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The European Bank for Reconstruction and Development (EBRD) launched a new credit line of USD 35 million to stimulate energy conservation and resource efficiency in the Kyrgyz Republic. This investment is an extension of The Kyrgyz Sustainable Energy Financing Facility (KyrSEFF). In addition, donor funding of more than 9.2 million euros is provided by the European Union (EU) Investment Program for Central Asia. The second phase of the program goes beyond energy efficiency, and includes investments in the efficient use of water resources in the housing and business sectors in Kyrgyzstan.
The KyrSEFF program was launched in 2013. Within its framework, significant progress has been made in awareness raising about the various advantages of investments in energy efficiency among representatives of the housing and commercial sectors. By the end of 2016, 600 households, 12 apartment buildings and 60 companies have used KyrSEFF credits and grants of to reduce their energy consumption and, at the same time, obtain more comfortable living conditions.
The total energy savings resulting from the implemented projects is equivalent to the annual energy consumption of 751 families in Kyrgyzstan.
In addition, more than $ 15 million were invested in improving the energy efficiency of commercial and industrial enterprises, resulting in savings of more than 100,000 MWh of energy and a 30,000-ton reduction in carbon dioxide emissions.
The EBRD takes into account Kyrgyzstan’s high vulnerability to climate change. Through the expansion of the KyrSEFF program and the addition of water conservation measures, the EBRD and the EU are adopting a holistic approach in supporting projects for adaptation and enhancing resilience to climate change.
The expanded program will help tourism and hotel sectors in water saving and wastewater treatment. It will also support industrial and commercial companies in integrating energy and water conservation measures, while continuing to provide loans to households, homeowners’ associations and condominiums to maximize energy conservation.
KICB, Bai Tushum and First Microcredit Company are among the first financial institutions that have already joined the new phase of KyrSEFF+. It is expected that in the coming months, other partner banks will join the program.
“Working with financial institutions in Kyrgyzstan to improve the efficiency of energy and natural resource use is one of the priorities of the EBRD. Through our partner organizations, we strive to reach as many enterprises and households as possible that are eager to save energy and / or water resources, reduce costs and improve the quality of life through targeted investments” said Mr. Neil McCain, EBRD Regional Director for Central Asia.
“KyrSEFF II will provide the opportunity to the Kyrgyz Republic to save energy and water resources and increase its resistance to climate change. We are proud to be able to help through the EU-IFCA, which, with the EBRD, has already distributed more than 45 million euros to mobilize major infrastructure projects. We also hope in the future to support the wider use of renewable energy sources, such as small hydroelectric power stations”, said Mr. Jaap Ora, Head of the Political, Press and Information Section of the Delegation of the European Union to Kyrgyzstan.
Green investments of EBRD in more than 1000 projects exceeded 20 billion euros. The reduction in greenhouse gas emissions from these projects is estimated to reach nearly 80 million tons per year, equivalent to the annual emissions of Romania.