Add us as your preferred source on Google to see more of our content in Search.
Add to Preferred SourcesThe EBRD is providing post-privatization support to Mangistau Regional Distribution Company (MREK), a major power utility in western Kazakhstan. A senior loan of up to KZT 12 billion (up to €31 million equivalent) will help MREK finance its investment programme until 2020.
As part of the government’s strategic programme of privatizing the state utility JSC “Samruk-Energy”, MREK was recently acquired by Kazakhstan Utility Systems (KKS), a privately-owned company that operates in electricity and heat generation, distribution and supply.
The EBRD loan will help finance MREK’s priority investments, up to 40 subprojects, which include modernization of the existing substations and distribution lines, the construction of new power lines, and the installation of Supervisory Control And Data Acquisition systems (SCADA) and modern automatic control systems.
MREK’s network capacity, efficiency, and reliability will be significantly improved and will allow for a smooth integration of renewables into the grid.
Aida Sitdikova, EBRD Director for Energy and Natural Resources for Russia, the Caucasus, and Central Asia, signed the project in Almaty. She said: “We are pleased to start the Bank’s engagement with KKS and to continue our support of renewables and privatization in the Kazakh energy sector.”
Nabi Aitzhanov, CEO of KKS and Chairman of the Board of Directors of MREK, added: “KKS is pleased to sign the first transaction with the EBRD and views this project as an important first step that unlocks huge potential for our cooperation in the future.”
Once implemented, the project will help MREK achieve greater efficiency and reduce energy losses, resulting in the reduction of CO2 emissions by 11,670 tonnes per year. The loan will be the fourth sub-project under the Kazakhstan Renewables Framework established by the Bank in 2016. The EBRD is the largest financier of renewable energy in Kazakhstan.
To date, the EBRD has invested over US$ 8.7 billion in the economy of Kazakhstan.
Original source: EBRD
Published on 16 March 2018