EDB, Halyk Bank finance $240mn expansion of Ust-Kamenogorsk CHPP in Kazakhstan
The Eurasian Development Bank (EDB) and Halyk Bank are jointly funding a $240 million expansion of the Ust-Kamenogorsk combined heat and power plant (CHPP) in Kazakhstan, which involves the construction of a new power unit.
This initiative aims to boost the plant's thermal capacity by 130 Gcal per hour and its electricity generation capacity by 100 MW by 2030. The expansion is designed to meet the growing demand for heat and electricity in Ust-Kamenogorsk and the broader East Kazakhstan region.
The project officially commenced with a time capsule laying ceremony. Attendees included Nurymbet Saktaganov, Akim of the East Kazakhstan region; Yerlan Akkenzhenov, Kazakhstan's Energy Minister; Ruslan Dalenov, EDB Deputy Chairman; Olga Vuros, Halyk Bank Deputy Chairwoman; and representatives from Kazakhstan Communal Systems and Ust-Kamenogorsk CHPP.
According to the EDB, the Ust-Kamenogorsk CHPP currently supplies approximately 85% of the city's centralized heating. Increased residential construction, social infrastructure development, and new industrial projects are driving the need for additional heat and electricity.
The new power unit is expected to generate sufficient capacity to support future demand in the city and region. This project is being implemented with the backing of Kazakhstan's Ministry of Energy and is integrated into the nation's development programs.
The expansion will also incorporate advanced environmental and technological systems. The EDB states that the plant will feature high-efficiency emission control equipment, designed to comply with both Kazakhstan's Environmental Code and European standards.
The EDB has provided both financial and technical assistance during the project's preparatory phase, including support for structuring the financing and developing design and cost-estimate documentation.
Ruslan Dalenov, Deputy Chairman of the EDB Management Board, affirmed that the project aligns with the bank's investment priorities, particularly within the energy sector.
Dalenov stated, "Over the past five years, EDB has financed projects totaling more than $6.5bn. Energy is one of the Bank's key areas of activity and accounts for a significant share of our investment portfolio."
The Ust-Kamenogorsk project follows other generation projects in Kazakhstan supported by the EDB, such as the $260 million expansion of Karaganda CHPP-3 in 2025. Both projects focus on increasing electricity and heat generation capacity in Kazakhstan's regions.
The EDB is a multilateral development bank that finances projects across Eurasia. As of the end of June 2026, its cumulative portfolio included 348 projects with a total investment of $22.1 billion.
The bank's investment portfolio spans transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. Under its 2022–2026 strategy, the EDB is also advancing three major regional initiatives: the Eurasian Transport Network, the Eurasian Agricultural Goods Distribution System, and the Central Asian Water and Energy Complex.