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Sent: Thursday, June 29, 2000 8:36 PM
Subject: [STOPNATO] US capital grows in Central Asia


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AES eyes entry in Kazakh power after Tractebel exit 
  
Updated 6:52 AM ET June 22, 2000 
ALMATY, June 22 (Reuters) - U.S. power utility AES is considering 
participating in a tender to manage power systems in Kazakhstan's commercial 
hub Almaty, from which Belgium's Tractebel recently withdrew, officials said 
late on Wednesday.
The company's director for the Commonwealth of Independent States, Garry 
Levesley, said AES had already told the Kazakh government of its willingness 
to operate the power lines.

"If the government trusts us and supports us in this project, then we shall 
definitely want to work with it," Levesley told reporters through an 
interpreter.

The government plans to hold a tender for investors to manage the electricity 
systems, which according to Deputy Prime Minister Daniyal Akhmetov are 
burdened with $215 million in debts as well as outdated equipment.

The lines were managed since 1996 by Tractebel (TREBt.BR, which exited the 
Central Asian state last month after a series of tarriff rows with the 
government and local industrialists. It described working conditions in 
Kazakhstan as "intolerable."

Tractebel recently sold its interests in Kazakh power and gas to a Kazakh 
state-owned firm for $100 million.

The local Eurasia Bank, which owns stakes in several of the largest Kazakh 
metals companies, has already said it would seek to move into the slot 
vacated by Tractebel. So far it controls a power plant in the northern city 
of Pavlodar.

AES is involved in electricity generation and distribution in eastern 
Kazakhstan. It owns the giant Ekibastuz power station in the north as well as 
four thermal electric station in the east.

It also has the right to manage two regional energy companies for a 15-year 
period and two hydro-electric stations in eastern Kazakhstan for 20 years. It 
says it has invested $150 million in Kazakhstan since 1996.

"If the possibility arises, we would only be too glad to increase our 
investments in Kazakhstan," Levesley said.

He added that AES was hoping to receive a $30 million credit from the 
European Bank for Reconstruction and Development soon. Most of the money 
would be invested in modernising the two hydro-electric stations under its 
management.


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