AKIpress Information Agency: The government approves a US $100 million agreement with the Eurasian Fund for Stabilisation and Development for Toktogul HPP rehabilitation

The government has approved the draft law On Ratifying the Agreement on the Provision of an Investment Credit from the Eurasian Fund for Stabilisation and Development between the Kyrgyz Republic and Eurasian Development Bank to Finance the Toktogul HPP Rehabilitation Project, Phase 2, signed on 31 July 2015 in Bishkek. The respective resolution was signed by Prime Minister Temir Sariyev on 9 October 2015. The Eurasian Fund for Stabilisation and Development will provide a US $100 million credit to rehabilitate the Toktogul HPP. In addition, the government approved its opinion on the Agreement on the Provision of an Investment Credit from the Eurasian Fund for Stabilisation and Development between the Kyrgyz Republic and Eurasian Development Bank to Finance the Toktogul HPP Rehabilitation Project, Phase 2. The minister of energy and industry of the Kyrgyz Republic is appointed as the Kyrgyz government's official representative for the consideration of the draft law by Zhogorku Kenesh (the parliament). The rehabilitation of the Toktogul HPP will extend its lifetime by 30 to 40 years and improve its capacity by 20 to 40%. According to the government, the agreement was signed to foster the Kyrgyz Republic's energy security by means of reconstructing the Toktotul HPP, with an increase in the capacity of each of its units by 60 MW. In addition, the project envisions the development and launching of a resource planning system for Elektricheskie Stantsii, the stocktaking and revaluation of the assets of all power companies in the country, and the preparation of a master plan for the comprehensive development of the power sector. Under the agreement, Eurasian Development Bank supports the Kyrgyz Republic by providing a US $100 million investment credit from the Eurasian Fund for Stabilisation and Development. The credit is provided for twenty years, including eight years of grace period. The interest rate is 1%, and the commitment fee is 0.5%. The loan will be repaid every six months in equal instalments, on 30 March and 30 September of each year, starting from 30 September 2023 until 30 March 2035. The Kyrgyz Republic will provide co-finance of at least US $20 million as exemption from taxes and duties.