitation and improving energy efficiency of existing heat distribution networks in these cities. The investments are expected to yield significant reductions in heat losses, CO2 emissions and coal savings, and contribute to market transformation towards sustainable energy use in the district heating sector in Kazakhstan.
EBRD financing will, subject to confirmation by the Government of Kazakhstan, be complemented by concessional financing of up KZT 7.3 billion under Enhanced Partnership Framework Agreement to address affordability constraints associated with tariff increases linked to these investments.
The proposed project will support privately owned heat distribution companies while the vast majority of heating companies remain publicly owned in Kazakhstan.
The project will aim to achieve financial and operational sustainability though tariff increases, a substantial reduction in heat losses in distribution, high environmental standards and improved quality of service provision.
Pavlodar District Heating and Petropavlovsk District Heating are existing clients for the Bank. Both companies are subsidiaries of CAEPCO, also an existing Bank client in the Kazakh power and energy sector. CAEPCO is one of the first private companies to take over district heating networks in Kazakhstan. It was established in August 2008 and is currently the largest private vertically-integrated power and district heating company in Kazakhstan.
KZT 9.3 billion alongside KZT 9.3 billion from the Government of Kazakhstan under Enhanced Partnership Framework Agreement (subject to separate approval).
Project CostKZT 25.9 billion including the EBRD loan, the Government’s contribution and co-financing by Companies and CAEPCO.
Environmental and social categorisation, impact, and mitigation
The potential environmental and social (E&S) impacts of the planned priority investments in district heating networks are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. 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. The environmental and social due diligence of the Project, consisting of the environmental and social analyses of the proposed investment programme and an environmental, health and safety audit of existing operations and facilities of the district heating companies, is currently being finalised.
Based on the recommendations of the due diligence an Environmental and Social Action Plan (ESAP) will be prepared and agreed with the Client prior to the Board review of the Project. The ESAP will be part of the legal agreements between the participating companies and the EBRD. This PSD will be revised once the due diligence and ESAP are finalised.
Mrs Aliya Urazbayeva, Managing Director, CAEPCO
Tel: +7 727 258-49-46
Fax: +7 727 258-49-42
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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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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