EBRD arranges international financing of Baikonur solar power plant

EBRD arranges international financing of Baikonur solar power plant

EBRD arranges international financing of Baikonur solar power plant

The FINANCIAL -- In the first joint internationally financed project in renewable energy the EBRD is organising a loan together with the Clean Technology Fund (CTF) and the Asian Development Bank (ADB) to fund the construction of a 50 MW solar power plant in Baikonur in central Kazakhstan, a region known as the base for space exploration and a testing ground.

The financial package will consist of two senior secured loans of up to US$ 30,000,000 in Kazakh tenge (KZT) equivalent from the EBRD and up to US$ 10,400,000 in US dollar and euro equivalents (US$ 8,786,000 and €1,312,195) from the Clean Technology Fund. The ADB is providing a loan of up to US$ 12,000,000 in KZT equivalent to co-finance the project, according to EBRD.

To date, the EBRD has been the sole project finance provider for renewable projects in Kazakhstan.

The investment includes the development, construction and operation of a ground-mounted fixed-installed solar photovoltaic power plant with a total capacity of up to 50MWp (megawatt peak) and an associated new substation in the Kyzylorda region of south Kazakhstan. The new plant will lead to the reduction of annual CO2 emissions by 75,000 tonnes.

This is the fifth project approved under the EBRD Kazakhstan Renewables Framework.

The recipient of the loan is Baikonur Solar LLP, a 100 per cent subsidiary of United Green, a privately owned strategic investment group.

To date, the EBRD has invested over US$ 8.7 billion in the economy of Kazakhstan.