Clean Solar Power to Get US$43.3 Million IFC Debt Financing

In line with its policy to support renewables in Kazakhstan, the European Bank for Reconstruction and Development (EBRD) has partnered with the United Nations’ Global Climate Fund (GCF) for the construction of a new 30 MW solar power project at Zhangiz-tobe, located in the country’s eastern region.

During the second BRI forum for international cooperation held at Beijing, EBRD inked a financing agreement with Universal Energy from China, which will be the developer of the project.

The financing package approved by the EBRD includes a local currency loan of up to $11.7 million and a loan of $5 million from the GCF.

A few months back, the bank also announced the financing of a 50 MW solar power project in southern Kazakhstan. The proposed financing package arranged by the EBRD includes a local currency loan of up to $40.4 million in Kazakhstan Tenge and a loan of up to $10 million from the GCF. This project, which will be located in Chulakkurgan, south Kazakhstan, is expected to generate over 102 GWh of electricity per year and will help reduce carbon emissions by 86,000 tons per year.

In December 2018, Mercom had reported about EBRD signing an agreement with Germany’s Joachim Goldbeck Holding GmbH for developing a 100 MW solar power project in Karaganda, Kazakhstan. The local currency loan in that project was to be $51.3 million with another loan worth $22.2 million from the GCF.

The EBRD has invested over $ 8.85 billion in the economy of Kazakhstan alone through 254 projects.

The bank has adopted the Green Economy Transition (GET) approach in countries where it has a presence to build low carbon and resilient economies. Through the GET approach, the EBRD aims to increase green financing to 40% of its annual business volume by 2020.

EBRD financing for private sector projects ranges from $5 million to $250 million, in the form of loans or equity, with the average size being $25 million. Smaller projects are financed through financial intermediaries or through special programmes for smaller direct investments in the less advanced countries, the bank informed.

Recently, the Asian Development Bank (ADB) also signed an $11.5 million loan agreement with Baikonyr Solar LLP for the expansion of solar power in Kazakhstan. The scope of work includes the design, construction, commissioning, operation, and maintenance of a 50 MW solar power project with grid integration. The solar project is expected to generate 73 GWh hours of electricity per year.

 

Soumik is a staff reporter at Mercom India. Prior to joining Mercom, Soumik was a correspondent for UNI, New Delhi covering the Northeast region for seven years. He has also worked as an Asia Correspondent for Washington DC-based Hundred Reporters. He has contributed as a freelancer to several national and international digital publications with a focus on data-based investigative stories on environmental corruption, hydro power projects, energy transition and the circular economy. Soumik is an Economics graduate from Scottish Church College, Calcutta University.