Project Of Balkhash HES Suspended Due To Non-return Of Funds

Construction of Balkhash HES has been suspended due to unsettled question on the capital repayment; the project has been suspended, said Bakytzhan Dzhaksaliyev, Vice Minister of Energy of Kazakhstan.

“The project has been suspended as the question about capital repayment has not been resolved. The final decision has not been taken,” he said answering the questions of journalists at the press-conference in the Government.

In his words, non repayment concerns financing within the frameworks of the fixed capital planned by the shareholders. The money was invested into construction of object’s infrastructure for the preparation period, or so called “zero cycle” of the station, and also water and electricity supply and creation of shift workers’ village.

The construction project of Balkhash HES was launched within the frameworks of intergovernmental agreement between Kazakhstan and Korea. According to the Vice Minister the Government of Kazakhstan has performed its liabilities.

As it was reported Samsung C&T Corp. and Samsung Engineering Co., Ltd. refused from the construction project.