|Investor LLC “Supara Ethnographic Complex” |
Location Chunkurchak, Kyrgyzstan Investment Installation of a water treatment plant
Financial results: Payback period of 10 years
Investment amount US$ 100,000
Grant Amount US$ 15,000
CO2 reduction 0.17 tons/year Water Saving 20,016 m3/year
| Water is the natural wealth of Kyrgyzstan, which has to be preserved. The Kyrgyzstan Sustainable Energy Financing Facility (KyrSEFF) provides funding for water-saving measures, thus enabling small and medium-sized businesses in Kyrgyzstan to protect the country’s water resources. |
The “Supara” ethnographic complex is a hotel complex located 40 kilometers outside of Bishkek and surrounded by the beautiful mountains of Chunkurchak. This project reflects the cultural traditions of the Kyrgyz people and the life of their ancestors. Only natural materials such as stone, clay, straw, and leather were used for the construction of the hotel suites. In this sense, the project fits into the “ecotourism” movement; therefore, the responsible use of energy resources and water is also an important component of the “Supara” brand.
In September 2019, the hotel, which serves up to 450-500 guests all year round, replaced its wastewater treatment plant thanks to a KyrSEFF loan.
“We were not satisfied with the quality of the previous wastewater treatment plant. It did not provide for optimal water quality at the outlet”, said Belek Mambetov, the Financial Director of “Supara”. “We analyzed the water quality ourselves and found out that it did not meet the state standard. So we decided to replace the plant with a new one, made in Hungary, corresponding to high European quality standards”, he added. The KyrSEFF team reviewed the project and technology selected by the client, assessing potential energy savings, as well as financial and technical parameters and risks. The investment of US$ 100,000 allows “Supara” to save US$ 12,524 in water savings annually, which corresponds to a payback period of 10 years.
The new equipment, thanks to a two-stage anaerobic wastewater treatment technology, achieves 95% water purity at the outlet, making it suitable for irrigation. Thus, “Supara” will reduce the consumption of clean water for irrigation by 30%, which amounts to more than 20,000 cubic meters per year.
“Our guests, both local and foreign, do pay attention to the environmental aspect of their stay at “Supara” because the complex is located in such a beautiful place. It is important for all of us to keep the surrounding nature clean”, said Mambetov. The successful implementation of the project to improve resource efficiency has allowed “Supara” to receive an additional grant from the European Union, amounting to 15% of the loan.
The Kyrgyzstan Sustainable Energy Financing Facility (KyrSEFF) was developed by the European Bank for Reconstruction and Development (EBRD) and established in 2013, with a total portfolio of US$ 55 million. To reward the successful implementation of energy-saving measures through KyrSEFF, beneficiaries receive grants ranging from 10 to 35% from the total investment, and free technical support financed by the European Union (EC-IFCA).
At Kelechek, both the product and the production process are energy efficient
Improves energy efficiency at a production company with KyrSEFF’s support
|Investor Kelechek LLC |
Location Bostery, Kyrgyzstan Investment New modern production line
Investment amount US$ 224,295
Grant Amount US$ 22,429
Energy Saving 315.7 MWh per year
CO2 reduction 16.3 tonnes per year
| Kelechek LLC, based in the village of Bostery, Issyk-Kul region in Kyrgyzstan, has been operating on the Kyrgyz construction market for more than 20 years. The company mainly specializes in producing PVC windows and doors and installing automated heating systems in apartment buildings. According to Taalaybek Joldoshev, director of Kelechek LLC, the volume of orders for windows in the region is small and seasonal – mainly in spring and summer. To expand its market share, in 2018 the company decided to open a branch in Bishkek. |
The company applied to KyrSEFF for a funding amount of US$ 224,295. With these funds, the company purchased a new automated and energy efficient PVC window and door production line from a manufacturing plant in Turkey. In January 2019, the installation of the new production line was completed.
Thanks to the funding, the company increased its production capacity from 15m² to 300m² of windows and from 5m² to 100m² of PVC doors per day of better quality. As the profits of Kelechek LLC increased, an additional 25 jobs were created in the company.
According to the KyrSEFF team’s calculations, the implementation of the project will reduce the energy consumption of the facility by 34% or 315.7 MWh per year while increasing production efficiency, and reduce harmful CO2 emissions by 16.3 tonnes per year.
For the successful implementation of the energy efficiency project, Kelechek LLC was awarded a US$ 22,429 grant, representing 10% of the loan amount.
The Kyrgyzstan Sustainable Energy Financing Facility (KyrSEFF) was developed by the European Bank for Reconstruction and Development (EBRD) and established in 2013, with a total portfolio of US$ 55 million. To reward the successful implementation of energy saving measures through KyrSEFF, beneficiaries receive grants ranging from 10 to 35% from the total investment, and free technical support financed by the European Union (EC-IFCA).
Minimizing negative impacts on the quality of water, soil and air is one of the core tasks of a sustainable business. “Ak-Tilek”, a small resort located in the Sokuluk district, used the opportunities provided by the KyrSEFF program to install a wastewater treatment facility.
The Ak-Tilek resort is located in the picturesque Belogorka gorge on the shores of the Shabai River in the Sokuluk district. It is a popular destination not only among those admiring the beauty of nature but those interested in improving their health by drinking kumys. The clean air and mountains are also perfect conditions for sportsmen to practice.
