The Asian Development Bank will finance the construction of Almaty CHPP-2

Today in Astana, a Credit Agreement was signed between the Asian Development Bank (ADB) and Almaty Electric Power Plants JSC (AlPP), a company within the structure of the Kazakh electric power holding Samruk-Energo JSC. The document involves financing the project “Modernization of Almaty CHPP-2 with minimizing the impact on the environment,” work on which has now reached the stage of practical implementation.

The event was held with the participation of the Chairman of the Board of Samruk-Kazyna JSC Nurlan Zhakupov, ADB President Masatsugu Asakawa and the Chairman of the Board of Samruk-Energy JSC Serik Tyutebaev. The loan agreement for a total amount of 98 billion tenge was signed by the Chairman of the Board of AlES JSC Erlan Kirkinbaev and the Director of the Department for Private Sector Infrastructure Projects in South, Central and Western Asia of the ADB Shantanu Chakraborty.

For AlES JSC, the owner of Almaty CHPP-2, ADB became the third financial partner with whom a Loan Agreement was concluded as part of the project. Previously, relevant agreements for financing the construction of a new gas station in Almaty on a site next to the old CHPP-2 were concluded with the European Bank for Reconstruction and Development (EBRD) and the Development Bank of Kazakhstan (DBK).

According to the head of AlES Erlan Kirkinbaev, the signing of a loan agreement with the ADB finally resolves all issues related to financing the project. The station will be completely converted to natural gas and will stop using coal as fuel.

The project to modernize and convert Almaty CHPP-2 to gas fuel is being implemented with the support of Samruk-Kazyna Fund JSC. As part of the event to sign a loan agreement between AlES and ADB, a Guarantee Agreement was signed between Samruk-Kazyna JSC and ADB. According to specialists from the Kazakhstan Fund, the signed document helps to minimize risks and improve the terms of lending for the project.

Let us recall that earlier, following the results of a two-stage open international tender in accordance with international standards and rules of the EBRD, a contractor for the construction of a new gas turbine thermal power plant was selected – a consortium of three large Chinese companies specializing in the implementation of energy projects. At the end of May of the current code, AlES JSC concluded an EPC contract with the winner of the competition to perform a full cycle of work – design, supply of equipment, construction, installation and commissioning, commissioning.

In addition to the modernization of Almaty CHPP-2, the portfolio of AlPP projects includes the construction of a gas station with a combined cycle capacity of 545 MW on the territory of Almaty CHPP-3, reconstruction of Almaty CHPP-1 with the construction of a combined cycle plant with a capacity of up to 250 MW. In addition, we have begun developing projects for the modernization of the Kapshagai hydroelectric power station with the construction of a counter-regulator on the Ile River and the reconstruction of the Cascade hydroelectric power station.

The implementation of these projects, along with other measures, will significantly improve the air basin of Almaty and the Almaty agglomeration, ensure sustainable heat and energy supply, as well as economic development of the region. Ultimately, Almaty Electric Stations JSC will become one of the largest energy companies in the country, completely reoriented towards the development of “green energy”.