Kyrgyzstan has published draft legislation proposing a fivefold increase in annual compensation payments to communities affected by the construction of the Toktogul hydropower complex, raising the payout from 70 million soms to 358 million soms.
The creation of the Toktogul reservoir five decades ago submerged 33,000 hectares of agricultural land, destroyed 26 settlements, and displaced more than 18,000 residents. The permanent loss of arable land and rural infrastructure continues to shape the local economy in the Toktogul district.
The current compensation rate of 70 million soms has been frozen since 2016, leaving its purchasing power eroded by inflation and rising material costs. Under the proposed bill, state utility Electric Power Plants will finance the increased payments by factoring the expenses into the cost of power generated at the Toktogul and Tash-Kumyr hydro stations, avoiding direct state budget outlays.
The additional funds, which will be indexed annually to inflation, are designated for local infrastructure and irrigation restoration. Key projects include building the Kempir-Oldu canal, constructing a water conduit at the Chon-Kayrak site, and developing new drinking water reservoirs for the village of Zhazykechuu to restore regional farming potential.
