An agreement on opening a loan facility between the Development Bank of Kazakhstan JSC (hereinafter - the Bank, DBK) and KEGOC, as well as a loan facility agreement between the European Bank for Reconstruction and Development (hereinafter - EBRD) and KEGOC were signed today in Astana as part of the implementation of the project "Unification of the energy system of Western Kazakhstan with the UES of Kazakhstan".
The documents were signed by Marat Yelibayev, Chairman of the DBK Management Board, Aida Sitdikova, Director of the EBRD's Eurasia, Middle East and Africa Energy Department, and Nabi Aitzhanov, Chairman of the KEGOC Management Board.
The financing will be used to implement the important project "Unification of the energy system of Western Kazakhstan with UES of Kazakhstan. Construction of electricity supply network facilities", which will ensure the energy security of the western regions of the country, as well as allow the use of maneuverable generation of the Western zone to compensate for the imbalance of electricity and capacity of the Northern and Southern zones of the energy system. The transfer capacity of the Western Zone will be increased to 500 MW.
DBK funds of up to KZT 32 billion will be allocated for the construction of the 500 kV Karabatan-Ulke transmission line (along the Atyrau-Aktobe highway) and the 500 kV Karabatan substation, as well as for the expansion of switchgear at the Karabatan (220 kV) and Ulke (500 kV) substations. This will significantly strengthen local power flows and improve the reliability of power supply in Western Kazakhstan.
The investment project is being implemented within the framework of the instruction of the President of the Republic of Kazakhstan, Kassym-Jomart Tokayev, to strengthen the Southern zone of the electric power system, to develop a scheme to strengthen transit links between the Western regions with subsequent merger with the UES of Kazakhstan.
"The combined efforts are aimed at modernizing Kazakhstan's energy system and its adaptation to the modern challenges, including the transition to sustainable and environmentally friendly energy sources," noted Marat Yelibayev, head of the DBK.
The DBK is actively involved in financing major infrastructure initiatives; in March of last year, the Bank allocated a bond loan to KEGOC JSC in the amount of KZT 10 billion, which were used to support the modernization of the energy system in the Western regions of the country.
