History of the company

Company background

Joint Stock Company Batys Transit (hereinafter referred to as Batys Transit JSC) was created in November 2005 in accordance with the Resolution of the Government of the Republic of Kazakhstan No.1008, dated October 07, 2005, for the purpose of implementation of the Project “Construction of an interregional power transmission line “the North Kazakhstan – the Aktobe region” (hereinafter referred to as the Project).

Kazakhstan Electricity Grid Operating Company JSC (hereinafter referred to as KEGOC JSC) and Mekhenergostroy LLP were the incorporators of Batys Transit JSC.

Batys Transit JSC carries out the Project based on the Concessionary Agreement, concluded on December 28, 2005 with the Government of the Republic of Kazakhstan, represented by the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, approved by the Resolution of the Government of the Republic of Kazakhstan No.1217, dated December 09, 2005.

Batys Transit JSC is one of the first examples of public – private partnerships in implementation of the projects of national importance, carried out based on Concessionary Agreements and funded with the placement of revenue-yielding bonds.

In the Message of the Head of the State to the People of Kazakhstan “Raising the well-being of the people of Kazakhstan is the principal goal of the State policy”, dated February 06, 2008, the Project “Construction and operation of the interregional power transmission line 500 kV, the North Kazakhstan – the Aktobe region” has been marked as one of the breakthrough projects, included in the government program “30 corporate leaders of Kazakhstan”.

Strategic goals


•     Development of generating capacities in the northern region of Kazakhstan;
•     Ensuring energy independence and security of the Republic of Kazakhstan;
•     Improvement of the structure of the unified electric power system of the country and its reliability;
•     Creation of energy substrate for the economic development of the West Kazakhstan;
•     Diminishing of dependence of the Aktobe region consumers upon electric power supplies from the Russian Federation, for the purpose to diminish dependence upon fluctuation of prices on electric power at the Russian markets, as well as for the purpose of improvement of reliability of electric power supply and decreasing the risks of losses from undersupply of energy from the Russian energy sources; 
•     Covering of energy deficiency in the Aktobe region at the expense of economic  Ekibastuz TPP;
•     15% reduction of the tariff on electric power for the final consumers;
•     Improvement of reliability of electric power supply for the consumers.  

 

Stages of the Company development

 

2005              Foundation of the Company;
2006              State registration of the securities issue of Batys Transit JSC;
2007-2008    Construction of  OTL -500 kV;
2009             Start of commercial operation of OTL-500 kV;
2012-2013    Construction of two single-circuit OTL-220 kV.

 

Important events

2005

November 22 - Batys Transit JSC was registered as a legal entity by the Department of Justice of the city of Almaty.

December 28 -  Batys Transit JSC and the Government of the Republic of Kazakhstan, represented by the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, concluded a Concessionary Agreement, approved by the Regulation of the Government of the Republic of Kazakhstan No.1217, dated December 09, 2015 (hereinafter referred to as the Concessionary Agreement).

 

2006

January 09 - The Government of the Republic of Kazakhstan, represented by the Ministry of Finance of the Republic of Kazakhstan and ATF Bank JSC in the frames of the Concessionary Agreement signed a Suretyship Agreement in favor of the holders of revenue-yielding bonds of Batys Transit JSC, approved by the Resolution of the Government of the Republic of Kazakhstan No.218, dated December 09, 2005 (hereinafter referred to as the Suretyship Agreement).

March 09 - Batys Transit JSC concluded a Contract with Energostroyproyekt LLP for the performance of survey and design works for the construction of OTL-500 kV.

March 16 - The Agency on Regulation and Supervision of Financial Market and Financial Organizations of the Republic of Kazakhstan carried out a state registration of securities issue of Batys Transit JSC with the volume of issue of revenue-yielding bonds amounting to 18 830 000 000 tenge, maturing in 13 years.

 

September 07 - The President of the Republic of Kazakhstan, N.A. Nazarbayev laid a granite corner stone at the Ulke Substation, at the starting point of the future interregional electric power transmission line “the North Kazakhstan – the Aktobe region”.

 

October 19 - By the Decision of the Stock Exchange Council of the Kazakhstan Stock Exchange (hereinafter referred to as KASE), dated October 12, 2006, the revenue-yielding bonds of the  issue KZ2CKY13B996 of Batys Transit JSC were included in the official list of KASE, category "", under code BTTRb1.

