Kazakhstan: Advanced Gas Metering Project
The proposed loan will enable the borrower to procure and install up to 1 million advanced smart gas meters across Kazakhstan.
Request for information
21 September 2021
|Project Name||Advanced Gas Metering Project|
|Borrower/Company||Joint Stock Company KazTransGas
|Type or Modality of Assistance||
|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.
|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.
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|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.
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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