The World Bank’s Board of Executive Directors approved $13.6 million in additional financing to supplement the ongoing $5 million Technical Assistance for Kambarata-1 Hydropower Plant (HPP) Project in the Kyrgyz Republic. The project aims to support the Government of the Kyrgyz Republic in preparing the Kambarata-1 HPP project sustainably.
Greater use of hydropower aligns with the Kyrgyz Republic’s commitment to transitioning to cleaner energy sources, ensuring a more sustainable growth path. The Kambarata-1 HPP Project is expected to generate an average of 5,600 gigawatt hours per year—almost half of the country's current output—and reduce annual carbon emissions by 5 million tons. The project also aims to expand electricity trade, decarbonize energy grids, facilitate solar and wind integration, and better meet water needs in downstream countries such as 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 HPP Project in a sustainable and bankable way,” said Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic.
The ongoing Technical Assistance for Kambarata-1 HPP Project has made significant progress since its approval in fall 2023. This includes updating project feasibility, preparing environmental and social documents, and establishing a Donor Coordination Committee during an International Energy Investment Forum held in Vienna in June 2024. Additional financing is needed for critical activities such as establishing dam safety panels, designing a benefit-sharing plan, structuring project financing, and creating a project company.
This additional financing is provided on highly concessional terms through the International Development Association (IDA). It includes an $11 million zero-interest credit with repayments over 50 years and a 10-year grace period, plus a $2.6 million grant from the Central Asia Water and Energy Program (CAWEP), which requires no repayment. CAWEP is a multi-donor partnership between the World Bank, European Union, Switzerland, and United Kingdom aimed at strengthening regional cooperation on water and energy security in Central Asia under changing climate conditions.
The World Bank's mission is to end extreme poverty and promote shared prosperity on a livable planet. Its program in the Kyrgyz Republic currently consists of 25 projects supporting various sectors' modernization and development with commitments exceeding $1.2 billion.