Original disclosure @ EBRD website
Updated in EWS Dec 9, 2022
Disclosed by Bank Nov 11, 2022
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The provision of a senior loan of up to US$ 50 million (in US$ and/or KZT equivalent) to Shokpar Wind Power Station LLP for the development, construction, and operation of a wind power plant with an installed capacity of 100MW located in Sarysu district of Zhambyl region.
The project will support Kazakhstan in its objective to increase the share of renewable energy in the energy mix, contribute to reducing Kazakhstan's carbon intensity, and address the country's increasing electricity demand.
ETI score: 70
The Transition Impact arises from the Green and Inclusive qualities:
Green - the project entails the addition of 100MW of RES capacity added to Kazakhstan's generation profile.
Inclusive - the project will contribute to Gender inclusion and promote access to employment and entrepreneurship opportunities for women in Kazakhstan's renewables sector.
SHOKPAR WIND POWER STATION LLP
Shokpar Wind Power Station LLP a special purpose entity incorporated in the Republic of Kazakhstan to implement the project, will act as the borrower.
The borrower will be jointly owned by China Power International Holding Ltd. (63 per cent) and Visor International DMCC (37 per cent). China Power International Holding Ltd. is a Chinese state-owned power utility 100 per cent owned by the State Power Investment Corporation Limited. Visor International DMCC is a private investment holding firm founded by a group of Kazakh investment bankers.
EBRD FINANCE SUMMARY
A senior loan of up to US$ 50 million (in US$ and/or KZT equivalent) to Shokpar Wind Power Station LLP. The EBRD financing is anticipated to be accompanied by a CTF and/or GCF loan of up to US$ 10 million, and another IFI/DFI loan of up to US$ 40 million.
TOTAL PROJECT COST
US$ 135.6 million.
The EBRD is providing a long-term loan with a tenor that is scarcely available on the commercial market in Kazakhstan, especially for structured project finance transactions of this nature. Under the current circumstances, long-term local currency financing is not readily available in Kazakhstan. Moreover, the EBRD's good track record in the country provides comfort to the sponsor, enabling its entry into the Kazakh market. The Bank is also additional in terms of requiring adherence to EHS aspects and the EBRD PRs, which are stricter than local requirements. Through the project, the Bank will support policy and regulatory work to promote inclusion opportunities in the renewable energy sector.
ENVIRONMENTAL AND SOCIAL SUMMARY
Categorized B. The project is the extension of Zhanatas Wind Farm (OpID: 50569), the project located in Sarysu district of Zhambyl region, south Kazakhstan. The new Project will add an extra 22 turbines (100 MWe) to the same location in the adjacent land plot owned by the shareholders and will utilize much of the same infrastructure including same Opornaya substation via a 7.6 km 220 kV transmission line. Overall environmental and social issues associated with the extension of the existing wind power plant are site-specific and readily assessed based on Environmental and Social Due Diligence (ESDD) and can be mitigated via Environmental and Social Action Plan (ESAP) implementation and provision of adequate management resources to address identified E&S impacts. The Project is consistent with GET approach and Paris Aligned.
An independent ESDD has been undertaken to review current operations and status of previous ESAP implementation. New environmental and social due diligence included review of proposed site settings and associated environmental and social risks, considering cumulative impacts and associated auxiliary facilities for High Voltage grid connections. Particular focus has been on the site location and sensitivity, notably in terms of birds, bats and flora, which required thorough baseline biodiversity assessment, as well as overall land acquisition and use for the wind turbines and the associated infrastructure (transmission lines and roads). The ESDD also included a social review and review of the Project's supply chain arrangements. The review of current operations and proposed extension confirmed that the WPP site is not located near sensitive receptors and the ESDD confirmed that the Project will have limited impacts on flora and fauna and is not located or would impact a critical habitat.
A review was made also of monitoring data (including post construction avifuana studies) and the ESDD confirmed that the potential risk of collision and/or electrocution impacts from the turbines and power lines are not likely to be very significant as long as mitigation measures for collision and electrocution impacts are incorporated in the project design. These have been included in the Phase 1 and will be included in the extension.
Community and livelihood impacts were also analysed and it has been identified that they are mainly associated with increased traffic during construction and some visual impacts, which are considered negligible. Social, labour and safety aspects during construction and operation, were analysed and number of recommendations were presented to the EPC contractor in order to strengthen its institutional capacity to manage E&S risks during the construction and operational phases and deliver the Project in line with Bank's Performance Requirements (PRs).
TECHNICAL COOPERATION AND GRANT FINANCING
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|China Power International Holding Ltd||Undisclosed||Energy||has unknown relation to||Visor International DMCC||Undisclosed||Finance|
+7 727 355 88 44
+7 727 355 88 33
Republic of Kazakhstan, Zhambyl region, Zhanatas, Sarysy microdistrict 1, 2-4.
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