World Bank Approves $13.6M Additional Financing for Kambarata-1 Hydropower Plant in Kyrgyz Republic

The increased use of hydropower aligns with the Kyrgyz Republic’s commitment to transition to cleaner energy sources, ensuring a sustainable and greener growth path.

The World Bank’s Board of Executive Directors today approved $13.6 million in additional financing to supplement the ongoing $5 million Technical Assistance for the Kambarata-1 Hydropower Plant (HPP) Project in the Kyrgyz Republic. This project aims to support the Kyrgyz government in preparing the Kambarata-1 HPP in an environmentally, technically, financially, and commercially sustainable manner.

The increased use of hydropower aligns with the Kyrgyz Republic’s commitment to transition to cleaner energy sources, ensuring a sustainable and greener growth path. The Kambarata-1 HPP Project is a transformational regional initiative expected to increase affordable energy supply, enhance energy-water management, and facilitate a clean energy transition in the Kyrgyz Republic and across Central Asia. It is projected to generate an average of 5,600 gigawatt hours per year—nearly half of the Kyrgyz Republic’s current output—while reducing annual carbon emissions by 5 million tons. Additionally, the project aims to expand electricity trade, decarbonize energy grids, integrate solar and wind energy, 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 is crucial for the country’s and region’s clean energy transition and enhanced regional cooperation on energy and water. World Bank support will help the Kyrgyz government prepare the Kambarata-1 HPP Project in a sustainable and bankable way,” said Hugh Riddell, the World Bank’s Country Manager for the Kyrgyz Republic.

Since its approval in fall 2023, the ongoing Technical Assistance for the Kambarata-1 HPP Project has made significant progress. This includes the commencement of the project feasibility update, preparation of environmental and social documents, and the establishment of a Donor Coordination Committee during the International Energy Investment Forum held in Vienna in June 2024. The additional financing will ensure comprehensive implementation of several critical activities, such as establishing dam safety and environmental and social panels of experts, designing a benefit-sharing plan, structuring the project financing plan and commercial framework, and establishing a project company.

The additional financing 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, as well as a $2.6 million grant from the Central Asia Water and Energy Program (CAWEP). The CAWEP is a multi-donor partnership involving the World Bank, the European Union, Switzerland, and the United Kingdom, aimed at strengthening regional cooperation on water and energy security in Central Asia under a changing climate.

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.