Kyrgyzstan and Turkish firm Orta Asya Investment Holding have detailed plans to construct two hydropower cascades valued at more than $6.2 billion, according to disclosures published on the Istanbul Stock Exchange. The investment agreements outline the development of six hydroelectric plants with a combined capacity of 2,217 megawatts, which will eventually be transferred to state ownership.
The development will take place along the Naryn and Kokomeren rivers, with construction estimated to take six years for each cascade. The Kazarman cascade, estimated at approximately $3 billion, will consist of the 600-megawatt Ala-Buga plant and the Kara-Bulun-1 and Kara-Bulun-2 facilities, with capacities of 149 megawatts and 163 megawatts. The Kokomeren cascade, valued at more than $3.2 billion, will comprise the 33-megawatt Karakol station alongside Kokomeren-1 and Kokomeren-2, designed to produce 360 megawatts and 912 megawatts. Final cost figures will be confirmed upon completion of technical and economic feasibility studies.
Under the 20-year power purchase agreement, state-owned utility National Electric Grid of Kyrgyzstan has committed to buying all generated electricity starting from commercial commissioning. Should the state utility fail to meet its purchase obligations, the Turkish investor will have the option to trigger state guarantees or export electricity directly. Base power tariffs will be set once technical documentation is finalized, with future rates indexed to consumer price inflation and foreign exchange movements between the Kyrgyz som and the U.S. dollar.
The Kyrgyz government has granted the scheme national investment project status, providing the developer with five-year exemptions from corporate income tax, customs duties, and import value-added tax on equipment. The agreement includes protections against expropriation and designates the Singapore International Arbitration Centre for legal dispute resolution.
Orta Asya Investment Holding, which is affiliated with Turkey’s Ihlas Holding, will operate the plants for 20 years after the final turbine begins operation before transferring the assets and infrastructure to Kyrgyzstan without compensation. During the operational term, the company must provide 1% of generated power to local municipalities free of charge and finance regional community programs. Initial ground preparation has started in the Toguz-Toro district of the Jalal-Abad region, and the Turkish group has raised the charter capital of its local operating entity to 585 million soms.
