Electricity Sector Modernization and Sustainability Project in Kyrgyzstan

The Kyrgyz energy sector is characterized by low operational and financial performance, heavy dependency on hydropower and a strong need for reform. The operational sector performance is compromised by low institutional and technical capacities, aged infrastructure with poor reliability and rising system losses due to insufficient investments and poor maintenance and rehabilitation. The financial sector performance is compromised by one of the lowest electricity tariffs in the world, putting a burden on the national budget. The sector is struggling to meet its mandate of service delivery, also affecting economic development of the country.

The project aims to improve the energy sector performance in a multi-dimensional manner, setting the ground for sustainable service delivery and economic development. The institutional performance will be improved through capacity-building at the national and corporate level. The operational performance will be improved through loss reduction methods, modernization and digitalization of the system through advanced metering infrastructure, and commercial information systems. The financial performance will be improved through a tariff trajectory towards cost recovery. The social resilience will be strengthened with social protection systems to protect the vulnerable population who might be negatively impacted by tariff increases.

- Cost recovery tariff trajectory established and implemented over time

- Improvement in supply reliability in the project areas

- Cash collected per kWh of distributed electricity

- Adequate social protection measures adopted and implemented

Principaux résultats attendus:  

Rehabilitation and upgrade of distribution networks:

- Distribution lines upgraded or rehabilitated

- Construction and rehabilitation of transformer substations

- Net greenhouse gas emissions saved

Digitalization of distribution network

- Advanced metering systems installed

- Advanced energy information and management systems installed

Institutional development and project implementation support

- Improved sector governance and strengthened institutional capacity

- Energy sector planning unit established

- Customer satisfaction on energy service provision

- Increase in the share of women employed by participating companies in technical and managerial positions

- Improved financial transparency and discipline