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Kazakhstan: Akmola Electricity Distribution Network Modernization and Expansion Project

Nonsovereign (Private) Project | 46933-014 Status: Active

Project Details

Project Officer
Mokroussov, Sergey Private Sector Operations Department Request for information
  • Kazakhstan
  • Energy
Project Name Akmola Electricity Distribution Network Modernization and Expansion Project
Project Number 46933-014
Country Kazakhstan
Location Aqmola Oblysy, Astana
Type or Modality of Assistance
3018 Loan Ordinary capital resources USD 15.00 million Committed
3019 Loan Ordinary capital resources USD 25.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Mokroussov, Sergey
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.

Status of Operation/Construction PIP Update. As of Jul 2017 reporting, overall progress rate of the AEDC's PIP is around 70%. The balance of work to be done is the relocation of existing line and construction of new 110kV overhead transmission line (Phase 2), which is expected to be completed by end-Oct 2017. Given the severe winter climate in Kazakhstan, potential delay might occur if the construction of the new line does not finish as per timeline. Another possible cause of delay is the Astana Expo.5 CAEPCO and AEDC are positive that construction can still be completed within 2017. All necessary approvals from Akimat (municipal government) have been obtained for the remaining part of the PIP.
Linkage to Country/Regional Strategy

The Country Partnership Strategy (CPS) for Kazakhstan 2012 2016 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.
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 06 Mar 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Akmola Electricity Distribution Network Modernization and Expansion Project Reports and Recommendations of the President Aug 2013
Akmola Electricity Distribution Network Modernization and Expansion Project Initial Poverty and Social Analysis Jul 2013

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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