World Bank Supports Kambarata-1 HPP Project for Central Asia
The World Bank has approved an $11 million concessional loan and a $2.6 million grant to support technical preparations for the Kambarata-1 hydroelectric power plant (HPP) in Kyrgyzstan.
Financial Agreement Details
On March 18, Kyrgyzstan ratified financing agreements with the International Development Association (IDA). The loan, issued for 50 years, includes a 10-year grace period and carries a 0% interest rate. The commitment fee for reserved funds is 0.5%, subject to annual review.
Regional Cooperation on Kambarata-1
Last June, during the International Energy Investment Forum in Vienna, Kazakhstan, Kyrgyzstan, and Uzbekistan signed an agreement outlining their cooperation on the project. A joint-stock company will be established in Kyrgyzstan to oversee construction and operation, with ownership shares distributed as follows:
- Kyrgyzstan – 34%
- Kazakhstan – 33%
- Uzbekistan – 33%
Importance of Kambarata-1 HPP
The Kambarata-1 HPP, located on the Naryn River, will enhance electricity generation for Central Asian countries and contribute to sustainable water management in the region. The project is expected to strengthen energy security and promote economic stability among the participating nations.
Photo credit: e-cis.info
