Samruk Energy to auction electricity assets

6 December 2016

Kazakhstan’s leading power generator Samruk Energy is planning a two-stage tender for the sale of four of its regional subsidiaries. It will be the largest privatisation programme in Kazakhstan’s history. State-owned Samruk Energy provides 6.8 GW of power from, mainly, gas-powered facilities, amounting to 25% of the country’s total electricity generation capacity.
The company announced on 25 November that 100% stakes in local power distributors East Kazakhstan Regional Energy, Aktobe TETS and TegisMunay will be made available to investors. A 78.64% interest in Mangistau Electricity Distribution has also been included in the online tender process. These assets are expected to yield a combined total of 40.5 billion tenge ($119.4 million).
The tender first stage will consist of an initial consideration process to assess all proposals made by investors before the most attractive ones are shortlisted by a commission composed of government and Samruk Energy officials. It has been made a condition of the sale that purchasers must “maintain the profile of the companies’ main activities for a minimum of three years” and also make obligatory investments which would include safety enhancements to ensure no accidents occur within the first 12 months of operations, and the maintenance of  staffing levels at no less than 80% of the current workforce.
Samruk is wholly owned by Kazakhstan’s sovereign wealth fund, Samruk Kazyna, which controls a number of strategically important enterprises in the energy, transport and communications sectors.
The utility is part of a larger plan that if realised would involve the sale of minority stakes in various state owned assets such as national energy group KazMunaiGaz (KMG), uranium miner Kazatomprom and railway monopoly Kazakhstan Temir Zholy.

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