The Kyrgyz government has approved a $50 million loan agreement with the Eurasian Fund for Stabilization and Development to finance infrastructure upgrades at the Kambarata-2 hydropower plant, according to an official decree.
The funds will finance the design and construction of an additional surface spillway to expand the facility’s water discharge capacity. According to government assessments, while the infrastructure project generates no direct financial return, it is intended to mitigate structural risks and bring the dam into compliance with international safety standards.
The financing package covers construction and assembly works, geological surveys, and engineering supervision consultancy. Part of the proceeds will also be allocated to operational management and specialized technical training for domestic energy engineers.
The regional development fund is providing the credit over a 20-year term, including a five-year grace period, at an annual interest rate of 1% with an initial fee of 0.5%. The credit terms do not include commitment charges on undisbursed funds.
Kyrgyzstan’s Ministry of Energy will coordinate the project and on-lend the proceeds to the state-owned operating utility, Electric Power Plants, shielding the central budget from immediate liabilities. The agreement remains subject to ratification by the Kyrgyz parliament.
