Samruk-Energy is the largest electricity generation company in Kazakhstan with approximately 7,000 megawatts (MW) of installed capacity. Samruk-Energy is one of the seven SOEs owned by Samruk Kazyna and planned for IPOs. In preparation for the IPO, Samruk-Energy is implementing a comprehensive corporate transformation program, which includes sales of nine of its assets, improvements to corporate governance, an introduction of enterprise resource planning system, etc. Following the government's development goals, in 2015 Samruk-Energy adopted the Long-term Development Strategy 2015 2025. Among other things, by 2025 Samruk-Energy plans to increase the power generation capacity from renewable sources up to 10% of total installed capacity (850 MW), which presently is less than 1%. In this context, Samruk-Energy has requested ADB to provide a technical assistance to support its corporate transformation and balance sheet restructuring planning.
|Project Name||Samruk-Energy Green Transformation|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Energy / Energy sector development and institutional reform
|Gender Equity and Mainstreaming||No gender elements|
Samruk-Energy is the largest electricity generation company in Kazakhstan with approximately 7,000 megawatts (MW) of installed capacity. Samruk-Energy is one of the seven SOEs owned by Samruk Kazyna and planned for IPOs. In preparation for the IPO, Samruk-Energy is implementing a comprehensive corporate transformation program, which includes sales of nine of its assets, improvements to corporate governance, an introduction of enterprise resource planning system, etc. Following the government's development goals, in 2015 Samruk-Energy adopted the Long-term Development Strategy 2015 2025. Among other things, by 2025 Samruk-Energy plans to increase the power generation capacity from renewable sources up to 10% of total installed capacity (850 MW), which presently is less than 1%. In this context, Samruk-Energy has requested ADB to provide a technical assistance to support its corporate transformation and balance sheet restructuring planning. In addition to the corporate transformation to improve operation efficiency, Samruk-Energy faces liquidity requirements of EUR500 million by mid December 2017. The European Bank for Reconstruction and Development (EBRD) signed a loan agreement with Samruk-Energy in May 2017 for a EUR100 million loan to support its restructuring. While Samruk-Energy indicates that it would be able to raise the remaining amount from other financing sources, these will largely be from local banks, which will have limited tenors and continue to create challenges in managing Samruk-Energy's cash flow.
The TA will have three major outputs: (i) a report on Samruk-Energy's corporate transformation program, including the assessment of the activities and their impact on the energy sector and the whole economy of Kazakhstan and recommendations; (ii) detailed historical and pro-forma financial analysis of Samruk-Energy with a financial model to support the analysis and planning of balance sheet restructuring; and (iii) an environmental and social safeguard audit of Samruk-Energy's current environmental and social management system (ESMS) with recommendations to fill any gaps to meet international standards. There will be a small workshop with Samruk-Energy's relevant staff to share the findings by the consultants.
|Project Rationale and Linkage to Country/Regional Strategy||Kazakhstan, as a major oil exporter, has been facing economic challenges caused by the steep decline in the world oil prices and tenge depreciation after shifting to a floating regime in 2015. In its efforts to manage this economic downturn, the Government of Kazakhstan issued a decree in December 2015 to implement a new privatization program to improve the efficiency of state assets and to reduce budget expenditures. As part of the privatization plan, Samruk Kazyna, the sovereign wealth fund of Kazakhstan, plans to conduct initial public offerings (IPOs) of at least seven state-owned enterprises (SOEs) that it owns by 2020. These are also among the largest SOEs in the country.|
Electricity supply from renewable energy sources in Kazakhstan increased to 3% by 2020.
Transfer of state-owned assets to a competitive environment by 2020.
|Description of Outcome||Samruk-Energy's transformation program as preparation for initial public offering started|
|Progress Toward Outcome||Analyses on the status of corporate transformation program and safeguard system have been conducted, and dialogue and improvements to lead to preparation for potential IPO are ongoing although with some delays.|
|Description of Project Outputs||
Corporate transformation program ready for implementation
Balance sheet flexibility improved
Improvements to safeguard management system identified.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Initial inputs to corporate transformation program and balance sheet flexibility have been provided to the executing agency through another support from ADB.
Safeguard consultant has been engaged and the task has been completed.
The project completion date has been extended by 12 months to 30 September 2019 to allow completion of the remaining tasks.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||The Safeguard consultant has been engaged and the task has been completed.|
|Responsible ADB Officer||Yuki Inoue|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
"Samruk Energy" Joint-Stock Company
Sergey Li, Head of Corporate Finance Department
Block B, Business Center "Q", Kabanbay Batyr Ave, 15A 010000, Astana, Republic of Kazakhstan Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
|Fact Finding||08 Sep 2017 to 08 Sep 2017|
|Approval||08 Sep 2017|
|Last Review Mission||-|
|Last PDS Update||28 Sep 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|08 Sep 2017||-||08 Sep 2017||30 Sep 2018||30 Sep 2019||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|225,000.00||0.00||0.00||0.00||0.00||0.00||225,000.00||08 Sep 2017||222,630.34|
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.
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|Title||Document Type||Document Date|
|Преобразование АО «Самрук-Энерго» с переходом на «зеленые» технологии: Информация о проекте||Translated PDS||Sep 2017|
|«Самұрық-Энерго» АҚ «жасыл» технологияларға өту арқылы өзгерту: Жоба туралы ақпараттық бюллетень||Translated PDS||Sep 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.
None currently available.
Evaluation Documents See also: Independent Evaluation
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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.
|Tender Title||Type||Status||Posting Date||Deadline|
|Samruk-Energy Green Transformation||Individual - Consulting||Closed||16 Apr 2019||24 Apr 2019|
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