International contest on Kara-Keche will be conducted by a consulting company instead of GKPEN (Russ

To conduct an international tender successfully with the aim of finding an investor for the development of the largest coal deposit in Kara-Keche in Kyrgyzstan, construction of thermal power plant and the Balykchy-Kochkor-Kara-Keche railway the State Committee for Industry, Energy and Subsoil Use decided to comission a consulting company, agency press service reported.

Because of failed contest earlier this year, the State Committee decided to involve foreign specialists. According to Akchabar, none of investors were interested in the development of the field, construction of a large thermal power plant and railroad that worth about $ 2.5 billion.

The State Committee emphasizes that they decided to commission a consulting company after discussing this issue with the government. Later, an interdepartmental commission was established to develop a technical task for the services of a consulting company. Development of the technical task was completed and was approved on December 8. In the technical task, as assured in the State Committee, all the processes of the tender are registered, which will consist of three stages:

  • At first stage, a commissioned company will provide consulting services on the financial evaluation of the project, draw up a plan for the tender, as well as a standard investment agreement and a concession agreement.
  • At second stage, the company will provide consultations to evaluate applications from investors that applied the tender for the development of the Kara-Keche deposit.
  • At the third stage, the consultant will assist in negotiation, drafting and formalization of investment agreement, a concession agreement and other documents

In the course of the tender consulting company will be selected - the Committee will publish a winner company on the official portal of government purchases. The date of tender launch announcement is unknown yet. The committee could not tell whether it will be announced before New Year.

It is important to mention that investor will bear all costs of services provided by consulting company - all the costs associated with consulting services the government will include as potential partner's obligations in the investment agreement.

GKPEN (State Committee of Industry, Energy and Subsoil Use of the Kyrgyz Republic) acknowledges that the previous competition at Kara-Keche failed because of agency’s lack of experience in holding such large-scale competitions. There are no specialists, who would draw up an investment agreement, which meets international standards, in which risks, tariffs and other project parameters would be spelled out.

"Given this, the government of the KR will comission a consulting company that has relevant experience in financial, technical and legal spheres," the ministry added.

According to the State Committee, the participation of consulting company will also "ensure transparency in selection of an investor for development of the Kara-Keche deposit" and "protect the interests of the state, local community and investors".

Source: .