Until 2035, “Samruk-Energy” JSC aims to execute investment initiatives to introduce over 12 GW of new power generation capacities in Kazakhstan's energy sector, as revealed by Kairat Maxutov, Chairman of the Board, during a government meeting in the Republic of Kazakhstan. The outlined projects encompass 5.9 GW in thermal plants, 600 MW in hydropower plants, and 5.7 GW in renewable energy facilities, comprising wind and solar power plants. Maxutov highlighted that several projects would be undertaken collaboratively with strategic investors.

Maxutov's report detailed ongoing projects, specifically the construction of combined cycle gas turbine units at Almaty CHP-2 and CHP-3. Almaty CHP-2 project involves a new gas station with 557 MW electrical capacity and 816 Gcal thermal capacity, costing 330 bn. tenge based on the EPC contract. Meanwhile, the Almaty CHP-3 project envisions a CCGT unit with 544 MW electrical capacity and 160 Gcal thermal capacity, with a project cost of 273 bn. tenge according to the feasibility study. Maxutov assured that both CHP-2 and CHP-3 projects are fully funded, with construction sites in preparation and geological surveys underway.

Furthermore, Maxutov discussed plans for constructing new thermal power plants in three Kazakh cities. A memorandum of cooperation signed in November 2023 involves the construction of thermal power plants in Kokshetau (240 MW), Semey (360 MW), and Ust-Kamenogorsk (360 MW). Samruk-Energy and Russia's INTER RAO Export are designated as authorized organizations for project implementation. Feasibility studies for Kokshetau have been completed, Semey's study will be ready in March, and Ust-Kamenogorsk's study is scheduled for completion by the end of 2024. The construction of these thermal power plants is slated for 2027-2028.

The project portfolio of “Samruk-Energy” JSC also encompasses several hydroelectric projects, including the Kerbulak hydropower station (50 MW) on the Ili River, Semey HPP (up to 300 MW) on the Irtysh River, and HPP 29 (70 MW) on the Shelek River. Pre-project documentation is in progress, along with coordination with local executive bodies for land acquisition.

Moreover, the company is actively engaged in renewable energy projects with a total capacity of 5 GW. The SDPP-3 project involves constructing a new station with a capacity of 1320 MW, featuring two power units of 660 MW each.

“Samruk-Energy” JSC’s management team led by Chairman of the Board K.B. Maxutov, conducted a visit to Semey city. An extensive meeting took place at the regional mayor's administration (akimat), with the participation of Regional Mayor Urankhaev N.T. and heads of various Akimat divisions. The discussions primarily focused on advancing the "Construction of a thermal power plant in Semey" project. Specific attention was given to the necessity of completing the feasibility study and formulating a heat supply scheme for Semey city. This scheme would factor in the construction of the new thermal power plant and consider the city's future development prospects.

A mutual decision was reached to establish a collaborative Working group and endorse a comprehensive Roadmap for project implementation.

A delegation from “Samruk-Energy” JSC, led by Chairman of the Board Maxutov Kairat Berikovich, visited the Ekibastuz energy hub enterprises. While at Ekibastuz SDPP-1, the Company's management observed the ongoing restoration work on power unit No. 1. Additionally, updates were provided on the progress of the Autumn-Winter Period (AWP), fuel reserves, and the current status of fuel supply facilities. Following the visit to SDPP-1, a working meeting was conducted, addressing both the implementation of ongoing and future investment projects.

Similarly, during the visit to Ekibastuz SDPP-2, a working meeting took place, featuring progress reports on the AWP and the status of investment project implementations. Specific instructions were issued to the management of SDPP-1 and SDPP-2 based on the outcomes of these meetings, emphasizing the need for continuous station operation and the timely execution of measures related to investment projects.

Samruk-Kazyna signed collaborative agreements in the energy sector with Russian counterparts.

In the course of the official visit of the Head of State to St. Petersburg, Nurlan Zhakupov, Chairman of the Board of “Samruk-Kazyna” JSC, engaged in discussions with Sultan Yakhyaev, Chairman of the Board of Directors at "Firm ORGRES" LLC, and Maxim Sergeev, General Director of Inter RAO - Export LLC.

These discussions culminated in the signing of cooperation agreements between ”Samruk-Kazyna” JSC and Inter RAO - Export LLC. The agreements focus on the implementation of projects involving the construction of three thermal power plants in Kokshetau, Semey, and Ust-Kamenogorsk cities. Additionally, collaboration was established between “Samruk-Energy” JSC and LLC "ORGRES Firm" for the construction of power units No. 3 and No. 4 at Ekibastuz SDPP-2, utilizing Russian equipment.

