BISHKEK, Kyrgyzstan, November 1. The World Bank's Board of Executive Directors has approved $5 million in funding for the Technical Assistance (TA) of the Kambarata-1 Hydropower Plant (HPP) Project in Kyrgyzstan, Trend reports.
This TA is intended to assist the Cabinet of Ministers of the country in revising the Feasibility Study for the Kambarata-1 HPP Project, focusing on enhancing its environmental and social sustainability and strengthening its financial and business frameworks.
The funding for this project is provided through the International Development Association (IDA) under very favorable conditions. Of the total funding, $3 million is a zero-interest loan, with repayments stretched over 50 years and a 10-year grace period.
Additionally, $2 million is allocated as a grant from a fund supported by multiple donors, which does not require repayment.
According to the bank, the Kambarata-1 HPP is expected to be one of the most effective initiatives for increasing the availability of clean energy in both Kyrgyzstan and the broader Central Asia region. This project has the potential to address the country's energy security concerns and generate significant income from energy exports.
World Bank Country Manager for Kyrgyzstan, Naveed Hassan Naqvi, said that this technical assistance will help develop the project in a sustainable and financially viable manner, enabling the mobilization of necessary financing for it.
As part of its new five-year Country Partnership Framework (CPF) for Kyrgyzstan (2024-2028), WB will provide support for the country's economic transformation through policy guidance, technical assistance, and planned project financing of approximately $500 million.
WB’s initiatives in Kyrgyzstan currently encompass 22 projects aimed at modernizing and advancing various sectors, with commitments exceeding $1 billion.