ADB to invest $ 100 mln in modernization of Uch-Kurgan HPP

Economy 0

Bishkek, Mar. 29, 2019. /Kabar/. The Asian Development Bank (ADB) approved a $ 100 million financing package for modernizing outdated equipment and increasing power generation at the Uch-Kurgan hydropower plant.

According to the bank’s website, this hydropower plant is the oldest of the six hydropower plants of the Naryn River cascade.

ADB assistance, including a $ 60 million loan and a $ 40 million grant from the Asian Development Fund, will help strengthen Kyrgyzstan’s energy self-sufficience and increase its potential for resuming energy exports to neighboring countries in Central Asia. ADB will also administer a $ 45 million loan from the Eurasian Development Bank for this project.

“The modernization of the Uch-Kurgan HPP supports the government’s strategy for restoration of existing power plants to increase the generation of clean energy. The Kyrgyz Republic has the potential to generate about 150 terrawatt-hours of clean electric power per year, but at present it generates only about 10% of this amount. We expect that after the completion of the work, the Uch-Kurgan HPP will produce 20% more electricity,” ADB Chief Specialist for Energy Sohail Hasnie told.

The Kyrgyz Republic is the center of clean energy in Central Asia and produces 90% of all hydropower in the region. In 1995, the Kyrgyz Republic exported more than 2,000 gigawatt-hours of electricity to Kazakhstan, Uzbekistan and Tajikistan, but since then exports have decreased by more than half. It is expected that electricity exports in Kyrgyzstan will continue to grow, since in the future the country will have more energy to export. Hydropower exports and related dollar export revenues will improve the financial situation of the energy sector and compensate for similar payments for electricity imports from Kazakhstan and Uzbekistan during the winter months.

The Uch-Kurgan hydropower plant is located 271 km south-west of Bishkek. In 1962, the industrial operation of the Uch-Kurgan hydropower plant began, which was used to provide the nominal load. Since then, there have been no significant improvements. Replacing and upgrading outdated equipment will not only increase electricity generation at the Uch-Kurgan HPP, but also preserve the integrity of the Naryn River cascade. The Naryn River cascade is the “locomotive” of the electric power industry of the Kyrgyz Republic - its six hydropower plants provide 92% of all electricity produced in the country.

The modernization project will restore full operation of all four power units of the Uch-Kurgan HPP with an increased total capacity of 216 megawatts (MW) from the original capacity of 180 MW. It will also finance the strengthening of steel hydraulic structures and infrastructure of the hydroelectric dam, at the same time it will be possible to use all 8 depth gates of the bottom outlet for operation. Removal of sediment will also be carried out, which will restore the correct operation of hydroelectric equipment.

ADB assistance will also help build the capacity of the Elektricheskie Stantsii OJSC, the project executing agency, in particular, in fulfilling the commitments made by the Elektricheskie Stantsii to ensure operational stability and diversity by creating an accreditation program for Elektricheskie Stantsii engineers and hiring 10 female engineers.

ADB is committed to creating a prosperous, inclusive, resilient and sustainable Asia-Pacific region, while continuing efforts to eradicate extreme poverty. ADB was established in 1966, it includes 68 member states, of which 49 countries are in the region. In 2018, ADB approved new loans and grants in the amount of $ 32.2 billion, including co-financing in the amount of $ 21.6 billion.

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