Description: 

An additional $15 million of CTF resources to The Kazakhstan Waste Management Framework to scale up waste-to-energy projects in the country in order to improve municipal waste processing while avoiding carbon emissions.

Background:

In Kazakhstan, almost all municipal waste is disposed of at poorly managed landfills or city dumps that lack basic sanitary and environmental measures. The existing capacity of legal landfills is not sufficient to handle the growing quantities of waste.

The Kazakhstan Waste Management Framework (KWMF) was initially approved in June 2011 for an amount of up to $22.46 million. $8 million has thus far been committed to a project in Aktau, and the remaining $14.46 million is expected to be committed by the end of 2015. The KWMF provides debt financing to municipal or private operators developing waste-to-energy projects in Kazakhstan.

For the extension, the EBRD is seeking to re-authorize the framework on the basis of the updated pipeline, and expand the Framework by $15 million, as foreseen in the updated CIP of 2013, to a total of $37.46 million. The expansion is proposed to be funded by transferring $4.094 million from the existing $6.3 million from Kazakh Railways.

Objectives and Outputs:

An additional $15 million of CTF resources to The Kazakhstan Waste Management Framework to scale up waste-to-energy projects in the country in order to improve municipal waste processing while avoiding carbon emissions.

Background:

In Kazakhstan, almost all municipal waste is disposed of at poorly managed landfills or city dumps that lack basic sanitary and environmental measures. The existing capacity of legal landfills is not sufficient to handle the growing quantities of waste.

The Kazakhstan Waste Management Framework (KWMF) was initially approved in June 2011 for an amount of up to $22.46 million. $8 million has thus far been committed to a project in Aktau, and the remaining $14.46 million is expected to be committed by the end of 2015. The KWMF provides debt financing to municipal or private operators developing waste-to-energy projects in Kazakhstan.

For the extension, the EBRD is seeking to re-authorize the framework on the basis of the updated pipeline, and expand the Framework by $15 million, as foreseen in the updated CIP of 2013, to a total of $37.46 million. The expansion is proposed to be funded by transferring $4.094 million from the existing $6.3 million from Kazakh Railways.

Objectives and Outputs:

The KWMF’s primary objective is to provide financing and technical assistance for the implementation of waste-to-energy projects. These initiatives will demonstrate the benefits of energy recovery from waste in conjunction while introducing modern waste management approaches.

The first phase of the KWMF has focused on building a pipeline of municipal waste-to-energy projects. To this end, $22.46 million of CTF was allocated in 2013. While $14.46 million remains of the original CTF allocation, the pipeline for new projects is strong. The pipeline of projects is expected to result in 200,000 tonnes of avoided CO2 per annum at the end of the four-year period 2015 to 2018 with a lifetime of 20 years, and up to 10 MW (75-80,000 MWh/yr) of installed capacity.

The KWMF will create business opportunities for the private sector in the renewable energy and waste management sector by establishing public private partnerships and outsourcing some municipal services. These efforts are intended to generate employment in this new and developing sector of the economy. It will also offset the environmental impact from coal-fired power generation. On the institutional level, it will lead to improvements to waste management legislation and government strategies.

Gender considerations will be assessed both at the facility and at the sub-project development stage in line with EBRD policy and the EBRD’s Strategic Gender Initiative, and taking into consideration relevant CIF policy. The implementation consultants working at the municipal level will be tasked with ensuring and carrying out a gender-responsive stakeholder engagement as appropriate at the local level.

The Framework will create a proper institutional structure for the development of waste-to-energy projects in Kazakhstan and will help the country in its much needed efforts to reduce the environmental impact of energy production and waste disposal.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

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Project Details

Project Operational Changes :
 Proposed Decision| EBRD Operational Changes Request
Approved on April 7, 2017 (Approval Notification)

Project Extension Request

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Cover Note | Proposed Decision
Approved on December 22, 2014 (Approved Decision)
Approved amount(s):
USD 14.45 million (concessional loan)
USD 550,000 (MPIS)
Changes in Approved Amount at EBRD Request (November 25, 2015)
Comments and Responses
Germany (November 26, 2014)
United Kingdom (November 26, 2014)
EBRD Response to Germany and United Kingdom (December 18, 2014)

Initial Project Details
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Project DocumentProposed Decision
Approved on June 27, 2011 (Approved Decision)
Approved amount(s):
USD 22.46 million
Comments and Responses
United Kingdom (June 9, 2011)
France (June 16, 2011)
United Kingdom (June 20, 2011)