Azernews.Az

By Aynur Jafarova

The European Bank for Reconstruction and Development (EBRD) will provide a loan worth $40 million to Kazakh national railways company Kazakhstan Temir Zholy (KTZ), the bank said.

The appropriate agreement was signed in EBRD headquarter in London between EBRD First Vice President Phil Bennett and KTZ Vice President of Logistics Kanat Alpysbayev on December 19.

The EBRD said the loan will finance a series of new technologies to reduce energy consumption, from an upgraded lighting system to alternative heating solutions such as heat pumps, solar water heaters and boiler upgrades.

The program will allow the company to reduce its greenhouse gas emissions by 80,000 tons per annum.

EBRD First Vice President Phil Bennett said the bank supports Kazakhstan's green economy drive, as does KTZ, for the benefit of its passengers and the whole of the country.

"We are very pleased to be able to support the company's ongoing efforts to save energy and to reduce greenhouse gas emissions. We have been working with KTZ to identify new opportunities for energy efficiency, such as installation of LED lighting across more than 100 depots and stations, and to finance their introduction," he said.

Kanat Alpysbayev, the KTZ Vice President of Logistics said railways are strategically important for Kazakhstan's economy.

"KTZ operates one of the largest rail networks in the world. Our goals coincide with the government goal of developing a green economy, and our cooperation with the EBRD will allow us to take a major step in that direction. In this regard, one of the priorities is to improve energy efficiency, namely to purchase and install energy efficiency components such as heat pumps, solar water heaters and gas boilers," he said.

Energy-rich Kazakhstan is currently looking for ways to use renewable energy sources. In late January, an action plan was adopted on the development of renewable energy sources for the period from 2013 to 2020.

According to a recently adopted concept for a transition to 'green economy', in case of high domestic prices for natural gas, the energy basket of the country will comprise 11 percent of wind and solar energy sources while the share of nuclear power will be 8 percent, hydropower 10 percent, gas 21 percent and coal 49 percent by 2030.

The EBRD has pledged strong support for the Kazakh authorities' green economy strategy.

The bank has supported the country's participation in the Clean Technology Fund (CTF). Since 2006, it has invested about 13 billion euros (over U$17 billion) in sustainable energy projects across all of its countries of operations.

The legal framework for renewable energy in Kazakhstan was developed with the EBRD's involvement and $1 million in financial support from the CTF.

Currently the EBRD is developing new approaches to financing clean technology transfer to Kazakh industry with support from the Global Environment Facility (GEF).