EBRD supports renewable energy projects in Kazakhstan (Exclusive)

Business Materials 4 April 2018 17:13 (UTC +04:00)

Baku, Azerbaijan, April 4

By Ali Mustafayev – Trend:

European bank for reconstruction and development (EBRD) continues to support renewable energy projects in Kazakhstan, working closely with the government of the country on green energy laws, regulations and other carbon-reduction programs, a source in the bank told Trend.

“One of the latest projects, which Kazakhstan currently works on with EBRD’s support is Kokshetau Water sub-project. The project will be complemented with participation of Kazakhstan’s State Communal Enterprise "Kokshetau Su Arnasy", the municipal water and wastewater utility, owned by the government. The project envisages a senior loan to the company of up to 1.5 billion tenge (4.3 million euro),” Trend was told.

The project is aimed to finance priority capital investments, including the modernization of the Water Treatment Plant ("WTP") and rehabilitation of other infrastructure components with the majority of the investments directed towards improvement of the water quality and water supply security.

The source added that several other large-scale renewable energy projects in Kazakhstan under project finance structure also have been supported by the EBRD.

“The EBRD will provide a loan in local currency, Kazakh tenge, up to an equivalent of $8.8 million, and the Clean Technology Fund will lend up to $3.9 million for the Zadarya solar plant in the South Kazakhstan region, near the city of Shymkent. The solar park project will be implemented by a special purpose company, Kaz Green Tek Solar LLP, incorporated in Kazakhstan and majority owned by Urbasolar,” said the source.

The new Zadarya solar power plant will add 14MW of solar capacity to Kazakhstan’s energy mix, bringing the total amount of existing and planned renewable energy to 365 MW.

Loan agreements and a project support agreement were signed at the 8th Session of the Assembly of IRENA, the international renewables body, in Abu Dhabi on 13 January 2018, according to the source.

To date, the EBRD has invested over $8.7 billion in the economy of Kazakhstan.