EBRD continues supporting energy efficiency improvements in Kyrgyzstan
By Aynur Jafarova
The European Bank for Reconstruction and Development (EBRD) continues supporting the energy efficiency improvements in Kyrgyzstan with new loans under the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF).
The bank has allocated a loan worth $4 million to the Demir Kyrgyz International Bank (DKIB), which will be used for on-lending to companies and households for energy efficiency improvements, such as modernization of equipment or insulation, EBRD said on July 2.
The signing was held in the framework of EBRD's First Vice President Phil Bennett's visit to Kyrgyzstan.
"We are very committed to energy efficiency and sustainable energy in Kyrgyzstan as well as other countries. The EBRD has invested well over €13 billion into sustainable energy projects throughout its region since 2006. In Kyrgyzstan, we are proud to work with DKIB, our long-time partner institution, on reducing energy consumption here to improve energy security," Bennett said at the signing ceremony.
General Manager of DKIB Sevki Sarilar said at the signing ceremony that KyrSEFF brings benefits not only for companies but also for individuals and households and of course the economy as a whole.
"As one of the largest banks in Kyrgyzstan, we are glad to offer our clients financing via KyrSEFF, and we hope to continue our cooperation," Sarilar noted.
DKIB is the third largest bank in Kyrgyzstan. The EBRD has been cooperating with the bank, in which it also holds an equity stake, since 1997.
Also, the EBRD has allocated a loan worth $5 million to the Kyrgyz Investment and Credit Bank (KICB) with the same purpose.
KICB is one of the leading banks in Kyrgyzstan. The EBRD has been cooperating with the bank, in which it also holds an equity stake, since 2001. One of the latest EBRD projects with KICB was the participation in a pilot corporate bond issue in som in September last year.
CEO of KICB Kwang Young Choi said this is the second credit facility under the KyrSEFF program.
"Being one of the leading banks in the country, KICB aims to promote banking products which are essential for sustainable energy efficiency and result in lower energy consumption, switch to renewable energy resources and reduced energy production and consumption costs," the CEO of KICB noted.
The KyrSEFF program is one of the EBRD's range of instruments to finance energy efficiency and small-scale renewable energy projects in the region. KyrSEFF offers credit lines and technical assistance to local banks to enable them financing small-scale sustainable energy projects. KyrSEFF is supported by the European Union's Investment Facility for Central Asia (IFCA).
Since the beginning of its operations in Kyrgyzstan in 1992, the EBRD has invested about $637 million in the country's economy through 112 projects supporting various sectors and industries in the country.
Overall the EBRD has invested well over €13 billion into sustainable energy projects throughout its region since 2006.