The Eurasian Development Bank to start implementation of its first project in the Kyrgyz Republic
Fuel procurement for the current and next heating seasons will be financed
Almaty, 28 February 2013. The Eurasian Development Bank (EDB) and Electricheskie Stantsii OJSC (ES OJSC) (Kyrgyz Republic) have signed a loan agreement on the Bank’s financing fuel procurement to cover the needs of this generating company during the current and next heating seasons
Under this document, the EDB will open a US$ 30 million credit line for ES OJSC. The proceeds are to be used for procurement of fuel (coal, fuel oil, and natural gas), a significant part of which will be imported from Kazakhstan.
The Project is important for the economy of the Kyrgyz Republic. Its implementation will facilitate fuel supply to Bishkek CHP. The CHP generates electricity to mitigate its shortage in winter time and in low water years.
At the same time, the Project provides for exporting the electricity generated by ES OJSC to the Republic of Kazakhstan in summer time.
The Project implementation will generate significant effects in sustainable development and economic integration. The Project promotes sustainable economic growth of the Kyrgyz Republic by strengthening the country’s energy security, supports the development of the Central Asian Integrated Power System, which includes the Kyrgyz Republic and southern regions of Kazakhstan, and boosts trade between the EDB member states. As a result of the project implementation, the mutual trade between the EDB member states will increase by over US$ 51 million in the first year of financing.
It should be noted that the Project is highly consistent
with the EDB Strategy for
Additional Information
Electricheskie Stantsii OJSC is the largest power generating company of the Kyrgyz Republic, which generates 98 % of the country’s electric power. It supplies electricity to domestic and foreign consumers and regulates the frequency in the Central Asian Integrated Power System. It manages and operates hydropower plants (HPP) and combined heat and power plants (CHP).
The Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan
Read more about the EDB at https://www.eabr.org
For additional information please contact the EDB media center: