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AsiaElec COMMENTARY AsiaElec

EBRD, Chinese funding pushes

Kazakh wind farm forward

The EBRD is to provide $24.8mn in project financing for Kazkahstan’s
Zhanatas wind project, while China is to lend $47.7mn

KAZKAHSTAN THE European Bank for Reconstruction and (AIIB) in Central Asia, the first renewable pro-
Development (EBRD) is to provide $24.8mn ject in the country co-financed by a commercial
WHAT: in project financing for Kazakhstan’s 100-MW bank and the first Kazakh wind farm under
Kazakhstan is to build its Zhanatas wind project, the largest yet to be pro- a project finance structure. It is also CPI’s first
largest wind farm to date posed for the Central Asian country. major project in the country
The bank said that the cash, which forms part The current funding deal comes as the
WHY: of a $95.3mn Chinese-led syndicated loan for Kazakh government has extended deadlines for
The country aims to the wind project, will boost the decarbonisation the completion of all renewable projects because
meet its emissions of the country’s coal-reliant economy and help of the coronavirus (COVID-19) crisis.
commitments diversify power generation by building one of The EBRD said that the Zhanatas project sent
the largest wind farms in the region. a strong message to the international energy
WHAT NEXT: The funding package involves $34.4mn community that it is possible to continue press-
The country is pursuing a from the Chinese-backed AIIB, a $13.3mn loan ing on with the green agenda, despite immense
paradigm shift away from from the Industrial and Commercial Bank of global challenges.
coal towards renewables China (ICBC), and a concessional loan of up to The Zhanatas project will reduce the coun-
$22.9mn from the UN-backed Green Climate try’s annual CO2 emissions by approximately
Fund (GCF). 262,000 tonnes, the EBRD said.
The wind farm will be built by China Power Kazakhstan wants to reduce its carbon emis-
International Holding (CPIH) and Visor Invest- sions by 15% by 2020 and up to 30% by 2050 in
ments Coöperatief, a Kazakh private investment order to meet its Kyoto Protocol commitments.
holding company. It also aims to generate 10% of its electricity from
As well as the wind farm, work includes an renewable sources by 2030 and 50% by 2050.
8.6-km 110-kV single-circuit line connecting the The announcement comes as another
facility to the national grid. multilateral development bank, the Asian
The project represents a number of firsts Development Bank (ADB), issued its first
for Kazakhstan. It is the first renewable project tenge-denominated green bond on the Kazakh-
for the Asian Infrastructure Investment Bank stan stock exchange.

P4 www. NEWSBASE .com Week 46 18•November•2020