Baiterek Holding finances construction of hydroelectric power plant

ASTANA – BRK Leasing, a subsidiary of the Development Bank of Kazakhstan (DBK), has begun financing construction of the Turgusun hydroelectric power plant on the Turgusun River in the East Kazakhstan region, reported forbes.kz.

Photo credit: forbes.kz

Photo credit: forbes.kz

The project will cost more than 11.6 billion tenge (US$36.49 million), including 3.6 billion tenge (US$11.33 million) provided by BRK Leasing to purchase and supply equipment for the plant. A second new facility, with a design capacity of 24.9 megawatts, is to be constructed on the river in the Zyryanovsk District.

“Use of renewable resources is the basis of green economy. At the same time, the hydroelectric power plants are currently able to offer the greatest return and efficiency in this area. The construction of hydroelectric power plants is a proven, safe and profitable way to generate energy. At the same time, plants do not have to be giants. Small hydropower stations are able not only to maintain the country’s energy security, but also to become one of the resources for sustainable economic development,” said Rinat Gapparov, deputy chair of the BRK Leasing management board.

The construction benefits of the Turgusun hydroelectric power plant are obvious, including a reduction in the cost of electricity production and 78 million kilowatt-hour deficit reduction in the East Kazakhstan region. The project is expected to create about 300 new jobs during the construction period. After the plant launch, carbon monoxide emissions to the atmosphere in the region are expected to reduce by 680 tonnes per year.

“In general, the implementation of projects in the field of renewable energy sources became possible with the release of the law ‘On supporting the use of renewable energy sources’ adopted within the concept on the country’s transition to a green economy,” said Laura Amreyeva, head of BRK Leasing project management.

“Thanks to the state support measures, private investors have an opportunity to attract debt financing to the production of alternative energy sources. For example, besides our own participation, the investor attracts the leasing and borrowing financing of DBK within this project. Construction of the hydroelectric power plant is scheduled to be completed by 2018,” she added.

As a subsidiary of DBK, BRK Leasing is a member of Baiterek National Management Holding. The company provides leasing financing for investment projects within implementation of the state programmes on industrial, innovative and infrastructure development.