Samsung C&t Not Decided Yet To Quit Balkhash TPS Construction Project

Samsung C&t Not Decided Yet To Quit Balkhash TPS Construction Project

The Ministry of Foreign Affairs of South Korea has commented on possible withdraw of Samsung C&T from the largest project on construction of the Balkhash Thermal Power Plant, Kazinform correspondent reports.

“Initially, the project was estimated at $4.3bln. Some experts recommended cutting this amount due to the global economic crisis. Others stated that this sum must be preserved at the same level. As far as I understand, Samsung C&T has not taken a final decision about quitting the project yet.  They wanted to negotiate this issue with the Ministry of Energy and other authorized bodies to estimate the project. I know, that during the state visit of Kazakhstan President Nursultan Nazarbayev to South Korea, the representatives of Samsung C&T and Korea Electric Power Corporation had a meeting for discussing this issue,” Director of the Europe Department of the Korean MFA Soosuk Lim said in an exclusive interview with Kazinform.

Earlier, the Ministry of Energy of Kazakhstan informed that Samsung C&T Сorporation had not decided on termination of the project implemented jointly with JSC Samruk-Energo.

On 31 August 2016, the Ministry received a notification from Samsung C&T Сorporation about sale option exercise with a request to buy the shares of the Balkhash Thermal Power Plant belonging to  Samsung C&T by the Kazakh side and a notification from Samsung Engineering Co Ltd on termination of the construction deal.

According to Minister of National Economy Kuandyk Bishimbayev, the project on construction of the Balkhash Thermal Power Plant must be revised due to the crisis.

“As for the Balkhash TPS, the talks are underway. We have approximately two months to agree again with Samsung on the deal. Our Ministry is concerned over tariffs, because, in my opinion, the construction of this station will lead to growth of tariffs in future. Therefore, we need to revise the tariffs. During the talks, we need to discuss the opportunities for renewing or cutting tariffs. This is our position,” Bishimbayev said.

As is known, in 2012, the presidents of Kazakhstan and South Korea gave a start to the project on construction of the first module of Balkhash TPS.

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