<div><h2>Project Description</h2><p></p><p>The provision of a sovereign loan of up to € 5.1 million to the Kyrgyz Republic (KR) to finance upgrade of an operating 35 kV "Rechnaya" substation (located in the Osh region) to 110 kV voltage class .</p><p></p><h2>Project Objectives</h2><p></p><p>The Project is expected to contribute to the overall grid reliability by reducing loads on nearby transmission infrastructure and to reduction of electricity losses. </p><p></p><h2>Transition Impact</h2><p>ETI score: 60</p><p style="margin-top: -13px;"></p><p>The Project is in line with EBRD's Green Economy Transition (GET) Approach and will deliver green transition impact with climate change mitigation benefits.</p><p></p><h2>Client Information</h2><p>KYRGYZ REPUBLIC SOVEREIGN</p><p style="margin-top: -13px;"></p><p>The loan is made to the Kyrgyz Republic, to be on-lent to OJSC National Electric Grid of Kyrgyzstan.</p><p>OJSC National Electric Grid of Kyrgyzstan (NEGK) is the owner and operator of more than 10,000 km of power transmission lines of 110 kV and higher, as well as 190 substations with primary voltages of 500, 220 or 110 kV, in the Kyrgyz Republic.  OJSC NEGK is 93 per cent owned by the state and is organised as an open joint stock company.  The Company transports around 12 TWh of energy on an annual basis.</p><p></p><h2>EBRD Finance Summary</h2><p>										EUR 5,100,000.00									</p><h2>Total Project Cost</h2><p>										EUR 8,000,000.00									</p><h2>Additionality</h2><p></p><p>The EBRD is additional due to the financing structure provided. The Bank offers financing terms that are not available on the market, but necessary to structure the project. </p><p>The EBRD is expected to close the funding gap through mobilisation of additional financing of € 2,900,000 from an international donor or the EBRD Shareholder Special Fund (SSF).</p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised B (2019 ESP) and Low-Medium risk. The environmental and social risks associated with the acquisition and replacement of transformers at the substation are expected to be site-specific,  readily identifiable and can be mitigated through good industry practice. The Environmental and Social Due Diligence (ESDD) will be carried out by an independent consultant and include assessment of the Client's Environmental and Social management systems, a site visit and a review of the Client's current operations and the proposed Project. </p><p>The Project is expeted to have indirect environmental benefits through reduction of electricity losses stemming from upgrade of the substation to higher voltage. Key environmental and social impacts related  to the proposed investment include labour and working conditions, occupational health and safety including electrical and road safety, contractor management during replacement and maintenance, pollution prevention issues such as hazardous waste management and grievances from the project  stakeholders. Impacts on biodiversity, cultural heritage or economic displacement are not expected  as installation works will take place at the existing substation sites. At this stage, no associated facilities have been identified. Due diligence will also review E&amp;S risks in the project supply chain and arrangements for the old transformers being replaced. </p><p>Based on the ESDD, an Environmental and Social Action Plan (ESAP) will be developed to structure the Client's existing operations and the Project to align with the Bank's Performance Requirements (PR's) and good industry practice. The Bank will monitor compliance with the PR's by reviewing annual reports prepared by the Client on  environmental and social matters. The Bank will also undertake monitoring site visits, as needed.  The PSD will be updated upon completion of the ESDD.</p><p></p><h2>Technical Cooperation and Grant Financing</h2><p></p><p>The Project will be supported through the following technical assistance:</p><p>1. Project Implementation Support. (i)preparation of detailed design for works, (ii) assistance with procurement of the goods, works and services under the Project including development of tender documentation, tenders evaluation and contracting, (iii) assistance with the establishment of the PIU; (iv) assistance with the supervision of contracts' implementation and supervision of the works (in the role of the contracts' Engineer); and (v) environmental and social implementation support and assistance with compliance and reporting obligations under the financing documents.  Total cost of the assignment on this Project is estimated to be up to € 500,000 and is expected to be financed by an international donor or the SSF.</p><p>2. Environmental and Social Due Diligence. The cost of the assignment on this Project is estimated to be at  € 25,000 and is expected to be funded by international donor or SSF.</p><p></p><h2>Company Contact Information</h2><p>Mukhammad Kuramayev<br/>+996 (312) 67-03-35<br/>www.nesk.kg<br/></p><h2>PSD last updated</h2><p>11 Apr 2024</p><div id="docsLinks" style="display:none"><h2>Related material</h2><ul class="relMat"></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "55487";					</script><h2>	Understanding Transition</h2><p>	Further information regarding the EBRD’s approach to measuring transition impact is available <a href="https://www.ebrd.com/what-we-do/economic-research-and-data/transition-impact.html">here</a>.</p><h2>	Business opportunities</h2><p>	For business opportunities or procurement, contact the client company.</p><p>	For business opportunities with EBRD (not related to procurement) contact:</p><p>	Tel: +44 20 7338 7168<br/>	Email: <a href="mailto:projectenquiries@ebrd.com">projectenquiries@ebrd.com</a></p><p>	For state-sector projects, visit <a href="https://www.ebrd.com/pages/workingwithus/procurement.shtml">EBRD Procurement</a>:<br/><br/>	Tel: +44 20 7338 6794<br/>	Email: <a href="mailto:procurement@ebrd.com">procurement@ebrd.com</a></p><h2>	General enquiries</h2><p>	Specific enquiries can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Environmental and Social Policy (ESP)</h2><p>	The <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a> and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.</p><p>	More information on the EBRD’s practices in this regard is set out in the <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a>.</p><h2>	Integrity and Compliance</h2><p>	The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.</p><p>	OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to <a href="mailto:compliance@ebrd.com">compliance@ebrd.com</a>. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.</p><h2>	Access to Information Policy (AIP)</h2><p>	The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/public-information-policy.html">Access to Information Policy</a> page to find out what information is available from the EBRD website.</p><p>	Specific requests for information can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Independent Project Accountability Mechanism (IPAM)</h2><p>	If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).</p><p>	IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">Environmental and Social Policy</a> or Project-specific provisions of its <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/access-to-information-policy.html">Access to Information Policy</a>; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.</p><p>	Please visit the <a href="https://www.ebrd.com/project-finance/independent-project-accountability-mechanism.html">Independent Project Accountability Mechanism webpage</a> to find out more about IPAM and its mandate; how to <a href="https://www.ebrd.com/eform/IPAM/Request_form">submit a Request</a> for review; or contact IPAM  via email <a href="mailto:ipam@ebrd.com">ipam@ebrd.com</a> to get guidance and more information on IPAM and how to submit a request.</p><p>	 </p></div>

