The EBRD has arranged a €106m (US$137m) syndicated loan for the benefit of the Central Asian Electric Power Corporation (CAEPCO), one of the few private operators in the power sector of Kazakhstan. The EBRD will also provide grant funding of €400,000 (US$516,000) to the Ministry of Environmental Protection for improvement of environmental standards, and over €160,000 (US$206,500) to the company for energy efficiency-associated audits and research.
CAEPCO will use the loan to reduce heat and electricity losses – which will mean more efficiency and less pollution. The company will modernise energy generators and optimise electricity distribution networks in the cities of Pavlodar and Petropavlovsk in Kazakhstan. The improvements will save almost 0.5 Mt/year of greenhouse gas emissions.
CAEPCO accounts for almost 6% of electricity production in Kazakhstan, serving almost a million customers. The EBRD is a shareholder in the company with almost 25% of shares.