Both parties expressed mutual interest in partnering on energy-related matters and highlighted the significance of exchanging insights in the realm of infrastructure development.

Today, Nurlan Zhakupov, the Chairman of the Board of “Samruk-Kazyna” JSC, paid a visit to the head office of “Samruk-Energy” JSC, the largest Kazakhstani electric power holding company, and extended congratulations to the energy professionals within the Fund's portfolio company on their professional holiday.

In his address to the company's staff, the head of “Samruk-Kazyna” Fund spoke highly of the role and significance of “Samruk-Energy” JSC in shaping the country's energy security and executing crucial investment projects vital to the Republic's economy. As noted by Nurlan Zhakupov, the dedicated efforts of Kazakhstani energy professionals provide a solid foundation for the lives of millions of fellow citizens and ensure the uninterrupted operation of enterprises across all sectors of the economy.

During the event, the Chairman of the Board of “Samruk-Kazyna” JSC awarded Certificates of Honor and Letters of Appreciation from the Fund to standout employees of “Samruk-Energy” JSC. Among the company's employees who achieved the best performance indicators were Gaukhar Zharmanova, Senior manager of  Legal Support Department; Galymbek Autalipov, Director of  Generation and Fuel Department; Oleg Kvon, Director of Asset Management Department; Madina Aisarieva, Director of Corporate Governance and Sustainable Development Department; Erkebulan Sarsembekov, Chief Auditor of the Internal Audit Service; Ruslan Tulegenov, Senior manager of the Strategy and Economic Analysis Department; Sultan Mukaev, Director of  Treasury and Corporate Finance Department; Erzhan Dyusenov, Director of  Market Analysis and Development Department.

In response, Kairat Maxutov, the Chairman of the Board of “Samruk-Energy” JSC, expressed gratitude to “Samruk-Kazyna” Fund and its management for congratulations and the comprehensive support extended in implementing nationally significant projects in the country's energy sector. According to Kairat Maxutov, with the assistance of “Samruk-Kazyna” Fund, the company is actively working to establish a highly efficient energy supply system, ensuring the sustainable development of all sectors of the republic's economy.

As highlighted by the Chairman of the Board of “Samruk-Energy” JSC, today, thanks to the productive and constructive efforts of every employee within the holding's Group of Companies, crucial projects are being successfully implemented at the company's facilities in the Ekibastuz and Almaty energy complexes.

After extending congratulations to the company's energy professionals and conducting a formal award ceremony, a meeting took place, involving executives from both “Samruk-Kazyna” JSC and “Samruk-Energy” JSC. During this session, the head of “Samruk-Kazyna” Fund received a comprehensive report detailing the performance outcomes of “Samruk-Energy” JSC over 11 months of 2023.

A team of experts from PwC Kazakhstan has revealed the findings of the study titled "Rating of the 50 Best Companies in ESG Information Disclosure".

Samruk-Energy JSC emerged as a standout performer in ESG information disclosure practices, securing the 4th position in the overall ranking among 96 Kazakhstani companies. Notably, it claimed the 1st spot in the industry, establishing itself as the premier electric power company in terms of ESG information disclosure. You can access the complete rating at this link: (https://www.pwc.com/kz/en/assets/esg-2023-final-draft.pdf).

During the assessment, PwC Kazakhstan experts scrutinized the quality and accessibility of ESG information in the public reports of Kazakh companies. The evaluation encompassed 129 criteria organized into five key disclosure areas: 1) sustainable development strategy; 2) corporate governance; 3) society; 4) environment; 5) reporting practices. Additional points were granted for the clarity and quality of information presentation.

In their report, PwC Kazakhstan experts highlight, "The companies within the top ten of the rating demonstrate a high level of ESG information disclosure, even by international standards. The leaders in our ranking swiftly respond to emerging trends in the global ESG agenda and actively contribute to sustainable and stable progress".

“Samruk-Energy” JSC fully recognizes that public reporting serves as the primary tool for engaging with all stakeholders. Therefore, we are committed to maintaining transparency, accessibility, and the ongoing relevance of our public reporting efforts.

As part of the global "16 Days of Activism Against Gender-Based Violence" campaign, “Samruk-Kazyna” Fund organized an informative seminar focusing on preventing infringements of workers' rights based on gender.

The seminar, inaugurated by Eldos Umirzakov, the General Director of the Center for Social Interaction and Communications (CSIC), marked a significant stride in fostering a secure and supportive work environment within the corporation. During the seminar, Eldos Umirzakov underscored the significance of studying methods to counter various forms of violence and pressure in the workplace, emphasizing its impact not only on social stability but also as a pivotal element in the development of labor collectives.

