A Kazakhstani electric grid management company JSC «KEGOC» and the Asian Development Bank (ADB) have signed a financing agreement for 58.2 billion tenge.
According to Kegoc.kz, the bank will allocate funds “for the implementation of a project to strengthen the electrical grid of the Southern zone of Kazakhstan’s UES”.
The project is expected to enable the integration of large-scale electricity generation into the grid, strengthen and stabilise its transmission in the south of the country, and enhance Kazakhstan's energy security.
It is reported that contractors are carrying out work to develop design and estimate documentation, followed by construction and installation works. The project involves the construction of two overhead power transmission lines 500 kV with a total length of 475 km, as well as the reconstruction and expansion of three 500 kV substations: Shu, Zhambyl and Shymkent.
“As part of the ADB compliance procedures, the joint-stock company KEGOC confirmed its commitment to high standards of ESG, transparency and financial efficiency. The high credit ratings of JSC «KEGOC» made it possible to attract ADB financing on favourable terms. The conclusion of this credit agreement confirms the trust of international financial institutions in the procurement procedures of the Samruk-Қазына JSC group, as well as in the activities of KEGOC, which are in line with international listed companies”, the statement said.
It is worth recalling that earlier the ADB lent the government of Kazakhstan $350 million to support fiscal management and financial sector reforms.