1. Our Activities
  2. (AP3F001-CB001) Capacity-related assistance for the development of a PPP model regarding new energy savings contracts between the public and private sectors through three pilot projects
(AP3F001-CB001) Capacity-related assistance for the development of a PPP model regarding new energy savings contracts between the public and private sectors through three pilot projects
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COUNTRY:
Kazakhstan
TA AMOUNT:
$493,724
TYPE OF ASSISTANCE:
Capacity Building
PROJECT STATUS:
Closed
Beneficiaries
Electric Power and Energy Saving Development Institute “Kazakhenergoexpertise” (KazES)
Background

KazES is responsible for promoting energy efficiency (EE) and energy conservation in Kazakhstan and for attracting strategic investors through performance-based Energy Savings Performance Contracts (ESPC) in accordance with internationally recognized PPP practices.

To date, KazES has received 68 applications for the EE Map, of which 30% are from the public sector or state-owned enterprises and could be implemented as PPPs. These 68 applications currently in the pipeline represent a total investment of $186m equivalent.

KazES needs to reinforce both its theoretical and operational knowledge of PPP to support the public sector in implementing ESPC PPP, and seeks appropriate capacity building assistance for the preparation and structuring of these projects.

Key Activities
  • Assessment of the existing legal and institutional frameworks, electricity tariff structures and other matters to determine the best PPP modalities for the introduction of ESPCs in Kazakhstan 
  • Capacity building of KazES for PPP models under ESPC modalities, and preparation of PPP template documents (tenders, ESPC contracts) consistent with the Kazakhstan PPP Law 
  • Capacity building of KazES for project preparation and structuring purposes, review and endorsement of ESPC proposals, and monitoring of ESPC projects 
  • Capacity building of the domestic private sector and banks, through the implementation of at least three pilot ESPC PPP projects, and through training
     
Expected Outcomes

  • Local companies to bid for PPP pilot projects financed by domestic banks

  • KazES to report enhanced knowledge of PPP practice, including by type, in terms of screening, design, implementation and monitoring

  • At least 3 projects to enter due diligence and project preparation phase

  • Competitive procurement processes used for at least 3 AP3F-supported Energy Efficiency projects