Kazakhstan natural gas transmission system

cancelled

Tractebel was awarded a 15 year contract to manage the entire gas pipeline network in Kazakhstan in June 1997. The contract took effect on July. The company committed to pay the government a US$30 million bonus as well as a 2% royalty on overall gas volume and 40% of net profits. The government's shares of earning is subject to review every five years. Tratecbel also committed to US$600 million in investment for repair, construction, and planning costs. The company also pledged to provide nearly US$100 million to build a pipeline in Southern Kazakhstan to bypass Kyrgzstan. On 28 April 2000, in Astana, Tractebel and the Kazakhstan state-owned gas transport company KazTransGas announced that they had reached an agreement, under which KazTransGas would acquire Tractebel's electricity and gas businesses in the Republic of Kazakhstan, for USD 100 million. The loss-making investments was plagued by disputes with the Kazakh government over tariffs and separate money-laundering investigations. The initial payment of $10 million was mad in July 2000, with the remainder due in three-monthly tranches. None None