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EBRD to help Kyrgyzstan in rehabilitation of Vostokelectro

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Bishkek, Aug. 2, 2018 / Kabar /. President Sooronbay Jeenbekov signed the Law on the Ratification of the Credit Agreement between the Kyrgyz Republic and the European Bank for Reconstruction and Development (Vostokelectro Rehabilitation Project – Corporate Development Programme) and the Grant Agreement between the Kyrgyz Republic, Vostokelectro Open Joint-Stock Company and the European Bank for Reconstruction and Development in relation to an investment grant provided for Vostokelectro Rehabilitation Project from the Special Fund of the EBRD founders signed on Dec. 7, 2017.

The law was adopted by the Jogorku Kenesh on June 28, 2018.

Vostokelectro OJSC experiences low performance characteristics, including high distribution losses reaching up to 20%, as well as a large number of disruptions related to the operation of old equipment. Most of the air lines were built in the 1960s and 1970s with much less load than is currently required.

In this connection, on Dec. 7, 2017, a credit and grant agreement was signed between the Kyrgyz Republic and the European Bank for Reconstruction and Development on the rehabilitation of Vostokelectro.

Under the agreement, the EBRD provides funds in the amount of € 6 million. Of these, the loan is € 4 million, the grant is € 2 million s.

In addition, within the framework of the project, the Kyrgyz Republic will be provided with technical assistance in the form of support for the implementation of the project to implement programs to support the project and corporate development for about € 1 million.

The law enters into force ten days after the day of its official publication.

Vostokelectro OJSC is a regional monopoly distribution company operating in the eastern part of the Kyrgyz Republic with around 14% market share in electricity distribution at country level. Vostokelectro supplies electricity to 172,000 residential customers and 12,000 legal entities. The Company employs around 1,700 staff and operates c.4,800 transformer substations and 13,000 km of electricity lines. In 2015 the Company distributed nearly 1,300 GWh of electricity.

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