Gazprom Kyrgyzstan together with Bai-Tushum Bank and KyrSEFF launch special gasification program
The program comprises a joint credit product that is accompanied by 20% European Union grant. This program provides the opportunity to the residents of Bishkek and settlements of Chui province to get financing to connect their households to gas supply. By the end of 2017 it is expected to supply gas to 17 residential communities of Bishkek, 5 settlements in Chui province– total more than 20 thousand households.
“This joint project targets the people in Kyrgyzstan, who are willing to connect to the gas supply network but at the same time are not able to cover all the costs right away. The special credit product will enable users to connect to gas and purchase a new gas boiler. Therewith, consumer gets the refund of 20% of loan amount in the form of KyrSEFF grant. In addition, in order to make gas connection easier we have completely zeroed the cost of some connection-related works (tie-in, commissioning, design development and approval) and reduced construction and installation costs associated with gas pipes laying”, – says Arzymat Aldayarov, General Director’s Advisor – Commercial Director of Gazprom Kyrgyzstan.
It is necessary to point out that no immovable property collateral is required for a user to borrow loan, and the procedure contemplates a minimum document package: borrower’s passport, documents for the gas equipment purchased, which also serves as collateral, income statement and gas connection estimate: “Bai-Tushum Bank attaches great importance to this special project. Currently, the growing number of new residential communities in Bishkek causes environmental deterioration and increases load on city’s power lines. However, this program enables people to get loans to buy advanced energy efficient equipment, which brings benefits both in terms of power consumption and cost cutting. Advanced technologies are automated, safe and environment-friendly. They enable to easily regulate temperature depending on weather conditions. Therewith, the investments with KyrSEFF incentive grant component get repaid fast as heat energy costs reduce”, – shares Gulnara Shamshieva, General Manager of Bai-Tushum Bank.
Nurzat Abdyrasulova, National Manager of KyrSEFF+, emphasized: “Residential communities surrounding Bishkek face power supply problems. Winter time is especially challenging for people. Gasification of new residential communities will enable to reduce the power consumed and thus decrease the load on the capital’s energy sector as a whole. The key problem for families with average income is the lack of their own funds to ensure heat supply. KyrSEFF investments and grants provide solution for this issue”.
The joint project covers all gasification stages from design development by the specialists of Gazprom Kyrgyzstan LLC to getting funding from Bai-Tushum Bank and supplying gas to residential houses.
Benefits of funding under gasification project:
|Loan amount:||KGS 50,000||KGS 100,000|
|Interest accrued during the year:||KGS 7,904||KGS 15,807|
|Grant amount*:||KGS 10,000||KGS 20,000|
|Client’s benefits:||KGS 2,096||KGS 4,193|
KyrSEFF grant covers 20% of energy efficient activities costs as per financial documents.
Gazprom Kyrgyzstan LLC — 100 percent subsidiary of Gazprom PJSC
Its key activities encompass the delivery and sale of natural gas in the domestic market of the Kyrgyz Republic. The priority areas of Gazprom Kyrgyzstan operation:
- transportation, distribution and sale of natural gas;
- reconstruction and expansion of existing gas supply systems in the Kyrgyz Republic.
Gazprom Kyrgyzstan LLC sees its mission in reliable, efficient and continuous supply of natural gas to consumers, gasification of new communities in the republic, as well as reconstruction and upgrade of gas transportation capacities.
Bai-Tushum has been operating in the financial market since 2000, having commenced its activities in 1997 as an international project under the Food for Progress monetization program, implemented by American NGO ACDI/VOCA and Swiss institution Caritas. Bai-Tushum has confidently covered the dynamic development path from financial fund and microfinance company holding the license entitling to mobilize deposits to a one-stop Bank with full-fledged banking license. During this period the organization became one of the largest financial institutions in the Kyrgyz Republic with the total assets of KGS 7 bn. and the client base exceeding 93,000 clients. The Bank finds itself among the top ten banks in terms of its loan and deposit portfolios, assets and equity. For details please see www.baitushum.kg
KyrSEFF – Kyrgyz Sustainable Energy Financing Facility:
The Kyrgyz Sustainable Energy Financing Facility (KyrSEFF+) is an investment mechanism financing the activities aimed at the domestic and industrial use of advanced equipment, RE to preserve power and water, domestic and industrial waste disposal in Kyrgyzstan. The facility was developed by the European Bank for Reconstruction and Development (EBRD) and maintains the total loan portfolio of USD 55 million. For successful energy efficient activities KyrSEFF+ clients receive grants of 10 to 35% from the European Union’s Investment Fund for Central Asia (ECIFCA). KyrSEFF+ is implemented in the regions across the republic involving local partner banks. For more details please see www.kyrseff.kg