Askar Darmenov, Head of the Compliance Service of Samruk-Kazyna Fund, drew attention to the variations in the interpretation of the term "harassment" and stressed the necessity for a clear legal definition. He pointed out that ambiguity in terminology could lead to problems and risks of misunderstanding within a corporate setting. Nonetheless, Darmenov acknowledged that the internal Code of Ethical Conduct for employees of Samruk-Kazyna group explicitly prohibits all forms of discrimination, providing a legal foundation for the protection of individuals who have experienced harassment.

Ainur Tukumova, an analyst at the Expert Analysis Department of the Kazakhstan Institute of Social Development, told about international conventions addressing this issue and the efforts of state institutions in this regard, as well as international conventions, governmental initiatives, the diverse forms of harassment, and strategies for overcoming these challenges within the workplace.

Ayazhan Oirat, Regional Director of the Center for Legal Policy Research, emphasized the importance of combatting different types of harassment and presented practical methods for countering this phenomenon.

In conclusion, Zhannur Dildabaev, Head of Working Relations Development Department of CSIC assured that such meetings would become a regular occurrence.

Delegates from Kazakhstan's leading electric power conglomerate participated in the UN International Climate Summit, COP28, currently underway in Dubai. The conference's primary focus is to assess global progress in fulfilling the objectives outlined in the Paris Agreement.

As an integral part of the international gathering, a dedicated presentation initiative, known as Green Pitching, was conducted for Central Asian nations, exploring "Investing in sustainable development and climate change resilience". In collaboration with UNDP and AIFC, the event featured Almasbi Kamalov, the Managing Director for Economy and Finance at Samruk-Energy JSC, delivering a report on behalf of Kazakhstan. The presentation centered on the ongoing efforts within Samruk-Energy Group of Companies to transition coal-fired thermal power plants to gas through the utilization of financial instruments, specifically sustainability-linked bonds.

Almasbi Kamalov emphasized that Kazakhstan ratified the Paris Agreement in 2016, committing to reducing greenhouse gas emissions. To realize this commitment, energy transition programs for Samruk-Kazyna JSC and Samruk-Energy JSC were approved in 2022, outlining a gradual reduction of CO2 emissions by 2032 and the aspiration to achieve carbon neutrality by 2060.

Highlighting Kazakhstan's ample resources for implementing the energy transition program, Almasbi Kamalov pointed out that the southern regions receive about 3,000 hours of sunshine annually, making solar energy competitive globally. The country's hydro potential is estimated at 62.6 billion kWh, approximately 55% of current consumption, while wind energy potential is calculated at 1.8 trillion kWh per year, roughly 16 times the current consumption.

Almasbi Kamalov stated, "By 2030, we plan to implement renewable energy projects with strategic investors, constructing 4 GW of wind power plants, 1 GW of solar power plants, and 1.7 GW of hydropower plants". He further elaborated on the initiative to convert Almaty's thermal power plants to gas, addressing environmental and health concerns in the city of 2 million inhabitants.

The Managing Director emphasized that Samruk-Energy's current projects not only hold social and environmental significance but also aim to address the country's energy shortfall. After the modernization and launch of new stations, experts predict a 28% reduction in greenhouse gas emissions and a 92% decrease in harmful substances. Almasbi Kamalov highlighted additional benefits, such as the potential to regulate 500 MW of green energy with the commissioning of a new Combined Heat and Power Plant (CHP-3).

Discussing the Almaty CHP-2 conversion project, Almasbi Kamalov mentioned concluded loan agreements with development banks. The CHP-3 project in the city is in the process of issuing Sustainability-linked bonds, with a financing amount of approximately 500 mln.USD.

The Green Pitching initiative at the UN International Climate Summit seeks to foster collaboration, spur innovation, and attract investments for a green and sustainable future in Central Asia. The exhibition showcases projects across various sectors, including renewable energy, water management, sustainable agriculture, and ecotourism, aiming not only to mitigate climate change effects but also to enhance the quality of life for Central Asian residents.

Regarding the article published on the information portal inbusiness.kz dated 05.12.2023 titled "Modernization of Almaty CHP-3 was extended,"Samruk-Energy” JSC wishes to clarify that the information provided in the article is currently outdated. The consolidated interim financial statements of “Samruk-Energy” JSC as of June 30, 2023, and October 30, 2023, reveal updated details on the progress of the "Reconstruction of Almaty CHP-3" project.

