EBRD mulls EUR-297m loan for grid upgrade in Kazakhstan

The European Bank for Reconstruction and Development (EBRD) is considering providing up to EUR 297 million (USD 329.1m) to Kazakhstan Electricity Grid Operating Company JSC (KASE:KEGC), or KEGOC, for a grid modernisation project aimed at reducing power transmission losses, improving network efficiency and supporting renewable energy expansion.

The contemplated senior loan, if approved, will be used for an initiative to connect the currently isolated West Power Zone with the Unified Power System of Kazakhstan, a notice on the lender’s website shows.

More specifically, the funds will go for the construction of a 604-kilometer-long (375 mi), 500-kV overhead transmission line between the towns of Ulke and Karabatan in Western Kazakhstan, and a 500-kV substation in Karabatan. They will also support the expansion of a 220-kV switchyard at the Karabatan substation and the 500-kV switchyard at the Ulke substation.

The overall project cost is estimated at EUR 425 million.

The EBRD support is currently under a "concept reviewed" status. November 20 has been set as an approval deadline.

KEGOC, which is majority-owned by the National Welfare Fund Samruk-Kazyna, has initiated a feasibility study and a preliminary environmental impact assessment (pre-EIA) in 2023. The project will undergo a national EIA process when its detailed design is completed.

(EUR 1 = USD 1.108)

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