Azerbaijan, Baku / Trend corr I. Khalilova / A preliminary agreement on the construction of a private thermoelectric power station capable of 700 MW in Alat (near Baku) was signed between the South Korean company Kepko & Moet and the Azerbaijani Economic Development Ministry in Baku on 24 September. The agreement was undersigned by the Azerbaijani Economic Development Minister, Heydar Babayev, and the president of the Korean company, Von-Gul Li.
According to Babayev, this is the first private electric power station with such vast power in Azerbaijan.
"According to preliminary estimations, up to $1bln will be put into construction of the station," he said.
Construction of such stations will enable Azerbaijan to create a competitive environment in the field of electrical energy sale, which will see a decrease in tariffs.
"Today, one should not sell electrical energy in accordance with tariffs set by the Council on Tariffs. But it will allow the Tariff Council to review the tariffs," he said.
It is supposed that the production of 1 KW/hour of energy will require 230-250gm of conditional fuel. The company intends to use the most advanced technologies for construction of the station. Alat was selected because this is where the new sea port and shipyard are planned to be built.
A feasibility study for the construction of the station will be developed after signing the agreement, the president of Kepko said.
"The construction work will begin approximately in July 2008," he said.
Negotiations on participation of the Azerbaijan Investment Company in the project were held today, the Azerbaijani Minister said.