Projects financed by the EDB
Constructing the Nothern Kazakhstan – Aktobe region inter power transmission line
The project connected the western and northern regions of Kazakhstan to the unified power grid
The new power transmission line expands the national grid while also developing the single domestic electricity market.
The importance of the project for Kazakhstan can hardly be overstated. By developing the electric power infrastructure, the project helps to underpin sustainable economic growth in Kazakhstan’s regions and strengthens the country’s energy security.
Until recently, the power grids in Aktobe and other regions in western Kazakhstan were not directly connected to the country’s main power grid. These western regions therefore had no access to northern electricity sources while the Northern Kazakhstan region had a significant reserve generating capacity.
The Northern Kazakhstan–Aktobe inter-regional power line was conceived as a public-private partnership to alleviate the electricity deficit in the west of Kazakhstan and utilise the capacity of power plants in the north. The project involved the expansion of two substations and construction of a 500 km power transmission line through Kostanai and Aktobe Regions.
In November 2008, Eurasian Development Bank signed an agreement to lend US $30.5 million loan to the Batys Transit concession over seven years to implement this investment project. Other parties involved in the project included the Samruk-Kazyna National Wealth Fund and KEGOC, the operator of Kazakhstan’s national grid.
The project also had an integration component as the equipment was supplied by Russia and Ukraine. In addition, the new transmission line increased the generation and supply of electricity from Ekibastuz GRES-2, a project undertaken jointly by Russia and Kazakhstan. The Northern Kazakhstan–Aktobe Region transmission line is now operating successfully on the basis of power purchase agreements.
In summer 2012, EDB expanded its cooperation with Batys Transit, opening a further loan facility of KZT 3.2 billion to support the current project. The funds were intended to connect a major new power consumer to the Northern Kazakhstan–Aktobe Region power transmission line and increase its load. In particular, the loan financed the construction of two single-circuit transmission lines with a capacity of 220 kV and a length of 45 km each from the Ulke substation to the Aktobe Ferroalloys Plant where a new high-carbon ferrochrome shop had been commissioned.