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Russian Prime Minister Medvedev orders to sign agreements with Kyrgyzstan on construction of hydropower plants.

Russian Prime Minister Dmitry Medvedev ordered the Russian Energy Ministry in conjunction with the Foreign Ministry to hold talks with Kyrgyzstan regarding signing of the agreements on construction and operation of the Kambar-Ata-1 hydropower plant and the chain of the hydropower plants in the upper course of the Naryn river. Slight changes may be entered into the draft agreements. Russian President Vladimir Putin will visit Kyrgyzstan on September 20. Several bilateral documents are due to be signed following the talks, the Kremlin's press service said. The draft agreement on construction and operation of the Kambar-Ata-1 hydropower plant stipulates Russia's United Energy System and Kyrgyzstan's Electric Stations as authorized organizations in implementation of the agreement. The project will be implemented by the closed joint stock company Kambar-Ata-1 hydropower plant with the following distribution of stakes in the charter capital: United Energy System - 50%, Electric Stations - 50%. The preparation of the feasibility study will last 5 months. The Russian side will provide funding for the CJSC Kambar-Ata-1 hydropower plant for implementation of the project in the amount specified by the feasibility study of the project. The rate of the attracted funding will be 2.5% per annum in U.S. dollars. The Board of Directors of the Kambar-Ata-1 will include 2 representatives of Russia and 3 representatives of Kyrgyzstan. The Chairperson of the Board of Directors will be elected from nominations of the Russian side. The Board will include 3 representatives of Russia and 2 representatives of Kyrgyzstan. The Chairperson of the Board is elected from nominations of Russia. Upon return of borrowed funds provided by Russia, rotation will be carried out in the Board of Directors and the Board every 3 years. Until the borrowing funds are repaid, the closed joint stock company Kambar-Ata-1 hydropower plant will be exempt from property and land taxes. The draft agreement on construction and operation of the chain of hydropower plants in the upper course of the Naryn river specifies construction of the following chain of plants: Akbulun, Naryn-1, Naryn-2, Naryn-3. The Russian Energy Ministry and Kyrgyzstan's Ministry of Energy and Industry will be responsible for coordination of implementation of the agreement. The authorized organizations for implementation of the agreement will include: RusHydro - from Russian side, Electric Stations - from the Kyrgyz side. The closed joint stock company Upper Naryn Hydropower plants will be established no later than 1 month after signing of this agreement, where RusHydro will have 50%, Electric Stations will have 50%. No later than 3 months upon approval of the feasibility study, the Russian side will provide funding in the amount equivalent to the cost of preparation of the feasibility study and 50% of the project costs as specified by the feasibility study. Kyrgyzstan will contribute the right to use land lots for construction of the plants and other assets, including intangible assets in the amount of 50% of the project cost as specified by the feasibility study. The Russian side provides borrowed funds for the project in the amount of 50% of the project cost as per the feasibility study with LIBOR for 6-month deposits in US dollars increased for 1.5% per annum margin. The Board of Directors and the Board of the Upper Naryn Hydorpower Plants will include 3 representatives of Russia and 2 representatives of Kyrgyzstan each. The Chairperson of the Board will be elected from nominations made by the Russian authorized organization. Both agreements will be signed for an indefinite term and will enter into force upon receipt of notification in writing through diplomatic channels about implementation of internal procedures by the states. The agreement on upper Naryn plants will enter into force not earlier than the agreement on Kambar-Ata-1 plant.

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Publication:AKIpress News Agency
Geographic Code:4EXRU
Date:Sep 17, 2012
Words:627
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