Invest projects

Construction of a thermal power plant in Turkestan

  • Indicator Results
  • Investment amount, thousand US dollars 91 785
  • NPV of the Project thousand, US dollars 43 846
  • IRR, % 15,3%
  • IBITDA yield, %
  • Payback period, years 9,4
  • Discounted payback period, years - -

Annual capacity:

  • electricity – 382 million kwh/year;
  • thermal energy – 200 thousand. Gcal/year.
Domestic demand:
  • electricity consumption in the Turkestan region is 4,673 million kWh.
Project

The project provides for the construction of a thermal power plant in Turkestan with a capacity of 49 MW. The construction of the CHP is carried out within the framework of a public-private partnership ("PPP"), which provides a guarantee for the sale of products, the provision of a land plot, reimbursement of costs for expertise services from the state. The production process of the CHP includes the use of modern gas piston technology with combined heat and electricity generation. Natural gas is used as the main fuel, and diesel is the backup fuel.

Company

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

Market
  • Over the past decade, the volume of electricity consumption in the Southern zone of Kazakhstan has increased by 43%, reaching 23 billion kWh in 2020. At the same time, the volume of electricity production in the region amounted to 12 billion kWh, the average annual growth rate of production is 3.4%. The shortage of electricity in the Southern Zone is covered by the flow from the energy-surplus Northern zone through the networks of KEGOC JSC, as well as minor imports from Kyrgyzstan.
  • In 2020, electricity consumption in the Turkestan region amounted to 4,673 million kWh, the share of total electricity consumption in the Southern zone was 20%.
What is the attractiveness of the project?
  • Development of the region. The region has received a new development in accordance with the Decree of the President of the Republic of Kazakhstan No. 702 dated June 19, 2018 on the transfer of the administrative center of the South Kazakhstan region from Shymkent to Turkestan. Active construction of new facilities is underway in the region. In 2020, 1,200 thousand square meters of new facilities were built (7% of the total figure in the country). For 2018- 2020, the average annual growth rate (CAGR) was 19.5%.
  • High demand for manufactured products. Historically, electricity consumption in the Turkestan region has repeatedly exceeded 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 91,785 thousand US dollars, including:
  • 80% (73,428 thousand US dollars) - debt financing (if collateral is available);
  • 20% (18,357 thousand US dollars) – joint venture participation (10% from each partner).
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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