ASTANA — The Eurasian Development Bank (EDB), acting as the lead financial institution, and Eurasian Bank have provided $180 million in long-term debt financing to modernize and expand the Ust-Kamenogorsk Combined Heat and Power Plant (CHPP), part of the Kazakhstan Utility Systems Group.
Photo credit: EDB
The EDB also provided grant financing to support the preparation of the project’s design and cost estimate documentation, the bank’s press service reported on Feb. 13.
As part of the joint financing, the EDB and Eurasian Bank have each opened $90 million in long-term loan facilities. The Eurasian Bank loan is secured by an EDB payment guarantee, enabling the mobilization of long-term financing with a tenor suitable for the project’s implementation.
“Energy is one of the bank’s investment priorities, and we are pleased that this cooperation will contribute to the modernization of energy infrastructure in the East Kazakhstan Region, while supporting regional development,” said Ruslan Dalenov, EDB deputy chairman.
The modernization and expansion of Ust-Kamenogorsk CHPP will increase its electric capacity by 100 megawatt (MW) and thermal capacity by 130 gigacalories per hour (Gcal/h), addressing the electricity shortage and providing heat to over 300 apartment buildings and social facilities. The project is part of Kazakhstan’s National Project for Modernization of the Energy and Utilities Sectors and carries significant social importance.
Lyazzat Satiyeva, CEO of Eurasian Bank, said the project will ensure reliable heat and electricity supplies for Ust-Kamenogorsk residents and improve the region’s environmental situation.
“Through our partnership with the EDB, we joined a major infrastructure project backed by long-term financing and robust credit risk mitigation. This cooperation strengthens our expertise in financing capital-intensive sectors and contributes to an initiative with significant social impact,” she added.
The new power unit will be equipped with modern energy and environmental systems fully compliant with Kazakhstan’s Environmental Code. Advanced dust filtration and lower nitrogen, sulphur and carbon oxide emissions are expected to significantly reduce the plant’s environmental impact.
“Kazakhstan Utility Systems consistently invests in modernizing its heat and power facilities to strengthen energy reliability and ensure long-term regional sustainability. We highly appreciate the EDB’s role in structuring the financing and enhancing the investment appeal of our projects,” said General Director of Kazakhstan Utility Systems Sabyrgali Idrissov.
