Translated version of this PSD: Russian
Project Description
The provision of a loan up to US$ 5 million in KZT and/or US$ equivalent and up to US$2 million from the Green Climate Fund ("GCF") in favour of HEC KT LLC (the "Borrower") to support the development, construction and operation of a 10MW solar photovoltaic power plant to be located near Zhanakorgan settlement, Kyzylorda region of southern Kazakhstan.
Project Objectives
The operation will support the first solar project developed in Kazakhstan under the newly established auction mechanism. It will also contribute to reducing Kazakhstan's carbon intensity and address the country's increasing electricity demand.
Transition Impact
The transition impact stems from the fact that the Bank will be supporting the first auctioned project in the country and assisting Kazakhstan in diversifying its coal-dependent power sector and reducing CO2 emissions. The Project will be in line with the Bank's Green Economy Transition approach (GET).
Client Information
HEC KT LLC
The Borrower is a SPV incorporated in Kazakhstan to implement the project. The Borrower is controlled by Hydroenergy company JSC (the "Sponsor"), a Bulgarian company engaged as EPC and O&M contractor in solar projects internationally.
EBRD Finance Summary
USD 7,000,000.00
A limited recourse senior secured loan up to US$ 5 million in KZT and/or US$ equivalent and up to US$2 million from the Green Climate Fund ("GCF").
Total Project Cost
USD 10,000,000.00
Environmental and Social Summary
Category B (ESP 2014). Environmental and social risks and impacts associated with the construction and operation of a greenfield 10 MW solar photovoltaic power plant and associated 8 km 35 kV power line were assessed as part of the Environmental and Social Due Diligence (ESDD) and will be mitigated via the agreed Environmental and Social Action Plan (ESAP). Independent ESDD has confirmed that the Project is currently fully compliant with the host country's EHS legislation, the Client has well-established E&S management system in place and can deliver the Project in line with the Bank's Performance Requirements (PRs).
Potential adverse environmental or social impacts are associated mainly with the construction activities and the contractor's labour, health and safety and social standards and capacity, as well as E&S management systems. The Project is not associated with any significant negative effects of land use and livelihood and this will be monitored during construction and early operation. Biodiversity impacts are also expected to be low due to location and the absence of sensitive receptors.
A number of the environmental and social management improvements were included in the ESAP, inter alia: enhancement of the contractor and supply chain management, construction health and safety management, social and labour rights observance, Stakeholder Engagement Plan. As part of implementing the ESAP requirements, the Borrower will implement a Corporate Social Responsibility Program (CSRP) aimed at community development and outreach, including local social infrastructure, and increasing awareness of the Project. The developed ESAP will be agreed with the Client prior to signing and its implementation and overall E&S performance will be monitored by the Bank via Annual Environmental and Social Reports. A Stakeholder Engagement Plan (SEP) and Non-Technical Summary (NTS) have been prepared for the Project.
Technical Cooperation
None.
Company Contact Information
Vladimir Tabutov
vtabutov@hec-solar.com
+359888828181
143/93 Abay avenue 050050, Almaty, Republic of Kazakhstan
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