International Banks Back Kambarata Hydropower Plant Project

Tashkent, Uzbekistan (UzDaily.com) — A meeting of energy ministers from Uzbekistan, Kazakhstan, and Kyrgyzstan was held in Brussels to discuss the Kambarata HPP-1 project. The planned hydropower plant, with a capacity of 1,860 megawatts, is expected to generate around 5.5 billion kilowatt-hours of electricity annually, significantly contributing to regional energy security.

In an interview with Uzbekistan 24, Energy Minister Jurabek Mirzamahmudov outlined the agreements reached at the meeting. Organized under the auspices of the World Bank, the event brought together about ten international financial institutions, including the European Bank for Reconstruction and Development, the European Investment Bank, the OPEC Fund, the Asian Infrastructure Investment Bank, financial institutions from Italy, and the Asian Development Bank.

The minister emphasized that all organizations expressed readiness to finance the project even before the completion of full project documentation, reflecting a high level of trust and strong international interest in the initiative.

Participants highlighted the regional importance of the project and its significance as the first initiative of its kind to attract such broad international attention. The key role of the President of Uzbekistan and his personal contribution to advancing the project were also noted.

Preliminary estimates place the cost of the Kambarata HPP at US$4.2 billion, with a combined financial package of US$5.6 billion. Plans include preparing an intergovernmental agreement, establishing an operator, and forming a joint venture to manage the facility.

The project will be implemented in compliance with international environmental, technical, and economic standards. Documentation has been prepared by international consultants to meet all parties’ requirements while safeguarding the national interests of participating countries. Environmentally, the Kambarata HPP is designed to minimize ecosystem disruption compared to many other hydropower projects. All ecological risks have been analyzed, and efficient management of water resources and growing seasons will ensure their optimal use.

In the project structure, Kyrgyzstan holds a 34% stake, while Uzbekistan and Kazakhstan each hold 33%. Each country has the right to purchase electricity proportional to its share, with flexibility to increase purchases based on market demand and domestic needs.

The facility will be managed by a joint venture on market-based principles, ensuring operational flexibility and the sustainable performance of the Kambarata HPP.