The revised information states that the project's implementation period has been adjusted to the timeframe of 2023-2027. This modification was necessitated by preliminary assumptions concerning the delivery timeline of key equipment, specifically steam-gas turbines and generators, from Siemens Energy.

It is important to highlight that, as of the publication date of “Samruk-Energy” JSC's consolidated financial statements for the first half and 9 months of the current year, conclusive agreements regarding the delivery date of the primary process equipment have not been reached between the EPC contractor (comprising KBI Energy Group LLP, Energo Spets Stroy LLP, LLP StandardEnergo KZ, and LLP BUILDING INDUSTRY) and Siemens Energy. This pertains to the agreed-upon timeframe aligning with the acceptable schedule for "AlES" JSC aiming for the commissioning of CHP-3 by the end of 2026.

In this vein, the EPC contractor engaged in negotiations with an alternative equipment supplier, Ansaldo Energia. Subsequently, a Slot Reservation Agreement (SRA) was signed on November 9 of this year for the manufacturing of equipment for CHP-3.

In accordance with the terms outlined in the agreement with Ansaldo Energia, the "Reconstruction of Almaty CHP-3" project is now projected to be completed by the end of 2026.

Today, Almaty Power Plants JSC (AlES) and the Eurasian Development Bank (EDB) signed an agreement for the joint implementation of Almaty CHP-3 reconstruction project.

The EDB has outlined plans to acquire sustainable development bonds (ESG) issued by AlES, specifically Sustainability-Linked Bonds (SLB). These debt securities are designated for financing environmental and social projects in support of the Almaty CHP-3 reconstruction initiative.

The ceremonial signing occurred at the Astana International Exchange (AIX) in Astana. The debt financing for the Almaty CHP-3 reconstruction project marks the initiation of AlES's inaugural bond program related to sustainable development, with a total nominal value of up to 236.8 billion tenge, as registered on the Astana International Financial Center Exchange.

Almasbi Kamalov, Managing Director for Economy and Finance of “Samruk-Energy” JSC, expressed that extensive efforts were invested in securing financing for the project. This included assessments of environmental impact based on international standards and evaluations of applicable technologies, considering global experiences. Samruk-Kazyna JSC and Samruk-Energy JSC prioritize the development of the Almaty agglomeration, with multiple crucial projects underway in the Almaty energy hub. These endeavors aim not only to enhance the region's energy potential and alleviate maneuverable power shortages but also to improve the city's ecological footprint.

Ruslan Dalenov, Deputy Chairman of the EDB Board, emphasized the bank's focus on mega projects like Almaty CHP-3 reconstruction. He highlighted the installation of modern, environmentally friendly combined cycle gas turbine units as a significant step in enhancing the environmental situation in Kazakhstan's largest city. This aligns with the principles of sustainable development that the Bank upholds. The EDB actively supports countries in achieving energy security through financing and grants for pre-project work, contributing to the development of new capital-raising mechanisms such as Sustainability-Linked Bonds.

The inaugural issuance of AlES's sustainable development bonds received support from the AIFC Green Finance Center, providing essential consulting support and an independent opinion on the bonds' compliance with sustainable development bond principles (Second Party Opinion).

Daniyar Kelbetov, Chairman of the Board of Directors of the AIFC Green Finance Center, underlined AIFC's commitment to introducing innovative financial instruments to attract investments in environmentally sustainable projects. Kazakhstan's pioneering launch of a market for Sustainability-Linked Bonds in Central Asia is seen as a significant contribution to global carbon footprint reduction goals.

Apart from the EDB, other development institutions and second-tier banks may emerge as potential investors in the project. Sky Bridge Invest JSC serves as the financial consultant and underwriter for the bond program's issuance and placement.

According to AIFC information, AlES SLB bonds are poised to become the largest issue of sustainable development bonds in Central Asia.

Asel Mukazhanova, Chairman of the Board of AIX, acknowledged the global shift wherein investors increasingly consider ESG criteria in their decision-making. AIX takes pride in participating in this trend by offering opportunities to invest in sustainable development through an array of accessible products.

The investment project, "Reconstruction of Almaty CHP-3 based on a combined cycle gas turbine unit with a capacity of 500 MW" is implemented by Samruk-Energy JSC, represented by its subsidiary – AlES. The initiative envisions a comprehensive refurbishment of the power plant, including capacity and maneuverability enhancements. The new CHP is designed to generate both electricity and heat.  A pivotal aspect of the project involves installing up-to-date, environmentally friendly combined cycle power units that use natural gas, replacing outdated and depleted pulverized coal-fired equipment.