Kazakhstan ratifies agreement with Qatar for nine projects costing $20 bln
ASTANA. Oct 10 (Interfax) - The Senate or upper house of Kazakhstan's parliament approved a law on Thursday ratifying the agreement between the governments of Kazakhstan and Qatar to establish a long-term strategic partnership for developing projects in priority sectors, an Interfax correspondent reports.
This agreement outlines the conditions for Qatari investments in Kazakhstan and should raise approximately $20 billion in total investments.
The document calls for nine joint investment projects to be carried out across various sectors, including telecommunications, energy, gas production and transportation and finance. The projects include the acquisition of 100% shares of Kazakhstan's Bereke Bank by Qatari Lesha Bank, the sale of the mobile telecommunications service company Mobile Telecom Services to Qatari Power International Holding and three gas processing plants at the Kashagan field.
Additional projects involve the construction of the second line of the Beyneu-Bozoy-Shymkent gas pipeline and a new compressor station, a gas pipeline from KC-14 to Kostanay-Aktobe, a combined-cycle power plant in the Kyzylorda region and a hydroelectric power station on the Irtysh River with capacity of up to 350 MW.
The agreement also ensures a stable tax regime for Qatari investments and protects these investments in Kazakhstan. The law will now be sent to the Kazakh president for signature.
The Kazakh state holding Baiterek closed a deal on October 8 to sell 100% of the shares in Bereke Bank, a former subsidiary of Russia's Sberbank , to Qatar's Lesha Bank. Bereke Bank will continue to fulfil all of its obligations to its clients, providing the services under the existing terms and conditions and will remain a second-tier bank. Lesha Bank entered into an agreement with Baiterek to buy Bereke Bank for 65 billion tenge or $134 million at the current rate in March this year.