Power & District Heating Rehabilitation Project

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The main objectives of the Power and District Heating Rehabilitation Project are to support economic growth through rehabilitation and upgrading of the electricity and heat supply infrastructure and to assist the government in restructuring the power and district heating sector. Specific objectives are to: 1) improve the power and district heating system efficiency and reliability; 2) reduce power and heat losses; 3) reduce the environmental impact of the power and heat facilities; 4) rehabilitate the existing assets in the power and district heating system; 5) introduce appropriate financial management at Kyrgyz National Energy Holding Company (KNEHC); 6) restructure KNEHC along commercial lines; and 7) attract private sector interest in petroleum exploration and production. The project will finance priority investments in the energy sector. Its components include: 1) for KNEHC: (a) rehabilitation of the Bishkek combined-heat-and-power plant; (b) district heating system rehabilitation; (c) rehabilitation and upgrading of power transmission and distribution facilities; and (d) technical support and training; and 2) for the government: provision of consultant services and training for petroleum exploration promotion.