Two years after signing a roadmap on the construction of the Kambarata-1 hydropower plant, energy ministers from Kyrgyzstan, Kazakhstan, and Uzbekistan gathered in Tashkent with World Bank officials for a roundtable discussion on the project.
According to Uzbek media outlet Daryo.uz, Uzbek Energy Minister Jurabek Mirzamahmudov hailed the project, stating that it would bring “great benefits to all of Central Asia, strengthen regional energy security, accelerate the transition to a ‘green’ economy, and improve the use of water resources.”
Kyrgyz Energy Minister Taalaibek Ibraev called Kambarata-1 “the project of the century,” owing to its “enormous potential to strengthen regional cooperation and promote long-term development of the entire Central Asian region.”
Kazakhstan’s Deputy Minister of Energy Sungat Yessimkhanov, leading Astana’s delegation, also noted the project’s potential to “ensure long-term stability in our region and stimulate the future socio-economic growth of our countries.”
In 2023, when the three countries agreed to a roadmap regarding the planned hydropower project, to be built on Kyrgyzstan’s Naryn River, I summarized its tumultuous recent history:
Kambar-Ata-1 (also written as Kambarata-1) is not a new proposal. Indeed, the first such hydropower project at the site was begun in 1986, but construction fell victim to the Soviet collapse in 1991. By 2008, Russia had taken up the Kambar-Ata-1 project and the Upper Naryn Cascade project and pledged funding; however, little actual work was done and by 2014 — especially after Russia invaded Crimea — it became clear that the projects were not a priority for Moscow.
In late 2015, then-Kyrgyz President Almazbek Atambayev was openly questioning Russia’s commitment, saying in an end-of-year press conference: “I don’t like uncompleted construction projects, one should be realistic. We all see the state of the Russian economy, it is, shall we say, not on the rise, and for objective reasons, these agreements (on the construction of hydropower plants) can’t be implemented by the Russian party.”
Of course, the question then became: If not Russia, who would fund this massive project?
In answer, the three Central Asian states have looked to the international community, with the World Bank stepping in. The multilateral lender approved an initial $5 million in technical assistance in October 2023, primarily to update the project’s feasibility studies. The Word Bank followed that in June 2024 with the approval of $13.6 million for the project. As Hydro Review reported at the time, the additional financing was provided “on highly concessional terms through the International Development Association.” The IDA is a member of the World Bank Group that offers concessional loans and grants for projects in the world’s poorest countries. The additional financing included $11 million in zero-interest credit, and a $2.6 million grant from the Central Asia Water and Energy Program (CAWEP).
The World Bank’s financing certainly moves the project along, but more will be needed. A prior feasibility study placed the total project cost at around $3 billion; the updated feasibility study will need to be completed before the current figure is known. The steady beat of meetings – including in Vienna, Brussels, and Washington in 2024 – highlight the coordination and cooperation between the three governments and their international partners.
Tajikistan’s Minister of Energy and Water Resources Daler Juma and Azerbaijan’s Deputy Minister of Energy Orkhan Zeynalov attended the Tashkent meeting as guests, further highlighting the extent of regional cooperation in this arena.
At a time when Russia, Central Asia’s traditional partner in many sectors, is embroiled in conflict in Europe, and China is already heavily invested in numerous regional projects – such as the China-Kyrgyzstan-Uzbekistan Railway – the Kambarata-1 project marks a high-point for intra-regional cooperation. The participating states will certainly need to look further abroad for funding, but the high degree of regional cooperation behind the project is a strong selling point.