EBRD has suspended issue of $30 million credit to Kazakhstan because of American AES in East Kazakhstan status is has no defined

/IRBIS, Jan.27, 00/ - According to PRIME TASS, which cites an corporation representative, the European Bank for Reconstruction and Development has suspended issue of the $30 million credit for the power branch of Kazakhstan in connection with problems with status of the American corporation AES in the East Kazakhstan. As an representative has said, the negotiations are conducted with the Government since October 1997. However, till now Kazakhstan Government has not signed the agreement, which should define the corporation's status - is it the managing company, concessionaire or the power enterprises holder. The EBRD credit was supposed to be directed to completion of the Shulginsk hydroelectric power station construction and to its equipment modernization, modernization of the Ust'-Kamenogorsk heat power plant equipment, and also to purchase of the equipment and repair of the Ust'- Kamenogorsk hydroelectric power station. AES has began its activity in Kazakhstan after purchase in 1996 the Ekibastuz thermoelectric power station GRES-1. By the present time it has acquired /or received in concession/ the Ust'-Kamenogorsk, Sorginsk, Leninogorsk and Semipalatinsk heat power plants, Ust'-Kamenogorsk and Shulginsk hydroelectric power station, and also two regional power companies. AES includes 119 electric power enterprises worldwide of the total power more than 42 gigawatts. The corporation controls a 940,000 km network and rights to transfer 110 gigawatts per year to more than 15 million users.