As stated by the AIIB, the project development objective is to support Kazakhstan's energy transition by expanding wind power generation capacity and installing battery energy storage systems.

The Project involves the design, financing, construction, operation, and maintenance of 1GW wind power plant (WPP) and 300MW / 600MWh battery energy storage system (BESS) as well as an overhead transmission line (OHTL) with a total length of approximately 300km in the Jambyl region of the Republic of Kazakhstan.

During COP29, Qazaq Wind Power LLP (the Project Company) entered into two key agreements related to the Project: an Investment Agreement with the Government of the Republic of Kazakhstan (GoK), represented by the Ministry of Energy, and a Power Purchase Agreement (PPA) with Financial Settlement Center for Renewable Energy Sources Support LLP (FSC or Offtaker).

The Project Company will sell electricity exclusively to the FSC under the PPA. The tariff is denominated in USD, but payable in Kazakhstani Tenge (KZT) based on the Exchange Rate as the date of payment. The BESS is designed to maintain the capacity level over the operating period. The overhead transmission lines will be transferred to the GoK after Scheduled Commercial Operation Date (SCOD).

The Borrower Ownership Group includes Abu Dhabi Future Energy Company PJSC - Masdar, W Solar Investment LLC, Qazaq Green Power PLC and Kazakhstan Investment Development Fund Management Company LTD (KIDF).

The AIIB reported the following information related to the project E&S assessment:

Applicable Policy and Categorization.
AIIB's Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and the Environmental and Social Standards (ESSs), apply to the Project. ESS 1 (Environmental and Social Assessment and Management) and ESS 2 (Land Acquisition and Involuntary Resettlement) apply to the Project but ESS 3 (Indigenous Peoples) is not relevant, as no indigenous people are present in the country as per ESS 3 definition. The environmental and social (ES) risk of the Project is classified as Category A. This is due to the sensitivity to biodiversity, specifically risks related to birds, proximity to cultural heritage sites and complexity of components, which may arise to a diverse range of notable ES impacts. From a social perspective, the Project involves multiple infrastructure components, including wind power facilities, OHTLs, and BESS components. These are associated with land acquisition for the wind power plant (WPP) without any pshysicla displacement and temporary land use restrictions during the construction phase, potential livelihood impacts, labor and supply chain considerations, and complex stakeholder engagement requirements. While these impacts are largely site-specific and manageable, their scale, interaction across components, and sensitivity of receptors warrant a Category A classification and the application of enhanced assessment, mitigation, and monitoring measures in line with AIIB's Environmental and Social Framework (ESF).

Environmental Aspects.
The ESIA evaluates the key environmental risks of the Project, including the construction and operation of a 1 GW wind power plant with 140 WTGs, a 300 MW / 600MWh BESS, and two 220 kV OHTLs connecting the WPP to existing Zhambyl and Kentau substations. No associated facilities are planned. Most construction and operational impacts, such as dust, noise, erosion, waste, and pollution, can be managed through standard practices, though some site-specific sensitivities require additional attention. The Project contains Natural Habitats and is located in a region in which resident and migratory bird, bat and terrestrial wildlife are present. Key Project risks include avifaunal collisions disturbance, displacement, habitat loss or degradation. Five biodiversity receptors are classified as Critical Habitat (CH), and 33 are classified as Priority Biodiversity-Values (PBV). Mitigation measures including turbine siting, shutdown on demand to reduce Priority Bird species collisions with operating turbines, OHTL routing/siting and design, bird flight diverters for OHTLs, habitat restoration, and carcass management, have been incorporated to achieve No Net Loss in a Biodiversity Management Plan (BMP). Predicted noise conservative modelling scenario indicates moderate impact to residential settlement of Ushbas and minor to culturally significant but non-residential site, Kamar Aulie, that are both below WHO guidelines. However, exceeding noise disturbance are anticipated for WPP receptors i.e., associated with grazing activities, only during occasional overnight use. Shadow flicker assessment shows that certain areas within the WPP site including grazers' rest/overnight areas may potentially exceed benchmark levels, though cultural and physical integrity is unaffected. The WPP layout considers impacts, and dwellings in Ushbas Village remain within criteria. No turbine shutdowns or design changes are required. In addition, the ESIA concludes that the Project will contribute incrementally to existing ES pressures; however, with the application of embedded mitigation and monitoring measures, cumulative impacts are manageable and remain within acceptable levels. Residual cumulative impacts on key Valued ES Components including avifauna, ecological corridors, landscape and visual character, and traffic are assessed as minor to moderate. These impacts will be managed through the implementation of environmental, health and safety and social management plans during construction and operation.

