Chinese banks are eager to lend hundreds of millions of dollars for investment projects in Kazakhstan
Chinese financial institutes will lend easy loans to the Development Bank of Kazakhstan (DBK) to implement several investment projects. The corresponding agreements were signed on July 2, on the sidelines of the Kazakh-Chinese Business Council meeting in Astana. It was held shortly before the Shanghai Cooperation Organization (SCO), the DBK’s press service reported.
Thus, the China Construction Bank in Astana will allocate $500 million in easy loans to the DBK. This money is expected to finance several investment projects, although neither side has revealed any details of the move.
Furthermore, the government-run China Development Bank will also lend $250 million and CNY 2 billion in easy loans to the DBK to finance various investment projects, including the reconstruction of more than 5,000 kilometers of highway stretching across the entire country. According to the DBK, this project will be implemented nationwide to boost the transport and logistics potential of different Kazakhstani regions. As the development institute, the DBK has already issued a $955,360 loan to QazAvtoJol, a state-owned company responsible for highway maintenance.
In addition, the DBK has reached an arrangement with China Power International Holding and the Industrial and Commercial Bank of China on issuing a syndicated loan to finance the construction of a 220-megawatt wind farm in the Almaty region. The Asian Infrastructure Investment Bank is also expected to be part of the syndicate.
Within the framework of this investment project, authorities want to provide the region with clean energy and cut emissions with the help of five wind power stations: Borey (100 megawatts), Energy Trust (50 megawatts), Sofiyevskaya (39 megawatts), Arkalyk (17 megawatts) and JasilJel Energy (14.95 megawatts). The project also meets Kazakhstan’s broader goal of raising the share of alternative energy sources to 80% of the overall energy balance by 2060.
A memorandum on cooperation between the DBK, Shijixianghe Asia Pte. Ltd. and the Grain Consortium of Kazakhstan was another important document signed during the meeting. Under the agreement, the three sides will be engaged in the implementation of an investment project on deep processing of grain with a capacity of one million tons per year. The project is aimed at manufacturing products with high value-added to export them to the global market.
The DBK is the national institute engaged in financing private investment projects in non-commodity sectors as well as public infrastructural projects by issuing mid-term and long-term easy loans. The sole shareholder of the development bank is Baiterek Holding, controlled by the Ministry of Economy of Kazakhstan.
