Russian utility KKS secures $14m financial assistance to improve energy efficiency
World Bank group member, International Finance Corporation (IFC) will provide RUB425m ($14m) in assistance to independent Russian utility KKS Group to promote the latter’s energy efficient initiatives.
The initiatives are focused towards space-heating and hot water delivery to customers in the Tula and Kemerovo regions of Russia with the funding expected to help increase efficiency, reduce losses and aid reduction of greenhouse gas emissions and mitigating climate change.
Commenting on the financial package IFC Europe and Central Asia director Tomasz Telma said that the promotion of private sector participation in infrastructure and basic utility services is an important part of the agency's strategy for Russia.
"This project will demonstrate to other private sector players and investors that, with modern rehabilitation technologies, utilities - the sector in which capital needs in Russia are enormous - can be a profitable business, benefitting municipalities, service providers, and their customers," noted Telma.
KKS Spring director Ilya Brodsky added, "IFC's long-term financing will allow KKS to implement a major capital investment program."
IFC's financial assistance includes an equity investment of RUB175m ($6m) and a long-term subordinated loan of RUB 250m ($8m) that will help the company to employ modern technology to upgrade its heating assets.