Investment shift in Kazakhstan's TEC development: potential new financier for three projects
In the Central Asian nation of Kazakhstan, there's a possibility of an unexpected player stepping up for the construction of three thermal power plants (TPPs) - in the regions of Abai, Akmolinsk, and East Kazakhstan. As reported by our correspondent, this bit of news was dropped by First Deputy Prime Minister Roman Sklyar.
Work is underway on these TPPs, with designs being drafted. However, there's a hitch with subsidizing the interest rate on equipment, which is the subject of ongoing negotiations. Nevertheless, preparatory work is still moving forward, even in Kokchetav, the potential site for one of the plants. If the Russians fail to secure funding, the investor might switch up, said Sklyar in the corridors of Akorda.
Details are expected to be available by June, with Sklyar denying any connection between this situation and anti-Russian sanctions. Instead, he emphasized the need for export financing for the equipment that will be part of the project.
TPP plans for Kazakhstan were initially announced back in 2023, with Kokchetav, Semey, and Ust-Kamenogorsk identified as potential locations for the energy plants[1]. However, the Ministry of Energy later reported that these projects faced difficulties owing to the refusal of international financial institutions to be a part of the creation of coal-fired generation[1].
In January of this year, the then-Minister of Energy, Almasdam Satkaliev, addressed questions about the construction timeline for the TPPs. He confirmed that site preparation work had already commenced[1].
It's worth noting that potential investors for these projects could be countries with strong economic relations with Kazakhstan, such as Italy and other European Union members. Turkey, too, could be a contender, given their construction of a TPP in Kyzylorda[2]. As Kazakhstan seeks to attract foreign direct investment (FDI), it aims to align with sustainable and technology-driven investments from the EU[3]. In fact, the country aims to attract at least USD 150 billion in FDI by 2029, with a focus on renewable energy and decarbonization[3].
Keep an eye out for updates on this situation, Kazakhstan is steadily moving forward with its ambitious infrastructure development plans!
[1] https://en.tengrinews.kz/business/Roman-Sklyar-about-investments-in-Kazakhstan-energy-423078/[2] https://www.khabar.kz/news/2022/09/21/turkmenistsan-readies-to-move-to-a-new-level-of-bilateral-cooperation-with-kazakhstan/306811/[3] https://www.europe-business-review.com/european-investors-are-betting-on-kazakhstans-future/
In light of the ongoing negotiations regarding the subsidizing of interest rates, another country might step in to finance the construction of the thermal power plants in Kazakhstan, specifically in Abai, Akmolinsk, and East Kazakhstan. As Kazakhstan looks to attract foreign direct investment, potential investors could be countries with strong economic relations, such as Italy and Turkey. The ambitious infrastructure development plans in Kazakhstan include a focus on renewable energy and decarbonization, aiming to attract at least USD 150 billion in FDI by 2029.
