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of this hydropower plant will allow the accumulation and rational use of water resources of the Toktogul reservoir."
It's no surprise that Kyrgyzstan’s Central Asian neighbours are taking a keen interest in the Kambarata-1 project. And the project is actually so big, it will have to be a pan-regional endeavour.
The nominal GDP of the Kyrgyz Republic in 2023 was only $14bn, but with the additional dozen small HPPs the government wants to build on other rivers in the country, the total price tag for the infrastructure rollout is around $16bn. This only becomes economically viable if the needs of the Kyrgyz Republic’s neighbours are taken into account, with the combined GDP of all five of the Central Asian countries some $450bn.
The government’s national energy plan was launched in 2021 shortly after Kyrgyzstan’s President Sadyr Japarov took over. The 12 clean energy projects that Akylbek Japarov showcased in Vienna, worth a total $16bn, have been made the government’s top priority. The hunt for investors and partners has been redoubled.
The World Bank has committed to the $500mn investment tag of the first construction phase, but Akylbek Japarov is now looking for long-term private investors to supplement the World Bank’s funding to provide two thirds of that money.
"I firmly declare that our side will provide full support and protection of the interests of the investor. In addition, 100% use of the generated electricity will be ensured," he stated.
The height of the Kambarata-1 dam is designed at 256 metres. The volume of the reservoir will be 5.4bn cubic metres. Preparatory work has started, and construction is expected
to take around 10 years.
With an installed capacity of 1,860 MW and an average annual production of 5.6bn kWh of electricity, Kambarata-1 will prove
crucial in meeting the region's growing energy demand. "The useful volume of the reservoir is 2,870mn cubic metres, and the preliminary construction estimate is more than $4bn," Japarov said. The project includes a rockfill dam, a plant building with four hydraulic units, spillways, tunnels, a work camp and water treatment facilities.
A five-year plan was approved last October 31by the World Bank board of executive directors. On the same day, the board approved technical assistance of $5mn for updating the Kambarata-1 feasibility study.
The World Bank in June allocated $13.6mn to Kyrgyzstan in additional technical support funding.
With the preparatory work divided into two stages with a total cost of Kyrgyzstani som (KGS) 44.1bn ($500mn), backed by the World Bank, Japarov announced the government would commit an additional $500mn from the state budget for 2024-2030.
Of the $500mn investment into the initial construction, between $150mn to $200mn will be provided by the World Bank in the first phase, and other financiers will come in and meet the balance.
Japarov called on international financial institutions, investors and companies to participate in energy projects aligned with modern climate challenges.
"Together we can realise this ambitious vision and make a significant contribution to both the energy stability and environmental sustainability of our region," Japarov concluded.
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Hungary’s MVM Group acquires 5% stake in Shah Deniz gasfield in Azerbaijan
Tamas Csonka in Budapest, Cavid Aga in Baku
Hungary’s state-owned energy giant MVM Group has signed an agreement with Azerbaijan to acquire a 5% stake in the Shah Deniz field. The transaction is expected to close in Q3.
The acquisition, a milestone for Hungary, will put the security of the country's gas supply "in a new dimension", Hungarian Foreign Affairs and Trade Peter Szijjarto said in Baku at
a joint press conference with his Azerbaijani counterpart Jeyhun Bayramov.
Hungary has predominantly imported natural gas from Russia, even following Russia's invasion of Ukraine in 2022, which prompted other European countries to seek alternative energy sources. Hungary has been receiving 4.5 bcm of gas per year from Russia under a 15-year agreement signed in 2021.
Acquiring a stake in this gas field "provides us [Hungary] with protection against significant energy price fluctuations", Szijjarto said. "As Azerbaijan becomes a new player in our
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