Tag Archives: business

Huawei and Uzbek telecom start JV

MAY 9 2016 (The Conway Bulletin) – China’s Huawei Technologies and Uztelecom, Uzbekistan’s state owned telecoms company, said they will start a joint venture, called Broadband Solutions, to produce telecoms kits. The new company will be based in the Jizzak special economic zone, around 100km northeast of Samarkand. Uztelecom will take a 51% stake in the joint venture, Huawei will own the rest. The deal valued the company at around $6m.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 280, published on  May 13 2016)

 

Glencore to sell Kazakh mine

MAY 3 2016 (The Conway Bulletin) – Switzerland-based miner Glencore said it is considering selling its share in the Vasilkovskoye gold mine in Kazakhstan for around $2b. Glencore owns 70% of Kazzinc, the company that operates Vasilkovskoye which is located 300 km north-west of Astana. According to unnamed sources quoted in the Wall Street Journal, the buyers could be Chinese investors. China has been looking to buy Kazakh gold.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on  May 6 2016)

 

Kazakhstan explains power nexus

APRIL 29 2016 (The Conway Bulletin) – Kazakhstan has sold 218m kWh of electricity to Kyrgyzstan in 2016 at a price of 9 tenge ($0.03) per kWh from the Ekibastuz power station, the Kazakh government said. Kazakhstan earned around $6m from the sale. Kyrgyzstan is a net importer of electricity from neighbouring countries due to chronic water shortages in recent years. Last year, Kazakhstan and Tajikistan exported around 400m kWh to Kyrgyzstan.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on May 6 2016)

 

Italy’s Saipem wins $1.5b Azerbaijan’s Shah Deniz contract

MAY 3 2016 (The Conway Bulletin) – A consortium led by Italian oil and gas service company Saipem won a $1.5b contract to transport and install a deepwater subsea production system for the second phase development of the Shah Deniz offshore gas field in Azerbaijan.

Shah Deniz, operated by BP, is central to Azerbaijan’s gas production. Once its second phase comes online, it will be the cornerstone of the so-called Southern Gas Corridor, a network of pipelines that will feed gas to Europe from the Caspian Sea.

Saipem’s management said the company will receive a fee of $1.3b from the overall deal.

“This award further strengthens Saipem’s key role in the construction of the Southern Gas Corridor where the company has a total of four contracts, in the upstream segment and in gas transportation infrastructure both onshore and offshore,” Stefano Cao, Saipem CEO, said in a statement.

Saipem, 30% owned by Eni, owns stakes in the other two companies in the consortium that won the contract – BOS Shelf and Star Gulf.

SOCAR, the Azerbaijani state energy company, owns 96% of BOS Shelf. Star Gulf owns the remaining 4%. Saipem owns 100% of Star Gulf.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on  May 6 2016)

 

Business comment: Corruption in telecoms

MAY 3 2016 (The Conway Bulletin) – Telia Company, the re-branded version of Swedish company TeliaSonera, scored a small victory this week as Swedish prosecutors dropped a bribery case related to its dealings in Azerbaijan in 2008.

Allegedly, it paid bribes to public officials to obtain licences for its subsidiary, Azercell, but prosecutors said they couldn’t prove their claims.

This, though, still leaves Telia, and other companies, entangled in an investigation linked to corruption in Uzbekistan, where they allegedly paid hundreds of millions of US dollars to obtain licences.

The beneficiary of the bribes is said to be Gulnara Karimova, the once-extravagant eldest daughter of Uzbek President Islam Karimov.

VimpelCom, an Amsterdam- based Russian company, has already settled its Uzbek bribery case with US and Dutch courts by paying a penalty of $795m, effectively admitting wrongdoing.

The Uzbek case had negative repercussions across Scandinavia.

In Sweden, perhaps in an effort to erase recent memories, TeliaSonera changed its name, colours and branding and is now registered as Telia Company.

In Norway, heads started rolling last year at the state-owned telecoms company Telenor, which owns 33% in VimpelCom.

CEO Svein Aaser was sacked in November and the Norwegian former CEO of VimpelCom Jo Lunder was arrested a few days later.

Last autumn, both Telia and Telenor said they wanted out of their operations in the South Caucasus and Central Asia, allegedly because of market pressures, but their exit, rebranding and apologies can only really be read as last minute attempts to pull their hands out of the cookie jar.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on  May 6 2016)

 

 

 

Tourism grows in Armenia

APRIL 30 2016 (The Conway Bulletin) – The National Statistical Service of Armenia said 252,506 tourists arrived in Armenia during the first quarter of 2016. This figure is an 8.6% increase compared to the first quarter of 2015. This may reflect Armenia’s increased attractiveness to Russian tourists, who have been banned from visiting Turkey because of a row between the two neighbours.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan plans mining auction

MAY 3 2016 (The Conway Bulletin) – A Kazakh mining government agency said it will auction 101 gold, copper, manganese and other precious metals mines on June 16. The auction, Kazakhstan’s second, will be conducted within the framework of the International Mining and Metallurgical Congress. Last year’s auction earned the state budget around 1.5b tenge ($4.5m).

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on May 6 2016)

 

Kyrgyz-Tajik CASA-1000, a ‘mad plan’ now nearing its launch

MAY 5 2016, DUSHANBE (The Conway Bulletin) — CASA-1000 is the power transmission project that most analysts dismissed as too madcap to work.

Conceived by US diplomats and regional officials sometime around 2010 when Hillary Clinton, then the US Secretary of State, was promoting her vision of a north-south Silk Road stretching from Central Asia to India, this was the project that was meant to fail.

Instead, Tajikistan, Kyrgyzstan, Pakistan and Afghanistan will officially launch its construction next week.

If all goes to plan, and security in areas of Afghanistan where the Taliban are active is a major concern, CASA-1000 should foster improved relations in the region and boost economies.

The World Bank is the project’s biggest backer, pledging more than half the estimated $1b cost to build the 1,222km transmission line and support systems.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on May 6 2016)

 

ADB expects Turkmenistan’s TAPI to be completed by 2021

MAY 5 2016 (The Conway Bulletin) – The Asian Development Bank (ADB) said it expects the TAPI pipeline project to be completed by 2021. TAPI will pump Turkmen gas to India through Afghanistan and Pakistan. The Turkmen government insists the pipeline would be ready by 2019. For Turkmenistan TAPI has become a race against time. It wants to diversify its client base. The ADB, which is an adviser on the project, has offered a potential $600m loan.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan-based Olisol makes Tethys deal

APRIL 29 2016 (The Conway Bulletin) – Kazakhstan-based Olisol will inject 9.8m Canadian dollars ($7.6m) into Tethys Petroleum, a Guernsey based oil and gas company, triggering a new share issue. The long-negotiated agreement will bring Olisol’s ownership in Tethys to 42%. Shareholders will vote on the deal at the annual meeting at the end of May. Tethys operates in Kazakhstan, Tajikistan and Georgia.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on  May 6 2016)