Better energy efficiency improves the competitiveness of the company
Investor LLC Smart Logistic
Location Bishkek, Kyrgyzstan
Investment Walls and floor insulation
Financial results Payback of 9 years
Investment amount US$ 466,935
Grant Amount US$ 70,040
397 MWh per year
CO2 reduction 20.58 tonnes per year
|KyrSEFF creates conditions for increasing trade turnover between Kyrgyzstan and countries of near and far abroad. |
Smart Logistiс LLC has been present in the Kyrgyz logistics market for over 11 years. The company owns more than 10,000 m² of warehouse area, which they lease to other companies for the storage of various goods. Due to the increased demand for reliable and safe warehouses in Bishkek, the company’s management decided to expand the warehouse to old Soviet-style buildings, which used to be a confectionery factory. The building needed complete reconstruction to meet high international standards for storage conditions of goods, as well as with regard to energy resources use.
In 2018, the company approached KyrSEFF for a loan and for consultation services. KyrSEFF’s engineers and financial experts analyzed the planned investments, focusing on the energy saving potential, technical and financial parameters, and environmental aspects. The partner bank, KICB, then approved the project plan for the modernisation of the building.
KyrSEFF consultants have estimated that as a result of the $467,000 investment in the renovation project of the old building, the new logistics center will save 452.5 MWh of energy and reduce CO2 emissions by 20.58 tonnes annually. The total energy savings will amount to US$ 9,731 per year.
As a reward for the successful implementation of resource-saving measures, Smart Logistics will receive a grant of US$ 70,040 from the European Union.
“Thanks to the KyrSEFF loan and the related investments, we can provide a full range of third party logistics services: delivery, targeted storage, and warehousing to supply chain management”, said Aliakper Gabibov, CEO of Smart Logistics.
Today, the 8,000 m² warehouse is fully computerized and needs to be serviced by no more than 50 people. The room has 5 sections for storing goods of different sizes, as well as a mezzanine room for the safe storage of pharmaceutical products and small valuable objects. The company has the opportunity to receive goods by railroad tracks, and unload 8 trucks at the same time.
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).