BAKU, Azerbaijan, Nov. 30
Trend:
The sale of hydroelectric power plants to UAE investors will bring $6 billion to Kazakhstan’s economy, Minister of Energy of Kazakhstan Magzum Mirzagaliyev said, commenting on the planned deal with investors from the UAE on the sale of hydroelectric power plants in the East Kazakhstan region, Trend reports.
According to the information, the sale of hydroelectric power stations caused an ambiguous reaction from members of the lower house of the Parliament of Kazakhstan. Deputy Sergei Reshetnikov opposed the deal. Reshetnikov said that the privatization of hydroelectric power plants may lead to the fact that investors will be able to dictate their tariff conditions to the population.
In turn, the head of the Ministry of Energy Magzum Mirzagaliyev noted that negotiations are underway on the sale of hydroelectric power plants not in full. The investor will be able to buy back only 74 percent.
"This deal brings foreign investments for us, we must understand that strategically the investor will develop the country's energy sector. It is not only the privatization and purchase of stations but also the fact that these stations need to be repaired, there is a potential to increase the capacity of the stations, that is, add more than 500 MW. It is possible to add about 500 MW through the construction of a new cascade at the Shulbinskaya power station. We are talking about investing more than $6 billion in energy with Arab partners - renewable sources and gas generation. This is a big investment," he said.
Mirzagaliyev also noted that he could not comment on the statements of Kazakhs, who asked in social networks not to allow the sale of hydroelectric power stations.
"I have no opportunity to read and comment on every post. This is not only about the privatization of hydroelectric power plants, but about $6 billion in the economy of Kazakhstan. According to the agreement, the investor is guaranteed 13 percent at the current rate. Every investor has generally accepted margin standards. Indeed, all this is based on the fact that the investor will have 13 percent of the profit, let’s agree that investors don’t do charity," Mirzagaliyev added.