AES Sogrinsk CHP

Location:

Kazakhstan

Project number:

40788

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

18 Jan 2011

Status:

Complete

PSD disclosed:

06 Aug 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering supporting AES, a US-based international power company for major investment in Sogrinsk CHP in Eastern Kazakhstan (Ust-Kamenogorsk), aimed at improving the availability and utilisation factor of the CHP, enhanced energy efficiency, reduction in losses and improvements in environmental standards. The scope of the project includes replacement of turbine-generator, modernisation and reconstruction of boilers, auxiliary systems and other energy efficiency investments at the power plant. The loan will be used to finance replacement of one turbine of the Sogrinsk CHP.

Transition Impact

Transition impact is expected to come from:

1) Demonstration effects of improving operational performance through energy efficiency: The loan will provide essential support for the rehabilitation program of Sogrinsk CHP, which, together with the operational improvements identified by the Bank's TC project, is expected to result in a significant increase in power and heat production; while at the same time improving overall resource efficiency and carbon emissions.

2) Promoting private sector participation in the power sector of Kazakhstan:  The project would support the most visible foreign sponsor in the sector and capitalize on the Bank’s policy dialogue efforts to date with AREM, as well as the Bank’s role as an “honest broker”.

3) Improving standards for business conduct and corporate governance: The Bank’s participation will improve the operational performance of the Company and raise its technical and environmental standards in line with best international practices.  The Company will commit to improve its general environmental management standards in line with the Bank’s requirements. The Company will also develop and implement an Environmental and Social Action Plan (ESAP) that will be identified in the course of the Bank’s Environmental and Social Due Diligence. The implementation of ESAP will help to ensure compliance by Sogrinsk CHP with the new post-2013 Kazakh Environmental Standards and provide important demonstration effects in the sector. 

The Client

Sogrinsk CHP LLP, a power generation company owing and operating a 50MW coal-fired co-generation power plant and adjacent heat network .  Sogrinsk CHP LLP is ultimately 100% owned by AES Corporation (USA).

EBRD Finance

Up to KZT 4 billion (EUR 22 million) senior secured corporate loan to Sogrinsk CHP LLP.

Project Cost

Up to KZT 4.8 billion (EUR 26.4 million).

Environmental Impact

The Project has been screened as B (2008). Environmental and social issue associated with the modernization of an existing Combined Heat and Power (CHP) plant can be readily assessed as part of an Environmental and Social Due Diligence (ESDD).

The Bank is in the process of undertaking an ESDD to fully ascertain the investment programme and confirm whether the project is structured to meet the Bank’s Performance Requirements (PRs). Based on the results of the ESDD, a Stakeholder Engagement Plan (SEP) and Environmental and Social Action Plan (ESAP) will be developed and agreed with the Company.

The PSD will be updated upon the completion of the due diligence.

Technical Cooperation

Technical and efficiency improvement audit financed through an existing framework contract (under UK-DFID) to review the investment program of Sogrinsk CHP and to provide technical analysis of new technologies optimising energy efficiency.

Company contact

Revaz Tvalchrelidze
The AES Group of Companies in Kazakhstan
140, Dostyk av., 3rd floor,
Almaty, 050051, Republic of Kazakhstan
Office: +7 (727)  237 4745
Fax:  +7 (727)  237 4748
Mob: +995  95 92 77 66
E-mail: Revaz.Tvalchrelidze@AES.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

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