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29 Jan, 17:23

Kazakhstan, Russia working on funding mechanism for combined heat and power plants

The feasibility study for the CHP project in Kokshetau is at the closing stage and preparations of the construction site started there, Almassadam Satkaliev said

ASTANA, January 29. /TASS/. Authorities of Russia and Kazakhstan are working on the financing mechanism for building three combined heat and power plants (CHP) in Kazakhstan, Kazakh Energy Minister Almassadam Satkaliyev said at a briefing.

"The main factor influencing the price of plants is the borrowing cost. We are now working on a mechanism of financing for this project. If it is a commercial loan, there will be one cost; if it is a loan subsidized by the Russian government, the cost will be different. We will provide the final figure of the construction cost immediately after completing preparation of design and estimate documents," the minister said.

The feasibility study for the CHP project in Kokshetau is at the closing stage and preparations of the construction site started there, Satkaliev said. "Concerning Semey and Ust-Kamenogorsk, we will complete the feasibility study this spring. Clearly the CHP cost is the critical factor for the government of Kazakhstan; negotiations will be rather tough and relevant instructions were given to Samruk-Energo [company], which represents the country in these projects," the minister added.

Russia and Kazakhstan signed the intergovernmental agreement on construction of three coal-fired combined heat and power plants in April 2024.