Energy Company’s Mission: Providing Stable and Reliable Energy

OJSC “National Electrical Grid of Kyrgyzstan” (NEGK) plays a crucial role in bringing electrical energy to customers throughout Kyrgyzstan and beyond. NEGK was launched in 2001 to handle Kyrgyzstan’s power transmission when the Kyrgyz government unbundled state-owned energy enterprise Kyrgyzenergo. Today, NEGK owns and operates more than 10,000 km of power-transmission lines of 110 kV and higher, as well as 190 substations with primary voltages of 500, 220 or 110 kV.

Every year NEGK transports around 12 TWh of energy, nearly 10% of which is exported. NEGK brings wholesale electrical energy from all Kyrgyzstan’s hydroelectric power stations to four Kyrgyz Distribution Energy Companies (DEC) and 68 Large Industrial Consumers (LIC) as well as to neighbouring Kazakhstan, Uzbekistan and Tajikistan.

Medetbek Aitkulov, General Director (CEO), says, “We do not set electricity rates; this is the responsibility of the Ministry of Energy and Industry. Our task is not to generate profits but rather to meet the government’s objectives for the energy field. Our job is to provide stable and reliable energy throughout Kyrgyzstan.” He adds that NEGK is currently focusing on upgrading the country’s energy infrastructure, most of which was installed 30 to 40 years ago and cannot handle Kyrgyzstan’s current needs.

The Asian Development Bank recently provided €41.22 million (US$55 million) to NEGK for upgrading lines and substations, and NEGK has launched a bidding process for partners to complete the project. NEGK has also received support from China to build a second 500 KW power line connecting northern and southern Kyrgyzstan to help relieve the power outages that have plagued the country in the past.

NEGK welcomes the chance to work with European partners as it drives forward its modernisation programmes. Medetbek Aitkulov says, “We would be very grateful to have the support of European banks and investors. We have already successfully completed projects with European organisations, including the EBRD, and we have demonstrated that NEGK is a reliable partner. NEGK is a transparent company which is audited four times every year by external auditors.”

Although it is 93% government-owned, NEGK is operated as an open joint-stock company with a rapid decision-making process. Medetbek Aitkulov points out, “I can make financial decisions for up to 10% of the company’s total funds and the Board of Directors can do this for up to 20%. We recently signed a €291.36 million (US$389 million) agreement with Chinese company TBEA.” He adds that NEGK is involved in the regional CASA-1000 energy project, which represents outstanding opportunities for investors looking to get involved in Central Asia’s rapidly developing energy sector.