The governments of Uzbekistan, Kazakhstan, and Kyrgyzstan are expected to sign an agreement for the construction of the Kambarata Hydroelectric Power Plant (HPP-1) along the Naryn кiver in Kyrgyzstan. This development stems from a draft intergovernmental agreement released for public review by the Kazakh Ministry of Energy.
The agreement aims to delineate the terms of collaboration among the involved parties within the scope of the hydroelectric power plant’s construction project and subsequent operations.
Entities designated by the Central Asian countries will be assured of purchasing the entire electricity output generated by Kambarata HPP-1, according to the document.
Decisions regarding the operation mode of the power plant will be made by parties, with consideration given to agreed-upon water release volumes by all parties.
A joint-stock company will be established in Kyrgyzstan to oversee project execution. Kyrgyzstan’s share will be 34%, while Kazakhstan and Uzbekistan will hold 33% each. Each party will independently nominate the company’s founder, and the distribution of shares will remain fixed, precluding any possibility of merger, transfer, or sale.
Primary project funding will originate from the company’s resources, supplemented by loans and grants from international financial institutions and banks.
The timeline for project completion will be determined following the update and approval of the feasibility study (FS).
Following project completion, ownership of Kambarata HPP-1 shares and assets will be fully transferred to Kyrgyzstan. The agreement is expected to be signed in Bishkek.
In January 2023, Uzbekistan’s Minister of Energy Jurabek Mirzamakhmudov, Kazakhstan’s Minister of Energy Bolat Akchulakov, and Kyrgyzstan’s Minister of Energy Taalaibek Ibraev signed a roadmap for the Kambarata HPP-1 construction project in Bishkek.
The future HPP will boast a capacity of 1860 MW, with a reservoir volume of 5.4 billion cubic meters and a dam reaching 256 meters in height. Anticipated to generate an average of 5.6 billion kWh of electricity annually, the construction timeline is anticipated to take a decade, with the initial hydroelectric unit projected to be operational within four years.
In March 2021, during the visit of the president of Kyrgyzstan to Uzbekistan, the countries signed an agreement for the joint preparation of the investment project “Construction of Kambarata HPP-1” and a protocol on mutual electricity supply.
President of Kyrgyzstan Sadyr Zhaparov approved the construction of the Kambarata HPP-1 in June 2022. Approximately $20 million was allocated for the initial project work. According to the feasibility study conducted by a consortium of Canadian firm SNC-Lavalin International Inc. and Russia’s Southern Engineering Center of Energy, the HPP construction estimated to cost $2.9 billion in 2014 prices. However, on April 13, the president of Kyrgyzstan shared that the project’s cost would amount to $5−6 billion, with a projected payback period of 13−15 years.
