Vecherny Bishkek (vb.kg): An agreement to rehabilitate Toktogul HPP is signed with EDB

An agreement on the provision of an investment credit to rehabilitate Toktogul HPP (Phase 2) was signed as reported by the Information Department of the Central Office of the Government.

Today, on 31 July, Prime Minister Temir Sariyev met with representatives of Eurasian Development Bank.

The head of government emphasised the importance of the agreement to rehabilitate Toktogul HPP (Phase 2).

Minister of Energy and Industry Nurlan Sadykov said that this project would extend the operating life of Toktogul HPP for 30-40 years and that the increase in the plant's capacity would approximate 20-40%. This will ensure quality improvements for the autumn and winter period.

This will ensure quality improvements for the autumn and winter period.

The project value is US $100 million; the funds are provided in the form of a loan. The repayment period is twenty years, including eight years of the grace period. The interest rate is 1% per annum. The contracting authority is the Ministry of Energy and Industry. The rehabilitation of Toktogul HPP will include the replacement of two hydroelectric units and an increase in the capacity of each of them by 60 MW, a total of 120 MW. The total finance for the project will be US $250 million. Finance will be provided by two donors - the Asian Development Bank (ADB) and Eurasian Development Bank (EDB), which will provide US $100 million as a 100% soft loan.

"The Toktogul HPP is the largest and most important power plant. Its installed capacity is 1,200 MW. The plant accounts for 40% of electricity generated in the country and is a critical domestic source and exporter of electricity. The country's key facility has been in operation since 1975. However, no significant rehabilitation or upgrade has been undertaken since that time and this causes failures in critically important equipment. At present, equipment at the country's largest hydroelectric power plant is outdated and needs to be replaced fully," he said.

In addition, preliminary decisions were made to provide loans for Kambarata 2 HHP and the Bishkek-Osh road section. Another road section is under consideration.

Minister of Finance Adylbek Kassymaliyev stated that this was the third project promoted in cooperation with EDB. Earlier, EDB provided a US $60 million loan to improve road infrastructure and US $20 million for the lease of agricultural equipment. The loan for the rehabilitation of the Toktogul HPP is the third one.