Home Business & Finance ADB, Kyrgyz Republic Sign Agreement to Complete Toktogul Hydropower Plant Upgrade
ADB, Kyrgyz Republic Sign Agreement to Complete Toktogul Hydropower Plant Upgrade

ADB, Kyrgyz Republic Sign Agreement to Complete Toktogul Hydropower Plant Upgrade

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The Asian Development Bank (ADB) and the Government of the Kyrgyz Republic have signed the loan agreement for the third and final phase of support to rehabilitate the Toktogul hydropower plant and increase the reliability of the national and regional power systems.

The agreement was signed by Adylbek Kasymaliev, Kyrgyz Minister of Finance and Governor to ADB, and Candice McDeigan, ADB Country Director for Kyrgyz Republic.

“Given the increasing demand for power in the Kyrgyz Republic, rehabilitation, replacement, and augmentation of power sector assets are critical for energy security in the country,” said Ms. McDeigan.

Toktogul hydropower plant, located on the Naryn River in Jalal-Abad Province and in service since 1975, is the largest and most important power plant in the Kyrgyz Republic. It has an installed capacity of 1,200 megawatt (MW) and is producing 40% of the country’s average electricity output. It plays a critical role as a power source for domestic use and export, and by providing voltage and frequency regulation services to the Central Asian Power System. Full rehabilitation of the power plant is critical to improve availability and supply reliability. The plant has had an increasing number of failures in recent years because of aging equipment.

ADB’s support includes a loan in various currencies equivalent to $60 million and a grant not exceeding $50 million, both from ADB’s Special Funds. The government has requested the Eurasian Development Bank (EDB) to provide $40 million to cofinance the project.

The assistance will finance the replacement of the two remaining turbine-generator units, refurbishing of the civil structures of Toktogul dam, and the overhaul of the dam’s monitoring systems along the Naryn cascade. The project also includes a public information campaign to explain sector reforms and efforts to improve power sector governance and management procedures.

ADB financed the rehabilitation of the first two turbine generator units and secondary electrical equipment under the Power Sector Rehabilitation Project (Phase 1) and the Toktogul Rehabilitation Project (Phase 2). Implementation of both phases is ongoing.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

Source:adb

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Anand Gupta Editor - EQ Int'l Media Network

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