BISHKEK, Kyrgyzstan, September 13. The European Bank for Reconstruction and Development (EBRD) will provide a sovereign loan of up to 70 million euros to the Kyrgyz Republic to support the construction of a new substation near Balykchy in the Issyk-Kul region and a 500 kV overhead transmission line connecting it with the existing Kemin substation in the Chui region, Trend reports via EBRD.
To ensure robust delivery, the project is supported by a technical cooperation package, funded by the EBRD’s Shareholder Special Fund and international donors. This includes 66,000 euros for ornithological studies, 209,844 euros for environmental and social assessments, 280,000 euros for feasibility studies, and up to 5 million euros for project implementation support. The latter will cover procurement assistance, contract supervision, and environmental and social compliance monitoring.
The project will be implemented by the National Electric Grid of the Kyrgyz Republic (NEGK), which operates more than 10,000 km of power transmission lines and over 190 substations.
The initiative aims to enable the integration of around 1 GW of renewable energy capacity currently under development, while also improving the reliability, stability, and security of the national power grid. By reducing electricity losses and greenhouse gas emissions, the project aligns with EBRD’s Green Economy Transition strategy.
The project is categorized as "A" under EBRD’s Environmental and Social Policy, given the potential biodiversity, land acquisition, and social impacts of the new transmission infrastructure. A full Environmental and Social Impact Assessment has been carried out, with public consultations launched in July 2025. Measures include avifauna surveys, stakeholder engagement, and a land acquisition and resettlement framework.