Kazakhstan to construct three thermal power plants independently, without Inter RAO

ASTANA. July 31 (Interfax) - Kazakhstan has decided to construct three thermal power plants (TPPs) in Kokshetau, Semey and Ust-Kamenogorsk independently, Deputy Prime Minister Roman Sklyar said.

"Inter RAO , which had committed to building these stations, was supposed to secure export funding at a favorable rate. Unfortunately, they failed to do so, and we have therefore decided to proceed on our own," Sklyar said during a press conference in Astana on Thursday.

He said that construction on the Kokshetau TPP had already begun and that Samruk-Energy had been appointed contractor of all three projects.

"If we receive any funding proposals from Russian colleagues, Samruk-Energy may consider partnerships with them - there's nothing to get in the way of that," he said.

As reported, Kazakhstan had initially planned to partner with Russia in the construction of 360-MW coal-fired TPPs in Semey and Ust-Kamenogorsk and a 240-MW coal-fired TPP in Kokshetau.

Inter RAO was supposed to serve as general contractor for the projects, which the Kazakh Energy Ministry said would most likely be funded through a subsidized loan from the Russian government.

Sklyar said that there had been a problem with securing concessional export funding for critical equipment. He also said previously that Kazakhstan would seek out alternative investors if Russian partners could not provide the necessary support.

Deputy Energy Minister Bakytzhan Ilyas reported that negotiations with potential building contractors from China and South Korea were ongoing.