The Asian Development Bank (ADB) has entered into a transaction advisory services agreement with the Government of Kazakhstan for its Hydropower Development Program. ADB will work with the government to conduct pre-feasibility studies, prepare auction documents, create a template power purchasing agreement, and attract competitive bids to draw in investors.
The initiative aims to prepare and auction hydropower projects with private sector involvement for a potential total capacity of around 600MW across the Alaqol, Balkash, and Irtysh/Zaysan basins in southeastern Kazakhstan. The agreement was signed by Kazakhstan’s Minister of Energy Almassadam Satkaliyev and ADB’s Head of the Office of Markets Development and Public–Private Partnerships Cleo Kawawaki.
“ADB’s support for Kazakhstan in the development of renewable energy sources, including through increased private sector participation, is a priority within our ongoing country partnership strategy for 2023–2027,” said Kawawaki. “ADB’s focus is to assist the country’s efforts to address the impacts of climate change, promote decarbonization, and facilitate sustainable economic growth. This will help Kazakhstan achieve its goal of increasing its renewable energy capacity, reduce carbon emissions, and enhance the country’s energy security.”
The Hydropower Development Program seeks to attract private sector entities to design, finance, construct, operate, and maintain multiple hydropower projects. ADB will also help transfer knowledge to develop local expertise in encouraging private sector participation, supporting Kazakhstan’s energy sector transformation.
Kazakhstan joined ADB in 1994. ADB has committed about $7 billion in loans, grants, and technical assistance to the government and private sector. Regional cooperation and integration initiatives under the Central Asia Regional Economic Cooperation (CAREC) program are an integral part of ADB operations in Kazakhstan, which is chairing the program this year.
