A tripartite agreement for implementation of projects on modernization of district heating systems in Pavlodar, Ekibastuz, and Petropavlovsk cities has been signed. The agreement has been concluded between the European Bank for Reconstruction and Development (EBRD), Ministry of National Economy of the Republic of Kazakhstan and "Central-Asian Electric Power Corporation" JSC ("CAEPCO" JSC) under implementation of the "Nurly Zhol" Infrastructure Development Government Program. Total amount of investments into infrastructure of three cities for the period from 2016 to 2020 will be 25.95 billion KZT.

Modernization of housing and utilities infrastructure of Kazakhstan is determined in the "Nurly Zhol" Government Program as one of key tasks of infrastructure development of the country. The signed tripartite agreement is oriented on reconstruction of heat networks to reduce level of wear-out thereof, decrease losses of thermal energy at transportation, completely remove above-standard losses by 2020, and enhance reliability of consumers heating supply.

Funds provided by EBRD consist of two loans amounted to 4.65 billion KZT each for subsidiaries of "CAEPCO" JSC – "Parlodar Heating Networks" LLP and "Petropavlovsk Heating Networks" LLP. These enterprises will also get funds in the amount of 9.3 billion KZT under the "Nurly Zhol" Government Program; for its part, "CAEPCO" JSC provides 7.35 billion KZT for implementation of projects.

Reconstruction of main and distribution heating networks using a preinsulated pipeline, rehabilitation of insulation using urethane-foam pipe covering, installation of automatic heat energy metering system, and construction of block substations will be implemented within the next five years.

It should be noted that in 2011, in order to modernize the district heating system in North Kazakhstan, a project with the total cost of 50 million US$ was implemented: EBRD together with Clean Technology Fund provided "CAEPCO" JSC with the credit facilities in the amount of 40 million US$; participation of "CAEPCO" JSC in the project was amounted to 10 million US$. In the result of implementation of the project from 2011 to 2015, a level of above-standard losses at transportation of heat energy in Pavlodar, Ekibastuz, and Petropavlovsk cities decreased by more than 30%. Therefore, the signed agreement is a continuation of early commenced projects on modernization of heat supply infrastructure implemented both at the expense of funds of international financial organizations and private capital and with raising the instruments of public support.

Participation of state in modernization of facilities of the housing and utilities infrastructure will promote the economic growth of regions and create preconditions for a stable development on a long-term horizon.