A contract was signed in Almaty with a contractor for the construction of a new Almaty CHP-2 on gas fuel. The EPC contract implies the implementation of a full cycle of work: design, supply of equipment, construction, start-up work andcommissioning. The new station will be built on the site of the existing thermal power plant, which today uses coal as the main fuel, and fuel oil as the starting fuel.

The contractor for the construction of the new gas turbine power plant was a consortium of three large Chinese companies specializing in implementation of energy projects: Dongfang Electric International Corporation, Powerchina Sepco1 Electric Power Construction Co., Ltd, Powerchina Hebei Electric Power Engineering Co., Ltd. The consortium is an alliance of companies, the first of which is a major manufacturer of industrial equipment, the second has experience in implementing projects on EPC terms, and the third specializes in design.

This selection was determined by the results of a two-stage open international tender held according to international standards and rules of the European Bank for Reconstruction and Development (EBRD) within the framework of the project “Modernization of Almaty CHP-2 with minimization of environmental impact”.  Recall that the tender for determination of an EPC contractor was announced in October last year. In January 2023, the applications of the participants of the 1st stage of the competition (pre-qualification) were opened. In total, applications were received from 6 participants. As part of the 2nd stage of the tender, two applications were considered. As a result, according to the rules of the EBRD, the competition is considered to have taken place and the bank at the end of May 2023 confirmed its winner – a consortium of three Chinese companies.  

The signing of the EPC contract was carried out on the territory of Almaty CHP-2, on the site allocated for the new station. The representatives of the Samruk-Kazyna Fund, the Embassy of the People’s Republic of China in Kazakhstan, the Ministry of Energy of the Republic of Kazakhstan, Akimat of Almaty and Samruk-Energy JSC participated in this event. The contract was signed by Yerlan Kirkinbayev, the Chief Executive Officer of Almaty Electric Stations JSC (AlES), on behalf of the customer and Mr. Jiang Lixiang, the Deputy General Director of the International Marketing Department of Dongfang Electric International Corporation, on behalf the contractor.

According to the Almaty CHP-2 modernization project, it is planned to build a gas turbine CHP with an electric capacity of up to 600 MW and a thermal capacity of 957 Gcal/h. The station will include a housing of gas turbine units and a hot water boiler room. The aim of the project is to reduce the negative impact of the plant on the environmental situation of Almaty city by transferring CHP–2 to natural gas combustion. The project and commissioning of the station is scheduledto complete in December 2026.

According to the Chief Executive Officer of Samruk-Energy JSC, Serik Tyutebayev, after modernization, reconstruction and conversion to gas of two Almaty stations – CHP-2 and CHP-3, emissions of harmful substances into the atmosphere of the city will decrease by 92%. The reduction will be achieved usingnatural gas in efficient gas turbine installations that ensure emissions of harmful substances into the atmosphere at the level of the requirements of the European Union. In addition, as a result of replacing the main fuel of coal with gas, the formation and burial of ash and slag waste is excluded. Evaporative fields for the disposal of industrial effluents are provided on the site of the existing ash dump.

Also, as the specialists of Samruk-Energy JSC said, the project is aimed at covering the shortage of the electric power market in the Southern zone of Kazakhstan.  

In November 2022, a loan agreement was concluded between AlES, the owner of the station, and the EBRD on financing the project. In general, financial support for the project will be provided by international and Kazakhstani financial institutions, which, in addition to the EBRD, include the Asian Development Bank (ADB) and the Development Bank of Kazakhstan JSC (DBK). The signing of the relevant documents with ADB and DBK is planned in June 2023. Financing is provided under corporate guarantees of the Samruk-Kazyna Fund, which, according to experts, contributes to minimizing risks and improving credit conditions.

For information:

Almaty CHP-2 is the largest thermal power plant in Kazakhstan for combined generation of electric and thermal energy with an installed electric capacity of 510 MW, thermal – 1411 Gcal/h. The station provides about 70% of the heat of the district heating zone and 50% of the electricity of Almaty. CHP-2 is owned by Almaty Electric Stations JSC.

Almaty Electric Power Stations JSC (AlES) is an energy–producing organization engaged in the production of thermal and electric energy in the city of Almaty and the Almaty region. ALES provides electric and thermal energy to about 70% of consumers in the Almaty region.   The company includes CHP-1, CHP-2, CHP-3, the Western Thermal Complex, Kapshagayskaya HPP, the Cascade of Almaty HPPs, Energoremont TED and fuel recovery and receiving center(FRRC).

Samruk-Energy JSC is the largest electric power holding in Kazakhstan, 100% of whose shares is owned by Samruk-Kazyna SWF JSC. It was establishedin 2007. Main activities: production of electric and thermal energy; transmission, distribution and sale of electric energy; extraction of thermal coal. The holding includes energy and coal enterprises, such as Ekibastuz GRES-1 LLP, EkibastuzGRES-2 Station JSC, Bogatyr Komir LLP, Almaty Electric Stations JSC, MoynakHPP JSC, Shardara HPP JSC, etc.