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[Edil_Kyrgyzstan]

REUTERS: Kyrgyzstan terminates hydro plants deal with Czech firm
http://timesofindia.indiatimes.com/business/international-business/kyrgyzstan-terminates-hydro-plants-deal-with-czech-firm/articleshow/60737766.cms

BISHKEK, Sept 18 (Reuters) - Kyrgyzstan's government on Monday annulled contracts with Czech firm Liglass Trading to build 12 hydroelectric power plants in the Central Asian nation, saying the company had failed to make a $37 million payment on time.
The deals have come under scrutiny in both countries because Liglass - whose bid had been backed by the Czech presidency - had no experience building such plants.
Liglass won the contracts in June and July. One of them included a provision that the firm would pay Kyrgyzstan the same sum it needs to pay Russia - the previous partner in the project - for the work already carried out on it.
Some Kyrgyz government critics have cried foul over the deal and called for senior officials behind it to resign. The cabinet has insisted it had observed all rules and regulations.
But late on Monday, the Bishkek government said in a statement it was terminating the deal unilaterally, having denied Liglass's request to delay the $37 million payment.
It also published letters from the Czech government and presidential administration supporting Liglass's initial bid and said it would keep the $1.1 million fee already paid by Liglass.
The government said it would hold new tenders for the hydro projects, which are part of the impoverished nation's plan to ease dependence on energy imports.
A Kyrgyz official quoted in Russian media had put the value of the Czech contract at $230 million. (Reporting by Olga Dzyubenko; Writing by Olzhas Auyezov; Editing by Adrian Croft)