During the year 2006 Batys Transit JSC successfully placed its bonds to the total amount of           5 500 000 000 tenge.

 

2007

July 13 – The construction of the interregional electric power transmission line 500 kV “the North Kazakhstan – the Aktobe region” was started.

October 01 - The revenue-yielding bonds of the issue KZ2CKY13B996 of Batys Transit JSC were included in the official list of STF RFCA (category "") in compliance with condition 1, under code aBTTRb1 by the Decision of the Expert Council of the Special Trading Facility of the Almaty Regional Financial Center (STF RFCA), dated September 28, 2007.

During the year 2007 Batys Transit JSC successfully placed its bonds to the total amount of         4 209 391100 tenge.

 

2008


April 21 - Amendments, approved by the Resolution of the Government of the Republic of Kazakhstan No.264, dated March 18, 2008, related to the change of Issuer’s responsibility period and the Guarantor claiming period, were introduced into the Suretyship Agreement.

October 28 - Changes and amendments, approved by the Resolution of the RK Government No.989, dated October 24, related to the time of transfer of the interregional OTL into the Republican ownership, updating the amounts of the construction costs, change of the investment tariff amount in the basic scenario of the financial economic model, were introduced into the Concessionary Agreement.

December 09 - A loan to the amount of 30.5 mln. US dollars was successfully taken out from the Eurasian Development Bank for the completion of the construction of the interregional electric power transmission line.

December 12 - A conclusion on energy examination of electric units was issued by Kazakhenergoekspertiza JSC, and the readiness for operation of the interregional electric power transmission line “the North Kazakhstan – the Aktobe region” was confirmed.

December 14 – The Ulke Substation was officially opened and energized to the operational voltage with the participation of the Prime Minister of the Republic of Kazakhstan, K. Massimov.

December 29 - Batys Transit JSC received a license for transmission and distribution of electric power, operation of electrical grid and substations.

During the year 2008 Batys Transit JSC successfully placed its bonds to the total amount of         8 027 737 200 tenge.

 

 2009


February 09 - Batys Transit JSC was included in the Republican section of the State Register of the subjects of natural monopolies for the service “transmission and distribution of electric power” as a natural monopoly subject by the Order of the Chairman of the Agency on Regulation of Natural Monopolies of the Republic of Kazakhstan No.32-.

February 19 - Batys Transit JSC started commercial operation of the interregional electric power transmission line “the North Kazakhstan – the Aktobe region”.

April 10 - A tariff for the regulated services of Batys Transit JSC was established by the Order of the Director of the Department of the Agency on Regulation of Natural Monopolies of the Republic of Kazakhstan for the Aktobe region in the amount of 2.9 tenge for 1 kW/h excluding VAT, with its carrying into effect from May 1, 2009.

November 12 - Changes and amendments, approved by the Resolution of the Government of the Republic of Kazakhstan No.1584, dated October 13, 2009, related to increasing of the gurantee amount of the State, were introduced into the Suretyship Agreement. 

December 29 - Changes and amendments, approved by the Resolution of the Government of the Republic of Kazakhstan No.1584, dated October 13, 2009, related to changing of the amount of the infrastructural bonded loan, were introduced into the Concessionary Agreement.

During the year 2009 Batys Transit JSC successfully placed its bonds to the total amount of        113 756 100 tenge.

 

2010


April 21 - A new tariff for the regulated services of Batys Transit JSC was established by the Order of the Director of the Department of the Agency on Regulation of Natural Monopolies of the Republic of Kazakhstan for the Aktobe region in the amount of 3.10 tenge for 1 kW/h excluding VAT, with its carrying into effect from June 1, 2010.

During the year 2009 Batys Transit JSC successfully placed its bonds to the total amount of        864 725 600 tenge.

 

2011


June 22 - A new tariff for the regulated services of Batys Transit JSC was established by the Order of the Director of the Department of the Agency on Regulation of Natural Monopolies of the Republic of Kazakhstan for the Aktobe region in the amount of 3.45 tenge for 1 kW/h excluding VAT, with its carrying into effect from August 1, 2011.

 

2012


February 28 - Batys Transit JSC filed an application for the participation in the Post-Crisis Restoration Program (turnaround of competitive enterprises) with the purpose of decreasing their financial expenses by way of subsidizing coupon recompense and interest rate for the borrowed funding. In accordance with the Order of the Ministry of Finance of the Republic of Kazakhstan No.152, dated March 14, 2012, Batys Transit JSC was allowed to take part in the second stage of the above Program.

