Kazakhstan’s Nuclear Power Operator Discusses Financing for First Nuclear Plant

The Kazakhstan Nuclear Power Plants Company (KAES), which will operate the country’s first nuclear power plant, has shared details on how the project will be financed. Talks are currently underway with Russian banks to secure an intergovernmental export credit, Orda.kz reports.

KAES clarified that the previously cited $14 billion figure is only a preliminary estimate. The final cost will depend on numerous variables — including the plant’s location and the technical decisions made during planning.

The figure mentioned today is indicative… It may be affected by the selection of equipment suppliers, especially in the context of creating an international consortium involving leading global companies to implement the project. The main source of funding under consideration is an intergovernmental export credit. The terms of that loan are currently being discussed with our Russian partners,
 said Yeranat Berdigulov, General Director of KAES LLP.

Berdigulov also explained how electricity tariffs will be determined, noting that loan servicing costs will be factored in:

Any company that comes in will aim to generate a profit. After construction is completed and the warranty period has passed, the contractor exits the project. The plant remains state-owned, under the Republic of Kazakhstan. The electricity rate will be based on operating costs and the repayment requirements for project financing.

Construction on Kazakhstan’s first nuclear power station officially began today.

Original Author: Nikita Drobny