August 30 (Solar) – The European Bank for Reconstruction and Development (EBRD) is considering extending loans for two solar power plants in Kazakhstan — a 100-MW project in Zhambyl, and a 100-MWp scheme in Karaganda.
For the first project, the bank is to extend a senior loan of up to EUR 50 million (USD 58.4m). The special purpose entity to act as the borrower is M-KAT Green LLP, a 75/25 joint venture between French renewables developer Total Eren and Access Infra Central Asia Ltd of the UAE. This will be their second solar investment in the Kazakh market, following the 30-MW Nomad Solar scheme.
M-KAT’s solar park is to be built in the electricity-constrained southern part of Kazakhstan and will thus help reduce dependence on electricity import from other regions, most of which from coal power plants. Transmission losses will also be reduced, the EBRD said.
The other solar loan, of up to USD 52.7 million equivalent in KZT, is for a project of SES Saran LLP, another special purpose vehicle (SPV) in Kazakhstan, owned by German sector company SOLARNET Investment GmbH.
The table summarises the information provided by the EBRD on the two project loans.
|Project capacity||100 MW||100 MWp|
|SPV (owners)||M-KAT Green LLP
|SES Saran LLP
|EBRD financing||KZT 20.12 million||USD 52.7 million|
on August 29
|Concept Reviewed||Passed Concept Review,
Pending Structure Review
|Total project cost||KZT 45.84 million||USD 105.3 million|
“The [M-KAT] Project is expected to have a demonstration effect with a potential to pave the way for an increase in volume of foreign investment in the renewables sector of Kazakhstan. Furthermore, the Project will demonstrate the viability of project finance structures that are still scarce in the Kazakh market,” the bank noted.
(EUR 1 = USD 1.17)