EBRD increases loan facility to modernise wastewater infrastructure in Kazakhstan

The European Bank for Reconstruction and Development (EBRD) has announced that it will increase its loan facility by another EUR10.3m ($13.4m), to help modernise the wastewater treatment infrastructure in the city of Shymkent, Kazakhstan.

EBRD’s previous financing of EUR13.6m ($17.7m) to the city’s private water utility company Vodnye Resursy Marketing will be increased to EUR23.9m ($31.2m).

The city of Shymkent has a population of 630,000 and is in need of stable wastewater services.

EBRD’s new fund is expected to cover costs for the extension of wastewater services to up to 3,500 new customers living in the city, who are not currently connected to any wastewater network.

European Bank for Reconstruction and Development Kazakhstan director Janet Heckman said, "This project further demonstrates the EBRD’s commitment to regional development and improvement of the local environment."

The wastewater modernisation project was launched in 2010 and EBRD extended the first loan in the same year, to rehabilitate the existing wastewater plant and build a new biogas plant.

EBRD’s new loan will also ensure a stable supply of wastewater to the proposed biogas plant.

The bank, which has been working with the water utility Vodnye Resursy Marketing, in 2009, financed the first deal of modernisation of water supply network in the city.

EBRD has so far invested EUR4.7bn ($6.1bn) in various sectors of Kazakhstan’s economy and mobilised additional investments in excess of EUR7bn ($9.1bn).

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Image: EBRD has increased its loan facility to support modernisation of wastewater infrastructure in Kazakhstan. Photo: Courtesy of Free Digital Photos.