Kazakhstan : Samruk Energy Restructuring and Transformation Project

Nonsovereign Project | 51304-001

The proposed project will include refinancing the borrower's US Dollar denominated debt with long term tenge financing, identifying renewable energy opportunities, and improving operational efficiency of the borrower's core businesses.

Project Details

  • Project Officer
    Mokroussov, Sergey
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Kazakhstan
  • Sector
    • Energy
Project Name
Samruk Energy Restructuring and Transformation Project
Project Number
51304-001
Country / Economy
  • Kazakhstan
Location
Nation-wide
Type or Modality of Assistance
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Governance and capacity development
  • Partnerships
  • Private sector development
Sector / Subsector
  • Energy / Conventional energy generation - Energy utility services

Gender
No gender elements
Project Sponsor(s)
    Description

    The proposed project will include refinancing the borrower's US Dollar denominated debt with long term tenge financing, identifying renewable energy opportunities, and improving operational efficiency of the borrower's core businesses.

    Objectives and Scope

    The project is expected to enhance the balance sheet flexibility of the borrower through reduction of foreign currency risk to free up resources for future development and to prepare for potential initial public offering. In addition, project enables the borrower to undertake long-payback period capital expenditures through efficiency measures and to initiate the identification of a renewable projects pipeline for expansion of renewable energy portfolio.

    Linkage to Country/Regional Strategy

    The project is consistent with the Midterm Review of Strategy 2020, which identifies a focus on environment and climate change, and infrastructure development. ADB's support for the project is also in line with its country partnership strategy for Kazakhstan, 2017-2021 that supports energy sector and private sector development. In addition, the project is consistent with the Energy Policy emphasizing investment in energy efficiency, renewable energy projects, private sector participation, wider access to energy, and enhancing the viability of the energy sector.

    Safeguard Categories

    Environment
    C
    Involuntary Resettlement
    C
    Indigenous Peoples
    C

    Summary of Environmental and Social Aspects

    Environmental Aspects

    The company has an Environmental, Social, and Health and Safety (ESHS) system in place however, the company was required to strengthen, upgrade and implement its existing system satisfactory to ADBs requirements. This included: (i) strengthening the company's overall environmental and social risk management framework to align with regulatory requirements, ADB's SPS (2009) and good international industry practices; (ii) ensuring that stakeholder concerns are adequately identified and addressed; and (iii) ensuring that environmental and social requirements (consistent with ADB's SPS) are communicated and implemented by Samruk-Energy's contractors. Samruk Energy developed and approved a Corporate Governance System Policy in 2021 to streamline the company's strategic goals, and to capture the company's commitments to implement national regulatory requirements and international standards required by its lenders. To ensure effective implementation of the policy and procedural enhancements, Samruk Energy introduced environmental and social compliance officers in the organizational structure of its subsidiaries and affiliates. Samruk Energy also carried out annual capacity training programs for its relevant EHS staff at the corporate and subsidiary levels. These included training related to ISO management systems, health and safety, labor, and fire and emergency response.

    Involuntary Resettlement
    While there are no IR impacts anticipated as part of this project, Samruk-Energy has enhanced its ESMS in line with ADB's requirements to identify and assess IR related impacts through adoption of screening and categorization procedures. Samruk-Energy has reported to ADB that no projects have been undertaken in 2019-2022 that have or will involve IR impacts. Samruk-Energy will continue to apply the screening and categorization procedures to project activities financed by ADB and will report annually to ADB on its progress with management of IR and other social risks and impacts.
    Indigenous Peoples
    The project does not envisage any impacts on IPs.
    Stakeholder Communication, Participation, and Consultation

    The Company has in place grievance reporting and resolution procedures accessible to both workers and community members and other external stakeholders.

    Effective and meaningful consultations and information sharing will be ensured throughout the project cycle.

    Contact

    Responsible ADB Officer
    Mokroussov, Sergey
    Responsible ADB Division
    Portfolio Management Division, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    Timetable for assistance design, processing, and implementation

    Concept Clearance
    05 Oct 2017
    Credit Committee Meeting
    13 Nov 2017
    Approval
    -
    Last PDS Update
    22 Apr 2024

    Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

    The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

    The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

    In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

    Title Document Type Document Date
    Samruk Energy Restructuring and Transformation Project: Extended Annual Review Report Extended Annual Review Reports Nov 2022
    Samruk-Energy Restructuring and Transformation Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2017

    Safeguard Documents See also: Safeguards
    Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


    Evaluation Documents See also: Independent Evaluation

    None currently available.


    Related Publications

    None currently available.


    The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

    Requests for information may also be directed to the InfoUnit.