TALAS TRANSMISSION NETWORK IMPROVEMENT PROJECT

complete

The project aims to improve the transmission and distribution network in the Talas region. It will support private involvement in power distribution in the country as part of power sector restructuring and will finance power losses, reducing investments of the state-owned power utility of Kyrgyzstan. The project objectives are to: a) support the Government's on-going programme of sector restructuring and efforts to promote privatisation of power distribution to improve collection and reduce commercial losses; and b) improve the efficiency of electric power transmission and increase reliability of supply to the Talas region. The proposed loan will support progress towards private management of power distribution for the first time in the Central Asian region. It will also enable the country to provide the most economic source of electricity to the Talas region, which has good potential for economic development. The borrower is Kyrgyzenergo, a state-owned joint-stock power company responsible for power generation, transmission and distribution as well as the operation of the country's heating systems. Kyrgyzenergo has been enacted as a commercial joint-stock company under the laws of Kyrgyzstan, and its charter was registered in June 1997. A loan of US$ 24.7 million (ECU 22.7 million). Co-financing will be provided by Kyrgyzenergo, the Swiss Government and EC Tacis. US$ 30.2 million (ECU 27.7 million). This project was classified as B/0, requiring a partial Environmental Analysis. A detailed environmental evaluation of the proposed project and the surroundings is being prepared. Technical cooperation funding of ECU 225, 000 is being provided for project preparation.