The World Bank’s Board of Executive Directors has approved an additional $13.6 million in financing for the Kambarata-1 hydropower project in the Kyrgyz Republic. This funding supplements the existing $5 million Technical Assistance for the project, aimed at ensuring its environmental, technical, financial, and commercial sustainability.
The Kambarata-1 hydropower project aligns with the Kyrgyz Republic’s goals of transitioning to cleaner energy sources. The project is expected to significantly boost the country’s energy supply, generating 5600GWh per year, nearly half of the nation’s current output, and reducing annual carbon emissions by 5 million tons. It also aims to enhance energy and water management in Central Asia, expand electricity trade, decarbonize energy grids, and integrate solar and wind power. Additionally, the project will address water needs in Kazakhstan and Uzbekistan.
“The World Bank is assisting the Kyrgyz Republic in developing its vast clean energy potential, which would be 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 hydropower project in a sustainable and bankable way,” said Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic.
Since its approval in late 2023, the ongoing technical assistance project has made notable progress. This includes updating the project feasibility, preparing environmental and social documentation, and forming a Donor Coordination Committee at the International Energy Investment Forum in Vienna in June 2024. The additional financing will support critical activities such as dam safety, environmental and social panels of experts, benefit-sharing plans, project financing and commercial structuring, and establishing a project company.
The new funding is provided on highly concessional terms through the International Development Association (IDA), including an $11 million zero-interest credit with a 50-year repayment period and a 10-year grace period, and a $2.6 million grant from the Central Asia Water and Energy Program (CAWEP). CAWEP, a partnership between the World Bank, European Union, Switzerland, and the United Kingdom, focuses on regional cooperation on water and energy security in Central Asia.
Earlier this month it was announced that SMEC has been appointed to conduct consulting services for the environmental and social assessment, planning, and preparation of tender documents for the Kambarata-1 Hydropower project.
