Photo: turkiyegazetesi.com.tr
The Turkish company Orta Asya Investment Holding, a subsidiary of Ihlas Holding, has signed a contract with the government of Kyrgyzstan to build two hydropower plants in the post-Soviet republic. According to the agreement, the investment in the project will amount to $10 billion, Turkiye Gazetesi reports.
The project concerns the Kazarman and Kokomeren hydropower plants, with capacities of 912 megawatts and 1,305 MW, respectively. Under the agreement between the investor and the Kyrgyz Ministry of Energy, the facilities will be built and operated by the Turkish company for 20 years, after which they will be transferred to the Central Asian nation. In addition, the holding has committed to purchasing the electricity generated at the plants, making payments in foreign currency.
It is noted that the arrangements for the large-scale project were reached in November last year during Turkish President Recep Tayyip Erdoğan’s visit to Bishkek.
Speaking at the signing ceremony, Kyrgyz Minister of Energy Taalaibek Ibraev noted that in the past his country faced a significant energy shortage, but these problems have been overcome thanks to investments and reforms carried out under the leadership of President Sadyr Japarov. The minister stressed that projects such as the joint construction of hydropower plants with Turkish partners open an entirely new era for the republic.
For his part, Ihlas Holding Chairman of the Board Ahmet Mücahid Eren stated that the construction of the two hydropower plants is of great importance for Kyrgyzstan’s energy independence and creates the prospect of turning the country into one of the key players in this sector in Central Asia.
In addition to the investment agreement for the hydropower plants, the Turkish company has undertaken a number of commitments to implement social initiatives. For the next five years, the holding will provide financial support for 1,000 orphans in Kyrgyzstan, paying each of them $150 per month. The parties have also stipulated that 1% of the electricity generated at the plants will be provided free of charge to residents of nearby areas, equivalent to about $3 million in resources.
Moreover, for the duration of the contract, the Kyrgyz Ministry of Energy and other government bodies will receive $3.2 million annually from the Turkish side for infrastructure modernization and educational programs to train energy-sector specialists.
Ihlas Holding also plans to fund a healthcare project, namely, the opening of a neonatology department in the Central Asian republic. The investor will purchase 15 incubators and other necessary equipment and bring in Turkish specialists to train local medical staff.
