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Deputies vote for allocating €5 million for rehabilitation of Oshelectro

During the plenary session of the Parliament, the deputies in the third reading approved the ratification of the loan agreement between Kyrgyzstan and the European Bank for Reconstruction and Development on the rehabilitation project of Oshelectro OJSC, as well as the grant agreement between the Kyrgyz Republic and the European Bank on the investment grant from the European Commission under the European Union Investment Facility for Central Asia (IFCA). Recall, the initiator is the government of Kyrgyzstan.

The project is aimed at the modernization and strengthening of distribution networks, the acquisition and installation of a modern automatic system for commercial measurement of power consumption (smart meters), as well as other measures to increase the capacity of power lines and transformers of the power supply system.

Within the framework of the agreement, the EBRD will allocate a loan of € 4 million with an interest rate of 1% + EURIBOR for 6 months for a period of 15 years, including a grace period of 3 years, as well as a grant of € 1 million (from IFCA funds).

Within the framework of the project, Kyrgyzstan will also receive technical assistance in the form of project support.

The return of funds is expected to be realized by reducing losses of electricity through the introduction of the smart meters system.

As a result, a significant reduction in the technical losses of electric power, an increase in the reliability of electricity supply, and an improvement in the quality of electricity supply to Osh city consumers are expected.