Kazakhstan To Announce Its Decision About Balkhash TETS Project In Two Months

Kazakhstan To Announce Its Decision About Balkhash TETS Project In Two MonthsThe final decision about the project for construction of the Balkhash TETS, a power plant in the Karaganda region, together with South Korean partners Samsung C&T Corp and Samsung Engineering Co Ltd will be announced by the Kazakh side in the next two months, Balkhash TETS JSC says in a Friday press release.

On August 31, 2016 Samsung C&T Сorporation officially notified Balkhash TETS JSC of its decision to sell its stake in Balkhash TETS JSC to the Kazakh side in accordance with the sale option exercise agreement. Balkhash TETS JSC also received a notification from Samsung Engineering Co Ltd of its decision to cancel the construction contract, according to the press release.

The Kazakh side is going to seek settlement of the issues relating to the project with the Korean investors in the next 60 days, as provided for in the project agreement.

“No final decision about the future of the project has been made yet,” the press release says.

In September 2012, Nursultan Nazarbayev and the-then South Korean President Lee Myung-bak gave start to the Balkhash power plant construction project in Karaganda region.

The construction costs of the first block of the power plant with installed capacity of 1,320 MW are estimated at $2.3 billion with the total cost of the project reaching $4.5 billion.

The start of the project was preceded by a deal between Kazakhstan’s JSC Samruk-Energy and Korean consortium made up of Samsung Corporation и KEPCO (Korea Electric Power Corporation), under which the consortium bought 75% stake minus one share (a total of about $51.2 million) in JSC Balkhash Power Plant.

In April 2016, Samruk-Energy JSC increased its stake in the Balkhash TETS (thermal power plant) up to 50% minus one share.