EPCG Metering and Distribution Project

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In 2010, the Bank approved a corporate loan facility to EPCG of up to EUR 35,000,000 to address the high level of losses (up to 23% in 2009) and the low level of collections in the distribution network, as well as to improve energy efficiency and demand side management. As of 2013, the implementation has been ongoing in line with the plan and the achieved results have been very encouraging. As a result, EPCG expressed the intention to expand the scope of the smart-metering roll-out and extend the amount of the EBRD loan. Responding to the Company's request, an extension of the existing loan to the Company was approved in April 2013 by the EBRD Board in the amount of up to EUR 30,000,000. The loan extension will be used to expand the scope of the implementation and install additional 97,000 meters. These measures will support the on-going transition of the Company to an independent commercial entity, and will result in all household consumers in the country switching to smart meters.