ADB Signs Deal to Enhance Operations of Kazakhstan's Samruk-Energy

ADB Signs Deal to Enhance Operations of Kazakhstan's Samruk-Energy

ADB Signs Deal to Enhance Operations of Kazakhstan's Samruk-Energy

The FINANCIAL -- The Asian Development Bank (ADB) has signed loan agreements for loans equivalent to $80 million in Kazakhstani tenge with Samruk-Energy, Kazakhstan’s largest power generation company, to help increase its balance sheet flexibility by reducing foreign exchange risk, enhance its operational efficiency, and identify a renewable energy pipeline for the company.

The agreements under the Samruk-Energy Restructuring and Transformation Project were signed at a ceremony in Astana by Director Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Mr. Shantanu Chakraborty and Samruk-Energy’s Chief Executive Officer Mr. Bakitzhan Zhulamanov.

 

To help modernize Kazakhstan’s electricity sector where about 70% of installed capacity is considered technically obsolete, Samruk-Energy adopted in 2015 a 10-year long-term development strategy to expand operations, lift renewable energy sources from 100 megawatts (MW) to 850 MW by 2025, and double shareholder value. However, falling global oil prices negatively affected the tenge, Kazakhstan’s currency, which affected Samruk-Energy’s plans due to the company’s foreign currency exposure.

Samruk-Energy, established in April 2007, is an important entity in Kazakhstan’s energy sector, with its generation assets classified by the government as power plants of national importance. As of 2016, total installed capacity of the company’s power plants was 6,804 MW, representing 31% of the country’s total installed capacity.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.