EDB to organize financing for construction of third power unit of Ekibastuz HPS-2

/INTERFAX-KAZAKHSTAN, Almaty, July 11, 2008/ - Station Ekibastuz HPS-2 JSC (Pavlodar oblast) authorized Eurasian Development Bank (EDB) to organize financing at not less than EUR400 m. for construction of third power unit of the station, is said in EDB` disseminated report on Friday. At that, loan assets on total sum EUR170 m. may be provided by EDB itself for 15 years term. Construction of power unit # 3 of 500 MW capacities is planned to realize with the aim to expand energetic capacity of the station. "Investments to electric-power industry and high tech production is one of EDB`s priorities; financing of third power unit of the station is fully correspond to its strategically objectives on deepening of international processes on post union territory" - is noted in the report. It is expected that with the construction of third power unit of Ekibastuz HPS-2, the problem of energy deficit in North and neighboring regions of Kazakhstan will be decided. Earlier, EDB has already participated in reconstruction of current power units of Ekibastuz HPS-2; having realized financing of station modernization program since 2006 by means of granting $93.5 m. loan for 10 years term. EDB is international financing organization, established by Russia and Kazakhstan in January, 2006. The bank was established with the aim to contribute to sustainable development of countries-participants` economic, to support high levels of economic growth, to expand mutual trade and develop other forms of economic relations, encouraging of direct investments. The main bank's direction is financing of investment projects on the territory of countries-participants. EDB`s authorized capital is $1.5 bn. About 10% of all produced energy in republic came to the stake of Ekibastuz HPS-2. HPS-2 project, made in 1983, provided construction of 8 power units of 500 MW. Nowadays there are 2 power units of 500 MW on the station, which came into exploitation in 1990 and 1993. In 1993 after power unit #2 came to exploitation, construction of 3rd power unit was stopped. Nowadays, the program on improving technical condition of the station for 2006- 2010 is in the process of realization. It has 3 stages; its aim is to raise work's reliability, to conduct full reconstruction of ash and gas refinement system. Total investments to this program make about KZT12.0 bn. (current 120.20/$1). As is well known in August, 2005 Kazakhstan-Russia JV was created on the basis of Ekibastuz HPS-2е with transferring of 50% shares to EPS Russia SC. Kazakhstan block of shares was transferred to Ekibastuz energy centre JSC (100% shares in ownership of Samruk holding), which in its turn transferred it to temporary management of American Access Industries (Eurasia), LLC for 10 year term. At the end of September, 2007 college on civil cases of Pavlodar oblast Court admitted the agreement on transferring of 50% shares of Ekibastuz HPS-2 to temporary management of Access Industries as invalid. The Court obliged American company to return HPS-2 shares to the government in determined terms. Energy deliveries of Ekibastuz HPS-2 in Russia began on March, 2003. [2008-07-11]