The European Bank for Reconstruction and Development (EBRD) along with Clean Technology Fund (CTF) and the Asian Development Bank (ADB) is providing an international financing to Baikonur Solar for the construction of a solar power plant in central Kazakhstan.
The 50MW plant in Baikonur will be the first joint international renewable project in Kazakhstan for EBRD.
The financial package will comprise of two senior secured loans of up to $30m from the EBRD and up to $10.4m from the Clean Technology Fund. ADB is also providing up to $12m to co-finance the project.
The investment will be used for the development, construction and operation of the ground-mounted fixed-installed solar photovoltaic power plant in addition to an associated new substation in the Kyzylorda region of south Kazakhstan.
To date, the EBRD is said to have been the sole project finance provider for renewable projects in the country. The project is the fifth one approved under the EBRD Kazakhstan Renewables Framework.
Upon completion, the solar power plant is expected to reduce carbon emissions by 75,000 tonnes in the region.
Baikonur Solar is a wholly-owned subsidiary of strategic investment group United Green.
Last month, the EBRD and the Green Climate Fund (GCF) agreed to provide $88m financing package to state-owned power utility Barki Tojik for upgrading the Qairokkum hydropower plant and improve electricity supply in Tajikistan.
The $88m financing package includes a $38m EBRD loan, a $27m GCF loan and a $23m GCF grant.
Renewable energy development is one of Kazakhstan’s priorities.