Kazakhstan: Akmola Electricity Distribution Network Modernization and Expansion Project

Project Name
Akmola Electricity Distribution Network Modernization and Expansion Project
Project Number
46933-014
Borrower / Company
  • AKMOLA ELECTRICITY DISTRIBUTION COMPANY
  • CENTRAL-ASIAN ELECTRIC POWER CORPORATION
Country / Economy
  • Kazakhstan
Location
Aqmola Oblysy, Astana
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
3018 Loan Ordinary capital resources USD 15.00 million Closed
3019 Loan Ordinary capital resources USD 25.00 million Closed
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Private sector development
Sector / Subsector
  • Energy / Electricity transmission and distribution

Gender
Project Sponsor(s)
    Description
    Akmola Electricity Distribution Network Modernization and Expansion Project
    Objectives and Scope

    The proposed transaction is to finance and support implementation of AEDC's investment plan for expansion, augmentation and modernization of its electricity distribution network in the Akmola province and in a small area within Astana, the nation's capital.

    To promote sustainable economic growth by reducing the risk of network failure in the power distribution system and by improving reliability of electric power supply in the Akmola province and the capital region of Kazakhstan. To encourage and catalyze private sector investment in Kazakhstan's power sector by demonstrating improved operational efficiency/reliability and financial stability under experienced and professional private sector ownership.

    Linkage to Country/Regional Strategy

    The Country Partnership Strategy (CPS) for Kazakhstan 20122016 seeks to increase ADB's involvement in the energy sector, with the aim to modernize the country's aging energy infrastructure. It notes specifically that ADB will support replacement of obsolete energy infrastructure and technologies, and upgrade the transmission network, mainly through private sector or sub-sovereign modalities. The project is therefore fully aligned with the CPS.

    The project is also in line with the Energy Sector Policy (2009) which highlights energy efficiency improvements in transmission and distribution systems. The policy proposes that ADB will continue to support installation of modern transmissions systems to transmit electricity efficiently from generation facilities to consumers, including upgrading of existing systems to reduce technical losses and enable competition when open access is permitted by law.

    Safeguard Categories

    Environment
    B
    Involuntary Resettlement
    B
    Indigenous Peoples
    C

    Summary of Environmental and Social Aspects

    Environmental Aspects
    Issues AEDC's investment plan envisages a number of activities to (i) reconstruct, repair and add new capacity to the fixed assets, such as substations and distribution lines, as well as (ii) upgrade software systems for power accounting and (iii) install modern measuring devices. ADB ensures that the new environmental and social management system includes appropriate arrangements requiring CAEPCO and AEDC to comply with relevant national laws, ADB's Safeguard Policy Statement (2009) and other social requirements. AEDC and its contractors will comply with the national labor laws and take measures to conform to the internationally recognized core labor standards in compliance with ADB's Social Protection Strategy.
    Involuntary Resettlement
    Indigenous Peoples
    Stakeholder Communication, Participation, and Consultation
    Information disclosure and consultations with project stakeholders were conducted during environmental and social assessment for each investment activity undertaken by AEDC in accordance with the company's environmental and social management system.

    Contact

    Responsible ADB Officer
    Mokroussov, Sergey
    Responsible ADB Division
    Portfolio Management Division, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    Timetable for assistance design, processing, and implementation

    Concept Clearance
    13 Aug 2012
    Credit Committee Meeting
    22 Jul 2013
    Approval
    02 Sep 2013
    PDS Creation Date
    25 Apr 2013
    Last PDS Update
    17 Mar 2021

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    Source URL: https://www.adb.org/projects/46933-014/main