| Project Detail |
The project consists of regional gasification and modernisation of natural gas pipeline network in Kazakhstan to be implemented over the next three years.
KazTransGas-Aimak JSC is the client for the project. KazTransGas-Aimak JSC is a natural gas distribution monopoly and a 100% subsidiary of KazTransGas JSC, Kazakhstan's national gas pipelines operator.
The total cost of the project is KZT 90 billion.
The European Bank for Reconstruction and Development (EBRD) is considering providing a multicurrency loan in the amount of up to EUR 130 mln equivalent (KZT 50 bln) to KazTransGas-Aimak JSC, for the project.
In particular, the loan will finance
(i) the extension of the gas network to several key regional administrative centres; and
(ii) reconstruction and modernisation of the existing distribution networks in western provinces of Kazakhstan, which will include the upgrade of existing and construction of additional, pressure reduction and metering stations (AGRS) and replacement of an aged carbon steel piping with new polyethylene pipelines.
Project Objectives:
One of the key objectives of the Project is to increase penetration of pipeline gas, particularly in remote areas of Kazakhstan, which will in turn promote a fuel switching from carbon-intensive fuels such as coal to a much cleaner fuel, natural gas.
Transition Impact:
The transition impact potential of the project is based on:
(i) Framework for Markets: Institutions, laws and policies that promote market functioning and efficiency: The Project provides an excellent opportunity for the Bank to engage with the client, KTG and the government on best practice tariff methodology for the domestic gas distribution market;
(ii) Market Expansion: Gasification of new households and enterprises is expected to stimulate the
development of technologies that were previously not feasible in the region due to unavailability of gas; and
(iii) Setting Standards of Corporate Governance and Business Conduct: The Project is expected to
support the effort to reduce the carbon footprint of the country, by promoting fuel switching away from coal and preventing leaks of greenhouse gases from the network. |
