Asian Infrastructure Investment Bank Invests $36 Million to Power Kazakhstan’s Green Economy

ASTANA — The Asian Infrastructure Investment Bank (AIIB) finalized a significant $ 36 million loan agreement on Nov. 7 for developing, constructing, and operating the Shokpar 100 MW Wind Power Plant in the Zhambyl Region, the bank’s press service reported. 

AIIB’s involvement in Kazakhstan has been substantial, with investments exceeding $836 million in various projects within the country. Photo credit: AIIB’s press service.

This partnership signifies a collaborative effort between China Power International Holding and Visor International DMCC, further reinforced by co-financing from the European Bank for Reconstruction and Development.

The project is poised to receive significant financial support. It is slated to obtain $10 million in concessional financing from the Green Climate Fund, an entity operating under the United Nations Framework Convention on Climate Change and headquartered in Incheon, South Korea. Additionally, an extra $5.7 million will be allocated from the Clean Technology Fund, a component of the Climate Investment Funds. This fund was established in 2008 at the behest of the G8 and G20 to finance pioneering initiatives in developing countries.

These funds will play a vital role in facilitating the construction and seamless integration of the power plant into the existing power grid.

Building this wind power facility not only marks a significant stride in developing renewable energy in Central Asia but also promises to bolster Kazakhstan’s renewable energy capacity substantially. This step is projected to significantly contribute to reducing greenhouse gas emissions within the region, with the fully operational plant expected to help cut the country’s emissions by over 200,000 tons of carbon dioxide-equivalent annually on average.

The AIIB’s Vice President for Investment Operations Konstantin Limitovskiy, emphasized the institution’s support for Kazakhstan’s shift to a green economy. 

“Our second investment into wind power in Kazakhstan underlines AIIB’s support for the Government of Kazakhstan’s transition to a green economy. This project aligns seamlessly with AIIB’s Energy Sector Strategy and priorities. It will further strengthen Kazakhstan’s renewable energy infrastructure and reduce the carbon intensity of its energy supply,” he said.

The Shokpar 100 MW Wind Power Plant project follows the successful implementation of the 100 MW Zhanatas Wind Power Plant that sits on an adjacent land plot. AIIB approved the Zhanatas project in 2019, and all its 40 turbines have been fully operational since 2021.

The AIIB is a multilateral development institution committed to financing sustainable infrastructure projects. Launched in Beijing in January 2016, the institution has expanded to include 109 approved members globally. With a capitalization of $100 billion and a Triple-A rating from major international credit agencies, AIIB collaborates with partners to meet clients’ infrastructure needs, focusing on green, technology-enabled projects that promote regional connectivity.

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