Project description
and objectives:
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The proposed project will respond to a wide range of off-shore oilfield operators’ needs, such as fuel & water provision, support base infrastructure and services, crew change facilities, vessel repair & maintenance, involved in the development of the North Caspian Sea. This will be achieved through the construction of the marine support and supply base near the Atash Village on the Eastern coast of Bautino Bay, north of Port Aktau. The initial investments already made by Caspian Services Inc. include land acquisition, preparation of Feasibility Study and EIA etc. The company now seeks the Bank’s financing in the amount of USD 32 million A/B loan and USD 10 million in equity.
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Transition impact:
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Support of private ownership in a government-dominated market will be the project’s main transition impact. Currently there are no independent infrastructure operators at the Caspian shore that can provide support to the activities in both Kazakh and Russian sectors. The Project will also contribute to the structure and extent of markets. The Project’s far-flung impact is expected to lead to further market expansion of the supply and support services. By supporting this entrepreneurial activity, the Bank will demonstrate ways to structure the financing and manage the risks associated with such green-field infrastructure projects, commonly perceived as too risky for private sector involvement. By getting a seat at the Board as an equity holder, the Bank will be able to promote new business standards in corporate governance, another important source of transition impact.
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The client:
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The client is Balykshy LLP, a specially created project company that will own and operate the marine support base. It sill be 100% owned by the Sponsor, Caspian Services Inc. a successful provider of onshore and offshore oilfield services, with the established reputation among the oil majors. It is a U.S. incorporated company listed at New York Stock Exchange (OTC BB listing).
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EBRD finance:
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Debt: USD 32 million A/B loan (DTM: 38029). Equity: USD 10 million (DTM: 36673).
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Total project cost:
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USD 80.51 million.
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Environmental impact:
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The project was screened A/0. Impacts associated with the construction and operation of this facility cannot be readily identified, assessed and mitigated; therefore an Environmental Impact Assessment (EIA) was required. The EIA has been prepared in accordance with the EBRD's requirements by an independent consultant.
The investigations showed that the Project has been structured to meet Kazakh environmental, health and safety requirements and the EU environmental standards. The EIA concluded that there will be no negative impact of critical significance and only three main activities, namely dredging, wavebreaker and wharf construction, and sea reclamation may create high significance impact on the marine environment in the Base area. Application of mitigation measures will reduce these impacts to medium significance and activities that are valued to have medium significance to low or negligible level. Mitigation measures will also be used for the low negative impacts to reduce them even further.
A Public Consultation and Disclosure Plan has been implemented in accordance with the Bank’s Policy for category A projects.
The Company will systematically monitor and report its environmental and health and safety impacts to ensure it complies with Kazakh and EU environmental standards. The EBRD will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project.
There is an Environmental Impact Assesment available for this project.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Caspian Services Inc.
Kazakhstan, Almaty, 29/6 Satpaev Ave, 9th floor.
Tel: +7 3272 508478
Fax: +7 3272 508479
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EBRD contact:
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Gabriel de Lastours, Operation Leader: delastog@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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