The European Bank for Reconstruction and Development (EBRD) is reportedly planning to allocate a loan worth $18 million to Kyzylordateploelektrotsentr, a municipal district heating company supplying in Kazakhstan’s Kyzylorda city.
Aimed at supporting a Priority Investment Program (PIP) to rehabilitate and upgrade the district heating infrastructure, the project will include network rehabilitation, replacement of gas turbines and the introduction of individual heating substations at buildings equipped with heat meters.
The total cost of the project is $46 million and the programme is expected to improve energy efficiency, reduction of hot water and heat losses in the system and an improvement in environmental standards.
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 project approval.
EBRD has also revealed that it is launching an integrated approach to modernise municipal infrastructure facilities in Kyzylorda.
Several recently signed financing agreements, worth over US$70 million in total, will be used to fund improvements in water and wastewater, heating, electricity and street lighting.
This modernisation programme is also supported by the government of Kazakhstan, which is providing a grant of up to $21.7 million equivalent to co-finance water and district heating projects.