The EDB to finance Almaty CHP-3 conversion from coal to gas
Astana, 30 November 2023. The Eurasian Development Bank (EDB) will finance the reconstruction of Almaty Combined Heat and Power Plant 3 (Almaty CHP-3) from a coal-fired facility to one fuelled by natural gas. The Bank and Almaty Power Plants JSC (ALES) signed the relevant agreement today.
The project to reconstruct Almaty CHP-3 is implemented by Samruk-Energy (the parent organisation of ALES) and is set to comprehensively upgrade the facility, enhancing its capacity and flexibility through the installation of a 500 MW combined-cycle unit. The modernised plant will generate both heat and electricity.
To secure funding, ALES will issue sustainability-linked bonds on the Astana International Financial Centre’s Exchange. ALES’s inaugural sustainability-related bond programme, valued at up to KZT 236.8 billion, was registered in September 2023, with Sky Bridge Invest serving as the underwriter. This programme is the largest issue of sustainability-linked bonds in Central Asia.
“The EDB focuses on projects such as the reconstruction of Almaty CHP-3, and we underline several important aspects in this context. Firstly, it involves replacing outdated coal-fired boilers that have surpassed their operational lifespan with state-of-the-art, environmentally friendly combined-cycle units fuelled by natural gas. This shift is expected to significantly improve the environmental situation in Kazakhstan’s largest city and is fully aligned with the Bank’s sustainability principles. Secondly, as part of our major investment mega-project to develop the water and energy complex in Central Asia, the EDB actively supports countries in promoting energy security by providing financing and grants for pre-project activities. Lastly, we actively contribute to forging new mechanisms for capital mobilisation and are pleased to participate in the issuance of sustainability-linked bonds,” said Ruslan Dalenov, Vice Chairman of the EDB Management Board.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 17 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
Almaty Power Plants JCS (ALES) is a power-generating entity, supplying heat and electricity to Almaty and the Almaty Region. It is part of the Samruk-Energy Holding Company. ALES provides electricity and heat to approximately 70% of consumers within the Almaty Region. The company encompasses combined heat and power plants (CHP-1, CHP-2, and CHP-3), the Western Heat Complex, the Kapshagay HPP, the Cascade of Almaty HPPs, Energoremont, and the Fuel Handling Centre.
Samruk-Energy JSC is Kazakhstan’s largest electric power holding company, primarily engaged in electricity and heat generation, electricity transmission, distribution and sales, and coal mining for power plants. The holding company comprises power and coal enterprises, including Ekibastuz GRES-1 and GRES-2, Bogatyr Komir, Almaty Power Plants, Moinak HPP, and Shardara HPP, among other assets. The company was established in 2007, with 100% of its shares owned by Samruk-Kazyna.
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