(MENAFN- Trend News Agency)
BISHKEK, Kyrgyzstan, September 24. The Eurasian
Development bank (EDB) hopes to participate in the financing of the
Kambarata HPP-1 in Kyrgyzstan, Chairman of the Board of the EDB
Nikolai Podguzov said in an interview with Trend .
"We are restoring the Bishkek Thermal Power plant with EDB
Technical Assistance Fund funds. We funded feasibility studies for
numerous small hydroelectric power facilities. We are discussing
participation in different projects, including a 300 MW solar power
facility. The EDB wants to fund Kyrgyzstan's biggest investment,
Kambarata HPP-1. We are also discussing feasibility study funds for
numerous other hydroelectric projects nationwide," Podguzov
noted.
He emphasized that building up the water and energy complex in
Central Asia is right at the top of the EDB's to-do list.
"We have already committed to funding energy and water projects
in Kazakhstan and Kyrgyzstan totaling around $940 million under our
existing agreements," he stated.
Podguzov shone a light on the bustling growth of Kyrgyzstan's
energy sector, which is rolling out the red carpet for investors.
Recently, a draft of the new National Energy Program of Kyrgyzstan
through 2035 was given the green light, laying the groundwork for a
big push in the rollout of new generating capacities and electrical
networks. This program takes a stab at figuring out the investment
needs in the electric power sector, aiming to hit the bullseye with
around $13.9 million by 2035.
"As part of its strategy to combat climate change, Kyrgyzstan
has pledged to cut emissions of greenhouse gases by the year 2030.
The paper argues that the nation's carbon-free policy should be
based on renewable energy sources, especially hydropower," Podguzov
said.
He also mentioned that the country is rolling up its sleeves to
safeguard and enhance water resource management as laid out in the
National Water Strategy, which is set to run until 2040 and was
adopted in 2023.
"We have faith that Kyrgyzstan's energy potential can be
developed to fulfill the country's future electrical demands and
add to Central Asia's integrated energy grid," he added.
Ten trends shaping the landscape of the Eurasian
region's infrastructure
Podguzov identified ten critical infrastructure trends in the
Eurasian region that will significantly impact all Central Asian
countries, including Kyrgyzstan.
"The development of new transport routes, new gas transportation
infrastructure, construction of warehouses, and the digitalization
of the economy, along with the rising demand for modern urban
infrastructure and increased freight traffic with China, are
shaping Kyrgyzstan's economic policy today," he stated.
He noted the strengthening of regional cooperation in the water
and energy sectors.
"A prime example of this collaboration is the progress made on
the Kambarata HPP-1 construction project on the Naryn River. The
governments of Kyrgyzstan, Kazakhstan, and Uzbekistan have agreed
to jointly establish a joint-stock company for this project (of
which Kyrgyzstan holds 34 percent, Kazakhstan 33 percent, and
Uzbekistan 33 percent). Preparatory work is currently underway,
with the HPP expected to have a capacity of 1860 MW and produce 5.6
billion kWh of electricity annually. Building this HPP under the
principles of cross-border public-private partnerships will address
energy and water security issues for the entire region," he
explained.
Podguzov highlighted that Kyrgyzstan is actively working to
develop its hydropower resources, aided by the EDB. Less than 10
percent currently utilizes the country's 252 large and medium-sized
rivers, which have a potential capacity of 18.5 million kW and
generate over 140-160 billion kWh of electricity, according to the
bank's estimates. Notable rivers with significant hydropower
resources include Naryn, Sary-Jaz, Kokomeren, Chatkal, Tar, Chu,
Kara-Darya, and Chon-Naryn. One major EDB project in Kyrgyzstan is
financing the construction and operation of the Kulanak hydropower
station.
"Further, it's essential to recognize Kyrgyzstan's ongoing
efforts to optimize water resource management. Modern water-saving
irrigation technologies are being introduced, and both new and
existing irrigation canals are being upgraded, which is enhancing
the availability of drinking water in rural areas," he
emphasized.
Podguzov also pointed out the growing cooperation between
Kyrgyzstan and China, which is increasingly directing direct
investments into the country, reflecting a significant trend in
infrastructure and trade relations.
"This cooperation is developing in two main areas: energy and
transport infrastructure. China is actively investing in the
construction of renewable energy facilities, in particular solar
and wind power plants. The expansion of transit and transport
capabilities is also important for Central Asian countries'
cooperation with China. China, Kyrgyzstan, and Uzbekistan signed an
agreement in the summer of 2024 to construct a cross-border
railway, which will connect the three countries and significantly
enhance the conditions for mutual trade. Additionally, there are
active efforts underway to enhance the capacity of border crossing
points. Already in September 2024, the third automobile checkpoint
"Bedel" was opened on the Kyrgyz-Chinese border," he said.
New trends in the region
"The trends we have identified will determine economic activity
in Kyrgyzstan for at least two to three years. In fact, these are
important areas for investment by the EDB and other multilateral
development banks, as well as investors from other categories. At
the same time, we understand that the volumes of investment needs
in transport, energy, water, and urban infrastructure are very
significant. And they will only increase. In the coming decades,
the depreciation of infrastructure will become even more
noticeable. Rapid urbanization will generate significant demand for
modern urban infrastructure," he said.
