Kazakhstan: ALES Energy Transition and Modernization Project

Nonsovereign Project | 56169-001

The proposed Project will gradually decommission and replace inefficient coal-based power generating units with combined cycle gas turbine (CCGT) units with an installed capacity of up to 600 MW for electricity and 957 GCal/h for heat. The plant will be constructed at the existing site of the Almaty combined heat plant 2 (CHP-2) with all grid and heating pipeline infrastructure in place.

Project Details

  • Project Officer
    Abdrakhmanov, Alibek
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Kazakhstan
  • Sector
    • Energy
Project Name ALES Energy Transition and Modernization Project
Project Number 56169-001
Borrower / Company Joint Stock Company Almaty Electric Stations
Sovereign Wealth Fund Samruk-Kazyna JSC
Country / Economy Kazakhstan
Location Almaty
Type or Modality of Assistance
Loan Ordinary capital resources KZT 100,996.60 million Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Conventional energy generation
Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Abdrakhmanov, Alibek
Project Sponsor(s) Samruk-Energy JSC
Description The proposed Project will gradually decommission and replace inefficient coal-based power generating units with combined cycle gas turbine (CCGT) units with an installed capacity of up to 600 MW for electricity and 957 GCal/h for heat. The plant will be constructed at the existing site of the Almaty combined heat plant 2 (CHP-2) with all grid and heating pipeline infrastructure in place.
Objectives and Scope The Project will deliver significant environmental benefits to Almaty, the largest city in Kazakhstan with a population of two million residents, through substantial reductions in particulate matter (PM), sulfur dioxide (SO2), nitrogen dioxide (NO2), CO2 and other emissions. The Project will also reduce greenhouse gas (GHG) emissions due to lower CO2-intensity in gas fuel compared to coal. CHP-2 is the largest district heating and power plant in Kazakhstan and is a major contributor to air pollution in the city. The Project will also provide flexible generation capacity that is critical to counterbalance intermittency of power generation from renewable sources.
Linkage to Country/Regional Strategy

The Project is aligned with the strategy's key operational priorities (i) tackling climate change; and (ii) making cities more livable and pursue projects to promote urban health and environmental sustainability.

The Project is aligned with the existing ADBs Kazakhstan country partnership strategy (CPS) in supporting strategic priorities of managing climate change mitigation.
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized as A for environment in accordance with the ADB's Safeguard Policy Statement (2009) (SPS). A preliminary environmental assessment in accordance with national requirements was prepared by the Sponsor. In addition, a third-party consultant has conducted an E&S compliance audit against ADB's safeguards requirements. These documents along with the draft Environmental and Social Action Plan, draft Stakeholder Engagement Plan, and draft Non-Technical Summary are disclosed on ADB's website.
Involuntary Resettlement The project is categorized as B for involuntary resettlement, in line with ADB's SPS. No further land will be required for the plant as it will be developed within the perimeter of the existing facility. A gas pipeline less than 10km in distance will be required and the alignment is currently under review. It is anticipated that this will not require any physical displacement. The preliminary environmental assessment and the Environmental and Social Action Plan indicate that there are three communities in the 1km sanitary protection zone (SPZ) imposed by the local government around the coal plant. It is currently understood that the project will reduce environmental impacts on the local area and in consequence reduce the size of the SPZ and its potential need altogether. This will be ascertained through more detailed studies. If the detailed studies determine that a SPZ will still be required, the project will develop appropriate resettlement plans building on the draft Resettlement Framework that has been developed setting the basis for the standards that will be required if SR2 is triggered. It is the projects strategy to avoid and minimize IR impacts to the extent possible.
Indigenous Peoples The assessments undertaken to date have concluded that there are no indigenous people with land, natural or cultural resources in the area of the project. As such the project is categorized as C for Indigenous people.
Stakeholder Communication, Participation, and Consultation Through the development of the locally required environmental assessment public consultation was undertaken, as is legally required. The environmental assessment report was disclosed online for public review and is being disclosed by ADB with the additional Non-Technical Summary, Environmental and Social Compliance Audit Report, and Resettlement Framework. The project has also developed a Stakeholder Engagement Plan and will use this as the basis for further engagement with the affected people are other parties as the project progresses. The project also has a complaint mechanism in place which will be reviewed for efficacy as part of the detailed studies that will be undertaken as the project progresses.
Timetable for assistance design, processing and implementation
Concept Clearance 04 Jul 2022
Credit Committee Meeting -
Approval 17 Jan 2023
Last PDS Update 15 Sep 2022

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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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.

Title Document Type Document Date
ALES Energy Transition and Modernization Project: Final Resettlement Framework Resettlement Frameworks Nov 2022
ALES Energy Transition and Modernization Project: Draft Environmental and Social Compliance Audit Report Environment and Social Compliance Audit Reports Jun 2022
ALES Energy Transition and Modernization Project: Draft Environmental and Social Impact Assessment Environment and Social Impact Assessments Jun 2022

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.

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