KEGOC Osakarovka Restructuring Loan

Location:

Kazakhstan

Project number:

42039

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Approval date:

04 May 2011

Status:

Complete

PSD disclosed:

03 Feb 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering to finance:

  • Rehabilitation of the Ossakarovka electricity transmission line to contribute to the overall system reliability and support development of the Akmola region, enabling electricity supply from Central Kazakhstan to the Astana city and Akmola oblast (region).
  • Refinancing of KEGOC debt including two loans from EBRD to optimize KEGOC’s cashflows and balance sheet and prepare the Company for a new role as a Single Buyer (capacity market operator) in the context of the Kazakh power sector reform.

Transition Impact

It is expected that the transition impact of the project will come from the improvement of energy efficiency in the power system associated with transmission line rehabilitation and the introduction of a capacity payment system based on KEGOC fulfilling the role of a single buyer of capacity. This project will enable KEGOC to support its vital capital expenditures programme aimed at modernising and expending high-voltage transmission network up to high international standards. This will help to support economic growth of the Kazakh economy and ensure efficient use of resources.

The capacity market reform process is at an important stage in Kazakhstan. The reforms must move in a positive, pro-competition, and non-discriminatory direction.

The Client

JSC KEGOC (“KEGOC”) the national power transmission and system operator of the Republic of Kazakhstan is a fully state-owned monopoly responsible for power transmission and dispatch.

EBRD Finance

The EBRD is considering providing a loan of up to US$ 166 million (EUR 124 million) loan to JSC KEGOC. Up to US$ 83 million is expected to be co-financed by syndicate banks.

Project Cost

Up to US$ 166 million.

Environmental Impact

Categorised B. Potential impacts will be site-specific and readily identified and mitigated. No new construction, so limited environmental impacts anticipated. Corporate due diligence will update previous assessment in 2008, which found generally satisfactory corporate procedures and performance. Due diligence of new project will focus on labour and working conditions and stakeholder engagement to assess the Company's performance and management systems against the full scope of the Bank's 2008 Environmental and Social Policy and Performance Requirements. A new consolidated Environmental and Social Action Plan will cover all projects and may require upgrades to corporate systems.

Technical Cooperation

TC (SSF) with the Ministry of Industry and New Technologies (the MINT) - “Kazakhstan: Roadmap for Developing a Competitive Kazakh Generation Market”, Component III.

Company Contact

Mr. Sergey Irmanovich Katyshev, Head of PIU Department, Advisor to the President at KEGOC

E-mail: Katyshev@kegoc.kz
Tel. in Kazakhstan + 7 7172 970-108/109.

 

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

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Text of the PIP

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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.

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