Of the total financing, $13.75m is a concessional credit, while $11.25m is a grant.
The project intends to improve the reliability of the electricity supply in the capital city Bishkek, as well as the Chui and Talas regions and to strengthen the governance of Severlectro’s operations.
Severelectro will implement the project over five years which will improve the reliability of power supply in the company’s service area and make it accountable to customers for the quality of its services.
The project intends to enhance financial viability of Severelectro via reduction of technical and non-technical losses in its service area.
World Bank acting country manager in the Kyrgyz Republic Dinara Djoldosheva said: "The project will: build on the recently completed Power Sector Policy Note by helping implement some of the key recommendations of the Note; the governance reforms that the Government has committed to implement under the development policy operations, including the establishment of a performance monitoring framework; and the ongoing technical assistance provided by the Bank to develop a transparent tariff-setting methodology, which will also help enhance the financial performance of Severelectro."
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