Russia to help build three thermal power plants in Kazakhstan
Construction of three coal thermal power plants in Kokshetau, Semey and Ust-Kamenogorsk might be financed at the expense of easy loans from Russian banks. A draft of an agreement between the two countries published for public consideration revealed that the government of Russia wants to subsidize the bank’s interest rate.
«Russia will provide the opportunity to obtain easy (subsidized) interest rate loans from Russian financial institutions to finance supplies of high-tech Russian products and services over contracts,» the document says.
The Samruk Kazyna fund and its subsidiary Samruk Energy will provide credit support for different contracts, including arrangements with the Ministry of Energy of Kazakhstan, while Russian energy company Inter RAO will act as the subcontractor. Terms and specifications of the three TPP projects will be negotiated by the two sides later. The draft agreement also says that these projects must be implemented under the norms, rules and standards of Russia, Kazakhstan and unidentified third-party states.
The document also says that to obtain easy funding, Kazakhstan should purchase a specific amount of Russian goods and services. Also, Samruk Energy is expected to provide Inter RAO with necessary land parcels, facilitate the establishment of branch offices of the company in Kazakhstan and provide the company with fuel, water, steam and power during construction.
The media reported that Inter RAO is going to be the subcontractor for the construction of the three TPPs in Kazakhstan in early November. Energy ministers Almasadam Satkaliyev and Nikolay Shulginov signed the corresponding memorandum during the latest Shulginov’s visit to Astana. At the time, it wasn’t clear what company would represent the interests of Kazakhstan. Later, Samruk Energy was assigned to this role.
Inter RAO owns a controlling interest in Ekibastuz regional power station No.2. In turn, Samruk Kazyna, the parent company for Samruk Energy, owns a stake in Inter RAO. In 2019, the fund bought it for $25 million.
In November, among potential sponsors of the three TPP projects were several Russian state corporations, the Eurasian Development Bank and the Unified Accumulative Pension Fund.
