Government announces investment competition for Kara-Keche coal field

The government has announced an investment competition for Kara-Keche coal field, the State Agency of the Kyrgyz Republic on Geology and Mineral Resources reported.++

According to it, Ak-Ulak section of Min-Kush brown coal deposit is also put up for auction. The candidates will have to pay 15 million soms for participation in it. One of the requirements is payment for a brief geological information package in the amount of 2.3 million soms. Participants must pay a guarantee fee of 76 million soms. Applications for the competition are accepted till April 15.

 The Government will sign a concession agreement and investment agreement with the winner for the implementation of an integrated project on the development of brown coal deposits Kara-Keche and Min-Kush (Ak-Ulak section), the construction of a thermal power station Kara-Keche (1200 MW) and railway Balykchy - Kochkor - Kara-Keche. The concession means that the state transfers to the winner the right to exploit natural resources, infrastructure, plant and equipment. It gets in return compensation in the form of one-time or periodic (royalty) payments.

According to the contest conditions, investor will invest about $2.5 billion in the construction of thermal power plant at the field. At the same time, 20 percent share in the created for the development of the largest deposits of coal enterprise will belong to the state.