Invest projects

Construction of a cascade of hydroelectric power plants in the Turkestan region

  • Indicator Results
  • Investment amount, thousand US dollars 546 216
  • NPV of the Project thousand, US dollars 86 596
  • IRR, % 13,8%
  • IBITDA yield, %
  • Payback period, years 9,3
  • Discounted payback period, years - -

Products

Average annual capacity:

  • electricity – 539 kW;
  • drinking water – 99 million cubic meters. m.
Project

The project provides for the construction of a cascade of 7 hydroelectric power plants (HPPs) with an average annual electricity generation of 64 MW on the Ugam River in the Kazygurt district of Turkestan region, as well as the construction of a 42 km long water pipeline providing nearby areas with drinking water in the amount of 99 million cubic meters. The main raw material for the production of electricity from HPPs is a natural renewable resource - water runoff

Company

Established in 2011, Ocean Energy Company LLP is a project company in the energy sector, is a subsidiary of SOUTS-OIL LLP (specializing in the exploration and production of hydrocarbons).

Market
  • Global electricity production reached 26,422 billion kWh in 2020, an increase of 2% over the previous year. According to Fitch Solutions forecasts, the average annual growth rate will be 2.6% for the period 2016-2024.
  • Over the past decade, the volume of electricity production in the Southern zone of Kazakhstan has increased by 50%, reaching 12 billion kWh in 2020. The average annual growth rate of electricity production in the Southern Zone for the forecast period 2021-2027 will be 3.8%.
What is the attractiveness of the project?
  • Shortage of drinking water. In a number of regions of the Turkestan region there is an acute shortage of fresh drinking water. The implementation of the project will cover the population's demand for drinking water.
  • State support. Within the framework of public-private partnership, the state guarantees the sale of products, the provision of land.
  • High demand for manufactured products. Historically, the Turkestan region is energy deficient: electricity consumption is many times higher than its production. In 2020, electricity consumption in the region amounted to 4,673 million kWh, i.e. 20% of the total electricity consumption in the Southern zone. At the same time, 1,300 kWh of electricity was produced in the region, or 11% of the total volume of its production in the Southern zone.
Investment offer

The Project requires financing in the amount of 546,216 thousand US dollars, of which:
  • 70% (382,351 thousand US dollars) - debt financing in the presence of collateral;
  • from 30% (163,865 thousand US dollars) - Investor participation.
The proposed financing structure and measures of state support are indicative, the final structure of financing and participation in the Project will be determined based on the results of joint negotiations with the investor.


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