KAZREF - M-KAT Green Solar Power Plant

Location:

Kazakhstan

Project number:

50025

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

12 Dec 2018

Status:

Repaying

PSD disclosed:

29 Aug 2018

Translated version of this PSD: Russian

Project Description

Provision of financing for the construction of a 100 MW solar power plant in the Zhambyl region of Southern Kazakhstan (the "Project") in the form of an up to EUR 50 million senior loan. The Asian Development Bank will provide the remaining portion of debt in KZT equivalent to co-finance the project.

Project Objectives

Located in the electricity-constrained southern part of the country, the Project will help reduce dependence on electricity import from other regions (mostly coal fired plants in the North) and reduce
associated transmission losses.

Transition Impact

This will be the second involvement in the Kazakh market for the sponsors of this Project (Total EREN SA) closely following their first project of Nomad Solar power plant construction that is also being co-financed by the EBRD. The 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 Project could result in carbon savings estimated at around 125,000 tonnes of CO2 for the country in a sector which is dominated by aged coal-fired plants.

Client Information

M-KAT GREEN LLP

M-KAT Green LLP, a special purpose entity established in the Republic of Kazakhstan to implement the Project, will act as a borrower. The borrower is owned at 100% by Total EREN SA (France).

EBRD Finance Summary

KZT 21,462,21,000.00

Up to EUR 50 million senior loan to M-KAT Green LLP with no recourse to the Sponsor.

Total Project Cost

KZT 45,126,200,280.00

EUR 105,772,751.00

Environmental and Social Summary

Category B (ESP 2014). Environmental and social aspects associated with construction and operation of a greenfield 100 MW solar photovoltaic power plant can be readily assessed as part of an Environmental and Social Due Diligence (ESDD) and mitigated via an Environmental and Social Action Plan (ESAP). This Project is associated with GET and its share makes 100%.

An independent ESDD has confirmed that technology is state-of-the-art and in line with good international practices, the Project is fully compliant with the host country's EHS legislation and is structured to meet the Bank's Performance Requirements (PRs) through employment of good E&S management practices, implementation of ESAP and monitoring.

The Project is not located near to sensitive receptors or protected areas and will have no impact on biodiversity and natural resource use. The impact on the land use, community activities and livelihood are marginal and can be addressed with help of proper Stakeholder Engagement activities.

Any potential adverse environmental or social impacts are associated mainly with the construction activities and use of the contractor's work force, specifically: labour and social aspects, construction health & safety and E&S management systems.

A number of the environmental and social management improvements items were included into ESAP, inter alia: enhancement of the EHS management system, contractor and supply chain management, traffic management, emergency preparedness, grievance mechanism and Stakeholder Engagement Plan. As part of implementing the ESAP requirements, the Company will implement Corporate Social Responsibility Program (CSRP) aimed at community development and increasing awareness of the Project. The CSRP will also include a community outreach program and the Company plans to support the local social infrastructure.

The ESAP has been agreed with the Client and its implementation and overall E&S performance will be monitored by the Bank via the review on the Annual Environmental and Social Reports.

Stakeholder Engagement Plan (SEP) and Non-Technical Summary (NTS) and for the Project were prepared and disclosed on the Company's web site. The Bank will monitor the implementation of the ESAP and CSR program.

Technical Cooperation

TC funding will be sought to co-finance due diligence costs under the existing Kazakhstan Renewables Framework Programme (KAZREF) designed to support renewable energy projects in Kazakhstan or the GET Project Preparation and Implementation Support Programme.

Company Contact Information

Community Liaison Officer (CLO) Mrs. Yuliya Allakhverdiyeva
ayulena@gmail.com
+77052929251

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Email: projectenquiries@ebrd.com

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Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.