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Kyrgyzstan to involve Russian company in power network management

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MOSCOW, August 16 (RIA Novosti) - Kyrgyzstan is set to involve a Russian company in managing its national power grid, a spokesman for the Kyrgyz president said on the phone Tuesday.

President Kurmanbek Bakiyev announced this intention at a meeting with representatives of executive bodies Monday and said that the Kyrgyz power system was in need of reforms.

"We have a company which is ready to put the national power grid in order," he said. "And we should meet its wishes, but without raising tariffs."

Bakiyev said that the power sector was facing three main problems: energy theft by people and power engineers, netting and barter which cause price rises, and a lack of investment in the sector.

Bakiyev's spokesman refused to name the Russian company which would manage the Kyrgyz power grid, calling it "a commercial secret." He said that the national parliament would discuss the issue during the fall session.

RAO UES, the Russian electricity monopoly, said it had received no proposals from the Kyrgyz government, adding that it was interested in Kyrgyz power assets. "We are hoping that we will be able to work with the Kyrgyz government, because in Russia RAO UES has experience in establishing order in the sector, and resolving similar problems to those which the Kyrgyz power grid is facing," Margarita Nagoga, a RAO UES spokesperson, said.

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