EBRD, DBK to finance $270 mln project to unify Kazakhstan's energy system

ALMATY. Dec 4 (Interfax) - Kazakhstan Electric Grid Operating Co, or KEGOC, has signed loan agreements with the European Bank for Reconstruction and Development and Development Bank of Kazakhstan for 141 billion tenge or $270 million at the current rate to unify the power system of Western Kazakhstan and the Unified Power System of Kazakhstan (UPS), KEGOC said in a statement.

DKB will provide up to 32 billion tenge. These funds will be used for the construction and modernization of power grid facilities, which will improve the reliability and efficiency of power supply in the region.

The EBRD's financial support also includes a preferential loan of 15 million euros from the Government of Canada under the High Impact Partnership on Climate Action program," KEGOC said.

The loan agreement with the EBRD will come into effect on December 20, 2024, subject to corporate resolutions, the company said.

It said the unification of the Western Zone and the main part of the Unified Power System of Kazakhstan would ensure energy security for the western regions of the country. The transmission capacity of the Western Zone will be increased to 500 MW.

The project provides for the construction of a 500 kV Karabatan-Ulke overhead power line 604.3 km long, the reconstruction and expansion of the 500 kV Ulke substation, and the construction of a 500 kV Karabatan open-type switchgear. The project is scheduled for completion in December 2027.

Earlier, it was reported that the project will be financed by KEGOC's own funds and borrowed funds from the EBRD.

KEGOC operates about 27,000 km of 220-1150 kV overhead lines and 82 power substations.