Vostokelectro Rehabilitation Project (EBRD-48952)

Countries
  • Kyrgyzstan
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 4, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
VOSTOKELEKTRO OJSC
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 4.70 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 4 million
Converted using 2017-10-04 exchange rate.
Loan Amount (USD)
$ 4.70 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 4 million
Converted using 2017-10-04 exchange rate.
Project Cost (USD)
$ 7.05 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 6 million
Converted using 2017-10-04 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 22, 2018

Disclosed by Bank Jul 3, 2017


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Project Description

According to EBRD website, this project is a sovereign loan of up to EUR 4 million to finance Vostokelectro investment program. The program is aimed at the rehabilitation and modernization of low and medium voltage networks, including installation of 32,000 smart meters in Tup and Jeti-Oghuz regions in the east of Kyrgyzstan. The project will improve reliability of the power supply and will significantly reduce technical and commercial losses in the regions of operation.

It will initiate a restructuring process of a public utility in order to improve operating efficiency and restore financial health. On top of the expected improvement in the operating performance, the Project will entail commercialisation of the Company's operations and increased transparency. This will be achieved via a TC support to review current billing and collection practices, as well as help with implementation of the restructuring process. In addition, the Bank will request an annual IFRS audit by a reputable audit firm and compliance with the ESAP.

Further, it will increase revenue collections and introduce more commercial business practices. It will also address energy efficiency improvements, reduction of commercial losses and increasing reliability of power supply.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information

Project Contact: Nurlan Ashirov
Email Address: ashyrov.n@mail.ru
Telephone No.: +996555033040
Website: http://vostokelectro.kg

General enquiries to EBRD: 
Telephone No.: +44 20 7338 7168
Email Address: projectenquiries@ebrd.com

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.