BISHKEK (TCA) — Eurasian Development Bank (EDB), as the Resources Manager of the Eurasian Fund for Stabilisation and Development (EFSD), and the Kyrgyz Republic have signed an investment credit agreement for US $110 million to be provided by the EFSD to finance the commissioning of Unit 2 at Kambarata hydropower plant (HPP) 2. The document was signed by Dmitry Pankin, Chairman of the Management Board at EDB, and Adylbek Kasymaliyev, Kyrgyzstan’s Minister of Finance, EDB said on March 13.
The total project value is US $138 million, with the EFSD providing US $110 million. The credit is extended for twenty years, with a five-year grace period for principal repayments. The project is expected to be completed in three to four years.
The project provides for necessary construction, procurement and installation to commission Unit 2 at Kambarata HPP 2, with a capacity of 120 MW, the supply of equipment for a 110 kV outdoor switchgear and transmission lines, and the construction of a 500 kV outdoor switchgear, as well as other infrastructure and systems to ensure efficient and safe operation of the plant.
The project is expected to enhance Kyrgyzstan’s energy security by increasing electric power generation, improve the reliability and stability of power supplies to consumers, and the efficiency of use of the hydropower potential of the Naryn River. It is also expected to help ensure the effective use of water and energy resources of the Toktogul reservoir, alleviate winter power shortages in the country, and improve its foreign trade balance by possible increases in power exports.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan.
The Eurasian Fund for Stabilisation and Development (EFSD) amounting to US $8.513 billion was formed in 2009 by the governments of the six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration processes in the region.