Azernews.Az

By Aynur Jafarova

The European Bank for Reconstruction and Development (EBRD) continues supporting energy efficiency in Kazakhstan.

The bank will allocate a loan worth 5 billion tenges (€20 million) to Shymkentcement, the Kazakh affiliate of Italcementi Group, one of the largest cement producers in the world.

Also, the EBRD is subscribing to up to 1 billion tenges (€4 million) of shares in Shymkentcement acquiring an equity stake of around 21 percent, EBRD said on December 3.

The financing will facilitate the replacement of four existing ”wet process” kilns with a new, energy-efficient “dry process” facility.

Being an important example of private-sector FDI in the fast-growing Shymkent region, the project highlights the region’s attractiveness even at a time when the global investment climate remains uncertain.

The new plant will provide modern, efficient local production capacity to support the development of infrastructure, as well as helping to reduce carbon intensity in the Kazakh cement industry. Moreover, it will set a replicable example of introducing alternative fuels, the first time on such a scale in Kazakhstan.

The investment will also contribute to the ongoing EBRD policy dialogue with the Kazakh authorities in regard to CO₂ emissions regulations and align the Kazakh emissions-trading systems with international standards.

Shymkentcement in turn will expand its comprehensive energy and environmental-management systems. The company will also undertake education initiatives, providing traineeships and placements in collaboration with local universities and colleges to spread knowledge about energy-efficient technology and environmental best practice.

“We are pleased to join forces with Italcementi Group to invest in local, energy-efficient production facilities which will support infrastructure development in the fast-growing region of Shymkent. This is an important step towards a more efficient, less carbon-intensive future for the industrial sector of Kazakhstan,” EBRD Director in Kazakhstan Janet Heckman said.

Since the beginning of its operations in Kazakhstan, the EBRD has invested close to $6.75 billion in the country’s economy, with more than half of the total supporting projects in the private sector.