March 30 - Batys Transit JSC and TNC Kazkhrom JSC signed a Cooperation Agreement for the construction of two single-circuit OTL 220 kV for the internal electric power supply of melting shop No.4 of the Aktobe ferroalloy plant of the branch of TNC Kazkhrom JSC.

March 30 - The construction of two single-circuit OTL 220 kV for the internal electric power supply of melting shop No.4 of the Aktobe ferroalloy plant of the branch of TNC Kazkhrom JSC was started.

June 18 - A loan to the amount of 3.1 billion tenge was successfully taken out from the Eurasian Development Bank for financing of the construction of two single-circuit OTL 220 kV for the internal electric power supply of melting shop No.4 of the Aktobe ferroalloy plant of the branch of TNC Kazkhrom JSC.

December 27 - In accordance with the Decision of the Turnaround Council under the chairmanship of the Prime Minister of the Republic of Kazakhstan, S.N. Akhmetov, dated December 27, 2012 (Minutes No.17-5/-76),  Batys Transit JSC was designated as a participant of the Post-Crisis Restoration Program (Turnaround of competitive enterprises).

During the year 2009 Batys Transit JSC successfully placed its bonds to the total amount of        123 150 000 tenge.


 
2013


May 29 - The construction of two single-circuit OTL 220 kV was completed and the Certificate of the State Acceptance Commission for the commissioning of the constructed facility “Connection to the electrical grid of Kazakhstan of the Main Substation-2 of melting shop No.4 of the Aktobe ferroalloy plant of the branch of TNC Kazkhrom JSC” was signed.

July 4 - An official launching of the two OTL 220 kV with the length of 37 km each: from the Ulke substation to the Main Substation-2 of melting shop No.4 of the Aktobe ferroalloy plant of the branch of TNC Kazkhrom JSC, took place.

October 2 - A Memorandum on cooperation and mutual understanding was signed between Batys Transit JSC and the Akimat (Administration) of the Aktobe region for the purpose of consideration of a possibility of implementation of the investment project for the construction of renewable power sources and a plant for processing of solid municipal wastes with the generation of electric power in the territory of the Aktobe region of the Republic of Kazakhstan.
 

2014

April 3 - Batys Transit JSC was awarded the title of “The best project of public-private partnership”.

August 4 - A Memorandum on cooperation and mutual understanding was signed between Batys Transit JSC, the Akimat (Administration) of the Aktobe region and OJSC for the purpose of  construction in the territory of the city of Aktobe, the Aktobe region of the Republic of Kazakhstan, of an electric power station with the capacity of 25-100 MW, using the renewable sources of electric power, “solar energy” and “wind energy”, which is assumed for implementation on the principles of a public-private partnership.

December 30 – The Department of the Agency on Regulation of Natural Monopolies and Competition Protection of the Republic of Kazakhstan under the Ministry of National Economy of the Republic of Kazakhstan for the Aktobe region approved the motion of Batys Transit JSC for the performance of other activities:

1. Advising on tariff formation for the Subjects of natural monopolies, carrying out their activities under Concession Agreements; Advising on transfer pricing;

2. Development of financial economic models for the period from 5 to more than 20 years;

3. Advising for the preparation of securities prospectus;

4. Development of business-plans of companies, reflecting all important activity aspects;

5. Advising for the preparation of companies for sales and assistance in searching for investors (share and debt investors);

6. Assistance for the participation in the governmental programs (grants, subsidies, etc.);

7. Legal advising on the issues of the legislation of the Republic of Kazakhstan, including the issues of public-private partnership, legislation on concessions and issues of legal regime of the subjects of natural monopolies, carrying out their activities under Concessionary Agreements;

8. Organization and carrying out of presentations, seminars-trainings, conferences, including engagement of professional lectors for the treatment of the corresponding themes;

9. Subscriber-based service of the company (outsourcing);

10. Technical supervision over the construction and/or reconstruction of OTL;

11. Technical supervision over the construction and/or reconstruction of substations and automation equipment;

12. Technical supervision over the construction and/or reconstruction of solar electric stations.

 

2015

May 20 - The Department of the Agency on Regulation of Natural Monopolies and Competition Protection of the Republic of Kazakhstan under the Ministry of National Economy of the Republic of Kazakhstan for the Aktobe region approved the motion of Batys Transit JSC for the performance of other activities: provision of services for operational maintenance of OTL and substations.