KKS-Group

active

The project involves KKS Group (“KKS”), an independent utility providing space heating and hot water to customers in the Tula and Kemerovo regions of Russia. The project consists of: (i) improving the efficiency of existing KKS assets through capital expenditures; (ii) expanding KKS activities through acquisition and leasing of municipal heating assets; and (iii) developing and operating a combined heat and power plant (“CHP plant”) for an international industrial customer located in the Tula region. Currently, more than 80% of KKS heat sales is produced at the gas-fired assets, while the rest is produced at the coal-fired heat stations in Kiselevsk (Kemerovo oblast), where the use of coal is widely spread due to the geographical proximity of coal mines. The company will not increase its use of coal beyond 25% of total fuel consumption within the lifetime of the Project. IFC investment will provide a total of up to RUB 810 million (approximately US$25 million) in financing, or about 24% of the total project cost.