Yereymentau Wind Farm

Location:

Kazakhstan

Project number:

45618

Business sector:

Power and energy

Notice type:

Public

Environmental category:

A

Target board date:

26 Nov 2014

Status:

Signed

PSD disclosed:

11 Nov 2013

Translated version of this PSD: Russian

Project Description

The EBRD will finance construction, commissioning and operation of a 50MW wind power plant in the Yereymentau region.  As one of the first large-scale wind energy projects in Kazakhstan, the project has the potential of becoming an example of successful implementation of a project-financed renewable energy project in the country.

A parallel loan of up to EUR 18 million will provided by the Clean Technology Fund (“CTF”) Trust Fund Committee.

Transition Impact

This will be the first effective large scale wind project in Kazakhstan, financed under the new feed-in-tariff mechanism. As such the implementation of the project will have a significant demonstration effect to potential developers and private sponsors by testing the successful implementation of the technology in the country. The experience from the project could also positively influence the renewable policy framework in the country. Furthermore the project will result in large volume of CO2 emissions reductions, by replacing electricity produced from low-efficiency obsolete coal-fired power stations. The expected emission reductions of over 120,000 tCO2/year will support the Government’s efforts to move towards a green growth model for the Kazakh economy and will also provide a critical supply of carbon credits to enable the start of the carbon trading market currently being launched in Kazakhstan.

The project will benefit from the Bank’s participation, which will set standards for business conduct in the development of wind power projects in Kazakhstan through the dissemination of international best-practices and expertise related to the strategic environmental impact, local environmental impact assessment, wind measurements, and the application of procurement and environmental and social safeguards.

The Client

The wind project will be implemented by LLP “Ereymentau Wind Power” ultimately owned by Samruk-Energo JSC.  Samruk-Energo was established in 2007 and is 100% owned by the JSC Sovereign Wealth Fund Samruk-Kazyna.

EBRD Finance

Financing will consist of loans of up to KZT 14 billion from EBRD, as well as up to EUR 18 million from the CTF.

Project Cost

Up to Euro 96.5 milion

Environmental Impact

Following the Initial Environmental and Social Examination (IESE), including a site visit in November 2013, the Project was categorised “A” due to potential cumulative impacts associated with the location of the wind farm in proximity of two other wind farm developments.  In accordance with the Bank’s Environmental and Social Policy (2008) an Environmental and Social Impact Assessment (ESIA) inclusive of a formal information disclosure and consultation process was required. The cumulative assessment included, among others, a review of environmental and social impacts associated with the development of a 45MW wind farm under construction and another 30-50MW wind farm under development located in the proximity of the Project. The Bank’s environmental and social due diligence (“ESDD”) was carried out by independent consultants and consisted of a review of the corporate E&S management systems, a gap analysis of the existing studies done by the Client as part of the national EIA process and preparation of an ESIA disclosure package, including ESIA Addendum Report, Non-Technical Summary (NTS), Stakeholder Engagement Plan (SEP), E&S Management Plan (ESMP), and corporate E&S Action Plan (ESAP). 

The project site is located at the distance of 6km from the Buiratau National Park, which is the nationally designated protected area of the IBA. Discussions with BirdLife experts confirmed that the main bird migratory route follows a chain of lakes located some 200km east of the Project site and that the project would not have an impact on migratory species. The ESDD included collection of baseline information on the flora and fauna that could be affected by the Project with a special focus on birds and bats.  No protected species of birds or bats were identified on the project site, and the EISA concluded that the project would not have significant impacts on the biodiversity. However, a number of Red Book species have been observed at the IBA and, therefore, the Client will be required to develop a Biodiversity Management Plan to allow the detailed design of the Project to avoid or minimise impacts.  The Client is also required to carry out regular ornithological monitoring by bird/bat experts throughout the construction and operation of the wind farm to avoid or minimise the risk of bird collisions with wind turbines.The wind farm is located south of the Yereymentau town with the nearest residential areas at the distance of 600m. Main social impacts are associated with the temporary noise, traffic and dust nuisance during the construction and noise, shadow flicker, ice throw, electromagnetic interference, visual impacts, and restrictions to public access to grazing grounds during the operational stage.  The exact location of turbines will be update during the detailed design stage by the EPC contractor to minimise the noise and shadow flicker impacts. The ESDD confirmed that the project location and cumulative impacts can be managed and mitigated through the implementation of the ESMP and ESAP.

The Company will provide the Bank with Annual Environmental and Social Reports (AESR) and notify on any material accidents or incidents. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PR’s through reviewing the Client reporting and undertake periodic monitoring visits.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

TC to support and advice for the Company on: (i) assessing if the wind assessment study is adequate for the project preparation or if additional field campaigns will be needed, and (ii) reviewing the preferable combination of turbines and site layout. Furthermore, if necessary, an expanded wind assessment will be conducted.

 

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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

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.