Kazakh-Romanian investment fund on energy established
Baku, Azerbaijan, Oct. 30
By Rashid Shirinov – Trend:
KMG International (KMGI) and the Romanian Societatea de Administrare a Participatiilor in Energie (S.A.P.E. S.A.) have signed an agreement on the establishment of a joint Kazakh-Romanian investment fund in the field of energy.
The agreement was concluded in accordance with the provisions of the memorandum of understanding previously signed between KMGI (former Rompetrol Group) and the government of Romania, providing for the attraction of additional funding to KMGI projects in Romania.
The joint fund involves investments of up to $1 billion over 7 years. KMGI’s initial investment in the fund's projects will be $150 million.
"The creation of the joint Kazakh-Romanian fund is a mutually beneficial solution for both KMGI and Romania. The investment policy of the fund is aimed at the implementation of energy projects that will bring real benefits for both sides," said KMGI General Director Zhanat Tusupbekov.
According to the approved ownership structure, KMGI's share in the investment fund will be 80 percent and that of the Romanian government will be 20 percent.
"The creation of the joint investment fund will not only attract additional investments in the energy sector of Romania, but will also be an important signal to accelerate the development of this industry," said Constantin Vaduva, SAPE Board President.
The parties have already identified two promising projects for financing, the total investment for which is more than $200 million.
In particular, one of the projects proposed for implementation under the fund is the construction of a combined heat and power plant at the Petromidia refinery. The investment in the project will be $120 million.
The second project involves the expansion of the Rompetrol gas station network through the construction of about 80 new gas stations in Romania. The total budget of this project is expected to exceed $100 million.