Projects for the construction of a new hydroelectric power station and deep modernization of an existing one have been launched in Kyrgyzstan. The key financial partner is the World Bank, which has provided the country with preferential financing for the implementation of these initiatives.

The focus is on two objects. The first — is the construction of the Nizhne-Tarskaya hydroelectric power station on the Tar River in the Kara-Kuldzha district of the Osh region. According to preliminary calculations, the capacity of the new station will be 19 MW. The second project is aimed at reconstructing the Bystrovskaya hydroelectric power station with a capacity of 8.7 MW. The upgrade will increase the turbine’s efficiency by 16–18%, increasing annual power generation by approximately 7.2 million kWh without increasing water consumption.

The practical stage of project implementation began in May 2025, when OJSC «Chakan HPP» announced an international tender to attract consultants. Their task will be to develop a detailed feasibility study (feasibility study) that will determine the exact cost, technical parameters and economic feasibility of construction and reconstruction. Interest in the project was high: 21 companies submitted applications to participate, of which five that provided the most complete documentation were selected for further coordination with the World Bank.

The financial basis for these endeavors is an interest-free loan from the World Bank in the amount of US$43.2 million. The terms of the loan, as indicated by the Ministry of Energy, are extremely favorable for Kyrgyzstan: it is provided for a period of 50 years and includes a 10-year grace period during which payments on the principal debt will not be made.