The World Bank plans to allocate $13.6mn to Kyrgyzstan as additional technical support funding for the construction of Kambarata Hydropower Plant 1 (Kambarata HPP 1) on Naryn river, expected to be a Kyrgyz-Uzbek-Kazakh project that costs at least $5bn.

The Kyrgyz energy ministry said on May 31 that $11mn of the amount would be provided as an interest-free loan for 50 years with a 10-year grace period, while $2.6mn would be a grant from the Multilateral Donor Trust Fund for the fourth phase of the Central Asia Water and Energy Program (CAWEP).

The funds are to be directed towards financing essential activities in preparation for the construction of Kambarata-1 HPP.

There will be an updating of the feasibility study and environmental and social documentation, including the development of a benefit-sharing plan for the local communities.

Additionally, a macroeconomically and commercially sustainable financing plan for the Kambarata-1 HPP construction, expected to take around 10 years, will be developed.

Once completed, Kambarata-1 HPP is to have a capacity of 1,860MW and is to produce 5.6bn kWh of electricity per year.

The dam will be 256 metres high and the reservoir will hold more than 5.4bn cubic metres of water, according to current planning.

Chairman of the Cabinet of Ministers of Kyrgyzstan Akylbek Japarov and management of the World Bank Group in mid-April agreed to develop a financial model of cooperation in relation to the construction of  Kambarata HPP 1.

Cabinet head Japarov held meetings with the World Bank regional director for economics and finance Asad Alam, as well as with World Bank vice president for human development Mamta Murthi on the sidelines of the spring meetings of the International Monetary Fund (IMF) and World Bank Group in Washington DC.

Prior to the meeting, Kazakhstan, Kyrgyzstan and Uzbekistan agreed to create a joint-stock company that will implement the construction and operation of Kambarata HPP 1.

The Kazakh energy ministry has stated that Kambarata HPP 1 should become the largest power plant in Kyrgyzstan and would provide electricity to the states of Central Asia, while also contributing to the stabilisation of water supply in the region.

Kyrgyzstan’s share in the project and authorised capital will be 34%, while Kazakhstan and Uzbekistan will hold 33% each. A draft trilateral intergovernmental agreement for the deal was posted on the Open Legal Acts website of Kazakhstan.