The European Bank for Reconstruction and Development (EBRD) on June 11 said it is pledging new funds to boost the efficiency of electricity supply in the Kyrgyz Republic by providing a financial package of up to €14 million to the government to be on-lent to the National Electric Grid of the Kyrgyz Republic, a majority state-owned electricity transmission and distribution company.
The financing programme, supported by the government of Japan through the Japan-EBRD Cooperation Fund, consists of the following elements:
A sovereign loan of up to €4.84 million and an investment grant of up to €2.75 million provided by the EBRD for the modernisation and voltage upgrade (from 35kV to 110kV) of the Rechnaya substation located in the Osh region in the south of the country. The project will increase the reliability of energy supply and improve the overall efficiency of the substation, reduce power losses and cut annual CO2 emissions by at least 5,300 tonnes.
A sovereign loan of up to €4.16 million and an EBRD investment grant of €2.25 million will help to reconstruct a 110 kV switchgear, install new transformers and replace associated equipment at the Dolinka substation, located in the Issyk-Kul region. The project will help strengthen the local grid to integrate renewables, reduce annual CO2 emissions by at least 5,800 tonnes and improve the overall efficiency of the substation.
The EBRD also confirmed its commitment to supporting the modernisation and expansion of the power grid in the country by signing a memorandum of understanding with the Ministry of Energy of the Kyrgyz Republic. The accord will the pave way for the development of a €100 million project to finance the construction of a 500 kV transmission line between the towns of Kemin and Balykchy and a 500 kV substation in the town of Balykchy in the Issyk-Kul region. The investment is expected to enable the integration of up to 1GW of renewable energy sources into the grid.
