The Asian Infrastructure Investment Bank (AIIB) has signed a US$36 million loan agreement for the development, construction and operation of a 100-megawatt wind power plant in Kazakhstan.
The project is being co-developed by China Power International Holding (CPIH) and Visor International DMCC, and will be co-financed by the European Bank for Reconstruction and Development (EBRD). In September EBRD announced it was lending US$39 million to the project, to be disbursed in US dollar and Kazakhstan tenge.
The Shokpar Wind Power Project will also be supported by concessional financing of up to US$10 million from the Green Climate Fund and up to US$5.7 million from the Clean Technology Fund. The funds will be allocated for the construction and operation of the power plant, and its integration into the power grid.
The project is located in the Zhambyl region of southern Kazakhstan, and sits on a plot adjacent to the 100MW Zhanatas project, whose 40 turbines have been fully operational since 2021. The two projects will connect to the same substation.
China Power International Holding (CPIH) is a subsidiary of State Power Investment Corporation Limited. Visor International DMCC, established by a group of Kazakhstani bankers and entrepreneurs, focuses on investing in markets in Central Asia and the Commonwealth of Independent States.
“Our second investment into wind power in Kazakhstan underlines AIIB’s support for the Government of Kazakhstan’s transition to a green economy,” says Konstantin Limitovskiy, AIIB’s vice-president for investment operations (Region 2: Pakistan, Afghanistan, Central Asia, East Asia, West Asia, Europe, Africa and Latin America). “This project fully aligns with AIIB’s Energy Sector Strategy and priorities.”
The AIIB has a commitment to ensure that 50% of all overall approved financing will be directed toward climate finance by 2025.
To date, the AIIB has approved over US$836 million in capital to projects in Kazakhstan.