EBRD funds reliable power supply in Kyrgyz Republic
The European Bank for Reconstruction and Development (EBRD) is set to contribute to the reliability of power distribution in the Kyrgyz Republic.
The contribution includes a financing package of up to €6m to JSC Vostokelectro, an electricity distribution company covering 47% of Kyrgyz Republic territory.
The loan grant of €6m includes a sovereign loan of up to €4m and an investment grant of up to €2m from the EBRD Shareholder Special Fund to support Vostokelectro’s investment in improvising energy efficiency and reduction of energy losses.
EBRD is also funding the distribution company’s corporate development programme aimed at strengthening its financial performance.
Vostokelectro will install advanced metering systems, modernise, strengthen its power infrastructure, and establish a better integration with renewable sources of energy with the funded investments.
With the given investments, the technical losses are expected to reduce by 18,400MWh per year and carbon emissions by 2,097 tonnes of CO2 per year.
Vostokelectro general director Bakyt Sydykov said: “The proposed investment project will focus on the replacement of 32,000 old induction meters with new smart meters in areas with high electricity losses.
“It will also help replace 0.4 kV of overhead power supply lines with an insulated self-supporting wire and reconstruct two sub-stations. Once implemented, the project will secure stable and reliable supply of electricity in the region.”
The grant has been funded under EBRD Green Economy Transition (GET) approach, targeted at allocating 40% of its annual investment to green finance by 2020.
Vostokelectro director and energy and natural resources Russia, Caucasus and Central Asia head Aida Sitdikova said: “We are pleased to continue our cooperation with the Government of the Kyrgyz Republic in our mutual goal to modernise the country’s energy sector.
“This new project will help provide better quality services to citizens as well as bring international good practices to a regional power distribution company.”