Projects financed by the EDB
Financing Fuel Supplies for the Bishkek CHP Plant
EDB’s project strengthens energy security in the Kyrgyz Republic
The Bishkek CHP is facing many problems. As well as its ageing equipment, the plant is also facing the problem of mounting non-payment of bills by its electricity and heat customers. The cause of all these issues is that its financial resources are severely restricted.
This was EDB’s first project in Kyrgyzstan. As an energy sector investment this project is within the remit of EDB’s priorities, and will enable the bank to expand its operations geographically.
The Bishkek CHP is more than 50 years old. Since its first unit was started in September 1961, the Bishkek CHP plant has produced 106.8 billion kWh of electricity and over 126.6 million Gca of heat.
The plant is one of the country’s strategic facilities. When the Toktogul HPP’s fourth generator broke in the winter of 2013, the Bishkek CHP plant accepted the main load. Its capacity was raised to its maximum in order to keep the Central Asian integrated power system, which covers the Kyrgyz Republic and southern regions of Kazakhstan, in operation.
The plant’s installed capacity is 666 MW of electricity and 1,443.9 Gca of heat per hour, yet only half of this is used. Although there have been no major accidents at the plant, its equipment is obsolete. Only 13 out of 24 boilers are in working order. Power engineers believe that if the plant were to run at full capacity, there would be significantly fewer problems with power supplies in Kyrgyzstan.
However, despite the obsolescence of its equipment, the plant continues to operate every autumn and winter. Without it, the city would have no heat.
In February 2013 EDB and Elektricheskiye Stantsii signed a loan agreement to finance the company’s fuel purchasing for two years of autumn and winter heating.
Elektricheskiye Stantsii is Kyrgyzstan’s largest generating company, accounting for 98% of the electricity produced in the country. The company supplies electricity to domestic and foreign consumers and controls frequency in the Central Asian integrated power system. It manages and operates seven hydro power plants (HPP) and two combined heat and power (CHP) plants: Toktogul, Kurpsai, Tash-Kumyr, Shamaldy-Sai, Uch-Kurgan and At-Bashi HPPs, Kambarata HPP 2, and Bishkek and Osh CHP plants.
Under the agreement, EDB opened a US $30 million loan facility for Elektricheskiye Stantsii for 2.5 years. The funds were to be used to purchase raw materials (coal, fuel oil and natural gas), a significant proportion of which was supplied from Kazakhstan.
The project was important to Kyrgyzstan since the Bishkek CHP plant is the only large power station in the north of the country generating electricity to make up shortages in the winter and dry years, and the only heating facility in Bishkek. The project also envisioned the export of some electricity it generates to Kazakhstan during the summer season.
The project had a significant impact on sustainable development and economic integration. Strengthening the country’s energy security underpinned Kyrgyzstan’s economic growth and contributed to the development of the Central Asian integrated power system. The project also boosted trade between EDB’s member states by over US $50 million a year.