According to the Interfax news agency the first phase of construction of the plant was launched in early May this year by the Kazakhstani contractor, Kerneu Limited. The second phase will be constructed by Chinese engineering companies, which is a major requirement set by the CDB for providing the loan.

The first phase of the project will require funding worth US$50M, with this to be arranged by the Kazakhstan Development Bank (KDB), including US$25M from the KDB itself.

Orazali Kantaev, President of the Moinak hydroelectric power plant, said that the plant will be completed by the end of 2009. The plant’s shareholders are the state-owned KazKuat Ltd, which owns a 51% stake, and the Birlik private company, which owns a 49% stake.

The plant, located 150km east of Almaty, will supply electricity to Kazakhstan’s southern regions.