GEFF Kazakhstan II

Location:

Kazakhstan

Project number:

53502

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

22 Jun 2022

Status:

Approved

PSD disclosed:

29 Apr 2022

Project Description

The EBRD is considering financing of up to US$ 150 million in Kazakh Tenge provided to Partner Financial Institutions (PFIs) for on-lending to private sector sub-borrowers to finance energy efficiency, renewable energy, resource efficiency, circular economy and climate resilience investments under the Bank's Green Economic Transition ("GET") approach in Kazakhstan.

Project Objectives

The framework (FW) builds on the successful implementation of the Kazakhstan Pilot Green Economy Finance Framework ("GEFF") and aims to further support investments in the green economy, including but not limited to energy efficiency, renewable energy, resource efficiency, circular economy and climate resilience measures. Funds may also be on-lent to vendors and producers of eligible material and equipment covered by the Green Technology Selector for Kazakhstan. The loans will be supported by Technical Cooperation ("TC"), as envisaged by the GEFF Framework.

Transition Impact

ETI score: 70

- Transition impact: The FW will contribute to the Green TI quality through investments in green technologies that will drive Kazakhstan's transition to an environmentally sustainable, low-carbon, climate-resilient green economy. All of the funding allocated to PFIs under this FW will have to be used in respect of projects that qualify as 100 per cent GET.

- Sound banking: Terms and conditions of the FW go well beyond those of commercial funding in promoting GET investments and sustainable lending. Covenants for individual PFIs promote prudent banking.

 

Client Information

It is expected that financing under this FW will be provided to up to five PFIs (existing and new ones), including banks, microfinance organisations as well as leasing companies in Kazakhstan.

EBRD Finance Summary

USD 150,000,000.00

Total Project Cost

USD 150,000,000.00

Additionality

- Additionality is achieved by combining funding with TC for eligible private sector sub-borrowers in Kazakhstan, in particular women, leading to mainstreaming of green lending operations by PFIs.
- Gender SMART: Gender additionality will be achieved by reflecting gender considerations in the transactions through enhancing PFIs' standards of business conduct/training of staff and awareness raising campaigns to target both female/ male sub-borrowers for green financing. The gender SMART tag to be assessed at sub-operation level.

Environmental and Social Summary

Categorised: FI (ESP 2019). It is anticipated that the PFIs under this FW, which are existing clients of the Bank, will already be familiar with the EBRD's E&S requirements applicable to FIs. New PFIs under this FW will have to undergo E&S Due Diligence to allow assessment of their EHSS risk management capacity. Beneficiaries financed under this facility will be required to comply with national requirements for environment, health and safety, labour standards, and the E&S eligibility criteria for Renewable Energy projects, where applicable; as well as other GET eligibility criteria as per the GET Policy Statement. This will be confirmed to PFIs by a Facility Consultant engaged by the EBRD. All PFIs under the FW will be required to comply with the EBRD's Performance Requirements 2, 4 and 9; adopt and implement the EBRD's E&S Risk Management Procedures for Micro, SME and Corporate Lending; and submit Annual Environmental and Social Reports to the Bank, including reporting on sub-projects and their GET benefits.

Technical Cooperation and Grant Financing

The FW will be complemented by donor funded TC of up to EUR 2.7m, of which the Climate Investment Fund will provide EUR 0.65 m.

Company Contact Information

Nikolas Drude
druden@ebrd.com
+90 212 386 1100
www.ebrd.com
Istanbul Resident Office Büyükdere Caddesi, 185 Kanyon Ofis Binasi, Kat: 2 Levent 34394 Istanbul Turkey

PSD last updated

29 Apr 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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