A landmark financing agreement signed in Brussels marks a decisive step forward for one of Central Asia’s most ambitious energy infrastructure projects. The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) have committed to backing the construction of the Kambarata Hydroelectric Power Station-1, a trilateral venture bringing together Kazakhstan, Kyrgyzstan, and Uzbekistan.
The signing ceremony took place during the Global Gateway Forum on October 9-10, attended by energy ministers from all three participating nations alongside senior representatives from European financial institutions. European Commissioner for International Partnerships Jozef Sikela and officials from Italy’s Cassa Depositi e Prestiti were also present, underscoring the project’s international significance.
Financial architecture takes shape
The total cost of the Kambarata HPP-1 is estimated at $4.2 billion, while the overall financing portfolio has already reached $5.6 billion, according to Uzbekistan’s Energy Minister Dzhurabek Mirzamakhmudov. The EBRD and EIB have each pledged up to $500 million to Kyrgyzstan, bringing the European contribution to approximately $1 billion. Additional support is expected from the OPEC Fund, the Asian Infrastructure Investment Bank, the Asian Development Bank, and Italian financial structures.
Mirzamakhmudov noted that the third round of ministerial negotiations took place in late September, with all participating international financial institutions expressing readiness to fund the initiative. The minister emphasized the historical significance of the moment, stating that such projects were previously impossible even to discuss publicly, but now receive high praise from leading global financial institutions.
Technical specifications and ownership structure
The project envisions constructing a reservoir with a capacity of 5.4 billion cubic meters and a hydroelectric station with an installed capacity of 1,860 MW. Once operational, the facility is expected to generate approximately 5.6 billion kilowatt-hours of electricity annually. For context, Kyrgyzstan’s total electricity consumption grew from 17.2 billion kWh in 2023 to 21.4 billion kWh in 2024.
The ownership structure reflects a balanced partnership: Kyrgyzstan holds 34% of the project company, while Kazakhstan and Uzbekistan each control 33%. This arrangement allows each country to purchase electricity proportional to its stake. Importantly, the construction will not require resettlement of local populations, and the project is designed to enable more efficient management of water resources, providing additional water supply during the growing season.
Regional cooperation model
During a recent meeting in Brussels supported by the World Bank, the project was hailed as an exemplary model of regional cooperation and an important step toward developing green energy. The initiative has evolved significantly since energy ministries of the three countries approved a roadmap in early 2023, followed by a foundational agreement signed in Vienna eighteen months later.
The broader dialogue extended beyond the immediate project participants. A Partnership Dialogue in Central Asia, organized by the German Society for International Cooperation, brought together officials from Tajikistan and Turkmenistan alongside the three project countries to discuss regional energy sector development. The European Union also hosted a dedicated session on enhancing hydropower potential in Central Asia, where experts highlighted the strategic importance of major cross-border projects like Kambarata and Rogun for strengthening regional energy security, rational water resource use, and supporting sustainable agriculture.
The Kambarata HPP-1 and HPP-2 projects were originally approved during the Soviet era in 1988, with construction beginning that year before being suspended in 1994 due to lack of funding. Attempts to revive the project with Russian involvement in subsequent years faced various complications, making the current trilateral framework with European backing a fresh start for this long-stalled initiative.
For international companies in construction, engineering, manufacturing of turbines and electrical equipment, and infrastructure development, this project opens substantial opportunities. The scale of investment and European institutional involvement signal a stable regulatory framework and transparency standards attractive to foreign contractors and suppliers. Moreover, successful implementation of this trilateral energy venture could serve as a template for future cross-border infrastructure projects in the region, indicating Central Asia’s growing capacity for coordinated development and its integration into global investment flows. The project demonstrates the region’s commitment to modernizing energy infrastructure and creating favorable conditions for large-scale international cooperation, which bodes well for the overall business climate and investment potential across multiple sectors.
