Modernization of heat supply Kyzylorda city

The EBRD provided a loan to the “Kyzylordateploelektrocenter” state-owned enterprise, a municipal district heating company in Kyzylorda, in order to support the Priority Investment Program (PIP) for rehabilitation and modernization of the district heating infrastructure of the city.

Most of the electricity and heat production facilities as well as the centralized network have deteriorated significantly. Over the past decade the Company has begun modernizing its CHP plant by replacing oil with heavy gas oil and natural gas. As a result, the first natural gas turbine was commissioned in 2005.

The enterprise covers about 50% of the electricity and almost 90% of heat energy needs. The rest of the electricity demand currently comes from more expensive sources from neighboring industrialized regions, and hot water is mainly produced by separate water heating boilers installed by residents.

The enterprise and the Akimat (also the future management company, which will operate under the terms of the Management Service Agreement must improve the commercial reputation, the service level, as well as the environmental and social performance of the enterprise. The main objective is to identify and implement the corporate, financial and operational improvements required to meet the relevant contractual obligations as set out in the EBRD's financial documents.

“CECT RU and “BDC Consulting” LLP companies rendered their services to support the implementation of the project, including assistance with the procurement of goods and services.

The project specified measures for modernization and optimization of the district heating infrastructure by reconstructing networks, replacing a number of gas turbines and installing individual boiler houses equipped with heat meters that ensure automated control and regulation of heat supply. This will lead to an increased energy efficiency, reduced hot water consumption and reduced heat losses in the system, as well as more proper environmental compliance.

The project enabled the enterprise to improve the quality of its district heating services through prioritized investments in infrastructure modernization and optimization, to increase energy efficiency and significantly reduce heat and hot water losses, to improve environmental standards, including reduction of CO2 emissions. This process will stimulate the commercialization of the enterprise, thus supporting sector reforms and, in general, having a significant demonstration impact in the country.

Along with the investments in equipment, the Project contributed to the development and organizational strengthening of the enterprise in the field of procurement, commercialization, increasing creditworthiness and improving the environmental situation in the city of Kyzylorda.