Members of the Committee on Budget and Finance of Parliament of Kyrgyzstan will consider an agreement with the International Development Association (World Bank) on Modernization and Sustainable Development of the Electric Energy Sector project. Deputy Dastan Bekeshev announced on his Telegram channel.
According to the proposed document, Kyrgyzstan takes a loan of $50 million for 38 years, that is, the country will repay it until 2060.
«The agreement hints at a change in the tariff policy in the electric energy sector. The loan will be used to modernize the electricity sector. The first part is about the rehabilitation and modernization of distribution networks for $10 million. This component is aimed at reducing losses in the system and improving the reliability of power supply in certain sections of the distribution network, where there is already an overload of distribution, taking into account the constant growth in demand,» Dastan Bekeshev explained.
Specific activities under this component include the reconstruction of electrical networks 0.4-10 kW, the construction and reconstruction of transformer substations 6-10/0.4 kW.
The second part of the project involves digitalization of the distribution network for $35 million. It is aimed at application of digital solutions and reduction of commercial losses.
Specific activities under this component include the introduction of an automated system for commercial electricity metering and a SCADA (supervisory control and data collection) system.
The third part includes measures to strengthen social safety systems for $3 million. They include consulting services, training, software and hardware, operating costs.
The fourth component of the agreement is aimed at institutional development and support for the implementation of a $2 million project. This is support in the development and implementation of priority reforms in the energy sector.
