Kazakhstan, Kyrgyzstan, and Uzbekistan forge joint venture for Kambarata-1 hydropower plant

Kazakhstan, Kyrgyzstan, and Uzbekistan have announced plans to establish a joint-stock company dedicated to the construction of the Kambarata-1 Hydropower Plant (HPP). This endeavor marks a step forward in the tripartite efforts to harness hydroelectric potential and bolster energy infrastructure in the region.

According to details disclosed in the draft of the tripartite intergovernmental agreement, the project will see Kyrgyzstan holding a majority share of 34% in the joint-stock company, with Kazakhstan and Uzbekistan each holding 33%. However, upon completion of construction and project implementation, ownership of Kambarata-1 HPP shares and assets will be entirely transferred to Kyrgyzstan.

"The main principles of the cooperation of the parties within the framework of the project are the guaranteed purchase of the amount of electricity produced at Kambarata-1 by the organizations determined by the parties," the document outlines, highlighting the commitment to ensure the utilization of generated electricity.

This collaborative effort stems from a roadmap signed by the heads of the energy agencies of the three nations in January 2023, aimed at facilitating the construction of Kambarata-1 HPP on the Naryn River. With aspirations to become the largest power plant in Kyrgyzstan, Kambarata-1 is expected to not only supply electricity to Central Asian countries but also contribute to stabilizing the region's water supply.

The Ministry of Energy of Kazakhstan has emphasized the significance of Kambarata-1 HPP, stating that it will play a crucial role in meeting energy demands in Central Asia while fostering regional stability and development.

The financing of the project will be sourced from the funds of the company’s founders, supplemented by loans and grants from international financial institutions and banks. The precise timeline for project implementation will be established following the approval of a comprehensive feasibility study. Upon the successful completion of the project, ownership of Kambarata-1 HPP shares and assets will be transferred to Kyrgyzstan.

Kyrgyz President Sadyr Japarov previously estimated the construction costs of Kambarata-1 HPP to range between $5-6bn, underlining the substantial investment required for this ambitious project.

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