New programme provides loan subsidies for low-carbon city projects

ASTANA – Kazakh Ministry for Investments and Development and Damu Entrepreneurship Development Fund have launched a programme to support entrepreneurs running investment projects related to energy saving technologies. The mechanism was designed to execute the sustainable low-carbon city development project initiated by United Nations Development Programme (UNDP), Global Ecological Fund (GEF) and the Kazakh government.

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Photo credit: bgc-surface.com

“Subsidies for interest rates on commercial loans and guarantees are provided to small and medium-sized enterprises (SMEs) implementing projects designed to reduce energy consumption in urban areas and, as a result, cut greenhouse gas emissions. Such initiatives not only facilitate business development, but also make a valuable contribution to ensuring environmental safety of the society,” said Damu Fund Deputy Chair Daulet Abilkairov.

“The support programme was also developed to fulfil the 59th step of the 100 Concrete Steps to implement five institutional reforms, specifically to attract investors and develop the market for energy service contracts,” said Nygmetzhan Makazhanov, deputy chair of the ministry’s Industrial Development and Safety Committee.

According to UNDP programme coordinator Viktoriya Baigazina, execution of such green projects requires highly qualified specialists and sufficient resources.

“Attraction of specialists with experience in energy efficient projects as well as adequate resources for proper process management will help reducing energy consumption and curb greenhouse gas emissions, which are key indicators of project implementation,” she said.

The first six projects to cut energy consumption of buildings in Astana and the North Kazakhstan region were approved in the first three months of the year.

One such project entails modernisation and maintenance of the lighting system in Transport Tower, the ministry’s headquarters in Astana, under a private-public partnership (PPP).

Entrepreneurs starting the implementation of low-carbon city projects were awarded with green certificates during the press conference.

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