Kazakhstan and South Korea to sign a package of agreements on Balkhash thermal plant

Kazakhstan’s President Nursultan Nazarbayev is to visit South Korea in March 2012. During the visit the two sides are expected to sign a package of documents related to the Balkhash thermal power plant to be jointly constructed on the south-west shore of the Balkhash Lake close to Ekibastuz coal mine, Newskaz.ru reports, citing Almasadam Satkaliyev, Samruk-Energo Chairman of the Board. “Samruk-Energo (company owned by Smaruk-Kazyna Sovereign Wealth Fund) has completed negotiations with South Korea’s KEPCO and Samsung on major agreements regulating further works on the thermal plant. The agreements are to be finalized during the official visit of President Nazarbayev to South Korea in March”, Mr. Satkaliyev said. According to him, “under the action plan, construction of major facilities will be started as early as in the Q4 2012 (…) Soonest ratification of the intergovernmental agreement [on financing, designing, constructing and maintaining the Balkhash thermal power plant] signed August 25, 2011 [during the official visit of President Lee Myung-bak of South Korea to Kazakhstan] and a new national legislation on electric power market would facilitate the project”. The first two power generating units of the thermal power plant are to be commissioned in 2013, with the other two units being placed into operation in 2016. The design capacity of the power plant is 2 640 megawatt. South Korea’s KEPCO and Samsung hold 75% minus one share, with the Kazakhstan Government holding 25% plus one share. Construction works started in summer 2010.