BISHKEK, Kyrgyzstan, May 23. The Parliament of Kyrgyzstan has approved in its first reading a bill on the ratification of loan and grant agreements with the European Bank for Reconstruction and Development (EBRD) for the Electricity Supply Digitalization Project in the country, Trend reports.
According to the parliament, the agreements were signed on November 28, 2023, in London. The bill was presented by the Minister of Energy, Talaibek Ibraev.
He stated that the project for digitalizing electricity supply aims to enhance transparency and modernize the metering system of "NES Kyrgyzstan" OJSC by implementing an automated electricity metering system (AMI). The project also aims to reduce technical losses of electricity and increase the reliability of the power supply by strengthening distribution networks with the transition to self-supporting insulated (SIP) wires, thereby improving the quality of electricity supply to consumers in the Chuy, Osh, Jalal-Abad, and Issyk-Kul regions.
The total cost of the project is 14.2 million euros, of which up to 9.2 million euros will be a loan and up to 5 million euros will be an investment grant. The loan term is 18 years, with an interest rate of 1 percent per annum plus a 6-month secured overnight financing rate (SOFR).
Additionally, the parliament has approved in the first reading the law on the ratification of the financing agreement between Kyrgyzstan and the International Development Association (IDA), signed on January 23, 2024, in Bishkek, and the financing agreement between Kyrgyzstan and the IDA, acting as an accredited entity of the Green Climate Fund (GCF), signed on January 29, 2024, in Bishkek.
This project aims to increase the production of hydroelectric power and ensure the integration of renewable energy sources by strengthening electricity transmission systems.