On June 19th, Samsung C&T signed a capacity purchase agreement for the construction and operation of the Balkhash Power Plant with KEGOC, Kazakhstan’s national power transmission and distribution corporation. A signing ceremony, which was held at the presidential palace in Astana, Kazakhstan, was attended by President of Korea Park Geun-Hye and President of Kazakhstan Nursultan Nazarbayev.
* Capacity Purchase Agreement
A Capacity Purchase Agreement is one of the key agreements related to a power generation project. Under this Agreement, a power plant with a capacity of 1,320MW is built with a 20-year capacity purchase term.
The signing ceremony was attended by leaders from both countries, including President & CEO of Samsung C&T Shin Kim, CEO of KEPCO Hwan-eik Cho, Minister of Industry and New Technology Asset Issekeshev, Chairman of Samruk-Kazyna Umirzak Shukeyev and President of Samruk Energy Almassadam Satkaliyev.
The Balkhash power project aims to build a thermal power plant with a total capacity of 1,320MW at the side of Lake Balkhash in southern Kazakhstan, and operate it for 20 years. It is expected that the project will significantly contribute to the stability of the power supply and job creation in the region.
The project is owned by Samsung C&T and Samruk Energy, the national energy corporation of Kazakhstan, with the parties holding a 75% and 25% share, respectively, and KEPCO will participate in the project as the largest shareholder after the feasibility study upon a request of Kazakhstan.
The Balkhash power project is a representative economic cooperation project operated under the IGA(Intergovernmental Agreements) signed by the two countries in 2011. It is meaningful in the sense that the project is the first private power project to be implemented in Kazakhstan in which Korean businesses are participating in investment, financing, construction and operation of the project.
It is a large-scale project that will supply about 9% of the total power capacity of Kazakhstan. It is also meaningful in the sense that the project will lay a foundation for Korean businesses to advance into the power generation market of CIS as well as Kazakhstan.
<Location of Power Plant>