EBRD Provides KZT 102 Billion Loan to Upgrade Almaty Urban Power Grid

en.Wedoany.com Reported - On September 7, the European Bank for Reconstruction and Development (EBRD) announced it will provide a long-term loan of up to KZT 102 billion (approximately EUR 194 million) to Kazakhstan's Alatau Zharyk Company (AZhC) to implement a project modernizing power transmission and distribution infrastructure in the city of Almaty and Almaty Region. AZhC, a wholly owned subsidiary of Samruk-Energy, currently supplies electricity to approximately 4 million people and 50,000 commercial users in Almaty and surrounding areas.

The funds will be channeled into AZhC's long-term grid investment program, covering the procurement of automated metering equipment, remote control and remote monitoring devices, as well as the upgrade of low-voltage and medium-voltage transmission and distribution facilities. The project will also involve the installation of smart meters at substations, piloting of smart grid technologies, and the development of related grid digitalization and cybersecurity systems. The scope of the project previously approved by the EBRD covers the construction and modernization of 35–110 kV distribution lines and substations, as well as the reconstruction of 0.4–10 kV low-voltage distribution networks.

The works procurement plan is further divided into multiple construction packages. One batch of works includes the construction of new 110/10 kV substations and corresponding 110 kV and 220 kV line connections; another batch covers the reconstruction of existing substations, the construction of new 110 kV transmission lines and related substation facilities; additionally, overloaded 6–10 kV cable lines that have reached their standard service life will be reconstructed, and 10/6–0.4 kV distribution networks will be upgraded. The project will also procure engineering supervision services separately.

According to EBRD project documents, this financing corresponds to AZhC's 2026–2028 investment program. The project was approved by the EBRD on July 22, 2026. The loan ceiling in the earlier project approval documents was KZT 105 billion, while the latest financing announcement on September 7 sets the loan amount at up to KZT 102 billion, equivalent to approximately EUR 194 million.

The project also includes power supply infrastructure related to the new Alatau city, with plans to reconstruct the Zhetygen substation and associated 110 kV transmission lines. This portion of the works is included in the Almaty regional grid investment program to provide additional power connection capacity for the Alatau urban development area.

The physical wear and tear rate of AZhC's existing power infrastructure is approximately 84%. According to EBRD project estimates, the current round of upgrades is expected to reduce electricity losses by approximately 22 GWh per year and cut CO2 emissions by approximately 12,000 tonnes annually. The project has now entered the approval and financing implementation stage, with subsequent works to proceed under procurement packages covering substations, transmission lines, distribution networks, smart metering, and technical supervision.