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EBRD finances major hydropower project in the Kyrgyz Republic

Published: 09 March 2023 г.

Rehabilitation of Lebedinovskaya HPP to improve the energy security of the country’s capital. Lebedinovskaya HPP supplies energy to the capital city of Bishkek

  • EBRD finances a major hydropower project in the Kyrgyz Republic
  • Funds of €13.8 will help modernize the 7.6 MW Lebedinovskaya HPP
  • Improved energy security and better climate resilience for the country

The European Bank for Reconstruction and Development (EBRD) is improving the energy security of Bishkek, the capital of the Kyrgyz Republic, and the climate resilience of the national energy system by making its largest investment in the country’s hydropower sector in 20 years. 

Chakan GES, the state-owned hydropower operator of nine small hydropower plants (HPPs), will receive a financial package of €13.8 million, comprising an EBRD sovereign loan of €8.8 million and an investment grant of €5 million. The money will help finance the rehabilitation and modernization of the Lebedinovskaya HPP, which has an installed capacity of 7.6 MW.

The Lebedinovskaya HPP, commissioned in 1943-48, provides power to Bishkek, but its equipment is old, inefficient, and urgently in need of replacement. The proposed improvements in productivity will help increase its annual electricity output by 56 percent, bringing it to 50,300 MWh. New efficiency and safety measures will help the HPP improve its resilience to climate change and adapt to changing water flow levels.

The Bank, which became fully aligned with the Paris Agreement in 2022, is helping the Kyrgyz Republic to plan its green transition. The project will promote the sustainable use of water, which is important in a country badly affected by climate change. It will contribute to national efforts to solve the long-time operational issues of the country’s aged and inefficient HPP infrastructure. 

To date, the EBRD has invested €881 million in the Kyrgyz Republic through 219 projects, with the majority of those funds going to support private entrepreneurship.