A contract was signed with the contractor for the construction of Almaty CHPP-2
On May 31, 2023, in Almaty, an agreement was signed with the contractor for the construction of the new Almaty CHPP-2 using gas fuel. An EPC contract implies the implementation of a full cycle of work – design, supply of equipment, construction, installation and commissioning works, commissioning. The new station will be built on the site of an existing thermal power plant, where today coal is used as the main fuel, and fuel oil is used as the starting fuel.
The contractor for the construction of the new gas turbine thermal power plant was a consortium of three large Chinese companies specializing in the implementation of energy projects: Dongfang Electric International Corporation, Powerchina Sepco1 Electric Power Construction Co., Ltd, Powerchina Hebei Electric Power Engineering Co. , Ltd.” The consortium is a union of companies, the first of which is a large manufacturer of industrial equipment, the second has experience in implementing projects under EPC conditions, and the third specializes in design.
This choice was determined by the results of a two-stage open international tender in accordance with international standards and rules of the European Bank for Reconstruction and Development (EBRD) within the framework of the project “Modernization of Almaty CHPP-2 with minimizing the impact on the environment.” Let us remind you that the tender for identifying an EPC contractor was announced in October last year. In January 2023, applications from participants in the 1st stage of the competition (qualification selection) were opened. In total, applications were received from 6 participants. As part of the 2nd stage of the tender, two applications were considered. As a result, according to the rules of the EBRD, the competition is considered valid and the bank at the end of May 2023 confirmed its winner – a consortium of three Chinese companies.
The signing of the EPC contract took place on the territory of Almaty CHPP-2, on the site allocated for the new station. The event was held with the participation of representatives of the Samruk-Kazyna Foundation, Maslikhat of Almaty, the Consulate General of the People’s Republic of China in Almaty, and Samruk-Energy JSC. The contract was signed by the Chairman of the Board of Almaty Electric Stations JSC (AlPP) Erlan Kirkinbaev on the customer’s side, and Mr. Jiang Lixiang, Deputy General Director of the International Marketing Department of Dongfang Electric International Corporation, on the contractor’s side.
According to the modernization project of Almaty CHPP-2, the construction of a gas-turbine CHPP with an electrical capacity of up to 600 MW and a thermal capacity of 957 Gcal/h is provided. The station will include a housing of gas turbine units and a hot water boiler house. The goal of the project is to reduce the negative impact of the station on the environmental situation of the city of Almaty by converting CHPP-2 to burning natural gas. Completion of the project and commissioning of the station is planned for December 2026.
According to experts from Samruk-Energy JSC, after modernization, reconstruction and switching to gas of two Almaty stations – CHPP-2 and CHPP-3, emissions of harmful substances into the city’s atmosphere will be reduced by 92%. The reduction will be achieved through the use of natural gas in efficient gas turbine units that ensure emissions of harmful substances into the atmosphere at the level of European Union requirements. In addition, as a result of replacing the main fuel coal with gas, the formation and disposal of ash and slag waste is eliminated. In place of the existing ash dump, evaporation fields are provided for the disposal of industrial wastewater.
Also, according to specialists from Samruk-Energy JSC, the project is aimed at covering the shortage of the electric power market in the southern zone of Kazakhstan.
In November 2022, a Loan Agreement was concluded between AlES, the owner of the station, and the EBRD to finance the project. In general, financial support for the project will be provided by international and Kazakh financial institutions, which, in addition to the EBRD, include the Asian Development Bank (ADB) and Development Bank of Kazakhstan JSC (DBK). The signing of relevant documents with ADB and DBK is planned for June 2023. Financing is provided under corporate guarantees of the Samruk-Kazyna Fund, which, according to experts, helps to minimize risks and improve lending conditions.