Finance Ministry, World Bank sign agreements on additional financing for Kambar-Ata-1 HPP

The signing ceremony of the loan and grant agreements on $13.6 million additional financing for Technical Assistance for Kambar-Ata-1 HPP Project was held on September 9 in Bishkek, the Ministry of Finance said.

The project aims to support the Government of the Kyrgyz Republic in the preparation of the Kambar-Ata-1 Hydropower Plant (HPP) project in a manner that is environmentally, technically, financially, and commercially sustainable.

The project will support physical modelling, surveys, laboratory trials necessary for quality and reliable construction of the hydropower plant.

This additional financing is provided on highly concessional terms through the International Development Association (IDA). It comprises an $11 million zero-interest credit, with repayments eased over 50 years and a 10-year grace period, as well as a $2.6 million grant, which requires no repayment, from the Central Asia Water and Energy Program (CAWEP). The CAWEP is a multi-donor partnership between the World Bank, the European Union, Switzerland, and the United Kingdom, aimed at strengthening regional cooperation on water and energy security in Central Asia under a changing climate.

The project envisions the construction of a 256 m high rockfill dam and a hydropower plant with installed capacity of 1860 MW, with an average annual output of 5.6 billion kWh and a total reservoir volume of 5.4 billion m³.