The European Union, European Investment Bank ( EIB ), and the governments of Kyrgyzstan, Kazakhstan and Uzbekistan have signed a €900 million ( US$1.04 billion ) memorandum of understanding ( MOU ) to support the construction of the Kambarata-1 hydropower plant.

The 1.86-gigawatt facility is located in Kyrgyzstan, but is being jointly implemented by the three governments, with water resource agreements put in place. The flagship project will enhance energy and water security, and support the expansion of renewable energy.

The European Bank for Reconstruction and Development ( EBRD ) has also signed an MOU with Kyrgyzstan, Kazakhstan and Uzbekistan, and is considering an overall financing package of €1.3 billion. Italian development bank Cassa Depositi e Prestiti is also supporting the project.

The Kambarata-1 megaproject is now under preparation at the Naryn River in Kyrgyzstan. It will be the largest hydropower facility in the country and one of the most important in Central Asia.   

“Enabled by guarantees from the European Commission, the EIB as the climate bank is backing infrastructure that strengthens regional energy cooperation in Central Asia,“ says EIB vice-president Kyriacos Kakouris, who oversees the bank's operations in Central Asia. “We see the potential of the Kambarata-1 hydropower plant project as instrumental in expanding renewable electricity trade in the region, fostering economic development, and enhancing energy security.” 

The announcements were made during the recent Global Gateway Forum in Brussels. 

At the forum, the European Union showcased the impact of the regional green transition and national energy sector reforms in the context of the Team Europe Initiative on Water, Energy and Climate Change in Central Asia. The participants also discussed the way forward for the two planned Global Gateway projects in the region, the Kambarata-1 and Rogun hydropower plants. 

The Rogun hydropower plant, designed to be world’s highest dam, is a key project for Tajikistan and the entire Central Asia region. It could double the country’s energy production by 2032, address domestic shortages, advance the region’s decarbonization, and allow for regional electricity export.

Led by the World Bank, the EU and several donors are building together a sustainable foundation for this project. Several European companies are also actively participating in the project.