Translated vesion of this PSD: Russian
The provision of a senior loan of up to KZT 5 billion (equivalent to €12 million) to support the upgrade of a distribution network of LLP Ontustik Zharyk Transit (OZhT) - a subsidiary of the Bank's existing client Kazakhstan Utility Systems (KUS), a private power utility based in Kazakhstan.
The project will support the development and modernisation of OZhT's distribution networks serving the South Kazakhstan region of the country. The proceeds of the loan will be used to cover the planned investment programme of OZhT aimed at improvements in energy efficiency, reliability, integration of renewable projects and reduction of losses.
The project is in line with the Bank's Green Economy Transition (GET) initiative. The modernisation of OZhT's facilities will ultimately lead to improved stability and reliability of energy supply, the reduction of losses and increased potential of the system to support the integration of RES in the national distribution network.
Additionally, the project will have an inclusion angle through the provision of training to local youth and work with local colleges.
ONTUSTIK ZHARYK TRANSIT
KAZAKHSTAN UTILITY SYSTEMS
KUS is a private, vertically integrated utility company established in 2008 with operations in three segments: electricity and heat generation, electricity and heat distribution and supply in Karaganda, South, East Kazakhstan and Mangistau regions. KUS is rated BB- by Fitch and has around 9,000 employees.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Category B. The financing of the investment programme of this regional distribution company aimed at modernisation of existing networks, new low-medium voltage lines construction and energy efficiency improvements (the "Project") is associated with environmental and social (E&S) issues that can be readily identified. The environmental and social due diligence (ESDD) will be carried out by an independent consultant and will focus on the review of corporate environment and safety management systems of the Borrower and E&S assessment of the investment plans related to the Project, with special attention to be paid to substations automation and modernisation and low-medium voltage distribution lines upgrades and repairs. The ESDD considers among other such issues as bird collision risks, location sensitivities, risks associated with asbestos and PCBs containing equipment disposal, occupational health and safety of works, and stakeholder engagement. The ESAP will be developed to address any identified issues via specific mitigation measures as required. The NTS and SEP will be prepared and published on the Company's website to facilitate information disclosure about the Project.
The Bank will provide a TC assignment on a cost sharing basis with the client under the existing Green Economy Project Preparation and Implementation Framework. The assignment will review the existing investment programme, confirm appropriateness, perform cost/benefit analyses and make recommendations for improvements.
Company Contact Information
7F, 14/3, Kunayev Street, BC Nursaya, Astana, Kazakhstan 010000
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP
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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.