| The World Bank Continues Support to the Energy Sector in the Kyrgyz Republic |
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24/11/2009 11:48 (77 Day 08:25 minutes ago) | |||||
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The FINANCIAL -- The World Bank ’s Board of Directors approved additional financing in the amount of US$ 4 million for the Emergency Energy Assistance Project today in the Kyrgyz Republic.
With the additional financing, the total allocation for the Emergency Energy Assistance Project is US$ 15 million. The project assists the Kyrgyz Government to increase the volume of thermal power supply in the winter season and to improve the sustainability of thermal power.
“The World Bank is a reliable and flexible partner of the Kyrgyz Republic,” said World Bank Country Manager Roger J. Robinson. “Last year the Bank quickly responded to an urgent request of the Kyrgyz Government and allocated US$ 11 million to help improve energy security in the country.”
The project funds were used to finance provision of equipment, materials, and spare parts to increase power and heat generation at the Bishkek and Osh Combined Heat and Power Plants (CHPs). In particular, fuel oil, coal handling equipment, and other equipment and materials were supplied for repair of the equipment in CHPs.
“Additional financing of US$ 4 million will help address urgent needs of the 2009/10 winter through additional technical rehabilitation works at Bishkek Combined Heating Plant,” Robinson added.
Specifically, the additional financing would cover funds to supply spare parts, materials, and works to repair and rehabilitate five boilers and related assets as well as supply of coal handling equipment for the Bishkek Heating Plant.
The additional financing is provided on the following terms: US$ 2 million concessional credit (no interest, 0.75% service charge, repayable in 40 years including a 10-year grace period) and US$ 2 million grant.
The World Bank ’s overall mission in Kyrgyzstan is to promote economic growth, reduce poverty, and encourage a better quality of life. The financial assistance committed to the Kyrgyz Republic so far amounts to over US$ 890 million, in the form of grants and highly concessional credits.
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