ALMATY (EDB media centre) – 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 mln 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 $51 mln in the first year of financing.

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).

According to EDB, the Project is highly consistent with its Strategy for 2011-2013: it is implemented in the energy sector, which is a priority for the Bank’s investment activity, and facilitates achievement by the Bank of its strategic objective of expanding the geography of its operations.