The project provides for construction of the first phase of a wind power station (WPS) in Kostanay Region. The startup information was published on the startupnetwork.kz
The wind park is to consist of 50 wind generators each one of which will generate 2,000 kW/h. The WPS tentative return amounts to US$ 30 M 618 K annually. The project cost is US$ 200 million.
By today, the Feasibility Study has been developed. The whole range of pre-project approvals and surveys have been done: analysis of wind force potential was finished, approval of land sites assignment received for construction of a 100 MW WPS (funds are needed for filing 30 ha), material consent received for connecting the WPS to power grids and the construction business plan prepared. The project has already been approved of by the RK Ministry of Energy and recognized essential.
The project is capital intensive. The initiating GKM Company LLP does not have its own assets but is supported by the authorities and state due to importance of the project.
It was declared that upon start of the construction works, the Company would be granted five-year tax holidays. On behalf of the state, the legal entities designing, assembling, installing and operating renewable energy sources are supported by the Accounting and Finance Center for Support of Renewable Energy Sources LLP.
The Accounting and Finance Center is legally obliged to purchase the generated power from power generating companies using renewable energy sources and to supply it to the electricity network of the Republic of Kazakhstan.
An agreement exists with the anchor investor (a memorandum of non-disclosure and also an agreement of US$ 200 M project financing). But as it is a large-scale and capital-intensive startup for the GKM Company LLP and the Company does not have its own assets nor can submit a bank guarantee, it has to establish a beneficiary company in Europe and pay for a number of connected services.
Thus, the designated purpose of the investments is the expenses for filing the land site, establishment of a company in Europe and payment for the project documents.
The investor’s benefits are: interest from the principal investment into the project (let us remind you that the project total cost amounts to US$ 200 million).