COUNTRY | Kazakhstan
REGION | Asia
SECTOR | other sector (municipal/street lighting)
QII Principles | Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 5 Social Considerations
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Value for money analysis, 2: Operation and maintenance, 2: Technological innovation, 3: Environmental Impact Assessment, 5: Capacity and institutional building, 5: Gender, 6: Procurement transparency, 6: Legal and Regulatory Frameworks, 6: Transparency of infrastructure investment, 6: Enabling Environment
Overview
Cost Pavlodar: EUR 3.75 million / Taraz: EUR 5.7 million).
Size: Pavlodar: 12,000 LED luminaires, 70 control cabinets / Taraz: 14,130 LED, 100 cabinets, 900 poles and 112 km of cable network.
Parties involved (public and private): The cities of Pavlodar and Taraz, respective regional governments and consortium of Everlight Electronics Ltd (Taiwan), LLP A3 Commerce and LLP Altocom Asia (both – Kazakhstan).
Relevant contractual details (type, length etc.): In both cities the Consortium won the PPP tender to modernise and operate the street lighting system (1+5 years).
Context: The Project is one of the first public-private partnership arrangements to attract IFI financing and world class LED manufacture involvement in the country.
Aim(s) of the project is to modernise street lighting systems of Pavlodar and Taraz cities, introduce modern management systems and high environmental standards.
Timeline
The Project was signed on 5 June 2018, with the loan fully disbursed in September and completed by 31 December 2018. From 1 January 2019, the Consortium moved to the Project’s second phase, the five-year operation and maintenance of the street lighting system. The contract is until 2023.
Relevance to QII
Wider economic benefits: These include savings on car accidents in evening/night times and associated healthcare expenditures.
Value for money analysis and Procurement Transparency: This was achieved through competitive tendering as part of the private partner selection process.
Operation and maintenance: The PPP contracts include 5-year O&M by the private party.
Technological innovations are achieved through the replacement of old HPS lamps with LEDs and introduction of modern real-time control systems.
Environmental impact assessments: These have been performed by EBRD in assessing the project environmental and H&S benefits.
Capacity building: Is achieved at two levels: operational at the level of system maintenance through the know-how transfer, and institutional at the level of municipalities and regional governments through the PPP process.
Gender aspect relates to safer environment for women in night/evening times thanks to better lit streets, sidewalks and bus stops.
Legal framework is being improved through the implementation of the PPP projects and necessary amendments to the laws/by-laws to improve investment climate.
Benefits
Not less than 50 per cent reduction of electricity consumption translating in annul tons of CP2 emissions: Pavlodar: 5,220 tons and Taraz: 6,321 tons.
The operational efficiency KPI is set at 95 per cent.
Metrics
Since EBRD provided financing to the private Consortium for these projects, the success is measured and reported through regular reporting on the project implementation and environmental, social and H&S issues.
Name of Institution
European Bank for Reconstruction and Development
Website URL