The EDB and East Kazakhstan Regional Energy Company sign a KZT 11.9 billion loan agreement

The Eurasian Development Bank (EDB) and East Kazakhstan Regional Energy (EK REC) Company signed a loan agreement to finance EK REC’s investment programme for 2019-2023. The document was executed by Vsevolod Smakov, Head of Project Block 1 at the EDB, and Yerlan Kirkinbayev, Chairman of the Board at EK REC.

The investment will be used to upgrade and reconstruct the company’s existing assets, auxiliary equipment, as well as control and security systems. The EDB plans to finance six sub-projects to the tune of KZT 11.9 billion that will construct and upgrade electric power substations, build overhead transmission lines, and implement automated power metering systems.

The new substations and transmission lines will solve the issues associated with the operation of obsolete facilities, improve the structure of the power system, enhance its reliability and security, reduce technical losses, and increase capacity to connect new customers.

The project will supply electricity to Semey’s facilities of social importance, create conditions for the development of small and medium-sized enterprises and jobs at Lake Alakol’s resorts, reduce electrical load, ensure uninterrupted supplies of electricity to Kazakhstan’s eastern regions, and cut technical losses by introducing new equipment and metering systems.

“This project is in line with the Bank’s mission. It will enhance energy efficiency, improve the quality of electric power supplies, and promote energy security,” Vsevolod Smakov commented.

The proposed main suppliers of equipment are companies from Kazakhstan, Russia, and European countries.

In May 2018, the EDB and EK REC signed a memorandum of understanding at the Astana Economic Forum 2018 to develop strategic partnership and further long-term and mutually beneficial cooperation aimed at implementing energy projects.

Original source: EDB
Published on 1 November 2018