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European Union

EU and Partners Announce Major Expansion of Hydropower Investments in Central Asia

Strategic Insights

— 1 min read

The European Union and its partners recently announced a significant expansion of hydropower investments in Central Asia, aiming to create a sustainable energy future in the region. At the Global Gateway Forum in Brussels, the EU announced major developments on the Kyrgyzstan's Kambarata-1 hydropower megaproject, with £900 million in Memoranda of Understanding (MoUs) signed between the EU, the European Investment Bank (EIB), and the governments of Kyrgyzstan, Kazakhstan, and Uzbekistan. This investment is part of the EU's efforts to boost electricity access, enhance regional energy and water security, and create economic opportunities for local populations.

Key Takeaways:

  • The EU, EIB, and governments of Kyrgyzstan, Kazakhstan, and Uzbekistan signed £900 million in Memoranda of Understanding (MoUs) for the Kambarata-1 hydropower megaproject.
  • The European Bank for Reconstruction and Development (EBRD) signed separate MoUs with the same countries and is considering a £1.3 billion financing package for Kambarata-1.
  • The EU and the World Bank co-funded the feasibility study for the project, which was led by the World Bank.
  • The investments aim to boost electricity access, enhance regional energy and water security, and create economic opportunities for local populations.
  • Strategic partnerships for energy security were highlighted by European Commissioner for International Partnerships, Jozef Sikela, who emphasized the importance of water and hydropower for the region's stability.
  • The EIB committed to climate-focused infrastructure, with Vice-President Kyriacos Kakouris emphasizing the EU's backing for regional energy cooperation.
  • The EBRD President Odile Renaud-Basso called the project a 'flagship' for Central Asia, reaffirming the EBRD's commitment to sustainable water and energy development in partnership with the EU.

Statistics:

  • £1.3 billion: The financing package being considered by the EBRD for the Kambarata-1 project.
  • £900 million: The amount of Memoranda of Understanding (MoUs) signed for the Kambarata-1 project.
  • £1.5 billion: The combined value of the £900 million in MoUs signed and the £1.3 billion financing package being considered for Kambarata-1.

Sources:

  • European Union (EU) Delegation to Tajikistan, press release dated October 9-10.
  • European Commissioner for International Partnerships, Jozef Sikela, speech at the Global Gateway Forum, Brussels.

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