Kazakhstan Improves Quality of Electricity Supply and Develops Competitive Electricity Market


World Bank Continues Supporting Electricity Sector in Kazakhstan

Astana, March 17, 2011 – As part of his official visit to Kazakhstan Mr. Philippe Le Houerou, World Bank Vice President for Europe and Central Asia, visited the Astana 500kV substation, modernized through the Electricity Transmission Rehabilitation Project funded by the World Bank in 1999-2009.

The Electricity Transmission Rehabilitation Project is one of the four successful projects in the history of the World Bank and the Government of Kazakhstan cooperation in the electricity transmission sector. The large upgrade of the Astana 500Kv substation included replacement of obsolete equipment by modern high voltage equipment, relay protection and substation automation systems, metering devices, and installation of Supervisory Control and Data Acquisition/Energy Management Systems (SCADA / EMS) for Akmola Regional Dispatch Center. As a result, quality of electricity supply has improved and the electricity market became more competitive.

Kazakhstan already ranks among the most advanced countries in the Former Soviet Union in the area of power sector reforms,” said Mr. Le Houerou during the site visit. “The country and its national electricity company pursue a very successful reform program. We appreciate the excellent cooperation with KEGOC on four large-scale projects since 1999, and are ready to provide further assistance in support of energy development program in Kazakhstan.”

The Project assisted the government and KEGOC to improve the quality of electricity supply, develop a competitive electricity market, and restructure KEGOC into an efficient grid company. The total cost of the project implemented by KEGOC was US$ 258.4 million, of which the World Bank’s contribution was US$ 140 million, KEGOC’s contribution was US$ 73.4 million, and the European Bank for Reconstruction and Development contribution was US$ 45 million. 

Besides, a large-scale project for construction of a second 500 kV North-South Kazakhstan transmission line with over 1100 km length was implemented during the period 2004-2009. A World Bank loan in the amount of US$ 100 million was attracted under the state guarantee of the Government of Kazakhstan to implement the project.

“KEGOC’s cooperation with the World Bank lasts over 10 years and has passed the test of time. Due to  this partnership, the power industry of Kazakhstan, along with funding, gained access to advanced technologies and management methods. Past experience working together successfully continued in the new projects to develop the national power grid.” - said Sergey Katyshev, Advisor to the Chairman of the Board, Director for Project Management Department of KEGOC.

Upon completion of two large power projects, the World Bank continues to cooperate with the Government of Kazakhstan and KEGOC on projects to transmit power Moinak hydropower and construction of substation "Alma" in order to improve reliability and quality of electricity supply to consumers in southern Kazakhstan in compliance with environmentally responsible and financially sustainable practices. As a result of a series of events in the development of institutional capacity, with the assistance of the World Bank raised the level of technical equipment assets KEGOC and financial stability. 

Following the first electricity project the World Bank continues to partner with the government of Kazakhstan and KEGOC on two other projects – Moinak Electricity Transmission Project and Alma Electricity Transmission Project towards improving the reliability and quality of electricity supply to consumers in southern Kazakhstan in an environmentally responsible and financially sustainable manner. As a result of a series of institutional capacity-building measures introduced with World Bank assistance, KEGOC has become a technically advanced and financially strong company.

The World Bank’s overall mission in Kazakhstan is to help the government in achieving diversified and sustainable economic growth and improving the living standards of population. To date, the Bank has provided 37 loans to Kazakhstan for the total amount of over US$ 5.5 billion.     

In Washington: Elena Karaban (1-202) 453 9277, begin_of_the_skype_highlighting end_of_the_skype_highlightingekaraban@worldbank.org;
In Astana (Almaty) Margarita Grigoryeva +7 (727) 2980-580, mgrigoryeva@worldbank.org

For Broadcast Requests: Natalia Cieslik, (202) 458-9369, ncieslik@worldbank.org

For more information about World Bank activities in Kazakhstan please visit: www.worldbank.org/kazakhstan

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