NUR-SULTAN
The European Bank for Reconstruction and Development (EBRD) plans to finance projects in Kazakhstan worth $600 million till the end of this year in a move to support sustainable development and economic growth in the Central Asian country.
The agreement was reached during recent talks between Kazakhstan’s Prime Minister Askar Mamin and the EBRD President Odile Renault-Basso.
The parties discussed the progress of the practical implementation of the framework partnership agreement signed in March between Kazakhstan’s government and the EBRD to expand cooperation. The issues of further expansion of the EBRD’s participation in infrastructure development, the implementation of the decarbonisation programme for the energy sector in Kazakhstan, the EBRD Green Cities projects, the modernisation of sewage treatment facilities, as well as support for small and medium-sized businesses were considered.
As a result of the negotiations, agreements on cooperation on projects of modernisation and expansion of the Almaty airport, reconstruction of the Kyzylorda – Zhezkazgan highway were signed.
Earlier this month, the EBRD has allocated a 4.9 billion tenge ($11.5 million) loan to improve the financial stability of the Mangistau regional electric grid company (MEDNC), a major distributor of electricity in western Kazakhstan.
The loan was allocated by MEDNC, which is the operator of 500 supply transformer substations and a network of power transmission lines with a length of more than 5,000 km, to restructure the balance sheet and increase resistance to exchange rate risks, as well as to minimize the impact of the negative macroeconomic situation caused by the COVID-19 pandemic.
“Within the framework of the project and in close cooperation with the Government of Kazakhstan, MEDK has committed itself to implement inclusive educational programmes for youth and women in the Mangystau region,” the EBRD said in a statement.
The financing provided ensures that MEDNC can continue to implement its strategic development goals, including the integration of renewable energy sources into the power system of Kazakhstan. The loan funds will also be used to support the company’s current investment program until 2025.
To date, the EBRD has invested more than $8.4 billion in the economy of Kazakhstan in the framework of 288 projects.