The Hungarian-Kyrgyz Development Fund (HKDF) is exploring the possibility of financing two projects for the construction of small hydropower stations in Kyrgyzstan, as announced by the fund’s head, Ulan Sarbanov. According to his statements, the government designated the energy sector as an absolute priority at the end of December, leading to a narrowing of the funded directions. As a result, the fund has identified two energy projects.
Sarbanov noted that one of the projects for the construction of a small hydropower station in the Chui region of Kyrgyzstan is currently under consideration by the HKDF. However, the organization currently lacks the funds to support this project, estimated at approximately $41 million.
Another project in the fund’s focus is the construction of a 15 MW small hydropower station in the Osh region. The total project cost is slightly over $16 million, with borrowers contributing over $2 million and anticipating support from the fund amounting to $14 million. A memorandum of understanding is already in place, and the project’s technical and economic justification has been approved. Implementation is scheduled to commence in May of the current year.
Sarbanov emphasized that the statutory capital of the Hungarian-Kyrgyz Development Fund is $16 million, and at present, the fund has just over $15 million in its account. It’s worth mentioning that funds from the government of Hungary were received in early November 2021.
Recently, members of the Jogorku Kenesh (the parliament of Kyrgyzstan) criticized the Hungarian-Kyrgyz Development Fund, asserting that the organization is not efficiently financing projects.
