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Kazakhstan's entrepreneurship dev't fund, UNDP to promote RES projects in country

Business Materials 7 July 2020 14:10
Kazakhstan's entrepreneurship dev't fund, UNDP to promote RES projects in country

BAKU, Azerbaijan, Jul. 7

By Nargiz Sadikhova - Trend:

Kazakhstan’s Damu Entrepreneurship Development Fund JSC and the United Nations Development Program (UNDP) in Kazakhstan agreed on development and promotion of renewable energy sources (RES) projects, Trend reports with reference to the Damu’s parent organization - Baiterek National Management Holding JSC.

For this purpose, the parties have signed a new agreement under the 'Reducing the risks of investing in renewable energy projects’ joint initiative being implemented in the country.

The agreement oversees that business entities will be provided with financial support for the implementation of renewable energy projects by applying the following financial mechanisms: 10 percent subsidy by the UNDP project for loan interest rates; UNDP project subsidizing of part of the main loan up to 25 percent; and the issuance of green bonds by the Fund in order to finance renewable energy projects.

The report said that in order to implement one of the above mechanisms, the Damu Fund is currently considering the possibility of issuing green bonds on the stock exchange of the Astana International Financial Center.

The Damu Fund Chairman of the Board Gaukhar Buribaeva expressed hope that successful cooperation with UNDP will give a new impetus to efforts aimed at stimulating investment in renewable energy projects among SMEs.

The joint initiative of UNDP and the Damu Fund will contribute to the fulfillment by Kazakhstan of its commitments under the Paris Agreement, as well as the achievement of sustainable development goals.

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