ASTANA – The Kyrgyz Republic will receive an $11 million concessional loan and a $2.6 million grant from the International Development Association (IDA) of the World Bank to provide technical support for the Kambarata-1 hydroelectric power plant (HPP) construction project, Kazinform reported.
Kambarata-1 hydroelectric power plant . Photo credit: e-cis.info
On March 18, Kyrgyzstan ratified the Financing Agreement and Grant Agreement Letter with the IDA. The IDA is providing the allocated funds for a 50-year term, including a 10-year grace period from the date of signing the loan and grant agreements. The interest rate is 0%, while the commitment fee for reserved funds is 0.5%, subject to annual revision by the IDA’s Board of Directors.
Last June, on the sidelines of the International Energy Investment Forum in Vienna, the energy ministers of Kazakhstan, the Kyrgyz Republic, and Uzbekistan signed an agreement to prepare for the construction and operation of the HPP.
The agreement outlined preliminary provisions, including establishing a joint-stock company in the Kyrgyz Republic with the following equity participation: 34% for the Kyrgyz side, 33% for the Kazakh side, and 33% for the Uzbek side.
The Kambarata-1 HPP will be constructed on the Naryn River in the Kyrgyz Republic to generate electricity for Central Asian countries and ensure the region’s sustainable water supply.
