The International Development Association (a credit institution that is part of the World Bank Group) will provide Kyrgyzstan with additional $13.6 million for Kambar-Ata HPP 1 project. It was announced at a meeting of the Committee on Budget, Economic and Fiscal Policy of the Parliament.
The bill on ratification of the financing agreement and the grant agreement between the Kyrgyz Republic and the International Development Association on the project «Additional financing for technical assistance for Kambar-Ata HPP 1 project» was approved by deputies in the first reading.
According to the agreement, the total amount of additional funds is $13.6 million, of which $11 million is an IDA loan, $2.6 million is a grant. The term of provision is 50 years. The grace period is 10 years from the date of signing the agreement. Interest rate is zero. The fee for reserving funds is 0.5 percent. Commenting on the loans and grant received for Kambar-Ata HPP 1 project, MP Dastan Bekeshev noted that the money would be allocated for the development of a feasibility study.
«We took a $5 million grant from the IDA. It was not enough, now we are asking for an $11 million loan and a $2.6 million grant. Someone made a big miscalculation. At the same time, there is a feasibility study prepared in 2014,» he emphasized.
The cost of construction of Kambar-Ata HPP 1, according to preliminary estimates by the Cabinet of Ministers of the Kyrgyz Republic, is about $3.6 billion.
