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.
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.
This will be the second involvement in the Kazakh market for the sponsors of this Project (Total EREN SA and Access Infra Central Asia Ltd) 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 renewable 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 tons of CO2 for the country in a sector which is dominated by aged coal-fired plants.
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 75% by Total EREN SA (France) and at 25% by Access Infra Central Asia Ltd (UAE) (jointly, the Sponsors).