The World Bank’s Board of Executive Directors approved an additional $13.6mn in financing to support the ongoing $5mn Technical Assistance for the Kambarata-1 Hydropower Plant (HPP) Project in the Kyrgyz Republic. This project aims to aid the Kyrgyz government in preparing the Kambarata-1 HPP project to be environmentally, technically, financially, and commercially sustainable.
The Kambarata-1 HPP Project aligns with the Kyrgyz Republic’s commitment to transitioning to cleaner energy sources, promoting sustainable and green growth. This transformational regional project is set to significantly increase affordable energy supply, enhance energy-water management, and support the clean energy transition in the Kyrgyz Republic and Central Asia.
Expected to produce approximately 5,600 gigawatt-hours annually, which is nearly half of the Kyrgyz Republic’s current electricity output, this initiative will also result in a reduction of annual carbon emissions by 5mn tons.
Beyond national benefits, the project aims to expand electricity trade, decarbonize energy grids, and facilitate solar and wind integration across Central Asia. It also intends to address water needs in downstream countries such as Kazakhstan and Uzbekistan.
“The World Bank is assisting the Kyrgyz Republic in developing its vast clean energy potential, which is key to realizing the country’s and region’s bold initiatives on clean energy transition and enhanced regional cooperation on energy and water. World Bank support will help the Government of the Kyrgyz Republic to comprehensively prepare the Kambarata-1 HPP Project in a sustainable and bankable way,” said Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic.
Progress has been made in the ongoing Technical Assistance for the Kambarata-1 HPP Project since its approval in fall 2023. This includes updating the project feasibility study, preparing environmental and social documents, and establishing a Donor Coordination Committee during the International Energy Investment Forum held in Vienna in June 2024.
The additional financing will support critical activities such as establishing dam safety and environmental and social panels of experts, designing a benefit-sharing plan, structuring the project financing plan and commercial framework, and establishing a project company.
This additional financing comes on highly concessional terms through the International Development Association (IDA), consisting of an $11mn zero-interest credit with a 50-year repayment period and a 10-year grace period, and a $2.6mn grant from the Central Asia Water and Energy Program (CAWEP). CAWEP, a collaborative effort involving the World Bank, the European Union, Switzerland, and the United Kingdom, seeks to enhance regional cooperation on water and energy security in Central Asia amidst evolving climate challenges.
The World Bank’s mission is to end extreme poverty and promote shared prosperity on a livable planet. Its program in the Kyrgyz Republic includes 25 projects supporting modernization and development across various sectors, with commitments exceeding $1.2bn.
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