Kazakhstan’s senate has approved the Asian Infrastructure Investment Bank agreement that defines the country’s $729.3 million share in the bank’s capital, as many anticipate the AIIB becoming a rival to the World Bank and Asian Development Bank within the region. In Uzbekistan, $843.8 million from its Fund for Reconstruction and Development is set to be allocated to the implementation of 27 projects included in the 2016 state investment programme, and the country is also set to use over $4 billion in foreign investments in 2016, with the lion’s share of these funds allocated to the fuel and energy sector. Meanwhile in Iran, electricity generation projects worth $30 billion are due to the opened up to foreign investors.

The Kazakh Senate ratifies the Asian Infrastructure Investment Bank agreement

The Asian Infrastructure Investment Bank (AIIB) is an international financial institution created by the Chinese government to stimulate growth and attract investment in infrastructure projects in the Asia-Pacific region.

The registered capital of the bank amounts to $100 billion, divided into 1 million shares, only open for subscription to members of the bank. Under the new agreement ratified by the Kazakh senate this week, Kazakhstan's initial subscribed share capital in the AIIB will be $729.3 million or 0.7293% among 37 regional founding members.

The bank’s charter officially entered into force on 25 December 2015, with the AIIB set to rival the World Bank and Asian Development Bank in the region.

TALCO seeks partner for development of Konchoch gold deposit

The Tajik Aluminium Company (TALCO) is seeking a partner for the joint financing of the Konchoch gold deposit development project, according to the TALCO press centre.

TALCO plans to process up to 900,000 tonnes of ore at the Konchoch gold deposit per year. According to a business plan developed by the Tajik company, they will organise a well-functioning enterprise established on the basis of explored possible reserves of the Konchoch deposit. The company also plans to build a dressing works and a metallurgical plant at the Konchoch deposit.

TALCO was granted licenses in late November last year to develop the Konchoch and Chulobi gold deposits located in the Ayni district, Sughd province, of Tajikistan. The company has the right to use these deposits for twenty five years.

TALCO is one of the ten largest aluminium smelters in the world and provides up to 70% of the country’s foreign currency earnings, whilst also consuming 40% of the country’s electrical power. The company is wholly owned by the Tajik government.

Tajikistan to export 1,000MW of power to Pakistan under CASA project

Tajikistan is set to export 1000MW of hydroelectric electricity to Pakistan under the Central Asia South Asia (CASA 1000) project through a 750-kilometre transmission line by 2018, with an estimated cost of $1.16 billion.

This announcement was made by the Ambassador of Tajikistan, Sherali Saidamir Jononove, while talking about Pakistan-Tajikistan bilateral relations, with special reference to the CASA 1000 project.

The ambassador said that the 500KV transmission line would also be utilised for transmitting more than 300MW of hydroelectric electricity to Pakistan from Kyrgyzstan, as well as that a feasibility report had already been completed and the transmission line from Kyrgyzstan, Tajikistan, Afghanistan and Pakistan would start to be laid in May 2016.

Uzbekistan may allocate over $840 million for investment projects

Uzbekistan plans to allocate $843.8 million from its Fund for Reconstruction and Development (FRDU) for the implementation of 27 projects included in the 2016 state investment programme, which was approved by President Islam Karimov’s special decree.

A total of $587.95 million of the FRDU’s loans will be allocated in 2016 for projects in the fuel and energy, chemical, oil and metallurgical industries.

In 2016, the FRDU will also allocate $196 million to the implementation of projects in the oil and gas industry, $259.76 million for projects in the electricity sector, $127.7 million to projects in the chemical industry, and $165.7 million to projects in the transport sector.

Uzbekistan plans to use $4.042 billion in foreign investments in 2016

Over $4 billion in foreign investments will be used for the implementation of 154 investment projects. In particular, Uzbekistan plans to use investments of $1.339 billion due to foreign loans under the guarantee of the government.

The volume of foreign direct investments will make up $2.793 billion for 85 projects in 2016. The fuel and energy sector will use the largest volume of foreign investments, specifically $2.29 billion for 34 projects. Foreign companies are also planning to invest $2.104 billion in 14 projects in the oil and gas sector.

Turkmenistan to form a national oil and gas company

The President of Turkmenistan Gurbanguly Berdimuhamadov has signed a decree that provides for the formation of the closed joint stock company Türkmen Milli nebitgaz kompaniýasy (Turkmen National Oil and Gas Company - NAPECCO).

According to the document, this decision is aimed at supporting the successful implementation of the finding, mining and processing of the hydrocarbon resources of Turkmenistan, as well as the implementation of the processing of their products on the domestic and foreign markets, in accordance with the development programme of the oil and gas industry of Turkmenistan, which will remain in place until 2030.

The shareholders of the new company are: The State Agency for the Management and Use of Hydrocarbon Resources (90%), Turkmengas (2%), Turkmennebit (Turkmenoil) (2%), and the Turkmenbashi complex of oil refineries (5%).

NAPECCO’s primary areas of activity are the completion of exploration and drilling operations, the production of oil and gas and the implementation of international projects in the energy sector.

$30 billion in Iranian electricity projects for foreign investors

Iran plans to open up electricity generation projects worth $30 billion to foreign investors.

The Iranian Energy Minister Hamid Chitchian has said that between 47,000 to 50,000 megawatts (MV) are expected to be added to the country’s generation capacity over the next 10 years, requiring an investment of $5 billion per year to support generation, transmission and distribution.

According to Chitchian, “We have already entered into negotiations with foreign companies and some of them have showed interest in participating in the projects.” Iran currently exports electricity to Turkey, Armenia, Turkmenistan, Azerbaijan, Pakistan, Afghanistan and Iraq.

Iran may award North Azadegan oilfield to China

The Iranian Minister of Petroleum Bijan Zangeneh has said that Iran may award phase two of the North Azadegan oilfield to China for development.

Iranian officials have also said that the China National Petroleum Corporation (CNPC) and Iran’s PEDEC have already signed an initial agreement to produce 25,000 barrels per day (bpd) from the field in the second phase.

“Under the contract, the Chinese must submit their proposal for implementation of the second phase to Ministry of Petroleum for examination and approval,” Zangeneh said in Tehran.

CNPC also operated the first development phase of North Azadegan and was expected to begin production around October last year with 75,000 bpd. In 2013, Iran cancelled a $2.5 billion contract to extract oil from the South Azadegan field and another deal to develop Phase 11 of the South Pars natural gas field after CNPC took four years just to start the projects.

The Chinese are said to have accelerated their operations in a bid to appease Iran as they anticipate the threat of being undercut by international energy giants for new projects.