The EDB and Eurasian Bank provide long-term financing for the modernisation of Ust-Kamenogorsk CHPP
Almaty, 13 February 2026. The Eurasian Development Bank (EDB), as a lead financial institution, and Eurasian Bank, a local commercial bank, have provided US $180 million in long-term debt financing to modernise and expand Ust-Kamenogorsk Сombined Heat & Power Plant (CHPP) (part of the Kazakhstan Utility Systems Group). In addition, the EDB has provided grant financing for the preparation of the project design and cost estimates documentation for the project.
As part of the joint financing, the EDB and Eurasian Bank have each opened US $90 million long-term loan facilities. The borrower’s payment obligations under the Eurasian Bank loan are secured by an EDB payment guarantee. The credit enhancement mechanism in form of the EDB’s guarantee made it possible to mobilise long-term financing from Eurasian Bank for the longer tenor required to implement the investment project.
The modernisation and expansion of Ust-Kamenogorsk CHPP will increase the plant’s electric capacity by 100 MW and its thermal capacity by 130 Gcal/h, addressing the electricity shortage, meeting growing demand and providing heat to more than 300 apartment buildings and social facilities in Ust-Kamenogorsk. The project is part of Kazakhstan’s National Project for the Modernisation of the Energy and Utilities Sectors and is of immense social importance for the state and its citizens.
The new power unit will feature state-of-the-art energy and environmental systems, fully compliant with the requirements of Kazakhstan’s Environmental Code for new equipment. Advanced dust filtration and reductions in nitrogen, sulphur and carbon oxide emissions are expected to significantly lower the plant’s environmental impact.
“Energy is one of the Bank’s investment priorities, and we are pleased that our cooperation will make a significant contribution to the modernisation of the energy infrastructure in the East Kazakhstan Region, while also serving as a strong driver of development across the region. This operation is a successful example of co-financing a major investment project with a commercial bank where the EDB assumes the principal financial risks by providing a payment guarantee to the co-financing institution,” said Ruslan Dalenov, Vice Chairman of the EDB Management Board.
“Through our partnership with the multilateral development bank, we have joined a major infrastructure project backed by long-term financing and robust credit risk mitigation. The EDB’s experience and expertise in structuring complex transactions enable us, as a domestic bank, to strengthen our capabilities in the energy sector and other capital-intensive industries. It is particularly important for us to contribute to an initiative that combines business with high social responsibility. As a result, the residents of Ust-Kamenogorsk will benefit from reliable heat and electricity supplier, while the environmental situation in the region will improve significantly,” said Lyazzat Satiyeva, CEO of Eurasian Bank.
“The Kazakhstan Utility Systems Group systematically invests in the modernisation of its heat & power generation facilities and the expansion of installed heat & power capacities of its subsidiaries, consistently converting investments into greater reliability of energy supply and the long-term sustainability of the regions. We highly appreciate the EDB’s role in structuring the financing and enhancing the investment attractiveness of our projects,” said Sabyrgali Idrissov, General Director of Kazakhstan Utility Systems.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For 20 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries. By the end of December 2025, the EDB’s cumulative portfolio comprised 326 projects with a total investment of US $19.6 billion. The portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
Eurasian Bank is a socially important commercial bank in Kazakhstan, which marked its 30th anniversary on 26 December 2024.
It is among the ten largest banks in the country by assets, holds a leading position in the retail banking market and provides a wide range of services to corporate clients and SMEs. The Bank operates 19 regional branches and 119 offices across Kazakhstan. It forms part of the ERG Group ecosystem, one of the world’s largest mining and mineral processing companies.
The Kazakhstan Utility Systems Group of Companies is a vertically integrated holding company operating in the generation, transmission and sale of electricity and heat. The company was established in 2008. It specialises in electricity generation, heat production, electricity transmission and the sale of heat and electricity in four regions: Karaganda, Turkistan, East Kazakhstan and Mangystau.
Ust-Kamenogorsk CHPP is the largest producer of heat and electricity in the East Kazakhstan Region. With installed heat capacity of 859.9 Gcal/h and electric capacity of 372.5 MW, the company supplies heat to major industrial enterprises and covers more than 80% of supplies to the city’s housing and utilities sector. The company is part of Kazakhstan Utility Systems (with Fitch’s long-term rating at BB-), which is one of the largest private energy companies in Kazakhstan, engaged in the generation, transmission and sale of heat and electricity.
