Kambarata - The Times Of Central Asia

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Donor Coordination Committee Established for Kyrgyzstan’s Kambarata HPP-1 Project

The Kyrgyz Republic International Energy Investment Forum, held in Vienna, on June 10, concluded with the establishment of a Donor Coordination Committee for the construction of Kambarata HPP-1 hydropower plant in Kyrgyzstan. The Kyrgyz Cabinet of Ministers said that the doors are open to interested parties but to date, the committee comprises major international financial institutions and development partners, including the World Bank, the OPEC Fund, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development. The Committee’s first meeting is scheduled for autumn this year. An inter-ministerial agreement on cooperation on the Kambarata HPP-1 project was also signed by the Ministries of Energy of the Kyrgyz Republic, Kazakhstan, and Uzbekistan. Summarizing the outcome of the forum, Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Japarov announced: “We have made significant progress in establishing contacts and a common understanding of further actions. I am confident that the created Donor Coordination Committee will be a continuation of actions to implement the national project — the construction of Kambarata HPP-1.” Japarov told forum participants that “According to experts, by 2050 the population in Central Asia will increase by 27%, the demand for food by 35%, and the consumption of drinking water by 50%. At the same time, water is the main artery of life in the countries of the Central Asian region. Countries located at the sources of large rivers account for 80.7% of the region’s total water flow.” Regarding different countries’ priorities for water usage - downstream Kazakhstan and Uzbekistan use water in irrigation mode in summer, and upstream Kyrgyzstan and Tajikistan, in energy mode in winter -he warned “This situation affects the energy and food security in the region.” He then provided a more detailed report on the Kambarata HPP-1 project: “Kambarata HPP-1 is located at the source of the glaciers. Effective operation of this power plant will allow the accumulation and rational use of water resources of the Toktogul reservoir. The Kambarata HPP-1 construction project has broad economic, environmental, and social benefits and prospects for both Kyrgyzstan and the Central Asian region. The project will provide the Kyrgyz Republic and Central Asia with clean energy at the lowest cost, which entails lower costs of the energy transition in the region. Electricity generation at hydroelectric power plants will reduce emissions of pollutants into the atmosphere.” Reiterating the project’s key importance in meeting the growing demand for energy and increasing energy security in the region, Japarov continued: “The power plant will be sited in the upper reaches of the Naryn River. Its installed capacity will be 1,860 megawatts with an average annual generation of 5.6 billion kilowatt-hours of electricity. The preliminary construction estimate is more than $4 billion. The master plan of Kambarata HPP-1 includes a rock-fill dam, a hydroelectric power plant building with four hydraulic units, construction and operational spillways and transport tunnels, a residential village [for personnel], a reservoir and water treatment facilities.” He confirmed...

Kyrgyzstan Uzbekistan Environment Water Management Kambarata International investment business and economy

Tashkent Investment Forum Focus on Kyrgyzstan’s Kambarata HPP-1

The construction of the Kambarata hydroelectric power plant (HPP)-1 on Kyrgyzstan’s Naryn River was at the forefront at the Third Tashkent International Investment Forum attended by Uzbekistan’s Prime Minister Abdulla Aripov and representatives of international organizations and financial institutions. At the panel session on energy, on 2 May, Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Japarov, outlined the master plan behind Kambarata HPP-1, investment indicators, and its potential benefits to water resources management and Central Asia’s electricity market. Japarov explained that generated by hydropower, almost all electricity in Kyrgyzstan is green, but stated, “We have so far used only about 13% of our existing potential. Taking into account global challenges and trends in the development of green energy, the Cabinet of Ministers of the Kyrgyz Republic has actively begun to implement infrastructure energy projects. The large-scale construction of Kambarata HPP-1, strategically important for the entire region, will up the pace of development in this field.” Kyrgyzstan, Kazakhstan, and Uzbekistan recently signed a Roadmap for joint construction of Kambarata HPP-1. If completed, Kambarata HPP-1 will have a capacity of 1860 MW and will generate 5.6 billion kWh of electricity per year. A forum for further discussions on foreign investment in the project is scheduled for early June in Vienna . Turning to plans for hydroelectric power plants elsewhere in the country, Kyrgyzstan’s Prime Minister, stated, “Work is underway to implement projects for the construction of a cascade of hydroelectric power plants on the Chatkal River, as well as a cascade of Kazarman hydroelectric power plants on the Naryn River. Our country needs foreign investment to develop energy, which is the main sector of the economy. We invite foreign companies to consider the possibility of participating in the construction of small and medium-sized hydroelectric power stations and renewable energy sources in Kyrgyzstan.”

