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The financial guarantee for the application for participation in the auction

THE FINANCIAL GUARANTEE FOR THE APPLICATION FOR PARTICIPATION IN THE AUCTION

In order to participate in the auction for the selection of renewable energy projects in accordance with the provisions of the Rules of organizing and holding auctions, including qualification requirements for auction participants, the content and procedure for submitting applications, types of financial guarantee for participation in auctions and conditions of their deposit and return, the procedure for summing up the results and determining the winners (hereinafter - the Auction rules), the applicant must provide financial guarantee for the application for participation issued in favor of the financial settlement center.

The Applicant chooses one of the following types of financial guarantee for the application for participation in the auction issued with the SWIFT system:

  1. bank guarantee;
  2. standby letter of credit.

The amount of the financial guarantee for the application for participation in the auction is calculated by the applicant independently. The size of the financial guarantee is 2,000 (two thousand) tenge per one (1) kW of installed capacity multiplied by the installed capacity of the renewable energy facility specified in the application for participation in the auction*

Note*. For example, you’re planning to participate in the renewable energy auction with a solar power plant project with a capacity of 50 MW, then the amount of the financial guarantee for the application for participation in the auction will be:
50,000 (kW) * 2,000 (tenge / kW) = 100,000, 000 tenge

The financial guarantee must be valid for at least 150 (one hundred and fifty) calendar days from the date of the auction and must be irrevocable

In order to receive the financial guarantee for the application for participation in the auction, the Applicant independently chooses the Bank where he will obtain the financial guarantee for the application for participation in the auction. Please, note that in accordance with par. 49 of the Auction rules a bank guarantee or a standby letter of credit to secure the application for participation in the auction are accepted:

  1. from the resident banks of the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "B" by Standard & Poor's or "B-" by Fitch or "B3" by Moody's Investors Service or with the rating of the parent organization (which owns more than 50% of the shares of the resident bank of the Republic of Kazakhstan) not lower than the "BBB" level by Standard & Poor's or "BBB" by Fitch or "Baa2" by Moody's Investors Service;
  2. from non-resident banks in the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "ВВВ" by Standard & Poor's, "ВВВ" by Fitch, "Ваа2" according to Moody's Investors Service.

At the same time, a bank guarantee or a standby letter of credit from non-resident banks of the Republic of Kazakhstan must be confirmed by resident banks, by issuing a counter-guarantee for non-residents obligations under subparagraph 1) of this paragraph**

Note**. When applying to the Bank in order to obtain the financial guarantee for the application for participation in the auction, be sure to check the compliance of the chosen Bank with the criteria specified in par. 49.of the Auction rules. In case the chosen Bank does not comply with the requirements you will not be eligible to participate in the renewable energy auction.

The financial guarantee for the application for participation in the auction is issued in favor of the financial settlement center and is provided to the center no later than 2 (two) working days before the date of the auction
After obtaining the financial guarantee for the application for participation in auction, the applicant must advise the issued financial guarantee for the application for participation in the auction in the following partner bank of the "Financial Settlement Center for the Support of Renewable Energy Sources" LLP:

  • ForteBank JSC (in case bank guarantee is issued by ForteBank JSC, it has to be advised by Bank CenterCredit JSC)

All bank commissions and expenses related to the financial guarantee for the application for participation in the renewable energy auction, including those of the beneficiary's Bank, are paid by the applicant

The financial guarantee for the application for participation in the auction, submitted by the applicant in the form of a bank guarantee or a standby letter of credit, is returned within 3 (three) working days from the date the participant sends a written request to the financial settlement center when one of the following occurs:

  1. the participant did not win the auction in accordance with the results of the auction;
  2. the winner of the auction signed the PPA

If the winner of the auction has evaded the conclusion of the PPA, the financial settlement center shall issue a claim for payment under the relevant bank guarantee or a standby letter of credit

Below you can download a sample form of a bank guarantee (a standby letter of credit) for participation in the renewable energy auction

Fill the form

For the purposes of processing the financial guarantee for the application for participation in the auction, we give the details of the "Financial Settlement Center for the Support of Renewable Energy Sources" LLP:

Legal address: Legal Address: 010010, Tauelsizdik Ave., 59, Nur-Sultan, Kazakhstan

Tel./Fax: +7 7172 69 37 25, 69 37 04, 69 05 64

BIN 130840019312

Certificate of registration for VAT Series 62001 No. 0020007 dated 11.12.13.

In this section of the site you can familiarize yourself with the commercial offers for bank guarantees/standby letters of credit from the largest commercial banks of the Republic of Kazakhstan:

ForteBank Presentation

Bank CenterCredit presentation

HalykBank Presentation

TsesnaBank Presentation

ATF Bank Presentation