East Kazakhstan REC (Ust-Kamenogorskaya)

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AES Corp signed a management contract of East Kazakhstan REC, a regional distribution company in Kazakhstan in June 1999. AES Corp took the management control of the company the same month. East Kazakhstan REC provided electricity to 300,000 people by June 1999. The deal will allow AES to handle power buying by the distributors and give its own generation plants in eastern and central Kazakhstan more chance to sell power to the two distribution entities. AES placed a bid to take over the distribution utilities in 1997 when it bought 1,384 MW of generation capacity in the area. AES did not pay cash for the management rights but obtained them in return for settling other financial issues with the government.