Ministry of Energy: Construction of Kambarata HPP-1 to cost $4.2 billion

The construction of the Kambarata Hydropower Plant-1 is estimated to cost $4.2 billion, while the financing portfolio of international financial institutions has reached $5.6 billion. This was announced by Uzbekistan’s Minister of Energy, Jurabek Mirzamakhmudov, in an interview with the Uzbekistan 24 television channel.

According to the minister, at the end of September, the third roundtable meeting on the Kambarata HPP-1 construction project was held in Brussels with the participation of the energy ministers of Uzbekistan, Kazakhstan, and Kyrgyzstan. The meeting, organized under the auspices of the World Bank, brought together around 10 financial institutions, including the European Bank for Reconstruction and Development, the European Investment Bank, the OPEC Fund, the Asian Infrastructure Investment Bank, the Asian Development Bank, as well as financial institutions from Italy.

All participants of the discussions emphasized that the Kambarata HPP-1 is a unique regional cooperation project and expressed their readiness to provide financing even before the project documentation is finalized.

’’In the past, we could not even discuss such projects, let alone speak about them publicly — it was prohibited. Today, international financial institutions are recognizing these ongoing negotiations and dialogues at the highest level. Everyone has acknowledged the significant role of the President of Uzbekistan in this process. Thanks to Uzbekistan’s image, its current standing in the international community, the ongoing reforms, economic transformations, and growth, our partners are now ready to allocate resources. They view this as a project symbolizing regional cooperation and believe in the long-term economic potential and growth of the participating countries,’’ Mirzamakhmudov noted.

The minister recalled that within the framework of the project’s implementation, an intergovernmental agreement will be prepared, an operating body will be established, and a joint venture will be created.

’’The project will be implemented in accordance with international standards, including environmental, safety, and economic aspects, based on documentation developed by international consultants and taking into account national interests,’’ he added.

According to Mirzamakhmudov, the Kambarata HPP-1 is not only an economic project but also a ’’green energy’’ initiative that will enable the use of renewable energy sources. Moreover, it will provide all three countries with opportunities for the proper management of water resources.

’’From an environmental perspective, the main advantage of this project is that, unlike many others where dam construction leads to flooding in certain areas, requiring the relocation of settlements or other facilities, such issues have been prevented here. According to preliminary calculations, effective resource management will also make it possible to provide additional water resources during the summer vegetation period. The key will be to organize the operation and management systems properly,’’ the minister emphasized.

The minister also reminded that under the project, Kyrgyzstan holds a 34 percent share, while Uzbekistan and Kazakhstan each hold 33 percent. Accordingly, each country will have the right to purchase electricity in proportion to its share.

’’However, since this is a commercial project, adjustments may be made depending on market conditions and demand. If the market is favorable and consumption increases across the region, one country may purchase more electricity while another may take less, depending on its needs. This is why the project will be jointly managed through a shared enterprise, based on supply and demand,’’ the minister clarified.

The Kambarata Hydropower Plant is the largest energy project located on the Naryn River in Kyrgyzstan’s Jalal-Abad region. The future plant will have a capacity of 1,860 MW. Its reservoir will hold 5.4 billion cubic meters of water, and the dam will reach a height of 256 meters. The station is expected to generate an average of 5.6 billion kWh of electricity annually. The construction of the hydropower plant is projected to take 10 years.

It is worth noting that earlier, Kyrgyzstan’s Ministry of Energy announced that the European Union would allocate $1 billion for the construction of the Kambarata HPP-1.