Bishkek, Sept. 5, 2022 / Kabar /. Within the framework of the Modernization and Sustainability of the Electricity Sector project, a grant assistance will be provided to the energy sector of Kyrgyzstan.
The Ministry of Energy said that within the framework of the Modernization and Sustainability of the Electricity Sector project, Kyrgyzstan will receive grant assistance in the amount of USD 25 million through the World Bank.
Along with this ministry is working to attract an additional USD 8 million in the form of a grant from the Swiss State Secretariat for Economics (SECO).
The rest in the amount of USD 25 million is a loan for a period of 38 years, with a minimum rate of 0.75% per annum, as well as a grace period of 6 years from the date of signing the agreement.
In total, USD 58 million will be attracted to the energy sector of Kyrgyzstan. At the same time, by 2060, the return of funds will amount to USD 28 million (USD 3 million interest payment), and USD 30 million in grant funds will be allocated for the development of the industry.
These funds will be used to rehabilitate, modernize and digitalize distribution networks, as well as to strengthen social protection systems.
It is expected that as a result of the implementation of the project, the necessary conditions will be created in the republic for the sustainable development of the energy sector and the implementation of large projects.
At present, the preparation of terms of reference, procurement, as well as domestic procedures for the entry into force of the agreement on financing the specified project are underway.
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