The EDB presents five Central Asian water and energy projects to investors in Shanghai
Shanghai, 31 May 2023. Denis Ilin, Vice Chairman of the Eurasian Development Bank’s (EDB) Management Board, presented five Central Asian water and energy projects to the investment community at the New Development Bank’s (NDB) 8th Annual Meeting in Shanghai.
These include the EDB-funded Kulanak HPP project in the Kyrgyz Republic, with a value of US $121 million. The 100 MW plant, occupying an area of 485.41 hectares on the Naryn River, will generate 435 million kWh of electricity per year on average.
As part of the Central Asian Water and Energy Complex mega-project, the plant is expected to contribute to energy security, Kyrgyzstan’s position in the regional electricity market, and reduced energy shortages in the region, which has only one 40 MW hydroelectricity plant. In addition, it will help to increase the area of irrigated agricultural land in the region by a factor of 1.5 to 6,769 hectares.
The EDB Technical Assistance Fund financed the verification of this project as green per the international loan principles of the Loan Market Association. The Kulanak HPP will prevent the emission of 346,000 tonnes of greenhouse gases per year and create 835 jobs during construction and operation phases.
Other projects included in the Central Asian Water and Energy Complex mega-project are the Kambarata HPP 1 in Kyrgyzstan (US $2,916 million); the conversion of Almaty CHPP 3 from coal to gas and capacity enhancement (US $750 million); the reconstruction and expansion of the Astrakhan–Mangyshlak water pipeline (US $260 million), and the construction of renewable energy sources in Kazakhstan and Kyrgyzstan (US $300 million).
“The region has all the necessary conditions to develop renewable energy, with an estimated untapped hydropower potential of 77%. Full utilisation of this potential could meet the entire electricity demand of Central Asia. High insolation and government support make the region attractive destination for investment in solar power plants. The EDB plans to participate in all these projects, with the Kulanak HPP already being financed,” said Denis Ilin.
The water and energy projects in Central Asia are also expected to ensure a twofold increase in water use efficiency through the implementation of water-saving technologies; a more than fivefold increase in energy exchange between the countries; and a 40% reduction in seasonal water shortages through improved regulation of river flows at hydropower plants.
Given that the region’s main rivers are transboundary and energy systems are interconnected, close cooperation among countries in the water and energy sectors is essential for successful development. The EDB estimates that joint development planning in the energy sector could reduce energy capacity needs by US $11 billion.
“Partnerships among international development banks, such as in the case of the Kambarata hydropower plant, will play a key role in implementing major water and energy projects. That is why we are presenting these projects today at the New Development Bank’s platform in hopes of attracting other international financial institutions as partners for the joint implementation of renewable energy projects in the region,” summarised Denis Ilin.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For 17 years, the Bank has worked to strengthen and broaden 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 adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Media Centre:
Aigerim Akhanova, +7 701 328 38 98 (Almaty)