Dozens of villages are located downstream from the resort. Their citizens use the river water for daily needs, and that is why the installation of a treatment facility was not only an issue of environmental protection but also one of people’s access to drinking water.
At the end of 2017, the resort used a KyrSEFF loan to invest USD 19,000 in a modern wastewater treatment facility. Scaled for up to 75 people, the plant provides sewage treatment meeting the established sanitary norms and regulations, which allow the water to be dispersed into the local terrain or to be used for irrigation of gardens and fields.
“I love my country and cherish its beauty. Three years ago, when we started our business in this territory, we considered the installation of a modern wastewater treatment facility. Indeed, polluting the crystal clear river water, used both by us and people living downriver, is not only irresponsible but can also be considered as an “environmental sin,” – says Omor Dzhumanazarov, the resort owner.
The process of wastewater treatment includes several consecutive stages of mechanical and biological treatment. Sewage is first pumped into a tank for mechanical treatment where insoluble and large particles are ground.
After that, the wastewater undergoes a biological treatment stage, which is based on microorganisms that feed on certain pollutants. Purified water is then diverted to the ground through a drainage system with an area of 120 sq. m. If necessary, it can be pumped into a plastic tank and be used later for watering.
The Asia Water Build Company installed the system in only one month.
“Of course we could have installed a lower-cost treatment facility, but treatment efficiency would have been much worse. We did not set a goal for the system to pay off its value, and that is why we turned to a company that ensures almost 100% assurances. The system treats 94% of the polluted water, the remaining 6% is purified naturally by the drainage system,” – shares Omor Dzhumanazarov.
The resort is actively preparing for the upcoming tourist season. Apart from the installation of the wastewater treatment facility also installed energy-efficient LED lighting in the buildings, adding an energy-saving component to their project.
For the successful implementation of the project, Ak-Tilek resort received a US $2,856 cash-back grant, funded by the European Union. As a result of the investment, Ak-Tilek resort will benefit from annual water savings of 5,832 m3, energy savings of 29.4 MWt-h, and 1.3 tons CO2 emission reductions.
In 2017, the Kyrgyz Sustainable Energy Financing Facility and the Small Business Advisory Program of the European Bank for Reconstruction and Development funded the first energy-efficient apartment building project – Nurlan LLC – where renewable energy equipment was introduced.
How it all started
Nurlan company is engaged in the construction of apartment buildings in the capital city of Kyrgyzstan. In one of the districts of Bishkek (Solnechny), Nurlan LLC is working on the construction of five nine-storey buildings, four of which have been put into operation.
Due to problems related to the connection of the houses to the central heating network, they were equipped with electric heating systems. However, this fact caused a lot of inconvenience to the apartment owners due to high costs and periodic power supply failures. Therefore, it was decided to build the 5th building differently and to introduce alternative energy sources in it.
Investment and consulting support by the EBRD
One of the priorities of the EBRD is to promote the use of green technologies in Kyrgyzstan, which can make a significant contribution to the development of a green economy. To accomplish this task, EBRD has successfully implemented the Kyrgyz Sustainable Energy Financing Facility and a small business consultancy program, with the support of which hundreds of successful energy-efficient practices have already been implemented.
The innovative project of Nurlan LLC was supported by two EBRD programs. Thus, within KyrSEFF investment support of US $57,882 was provided to install RES equipment and a grant from the European Union of US $14,469 will be awarded. The small business consultancy program allocated 8,741 euros in grants to attract a consultant to the company NurSun Energy LLC, and that amount is 75% of the net cost of the consulting project.
Quality European equipment
The new system, solar collector and heat pump, is fully automated and can be remotely controlled via the Internet. The automatic control system constantly reads data from temperature sensors and provides the house with hot water and heat. The percentage of energy savings due to the use of solar systems will be 70-80% for domestic hot water supply and 30-40% for heating. The system will produce up to 2000 liters of hot water a day. The company will be engaged in maintenance and will be responsible for coordinating the meters in the house, invoicing hot water, heating, and electricity and collecting money for utilities.
Erkin Saitov, General Director of Nurlan LLC:
“According to our calculations, the implemented energy-saving measures will allow our residents to pay 20% less for the energy they use than they would pay the Bishkek CHP. I would like the program developers to consider in the future the possibility of subsidizing the purchase of renewable energy equipment of European quality, which would be of serious help for entrepreneurs in Kyrgyzstan”.
Nurlan LLC is bringing innovations through energy-efficient construction in Kyrgyzstan. Thanks to this project, Kyrgyz citizens will be able to learn about the advantages of living in an apartment building built in accordance with international standards, using solar and air energy.
Such houses will be competitive in the housing market. High-quality European equipment provides significant resource-saving, and, importantly, meets the requirements of the KyrSEFF program. According to the consultants of the KyrSEFF program, the measures implemented will result in an annual savings of 110 MWh / yr and CO2 reduction of 5.69 tons.
This project is an example of a subsequent introduction of changes and amendments to the building regulations, namely the heating and hot water supply for apartment buildings. Subsequently, this should lead to an increase in the use of such technologies.