According to Podguzov, the active introduction of new
technologies, as well as climate change, is creating new needs.
Trade flows in the region are shifting, leading to the creation of
new transport corridors and energy links. As a result, all Central
Asian countries, including Kyrgyzstan, are trying to implement both
individual programs and regional cooperation initiatives for the
development and modernization of infrastructure. The regulatory and
institutional agenda is being updated, and new areas of regional
and international cooperation open up.
"The economy is a living matter, so new trends may emerge soon.
For instance, we can anticipate that our efforts to develop
hydropower will enable us to establish high-tech production
facilities for the manufacturing and upkeep of equipment for small
hydroelectric plants. The construction of small hydroelectric power
plants, especially in mountainous areas, will become an impetus for
the progress of small and medium-sized businesses in agriculture,
industry, and tourism," he said.
The head of the bank asserts that enhancing the nation's
transport connectivity can produce numerous multiplier effects.
"For example, the development of the tourism industry will
receive a powerful stimulus. In turn, tourism can become one of the
country's key drivers of economic growth. For instance, plans call
for the construction of the largest ski resort in Central Asia by
the end of 2026. Podguzov also noted the agreement on a new 260 km
long route connecting Almaty with Lake Issyk-Kul, which will pass
through the city of Uzynagash and the New Kastek pass," he
said.
He emphasized that with the implementation of the hydropower
potential, a promising direction could be the development of
electric transport and, as a result, the expansion of the
corresponding infrastructure of charging stations in cities and
rural areas. In 2024, a plant for the assembly of electric vehicles
with a capacity of 80 thousand units per year will begin operating
in the Chuy region, and in 2025, a project will start to replace
old cars with electric vehicles provided to citizens on lease for
10-15 years.
"There are many such examples. And our role, as a development
institution, is to actively promote the implementation of these
initiatives," he said.
Cooperation with national development institutions in
Kyrgyzstan
Podguzov noted that the Eurasian Development Bank is open to
cooperation with national development institutions in Kyrgyzstan
because their strategic goals and objectives largely align with the
bank's priorities.
"There is significant potential for expanding partnerships with
funds such as the Russian-Kyrgyz Development Fund, the
Kyrgyz-Uzbek, the Kyrgyz-Azerbaijani, and the Kyrgyz-Hungarian
Development Funds. These institutions are also focused on
supporting economic growth and sustainable development of the
republic by financing key projects of strategic importance for the
country," he explained.
According to the bank's head, the successful cooperation with
the Russian-Kyrgyz Development Fund demonstrates that joint efforts
make it possible to implement large projects that have a
significant impact on Kyrgyzstan's economy.
"Similar partnerships with other funds can open up new
opportunities for joint projects in the fields of energy,
infrastructure, and agriculture, which will further strengthen
economic cooperation," Podguzov believes.
Building the Kulanak HPP
"Kulanak HPP's construction on the Naryn River is part of the
EDB investment mega-project Central Asian Water and Energy Complex.
The hydroelectric power plant will have a capacity of 100 MW and
generate an average of 435 million kWh of electricity per year. The
new renewable energy facility will be located on a territory with a
total area of 485.41 hectares. The Cabinet of Ministers of
Kyrgyzstan has included the project in their action plan for the
National Development Program until 2026. The launch of the new HPP
will strengthen Kyrgyzstan's position in the Central Asian
electricity market, including by reducing the energy deficit in the
region, where there is only one HPP with a capacity of 40 MW, and
also increasing the country's level of energy security," Podguzov
said.
He claims that the project, which the EDB Technical Assistance
Fund funded, has received "green" verification and complies with
the Loan Market Association's international lending standards.
"Its implementation will also prevent the emission of 346.4
thousand tons of greenhouse gases per year. The project's cost is
$128 million. And it is an example of the synergy of investments
between the EDB and the Russian-Kyrgyz Development Fund," Podguzov
noted.
To date, construction and installation work has been completed
by 16 percent. The commissioning of the Kulanak HPP is scheduled
for December 2026. It is expected that 835 new jobs will be created
during the facility's construction and operation, which will have
positive social effects.
China-Kyrgyzstan-Uzbekistan Railway
"After commissioning, the China-Kyrgyzstan-Uzbekistan railway
will become part of the Eurasian transport framework. The EDB is
closely monitoring this project. A number of the bank's member
countries consider it a priority, and in the future, it may affect
the transport situation in Central Asia," Podguzov noted.
The expansion of interconnected routes, whether they are
railways or roads, significantly boosts the economic impact on the
region, primarily because of the connecting points. In this regard,
the connection of this highway with other railway routes in Central
Asia, including the planned Trans-Afghan Corridor, will be of
enormous importance.
"These connections will create new transport and logistics
opportunities for the countries of Central Asia, including the
development of trade with Azerbaijan, Türkiye, and the countries of
South Asia. In addition, this will allow for the further
development of related infrastructure, for example, logistics
centers and hubs," he added.
Podguzov also mentioned that Kyrgyzstan, Uzbekistan, and China's
desire to implement this project once again confirms the trend
previously outlined by the EDB to supplement the East-West and
North-South corridors and routes passing through Central Asia,
which contributes to the region's transformation into a crossroads
of trade routes connecting Asia, Europe, and the Middle East.
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