The World Bank's Board of Executive Directors has approved a $5mn fund to assist the Technical Assistance for Kambarata-1 Hydropower Plant Project in the Kyrgyz Republic.
This technical assistance aims to aid the Cabinet of Ministers of the Kyrgyz Republic in updating the Feasibility Study of the Kambarata-1 Hydropower Plant (HPP) Project, with a focus on enhancing its environmental and social sustainability while strengthening its financial and commercial frameworks.
The mountainous terrain of the Kyrgyz Republic offers substantial hydropower potential, a significant portion of which remains untapped. The increased utilization of hydropower aligns with the nation's commitment to transition to cleaner energy sources, promoting more sustainable and environmentally friendly growth. The Kambarata-1 HPP project is anticipated to be one of the most cost-effective initiatives for expanding clean energy resources in the Kyrgyz Republic and the broader Central Asia region.
It has the capacity to address the country's energy security challenges, generate substantial revenues from energy exports, and enhance downstream HPP operations and water management. Additionally, the hydropower plant will support global decarbonization efforts by facilitating the integration of other renewables, such as solar and wind, thereby reducing dependence on fossil fuels.
Tatiana Proskuryakova, the World Bank Regional Director for Central Asia, emphasized the critical importance of the Kambarata-1 HPP project. She highlighted the potential benefits in clean energy generation, regional cooperation, water security, and environmental safeguards across Central Asia. The technical assistance from the World Bank will play a pivotal role in harnessing the abundant hydropower potential of the Kyrgyz Republic, strengthening governance, and ensuring the financial sustainability of the energy sector.
The International Development Association (IDA), the World Bank's concessional lending arm, will provide the financing for the Kambarata-1 HPP project. The funds will be allocated to update previous studies, confirm technical feasibility and economic viability, enhance the environmental and social framework, and develop a fiscally sustainable financing plan and commercial framework. Furthermore, the technical assistance will promote the expansion of Kambarata-1 HPP's benefits to larger constituencies by creating a benefit-sharing mechanism. This mechanism could potentially channel a portion of the revenues generated by the Kambarata-1 HPP into various socio-economic programs and initiatives.
Naveed Hassan Naqvi, World Bank Country Manager for the Kyrgyz Republic, described Kambarata-1 as a transformative regional hydropower project that will play a pivotal role in powering the clean energy future of the Kyrgyz Republic and Central Asia. The technical assistance will ensure that the project is developed in a sustainable and bankable manner, facilitating the mobilization of necessary financing.
The financing for this project is provided under highly concessional terms through the International Development Association (IDA). It includes a $3mn zero-interest credit with repayments eased over 50 years and a 10-year grace period, along with a $2mn grant from a multi-donor trust fund that requires no repayment.
The World Bank's mission is to eradicate extreme poverty and promote shared prosperity on a sustainable planet. The World Bank's program in the Kyrgyz Republic encompasses 22 projects aimed at supporting the modernization and development of various sectors, with commitments exceeding $1bn.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)