EDB and the Kyrgyz Republic sign a US $110 million credit agreement to be financed by the EFSD
Moscow, 13 March 2017. Eurasian Development Bank (EDB), as the Resources Manager of the Eurasian Fund for Stabilisation and Development (EFSD; Fund), and the Kyrgyz Republic signed an investment credit agreement for US $110 million to be provided by the Fund to finance the commissioning of Unit 2 at Kambarata HPP 2. The document was signed by Dmitry Pankin, Chairman of the Management Board at EDB, and Adylbek Kasymaliyev, Minister of Finance of the Kyrgyz Republic.
The total project value is US $138 million, with the EFSD providing US $110 million. The credit is extended for twenty years, with a five-year grace period for principal repayments. The project is expected to be completed in three to four years.
It envisions undertaking necessary construction, procurement and installation to commission Unit 2 at Kambarata HPP 2, with a capacity of 120 MW, the supply of equipment for a 110 kV outdoor switchgear and transmission lines, and the construction of a 500 kV outdoor switchgear, as well as other infrastructure and systems to ensure efficient and safe operation of the plant.
The project is expected to enhance the Kyrgyz Republic’s energy security by increasing electric power generation to 1,140 GWh a year. In addition, it will help to improve the reliability and stability of power supplies to consumers, and the efficiency of use of the hydropower potential of the Naryn River. It is also expected to help ensure the effective use of water and energy resources of the Toktogul reservoir, alleviate winter power shortages in the country, and improve its foreign trade balance by possible increases in power exports.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan.
The Eurasian Fund for Stabilisation and Development (EFSD) amounting to US $8.513 billion was formed on 9 June 2009 by the governments of the six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The EFSD member countries signed the Fund Management Agreement with EDB giving it the role of the EFSD Resources Manager.
Read more at: http://efsd.eabr.org/
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