Kyrgyzstan, Kazakhstan and Uzbekistan Consider Joint-Stock Company to Build Kambarata HPP-1

Kazakhstan’s Ministry of Energy has announced that the draft Agreement between the governments of Kyrgyzstan, Kazakhstan, and Uzbekistan on the joint implementation of the construction and operation of Kambarata hydroelectric power plant (HPP)-1 has been posted on Kazakhstan’s official Internet portal Open Legal Acts. Available for public discussion, the agreement outlines the terms of cooperation between the parties in the proposed construction of Kambarata HPP-1 on the Naryn River in Kyrgyzstan. To implement the project, the proposed joint-stock company will be financed with 34 percent of authorized capital belonging to Kyrgyzstan, 33 percent to Kazakhstan, and 33 percent to Uzbekistan. The cost of construction is estimated between $5 billion and $6 billion and although the majority of funds will be drawn from the founders, further investment will be sought from loans and grants from international financial institutions and commercial banks. According to the draft, at the end of the project implementation period, the shares and assets of Kambarata HPP-1 will become the sole property of the Kyrgyz side. If realized, Kambarata HPP-1 will be the largest hydropower plant in Kyrgyzstan.

The World Bank will help Kyrgyzstan to build Kambarata HPP-1

Kyrgyz Finance Minister Almaz Baketaev met with World Bank Regional Director for Central Asia Tatyana Proskuryakova. The parties discussed Kyrgyzstan's projects on improving irrigation, as well as renewable energy in Kyrgyzstan and construction of Kambar-Ata-1 HPP in Jalal-Abad region, the Ministry of Finance of the Kyrgyz Republic reported. At the meeting in the Kyrgyz Ministry of Finance, the WB staff said that they are ready to provide Kyrgyzstan with $5 million for a feasibility study of the new HPP project, consulting services, as well as updating the preparatory work. In turn, the Minister of Finance of the Kyrgyz Republic emphasized that the financing agreement was approved by the Kyrgyz Parliament. According to the Ministry of Finance, the World Bank will provide the republic with 3 million dollars as an interest-free loan for 50 years with a grace period of 10 years, and 2 million dollars in the form of a grant. It should be noted that at present at Kambarata HPP-1 preparatory work is underway to provide electricity to the facility under construction, access roads, transportation tunnels and bridges are being built on the right bank of the Naryn River, which will provide access to the site of construction of the main structures of the HPP and shift camp for hydro construction workers. According to official data, more than 20 million dollars was allocated from the Kyrgyz republican budget for the preparatory work. The cost of the entire project, according to a feasibility study developed 10 years ago, is about $3 billion. But, as the Kyrgyz Ministry of Energy said earlier, the exact cost of all the works will be known after updating the existing feasibility study, for which the World Bank has allocated money. The estimated construction time for the new hydropower plant is nine years. Commissioning of the first hydroelectric unit according to the calculations will be made in seven years, provided that the construction is continuously financed. The World Bank said that Kambarata HPP-1 will be one of the most cost-effective projects to expand clean energy resources in Kyrgyzstan and throughout Central Asia. In addition, the project has the potential to address the country's energy security and generate significant revenues from electricity exports. "Kambarata HPP-1 is a critical project with the potential to bring enormous benefits in clean energy production, regional cooperation, water security, and environmental protection throughout Central Asia. The World Bank's technical assistance will help the Kyrgyz Cabinet of Ministers utilize the country's rich hydropower potential for the benefit of the people and the region, while strengthening the governance and financial sustainability of the energy sector," said WB Regional Director for Central Asia Tatiana Proskuryakova. According to her, the money from the WB will be used to update previous studies on the construction of a new hydropower plant to confirm the technical feasibility and economic viability of the project. Also, a mechanism will be developed to distribute benefits from the sale of electricity, so that part of the income could be directed to various socio-economic...