Azerbaijan, Baku, July 13 / Trend E. Kosolapova/
The Kazakh- Arab Falah Growth Fund will invest $50 million in energy sector of Kazakh city of Karaganda, the Kazakh Kazyna Capital Management reported on Wednesday.
"Falah Growth Fund L.P., a member of the group of private-equity funds with Kazyna Capital Management participatory interest, has reached an agreement with Kazakhstan Utility Systems to provide $50 million in equity capital to Karagandy Energocenter in Kazakhstan," the company said.
The investment will used to finance expanding the power and heat generation capacities of the Karaganda combined heat and power plant- 3. Moreover, debt financing has been attracted from Development Bank of Kazakhstan to execute the project.
Falah Growth Fund is a joint Kazakhstan-UAE private-equity fund focused on investments in power and energy, oil and gas services, mining and agriculture in Kazakhstan and the CIS.
Kazyna Capital Management is a private-equity fund investor. The activity of the company is aimed at laying the foundations of and developing an effective private-equity market in Kazakhstan. Together with other development institutions, the company is under the trust management of Kazakh Ministry of Industry and New Technologies in order to implement the State program of forced industrial and innovative development of Kazakhstan. KCM is a fully owned subsidiary of Kazakh Sovereign Wealth Fund Samruk-Kazyna.
Kazakhstan Utility Systems is power and energy holding in Kazakhstan operating electric power and heat generation, transportation and distribution assets.
Karaganda EnergoCenter operates 2 combined heat and power plants producing and selling heat and power to the city of Karagandy and the Karagandy region. In line with the country-wide modernization and expansion program for electricity-generating companies initiated by the government of Kazakhstan, the company has launched the renovation and expansion of the generating capacities of combined heat and power plant-3 to be completed by the end of 2015.