World Bank allocates $18.6 mln for Kambarata-1 HPP

Uzbekistan is particularly interested in the construction of Kambarata-1 HPP. The country has expressed its willingness to provide any necessary assistance for the realization of this energy project. According to Uzbekistan’s Minister of Energy, this regional initiative will bring significant benefits to Central Asia and strengthen energy security. Although the World Bank remains the primary financier at this stage, Kyrgyzstan’s Minister of Energy noted that interest in funding the project is gradually increasing. Uzbekistan’s Prime Minister, Abdulla Aripov, also emphasized the importance of the HPP last spring and called on international financial institutions to support the initiative.

The construction of Kambarata-1 HPP is considered the "project of the century." The meeting in Tashkent follows discussions in Vienna, Brussels, and Washington, with the aim of accelerating the project and attracting necessary international support, said Kyrgyzstan’s Minister of Energy, Taalaibek Ibraev.

The three countries have formally requested financial support from the World Bank for the HPP construction. According to Charles Cormier, the Regional Director for Infrastructure for Europe and Central Asia at the World Bank, an initial $18.6 million has been allocated to Kyrgyzstan for the project.

“We believe in the project's successful completion. The demand for energy in the region is increasing, and there are growing concerns about electricity shortages and energy challenges. This hydroelectric power station will enable better water resource management in these three water-scarce countries. The three nations have requested funding from the World Bank, and we have the necessary funds available. Other international financial institutions have also expressed interest, so financing should not be a problem. For Uzbekistan and Kyrgyzstan, we are providing assistance, while for Kazakhstan, given its stronger economy, we are offering financial support in the form of a loan,” said Charles Cormier.

Cormier further explained that the World Bank has recognized the need to provide the required technical assistance to Kyrgyzstan, which is why the $18.6 million has been allocated. Work has already begun on assessments, including cost calculations, environmental and social impact evaluations, and legal framework reviews. The next steps are now being determined. The project’s management committee and deadlines need to be confirmed. The three countries have requested that funds be made available within this year. For this to happen, the Board of Directors must approve financing in 2025, which is expected to take place.

The 1,800-megawatt project alone will not fully resolve the region’s energy needs and challenges. However, Kambarata will contribute to clean energy supply, said Kazakhstan’s Deputy Minister of Energy, Sungat Yessimkhanov.

“Our main power generation facilities are located in the north, so this project is essential for supplying electricity to our southern regions. In the future, nuclear energy will also play a crucial role. The three countries will have equal rights, with shares distributed as follows: 34% to Kyrgyzstan, 33% each to Kazakhstan and Uzbekistan. Additionally, we will sell electricity to Afghanistan and share the revenue generated from exports. This means that the Kambarata HPP will also have an export potential,” stated Sungat Yessimkhanov.

The three countries plan to seek further funding from other international financial institutions to fully finance the project.