Upgrade of Rechnaya substation

The provision of a sovereign loan of up to EUR 5.1 million to the Kyrgyz Republic KR to finance upgrade of an operating 35 kV Rechnaya substation located in the Osh region to 110 kV voltage class .The Project is expected to contribute to the overall grid reliability by reducing loads on nearby transmission infrastructure and to reduction of electricity losses. ETI score: 60The Project is in line with EBRD's Green Economy Transition GET Approach and will deliver green transition impact with climate change mitigation benefits.KYRGYZ REPUBLIC SOVEREIGNThe loan is made to the Kyrgyz Republic, to be on-lent to OJSC National Electric Grid of Kyrgyzstan.OJSC National Electric Grid of Kyrgyzstan NEGK is the owner and operator of more than 10,000 km of power transmission lines of 110 kV and higher, as well as 190 substations with primary voltages of 500, 220 or 110 kV, in the Kyrgyz Republic.  OJSC NEGK is 93 per cent owned by the state and is organised as an open joint stock company.  The Company transports around 12 TWh of energy on an annual basis.EUR 5,100,000.00EUR 8,000,000.00The EBRD is additional due to the financing structure provided. The Bank offers financing terms that are not available on the market, but necessary to structure the project. The EBRD is expected to close the funding gap through mobilisation of additional financing of EUR 2,900,000 from an international donor or the EBRD Shareholder Special Fund SSF.Categorised B 2019 ESP and Low-Medium risk. The environmental and social risks associated with the acquisition and replacement of transformers at the substation are expected to be site-specific,  readily identifiable and can be mitigated through good industry practice. The Environmental and Social Due Diligence ESDD will be carried out by an independent consultant and include assessment of the Client's Environmental and Social management systems, a site visit and a review of the Client's current operations and the proposed Project. The Project is expeted to have indirect environmental benefits through reduction of electricity losses stemming from upgrade of the substation to higher voltage. Key environmental and social impacts related  to the proposed investment include labour and working conditions, occupational health and safety including electrical and road safety, contractor management during replacement and maintenance, pollution prevention issues such as hazardous waste management and grievances from the project  stakeholders. Impacts on biodiversity, cultural heritage or economic displacement are not expected  as installation works will take place at the existing substation sites. At this stage, no associated facilities have been identified. Due diligence will also review ES risks in the project supply chain and arrangements for the old transformers being replaced. Based on the ESDD, an Environmental and Social Action Plan ESAP will be developed to structure the Client's existing operations and the Project to align with the Bank's Performance Requirements PR's and good industry practice. The Bank will monitor compliance with the PR's by reviewing annual reports prepared by the Client on  environmental and social matters. The Bank will also undertake monitoring site visits, as needed.  The PSD will be updated upon completion of the ESDD.The Project will be supported through the following technical assistance:1. Project Implementation Support. ipreparation of detailed design for works, ii assistance with procurement of the goods, works and services under the Project including development of tender documentation, tenders evaluation and contracting, iii assistance with the establishment of the PIU; iv assistance with the supervision of contracts' implementation and supervision of the works in the role of the contracts' Engineer; and v environmental and social implementation support and assistance with compliance and reporting obligations under the financing documents.  Total cost of the assignment on this Project is estimated to be up to EUR 500,000 and is expected to be financed by an international donor or the SSF.2. Environmental and Social Due Diligence. The cost of the assignment on this Project is estimated to be at  EUR 25,000 and is expected to be funded by international donor or SSF.Mukhammad Kuramayev+996 312 67-03-35www.nesk.kg11 Apr 2024Further information regarding the EBRD's approach to measuring transition impact is available here.For business opportunities or procurement, contact the client company.For business opportunities with EBRD not related to procurement contact:Tel: +44 20 7338 7168Email: projectenquiriesebrd.comFor state-sector projects, visit EBRD Procurement:Tel: +44 20 7338 6794Email: procurementebrd.comSpecific enquiries can be made using the EBRD Enquiries form.The ESP and the associated Performance Requirements PRs set out the ways in which the EBRD implements its commitment to promoting "environmentally sound and sustainable development".  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders' concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project's environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.More information on the EBRD's practices in this regard is set out in the ESP.The EBRD's Office of the Chief Compliance Officer OCCO promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to complianceebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.Specific requests for information can be made using the EBRD Enquiries form.If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful e.g. through the Client's Project-level grievance mechanism or through direct engagement with Bank management, individuals and organisations may seek to address their concerns through the EBRD's Independent Project Accountability Mechanism IPAM.IPAM independently reviews Project issues that are believed to have caused or to be likely to cause harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipamebrd.com to get guidance and more information on IPAM and how to submit a request.

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