The World Bank’s Board of Executive Directors has approved $13.6 million in additional financing to supplement the ongoing $5 million Technical Assistance for the Kambarata-1 Hydropower Plant (HPP) Project for the Kyrgyz Republic.

The project aims to support the Government of the Kyrgyz Republic in preparation of the Kambarata-1 Hydropower Plant project in a manner that is environmentally, technically, financially and commercially sustainable.

Greater use of hydropower energy sources is in line with the Kyrgyz Republic’s commitment to transition to cleaner energy sources, thus ensuring a more sustainable and greener growth path, the World Bank said. Kambarata-1 is a transformational regional project aimed at increasing affordable energy supply, enhancing the energy-water management and clean energy transition in the Kyrgyz Republic and Central Asia. It is expected to generate an average of 5,600 GWh per year — almost half the Kyrgyz Republic’s current output — and reduce annual carbon emissions by 5 million tons. The project also has broader development objectives across Central Asia, including expanding electricity trade, decarbonizing energy grids, facilitating solar and wind integration, and better meeting water needs in downstream countries of 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 Hydropower Plant (HPP) Project for the Kyrgyz Republic has made significant progress since its approval in the fall of 2023, the World Bank said. This includes commencement of the project feasibility update, preparation of environmental and social documents, and establishment of Donor Coordination in June 2024. The additional financing is needed to ensure comprehensive and in-depth implementation of several critical activities. These include 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.

This additional financing is provided on highly concessional terms through the International Development Association. It comprises an $11 million zero-interest credit, with repayments eased over 50 years and a 10-year grace period, as well as a $2.6 million grant, which requires no repayment, from the Central Asia Water and Energy Program (CAWEP). 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 a changing climate.