The Eurasian Development Bank (EDB) and the Naryn Production Enterprise made an agreement to finance the construction and operation of the Kulanak HPP in the Kyrgyz Republic. The document was signed by Ruslan Dalenov, Vice Chairman of the EDB Management Board, and Kutubai Murzabayev, Director of the Naryn Production Enterprise.
The Kulanak HPP is a new milestone in the Central Asian Water and Energy Complex, a key investment mega-project of the EDB.
The 100 MW plant will generate 435 million kWh of electricity per year on average. This renewable energy facility will occupy an area of 485.41 hectares on the Naryn River near the village of Kulanak, Naryn Region, Kyrgyz Republic.
The plant is expected to consolidate the country's position in Central Asia's electricity market, reduce energy shortages in the region, which has only one 40 MW hydroelectricity plant, and improve energy security.
Its positive social effect will be in that it will create 835 jobs during the construction and operation phases.
The EDB Technical Assistance Fund has financed the verification of this project as green per the international loan principles of the Loan Market Association. The project will prevent the emission of 346,000 tonnes of greenhouse gases per year.
"The Kulanak HPP is not just a major project under the EDB's Country Strategy for the Kyrgyz Republic, but also an important link in its Central Asian Water and Energy Complex mega-project. The commissioning of an additional 100 MW of generating capacity in Kyrgyzstan will address capacity shortages in its energy system. This will also provide an opportunity to more effectively distribute the daily loads of solar power plants and wind farms, which are planned to be built in all Central Asian countries," said Ruslan Dalenov.
Ruslan Dalenov also emphasised that the new plant will help to reduce electricity shortages in Kyrgyzstan and improve the operation of water reservoirs for irrigated farming. After its commissioning, the area of irrigated agricultural land in the region will increase by a factor of 1.5 to 6,769 hectares.
The project value is US $117,989,262. The Russian-Kyrgyz Development Fund (RKDF) also plans to participate in financing the construction and operation of the Kulanak HPP on a par with the EDB. The project is supported by the government and is part of the Cabinet of Ministers' Plan of Action to implement the 2026 National Development Programme.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 17 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank's operations are guided by the UN Sustainable Development Goals and ESG principles.
The EDB Technical Assistance Fund (TAF) is a special fund helping to create favourable conditions for investment and development projects in the Bank's member countries. The Fund operates to enhance the Bank's ability to finance investment projects that are in line with its mission. It supports potential borrowers at the project planning stage as well as national governments and organisations whose projects promote the institutional environment, economic development and growth. The TAF is financed from the Bank's net profit and donor funds.
The EDB Media Centre:
Aigerim Akhanova
+7 (727) 244 40 44, ext. 6147
+7 (701) 328 38 98
The Russian-Kyrgyz Development Fund (RKDF) was established and operates under the Agreement on the Russian-Kyrgyz Development Fund entered by the governments of the Kyrgyz Republic and the Russian Federation on 24 November 2014. It is a critical instrument in promoting the Kyrgyz Republic's integration with the EAEU. The Fund works to foster economic cooperation between the Kyrgyz Republic and Russia, modernise and develop the Kyrgyz economy and ensure that both countries effectively use the opportunities associated with Eurasian economic integration.
