KMG and EDB Sign Cooperation Agreement on Astrakhan – Mangyshlak Water Main Reconstruction Project
On 4 June, JSC NC “KazMunayGas” (KMG), KazTransOil JSC, Magistralny Vodovod LLP and the Eurasian Development Bank (EDB) during the St. Petersburg International Economic Forum signed an cooperation agreement in respect of arrangement of financing for the “Astrakhan – Mangyshlak Water Main Upgrade and Expansion” project (Phase I). Under this agreement, the final terms of possible cooperation within the framework of the project will be further discussed between the parties.
The Astrakhan – Mangyshlak water main is the only centralised source of water supply for consumers in Kurmangazy, Isatay and Zhylyoi districts of Atyrau region, as well as for the town of Zhanaozen and the Beineu, Mangistau, Karakiya and Tupkaragan districts of Mangistau region. In 2020, the water main supplied 28.4 mln m3 of water. According to the 2020 data, the largest consumers are local population (54% of the total volume supplied) and oil and gas companies (39%). The volume of water supply to other industrial companies made up 6%, to agricultural producers – 0.7%, and 0.5% to state-financed organizations.
”The KazMunayGas Group maintains high standards of corporate, social and environmental responsibility, and is committed to ensure that its activities meet the sustainable development philosophy. We understand the importance of supplying water to western regions, thus we have started the project to reconstruct the Astrakhan – Mangyshlak water main. This will increase the water main capacity from 110 thous. m3/day to 170 thous. m3/day,” says Daniyar Berlibayev, Deputy Chairman of KMG’s Management Board.
“All parameters of the project are in line with the bank's mission, so EDB will consider applying all sorts of available instruments to support it. At the same time, the country is developing intensively: the population is increasing, industrialisation is continuing and the need for water is constantly rising. The Astrakhan - Mangyshlak water main reconstruction and expansion will make it possible to solve the emerging problem of water supply to the West Kazakhstan. EDB is ready to work for sustainable development and to be involved in other water-related projects,” stated Nikolay Podguzov, Chairman of EDB’s Management Board.