Social and Gender Aspects.
The Project is located in predominantly rural areas with stable settlements, limited local employment opportunities, and broadly positive community expectations related to improved electricity reliability and job creation. No physical displacement is expected, and social risks are primarily associated with construction-phase disturbances, labor influx, and occupational health and safety. From a social perspective, cumulative impacts are limited and not significant under AIIB ESS2, with no physical displacement and only minor economic impacts affecting a number of land users due to loss or restriction of access to land used for livelihoods (e.g. grazing/agro-postoral use)which is used for wind turbines and associated infrastructure, OHTL towers and temporary land-use restrictions within the right-of-way; all below significance thresholds. With the implementation of the LRP, and ongoing monitoring and engagement, cumulative social impacts are assessed as low and manageable. In addition, a gender screening will be undertaken as part of the ES due diligence (ESDD) to identify opportunities for inclusive employment, gender-responsive stakeholder engagement, and mitigation of labor-related risks, including Sexual Exploitation and Abuse/ Sexual Harassment (SEA/SH) and Gender-Based Violence and Harassment (GBVH), commensurate with the Project's risk profile.

Occupational Health and Safety (OHS), Labor and Working Conditions (LWC).
The Project presents OHS risks primarily during construction, including work at height, lifting and electrical works, installation of wind turbines, transmission lines and BESS, and increased traffic, with more limited OHS risks during operation related to maintenance activities. Community health and safety risks during construction mainly relate to project traffic, site access, and temporary disturbances along transport and transmission corridors. The ESIA assesses these risks and identifies mitigation measures to be implemented through project-specific OHS, Traffic and Transport, and Emergency Preparedness and Response Plans, consistent with national legislation and good international industry practice. LWC risks are mainly associated with the construction workforce and supply chains and include recruitment practices, subcontracting, labor influx, worker accommodation, OHS, and risks of GBVH, SEA and SH. In line with ESS1, the Borrower will implement a LWC Management Plan, including fair recruitment, compliance with applicable labor standards, non-discrimination, workers' grievance mechanisms, and a zero-tolerance approach to GBVH, SEA and SH through Codes of Conduct, training, and contractual requirements for contractors and subcontractors.

The final project cost and the AIIB's contribution amount is yet to be determined at the time of disclosure.

The project sponsors are Abu Dhabi Future Energy Company PJSC - Masdar, W Solar Investment LLC, Qazaq Green Power PLC, and Kazakhstan Investment Development Fund (KIDF) Management Company LTD. These companies jointly own Qazaq Wind Power LLP, the borrower and project implementing entity.

As stated on the company's website, Qazaq Green Power PLC was established on November 4, 2022 to assist in the modernization of existing and construction of new generating capacities, the introduction of new technologies in the energy sector, to improve the efficiency of energy systems, the implementation of investment projects in Kazakhstan, as well as to implement energy-saving policies and ensure the environmental safety of energy facilities. 
Qazaq Green Power PLC is part of Samruk Energy JSC, which was established on April 18, 2007 by resolution of general meeting of founders in order to develop and implement a long-term state policy on upgrading of existing and introduction of new generating facilities. The founders of the Company at the time of its establishment were Kazakhstan Holding for Management of State Assest Samruk JSC and KazTransGaz JSC.

W Solar Investment LLC is a subsidiary of Alpha Dhabi Holding, which according to Bloomberg, operates as a holding company. The Company, through its subsidiaries, focuses on investments in construction, healthcare, hospitality, industrial, and other sectors. Alpha Dhabi Holding serves clients worldwide.

As stated on the company's website, Kazakhstan Investment Development Fund (KIDF) is a State-owned direct investment institution established by the Presidential Decree n. 829 dated January 30, 2019 to attract foreign direct investment into Kazakhstan's non-extractive sectors. 

AIIB Team Leaders:

Igor Popkov - Senior Investment Officer
Email: igor.popkov@aiib.org

Danurachman Krishana - Investment Officer
Email: danurachman.krishana@aiib.org

Client - Qazaq Wind Power LLP (Masdar):

Dias Kamaliyev - Senior Manager, Business Development (CIS)
Email: dkamaliyev@masdar.ae

Cosmin Briciu - Senior Expert, E&S
Email: cbriciu@masdar.ae

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html