The Government of the Kyrgyz Republic has applied for financing amounting to US$ 5 million from the World Bank toward the cost of technical assistance for the 1860 MW Kambarata-1 project in Jalal-Abad region. An investment agreement for the project was signed in January 2023 by the energy ministers of Kyrgyzstan, Kazakhstan and Uzbekistan. Construction of the project, which will involve a reported investment of US$ 2.9 billion, is expected to start in 2024. Preparatory work began at the site in 2022. Kambarata-1, which is designed to generate average annual output of 5.6 TWh, would help alleviate frequent electricity shortages for all three countries during the winter when demand is highest as well meet regional obligations on water discharge in summer. Its planned 256 m-high rockfill dam is designed to impound a reservoir with a maximum storage volume of 5.4 x109 m3. The dam, located in the middle reaches of the Naryn, will carry out seasonal regulation of the river Naryn, compensating for the decrease in winter production of the Nizhny Naryn hydropower cascade, which includes the downstream Toktogul and Kurpsai plants.
The project will include four main components. Component 1, updating previous studies to verify the technical feasibility and economic viability, will entail: (i) carrying out due diligence of the previously prepared technical and economic feasibility studies; (ii) the carrying out of any other necessary technical studies; and (iii) consulting services by a panel of experts (POEs for dam safety), including dam, hydrology, and geological specialists, to provide an independent review, a due diligence check, and advice on the plant’s design. Component 2, strengthening the environmental and social framework (ESF) and benefit-sharing aspect of Kambarata 1 HPP, will entail (i) an update of the existing environmental and social documents to align them with the requirements of the World Bank’s ESF and international standards, including conducting additional environmental and social studies and assessments that may be required, and consultations and an information disclosure in line with the ESF requirements; (ii) the establishment of a panel of experts for environmental and social aspects, which will carry out due diligence on the preparation and implementation of social and environmental instruments and be retained throughout the construction phase to provide high-level independent advice and guidance; and (iii) the preparation and design of an effective local benefit-sharing mechanism, through wide stakeholder consultation, for consideration by the stakeholders. Component 3, developing a macroeconomically sustainable financing plan and a commercial framework, will require (i) a full-fledged financial and economical assessment with key scenarios to develop the financial structure for Kambarata 1 HPP, taking into consideration of potential phasing, co-financing options, role of public-private partnership (PPP) approaches, and fiscal impacts of different options and approaches; (ii) the preparation of the Kambarata 1 HPP project financing plan, taking into account the updated construction completion schedule and cost; and (iii) the preparation of additional financial assessments and studies that may be required. Component 4, project implementation support and capacity building.
Specific procurement notices for contracts subject to open international competitive procurement will be announced, as they become available, in UN Development Business online, on the World Bank’s external website and https://minenergo.gov.kg/. Interested eligible firms and individuals who would wish to be considered for the above-mentioned project, or those requiring additional information, should contact: Nurlan Kurumshiev, Director, Projects Management Office (PMO), Ministry of Energy, 326 Jibek-Jolu Street, 720040, Bishkek, Kyrgyz Republic; E-mail: pmo.kgz@gmail.com; Tel.: +996312670501; Website: https://minenergo.gov.kg/
