Kazakhstan: Advanced Gas Metering Project

Nonsovereign Project | 53328-001

The proposed loan will enable the borrower to procure and install up to 1 million advanced smart gas meters across Kazakhstan.

Project Details

  • Project Officer
    Abdrakhmanov, Alibek

    Request for information
  • Approval Date
    21 September 2021
  • Country
    Kazakhstan
  • Sector
    • Energy
Project Name Advanced Gas Metering Project
Project Number 53328-001
Borrower/Company Joint Stock Company KazTransGas
Country Kazakhstan
Location Nation-wide
Type or Modality of Assistance
4111 Loan Ordinary capital resources KZT 42,558.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Energy utility services

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Abdrakhmanov, Alibek
Project Sponsor(s) Joint Stock Company KazTransGas
Description The proposed loan will enable the borrower to procure and install up to 1 million advanced smart gas meters across Kazakhstan.
Objectives and Scope The proposed project will help modernize retail gas metering system using advanced technology that will lead to improvements in operational efficiency and reduction of losses and greenhouse gas emissions with no additional cost to the customers.
Linkage to Country/Regional Strategy

Following the directives of the government, KTG started in 2018 to develop a new billing platform based on modern mobile communication systems, namely the Narrow Band Internet of Things (NB-IoT). The new smart metering and billing system will enable real-time monitoring of gas consumption for customers through mobile devices. It will also allow them to make instant payments and request reconnection in case they are disconnected due to delayed payments. These initiatives to provide better information and connection/disconnection services will lead to more efficient use of gas resources in the country. Further, not only will these initiatives be provided without additional cost to customers, 30% of customers will benefit from reduced gas consumption bills by shifting to volume-based billing from fixed fees. KTG expects to reduce total losses and the saved gas will be exported, generating additional foreign exchange revenues for the company and the country.

The proposed technology has been tested worldwide but is considered innovative for Kazakhstan and the entire Central Asia region. However, if KTG faces any technology malfunction, it would impact a significant part of the whole population in Kazakhstan; its monopolistic position reflects the public goods nature of its products and its substantial social obligations. Therefore, KTG requested ADB to provide technical assistance to assess the advantages of the selected technology, confirm anticipated benefits and costs and evaluate risks. Due to recent deterioration of the financial conditions, KTG also requested ADB to assist in verifying its financial models of the smart metering and BSGP projects. Additionally, KTG is keen to bring its safeguards monitoring and management system up to international levels.

Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects This project will fund the procurement and installation of one million advanced smart gas meters at residential, commercial, and industrial properties. No part of the proceeds will be used for the construction of infrastructure by the company. As such, it is considered that this project will have minimal to no adverse environmental impacts.
Involuntary Resettlement This project will fund the procurement and installation of one million advanced smart gas meters at pre-existing residential, commercial, and industrial properties. The project assessment finds that it will not physically or economically displace people because of involuntary land acquisition and will not create involuntary restrictions on land use or on access to legally designated parks or protected areas. It is considered that this project will have no involuntary resettlement.
Indigenous Peoples The project assessment has determined that it will not directly or indirectly affect the dignity, human rights, livelihood systems or culture of indigenous peoples.
Stakeholder Communication, Participation, and Consultation The project will include specific provisions to ensure timely communication to stakeholders about the project's activities including access to a complaints' mechanism.
Timetable for assistance design, processing and implementation
Concept Clearance 29 Sep 2020
Credit Committee Meeting 06 Aug 2021
Approval 21 Sep 2021
Last PDS Update 28 Sep 2021

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
Advanced Gas Metering Project: Report and Recommendation of the President Reports and Recommendations of the President Aug 2021
Advanced Gas Metering Project: Gender Action Plan Gender Action Plans Aug 2021
Advanced Gas Metering Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 2021

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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