/KASE, December 11, 08/ - OYL Association of Financiers of Kazakhstan
provided Kazakhstan Stock Exchange (KASE) with a copy of a letter
No. 06-1/yr-ke-290-5 of the Ministry of Economics and Budget Planning
of the Republic of Kazakhstan (in the heading and after - MBEP) of
December 3, 2008 regarding a concessionary project "Construction and
Operation of New Railway "Shar station - Ust-Đšamenogorsk". The letter is in
Kazakh. Russian translation of the letter provided to KASE by OYL Association
of Financiers of Kazakhstan is presented below. KASE has not checked accuracy
of the translation and is releasing the full text in Russian.
Quotation beginning
The Ministry of Economics and Budget Planning of the Republic of Kazakhstan
(the Ministry) in pursuance of the resolution of Head of Chancellery of Prime-
Minister of the Republic of Kazakhstan G. Abdrakhimova informed on the
concessionary project "Construction and Operation of New Railway "Shar station
- Ust-Đšamenogorsk" (the project).
Due to announcement of technical default of Doszhan Temir Zholy
concessionary implementing the project, the Ministry jointly with interested
state agencies and organizations conducted works on determination of legal
aspects of the project and analysis of money flows with account of financial
stability on the basis of financial and economical model of the project.
According to results of the works a letter on suggestions of solutions of
the situation has been sent to the head of the state.
In this respect in accordance with an order of the head of the state works for
improvement of financial situation of the project are being done, and
specifically:
- allocation of KZT3.1 bn. from the Government reserve for increase of
authorized capital of NC Kazakhstan Temir Zholy and Kazakhstan Investment
Fund through capitalization of Fund on National Wellbeing SamrukKazyna for
redemption of shares of Doszhan Temir Zholy. In its turn, Doszhan Temir
Zholy will be able to redeem coupon interest before holders of infrastructure
bonds and finish projected construction. Therefore, Doszhan Temir Zholy
carries out additional share issue;
- after a corresponding monitoring of operation of Doszhan Temir Zholy,
including in regard of proper use of funds of bond loan state guarantee size
will be enlarged for purposes of bringing thereof into compliance with volume
of issued infrastructure bonds.
Additionally, changes to the concessionary agreement are being considered for
purposes of bringing thereof into compliance with norms of the current
legislation on conduct of talks with bondholders to restructure bond loan to
set a 10 % interest rate limit; project implementation is being monitored as
well.
Quotation end
MBEP letter No. 06-1/yr-ke-290-5 dated December 3, 2008 in Kazakh is available
at:
http://www.kase.kz/files/mix/dtjl_letter_031208.pdf
The Russian translation of the letter is available at:
http://www.kase.kz/files/mix/dtjl_letter_031208_rus.pdf
Links to related documents:
- KASE news of December 4, 2008 "ATFBank provides KASE with plan of
Doszhan Temir Zholy (DTZ) (Kazakhstan) on redemption of debt before
holders of bonds KZ2CKY23B672 (DTJLb1)" -
http://www.kase.kz/ru/news/show/1061909
- Letter No. 445 of Doszhan Temir Zholy (DTZ) dated November 14, 2008 -
http://www.kase.kz/files/mix/dtjl_letter_141108.pdf
- KASE news of September 26, 2008 "Doszhan Temir Zholy (DTZ)
(Kazakhstan) provides KASE with explanations on default on bonds
KZ2CKY23B672 (DTJLb1)" -
http://www.kase.kz/news/show/1056957
- KASE news of August 18, 2008 "ATFBank informs on default of Doszhan
Temir Zholy (DTZ) (Kazakhstan) on bonds KZ2CKY23B672 (DTJLb1)" -
http://www.kase.kz/news/show/1054368
- KASE news of July 28, 2008 "ATFBank informs on temporary deficit of money
at Doszhan Temir Zholy (DTZ) to pay coupon interest on bonds
KZ2CKY23B672 (DTJLb1)" -
http://www.kase.kz/news/show/1052979
[2008-12-11]