Vietnam's Sovico Group investing in Turkestan, Kyzylorda airports

ASTANA. Sept 10 (Interfax) - Vietnam's Sovico Group, which bought Qazaq Air, is investing in the development of airports Turkestan and Kyzylorda in southern Kazakhstan, the republic's Civil Aviation Committee (CAC) reported.

The Akimats of the Turkestan and Kyzylorda regions signed memoranda with Sovico Group on joint development of airports in their regional centers.

The amount of investment and details of cooperation were not specified.

Samruk-Kazyna announced the sale of 100% of its subsidiary Qazaq Air shares to Sovico Group's Aviation Holdings Company on May 23 with the deal expected to close this month. Sovico Group will purchase at least 20 Airbus and Boeing aircraft for Qazaq Air over the next five years and will aim to supply a maximum of 50 aircraft. The foreign direct investment will be more than $1 billion.

The contract provides for the payment of Qazaq Air's entire debt, which, as previously reported, is estimated at $79 million.