COMPLEX PROJECT FOR THE DEVELOPMENT OF BROWN COAL DEPOSITS KARA-KECHE AND MIN- KUSH (AK-ULAK SECTION)

Transcription

1 COMPLEX PROJECT FOR THE DEVELOPMENT OF BROWN COAL DEPOSITS KARA-KECHE AND MIN- KUSH (AK-ULAK SECTION)

2 Project Summary Project on development of brown coal Kara-Keche and Min-Kush (section Akulak) deposits; Project on construction of Kara-Keche thermal power plants; Project on construction of Balykchy Kara-Keche railway Terms and conditions of tender procedures for the right of subsoil use

3 Complex Project Location

4 Project on development of brown coal Kara-Keche and Min-Kush (section Ak-Ulak) deposits p Brown coal deposit Kara-Keche is located on the territory of Jumgal, Naryn region in the upper valley of Kara-Keche river on the northern slope of the Moldo-Too Kavak coal basin ridge. p The absolute level of deposits surface is between m. The nearest Balykchy train station is located in 230 km. p There are two seams of coal, referred to the lower part of complex and basic sections, in the coal-bearing strata capacity of up to 540 m. p The main coal seam is the largest industrial reservoir, that concentrates 91% of the total reserves of the field. Seam capacity varies from 1.15 m to m, the structure is simple. p The coal seam Basic is characterized by a relatively sustained both in power and in the structure. p Coal deposit meets the requirements of fuel standards for domestic and industrial consumption. p The field's reserves million tons

5 Project on development of brown coal Kara-Keche and Min-Kush (section Ak-Ulak) deposits p Kara-Keche mine is divided into 12 coal mines, developed by the open way. p SE Kyrgyz Komur owns Central district, located in the middle portion of the field, its length is 3,7km, seam capacity m, the area for development 1,8 km square. p Open-ended method of coal mining is used. The projected capacity is tones. Today, annual capacity is about thousand tones.

6 Project on development of brown coal Kara-Keche and Min-Kush (section Ak-Ulak) deposits p A second brown coal deposit of Kavak basin is Min-Kush field, located at the eastern extremity of Kok-Moinok cavity. p The administrative area of the deposit belongs to Jumgal Naryn region. p The field is divided into 4 sections: Turakavak, Ak-Ulak, West and East. p Ak-Ulak plot is located in the eastern part of the northern belt of Jurassic deposits between Ak-Ulak river and Sasyktash tracts pass out in the river Keregetash valley. p The structure of a reservoir is complex, consisting of 3-5 (8) packets of coal, carbonaceous siltstones and mudstones. Reservoir capacity between 1.5 m to 16.0 m. p Ak-Ulak section allocates 8 layers. p The deposit reserves 56 million tons

7 Kara-Keche TPP Construction In km from the Kara-Keche coal deposit, building of a thermal power plant with capacity of MW is planned. Annual consumption of coal plant will be 3.0 mln. tons, coal will be supplied by Kara-Keche coal deposit.

8 Construction of Balykchy Kara Keche Railway The length of Balykchy - Kara-Keche railway is about 183 km, almost coincides with direction of planned railway Kyrgyzstan North - South

9 Construction of Balykchy Kara Keche Railway Balykchy - Kara-Keche Railway is divided into 2 sections: q Balykchy Kochkor Section The total length is about 63km. Starts at the end station of the existing Balykchy railway, and ends in Kochkor town of Naryn province, about 2 km from Kochkor town in the west, 1 stop station will be built. Project work on the working drawings of the site have already been implemented by the Kazakhstan railway design institute in In 2003, construction was started, however, due to problems with financing the construction was suspended. Along the railway line had only completed work on the filling of the roadway and pipe laying of outlets. q Kochkor Kara-Keche Section The total length is about 120 km. Located in the Naryn region, the line is on both sides of the existing highway A-367.

10 The terms and procedures of tender conduction for the right to use natural resources for the development of an integrated brown coal deposits

11 The purpose of tender; Basic requirements for the participants of tender; Main conditions of the project; Size, order and terms of payment collection, guarantee fee, taxes and other payments; Stages of tender and documents provided by participants of the tender; Criteria for determining the winner.

12 The Purpose of Tender Determining the winner based on the most favorable conditions provided for the Kyrgyz Republic

13 Basic Requirements for the Participants of Tender Legal entities registered in the Kyrgyz Republic; Legal entities registered in a foreign country Having experience in the fields of mining, construction, power plant and railways of not less than 5 years; Possess and apply modern technology Have own tools and the ability to raise additional financing in the form of direct investments necessary for the development of an integrated project

14 Main Conditions of the Project Implementation Provide direct investment based on the feasibility study for the implementation of an integrated project Complete the full feasibility study on an integrated project during 6 months Ensure compliance with international and internal standards, norms and requirements of the Kyrgyz Republic in the field of industrial safety, environmental safety, conservation of resources and rational use of mineral resources, construction and safety and the requirements of the Law Begin construction of the railway and TPP no later than 3 months from the date of negotiation with the State authorities of the project documentation on development of brown coal deposits

15 Main Conditions of the Project Implementation Apply modern technology in the implementation of an integrated project Pay concession fee Provide comprehensive feasibility study of the project including section on development of the region and submit no later than 2 months from the date of signing of the concession contract Provide share of Kyrgyz Republic in the joint venture in the amount of not less than 30 percent

16 Size, Order and Terms of Payment Collection, Guarantee Fee, Taxes and Other Payments Fee for a package of brief geological information 2,3 million som Charge for participation in the tender - 15 million som Guaranteed participation fee 76 million som Concession Fee

17 Stages of the Tender and the Documents Submitted by Participants 1 stage Application for participation in the tender and other required documents Copies of documents confirming the payment of contributions Documents should be submitted to the State Geology and Mineral Resources Agency under the Parliament of the Kyrgyz Republic Opening of the documents produced by the Tender Commission on the next working day after the expiry of the deadline of documents receipt Tender Commission within 10 working days after the opening of the envelope shall review the submitted documents

18 Stages of the Tender and the Documents Submitted by Participants 2 stage Not later than 4 months from the date of passage to the 2nd stage, contestants should submit the following documents: The program of integrated brown coal deposits development; The package of measures on application of modern technologies on mineral resources exploration, mining and processing of coal, thermal power plants and the construction of railroad; Confirmation of their own funds existence or the possibility of raising funds; Proposals for the social package; The proposed amount of payment for the concession

19 Criteria for Determining the Winner The quality of the presented program on the development of brown coal deposits - up to 3 points Proposals for the application of modern technologies on mineral resources exploration, mining and processing of coal, thermal power plants and the construction of the railway - up to 5 points The financial effectiveness of the project - up to 15 points Donation of shares in the authorized capital of the concession enterprise to the Kyrgyz Republic - for each 1% - 0,5 points

20 Criteria for Determining the Winner The volume of funds allocated for social benefits, beyond the amount - up to 3 points Timing of the railway construction: 1 phase Balykchy Kochkor section up to 1 year 7 points, from 1 year and longer 3 points; 2 phase Kochkor Kara-Keche section up to 3 years 7 points, from 3 years and longer 3 points Timing of construction of the thermal power plant up to 3 years - 5 points, up to 4 years 2 points, up to 5 years - 1 points

21 Criteria for Determining the Winner Each party gains scores from the Tender Commission; The winner of tender is the participant with the highest number of scores Consulting company analysis (transaction advisory) Determination of the Winner Signing of the Investment Agreement Concession Enterprise establishment

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