The implementation of the strategic project for the construction of a hydroelectric power station «Kambar-Ata-1» in Kyrgyzstan is entering an active phase. According to Energy Minister Taalaibek Ibraev, the preparation of an updated feasibility study (feasibility study) is nearing completion, while the necessary environmental and sociological research is being carried out. In parallel, the process of forming an international consortium of investors to finance this large-scale energy facility is underway.
The Minister of Energy of Kyrgyzstan calls the hydroelectric power station «Kambar-Ata-1» the country’s largest national project, work on which is being carried out intensively on the direct instructions of the President of the Kyrgyz Republic Sadyr Zhaparov. An important step was support from the World Bank, which allocated funding for updating the feasibility study. This task is being carried out by a Swiss company «Efri», and an updated document is expected by May of this year. Taalaibek Ibraev explained that updating the feasibility study is a key condition for attracting investors, since any financing begins with studying this document, and since 2014, economic realities, including prices and the dollar exchange rate, have undergone significant changes.
Alongside the economic evaluation of the project, studies are being carried out on its social and environmental impact. Opinion polls, according to the minister, demonstrate a high level of approval for the construction of the hydroelectric power station among residents of nearby areas – 97 percent of the population supports the project. The environmental assessment is intended to carefully assess the potential impact of the future reservoir on the natural environment of the region.
To launch the construction of Kambarata HPP-1, it is necessary to conclude an intergovernmental agreement between the participating countries: Kyrgyzstan, Uzbekistan and Kazakhstan. The text of this important document is already being developed by the involved law firm, which creates a legal basis for tripartite cooperation within the project.
The total estimated cost of constructing the hydroelectric power station «Kambar-Ata-1» is an impressive amount – about 3.5 billion US dollars. The World Bank has expressed its willingness to consider providing up to $1.5 billion. In addition, Kyrgyzstan, Kazakhstan and Uzbekistan jointly submitted a request for a loan in the amount of $500 million. Active negotiations on co-financing are also underway with other major international financial institutions, including the Asian Development Bank, the Islamic Development Bank and the European Bank for Reconstruction and Development.
Kyrgyzstan has already invested about 4 billion soms from the state budget in the preparatory stage. These funds were used to create the necessary infrastructure: construction of an access road, a transport tunnel, which has already been completed, a bridge over the Naryn River (work continues), as well as power lines and housing for future builders.
The Minister of Energy notes the unique advantage of the hydroelectric power station project «Kambar-Ata-1» compared to other large hydropower construction projects in the region, such as the Rogun hydroelectric power station in Tajikistan. He emphasizes that in the case of «Kambar-Ata-1» there is no problem of mass relocation of residents, since the lands intended for construction and the reservoir are already owned by the state company «Electric Stations».
The project plans also include measures to support the local population. It is expected that 1 percent of all electricity generated by the new hydroelectric power station will be directed to the needs of nearby villages. The possibility of organizing training programmes for local residents so that they can obtain qualifications and work on energy facilities under construction and future ones is being considered.
