Azernews.Az

By Aynur Jafarova

The EBRD is planning to allocate a loan worth $18 million to the State Communal Enterprise Kyzylordateploelektrotsentr, a municipal district heating company in Kazakhstan’s Kyzylorda city.

The loan is aimed at supporting a Priority Investment Program (PIP) with a goal to rehabilitate and upgrade the district heating infrastructure in Kyzylorda, EBRD said on December 10.

The project will include measures for the modernization and optimization of the district heating infrastructure through network rehabilitation, replacement of some gas turbines and introduction of individual heating substations at the level of buildings equipped with heat meters ensuring automated control and regulation of heat supply.

This will result in enhanced energy efficiency, reduction of hot water and heat losses in the system and an improvement in environmental standards.

The total cost of the project is $46 million.

It is expected that the EBRD loan will be supplemented by a $5.5 million Clean Technology Fund co-financing loan from the EBRD Climate Investment Fund on concessionary terms, subject to the project approval by the CTF, and a capital grant co-financing (amount to be confirmed) from the Kazakhs government under the Enhanced Partnership –District Heating Modernization Framework, subject to further project approval.

Since the beginning of its operations in Kazakhstan, the EBRD has invested close to $6.75 billion in the country’s economy, with more than half of the total supporting projects in the private sector.