Inter RAO UES may borrow funds for hydro project in Kyrgyzstan

Russian electric power holding Inter RAO UES may borrow funds to build the Kambaratinskaya hydropower plant in Kyrgyzstan, Russian Energy Minister Alexander Novak told reporters on March 16.

In February, the Russian government approved Inter RAO UES' deal to sell its 40% stake in Irkutskenergo to state-owned Rosneftegaz and instructed the holding to use the money from the deal to finance construction of the Kyrgyz hydropower plant. Inter RAO UES said then that spending the funds on the Kyrgyz project would negatively affect the holding's market capitalization due to the inefficient use of money in terms of drawing investment return for shareholders and said it would use the funds on priority projects to build power facilities in Russia under capacity supply agreements. But later the company said it would fulfill the government's conditions on the deal.

"Having received funds from the Irkutskenergo stake sale, Inter RAO UES may make a borrowing or provide a loan to ZAO Kambaratinskaya GES...," Novak said, adding that the issue was likely to be resolved within next few weeks.