World Bank supports Kambarata HPP Project for Central Asia
The Kyrgyz Republic has secured a significant financial boost for the construction of the Kambarata-1 hydroelectric power plant (HPP). According to Kazinform, the country will receive an $11 million concessional loan and a $2.6 million grant from the International Development Association (IDA) of the World Bank.
Last month, Kyrgyzstan ratified the Financing Agreement and Grant Agreement Letter with the IDA, paving the way for the allocated funds to be disbursed. The IDA will provide the funds for a 50-year term, which includes a 10-year grace period from the date of signing the loan and grant agreements. The interest rate on the loan is 0%, with a 0.5% commitment fee for reserved funds, subject to annual revision by the IDA’s Board of Directors.
The construction of the Kambarata-1 HPP is a multi-country effort, as energy ministers from Kazakhstan, the Kyrgyz Republic, and Uzbekistan signed an agreement last June to prepare for the construction and operation of the plant. The agreement outlined the establishment of a joint-stock company in the Kyrgyz Republic, with 34% equity participation from the Kyrgyz side, 33% from the Kazakh side, and 33% from the Uzbek side.
Once completed, the Kambarata-1 HPP will be situated on the Naryn River in the Kyrgyz Republic, generating electricity for Central Asian countries and contributing to the region’s sustainable water supply. This project will have far-reaching benefits for the participating countries and is a significant step towards enhancing energy infrastructure in the region.
