ADB, Kazakhstan Sign a Transaction Advisory Agreement for Hydropower Development Program

LONDON, UNITED KINGDOM (26 July 2024) — The Asian Development Bank (ADB) has signed a transaction advisory services agreement with the Government of Kazakhstan for its Hydropower Development Program. ADB’s mandate is to work with the government to conduct pre-feasibility studies, assist in preparing auction documents and a template power purchasing agreement, and attract competitive offers to crowd in investors.

ADB will help the government prepare and auction hydropower projects with private sector participation for a potential cumulative capacity of around 600 megawatts (MW) across the Alaqol, Balkash, and Irtysh/Zaysan basins located in the southeast of the country. 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 Ms. 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.”

Kazakhstan’s Hydropower Development Program aims to attract the private sector to design, finance, construct, operate, and maintain multiple hydropower projects. ADB will also facilitate knowledge transfers to further develop local expertise in promoting private sector participation to support 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. 

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 68 members—49 from the region.