ASTANA, Kazakhstan, December 1. The European Bank for Reconstruction and Development (EBRD) will provide a senior loan of up to $45.6 million equivalent (in dollar and tenge) to Borey Wind LLP, a SPV incorporated in Kazakhstan, Trend reports.
According to the EBRD, the loan will be approved on January 10, 2024.
The loan will be used to develop, build, and operate an onshore wind power plant and associated infrastructure, including a transmission line, with a capacity of 100 MW in Kazakhstan's Arshaly district of the Akmola region.
The bank loan will be used to cover the project's previous costs.
According to the EBRD, the project will help Kazakhstan achieve its goal of increasing the share of renewable energy in the energy mix, contribute to lowering Kazakhstan's carbon intensity, and address the country's rising electricity demand.
Borey Energo LLP, a special purpose entity incorporated in the Republic of Kazakhstan to implement the project, will act as the borrower. The Borrower is ultimately owned by China Power International Holding Ltd., a Chinese state-owned power utility.
According to the bank, the total cost of the project is $140 million. The project is expected to be co-financed by another development financial institution.
The European Bank for Reconstruction and Development's (EBRD) current project portfolio in Kazakhstan reaches 2.8 billion euros as of October 31, 2023, based on the implementation of 114 active portfolio projects.
Investments in sustainable infrastructure projects account for 70 percent of the overall portfolio (1.97 billion euros). The industry, commerce, and agribusiness sectors also benefit significantly from EBRD's investments, with projects worth approximately 689 million euros making up around 24 percent of the portfolio.
Furthermore, the EBRD's support for the financial sector of Kazakhstan, with investments in financial institutions comprising 5 percent of the portfolio, amounts to 148 million euros.