On August 12, the Ministry of Energy of Kyrgyzstan and Orta Asya Investment Holding, a subsidiary of Turkey's İhlas Holding Group, officially signed two major hydropower project investment agreements with a total value of US$10 billion. This cooperation marks a new stage in the construction of energy infrastructure in Central Asia.

According to the agreement, Turkish companies will invest in the construction of the Kazarman hydropower station with an installed capacity of 912 megawatts and the Kokomeren hydropower station with an installed capacity of 1,305 megawatts. The project adopts the "construction-operation-handover" model, with a concession period of 20 years, and enjoys currency tariff guarantees and preferential tax policies. Kyrgyzstan's Energy Minister Taalaibek Ibraev said that these projects are fully in line with international standards and will push the country's energy development into a new era.

These two strategic hydropower projects will be an important part of the transnational energy corridor connecting China, Pakistan, Kazakhstan and Uzbekistan, while providing clean electricity support for the Zangezur Corridor, the Middle Corridor and the Belt and Road Initiative. Negotiations for the project, which began during the Organization of Turkic-speaking Nations summit in November 2023, were highly valued by Kyrgyz President Sadr Zaparov and Turkish President Recep Tayyip Erdogan.

In terms of project implementation, Central Asia Investment Holding Company has signed a memorandum of cooperation with China Power International Group and Kazakhstan SemArco, and financing negotiations with the International Development Bank and investment funds are in the final stage. İhlas Holding's Chairman of the Board of Directors, Ahmet Mücahid Oren, said that the company will apply the experience of modernizing the energy system accumulated in Turkey to Kyrgyzstan.

It is worth noting that the project contains a number of social responsibility programs: İhlas Holding promises to provide a monthly living education subsidy of $150 to 1,000 orphans for 5 years; Provide about 1% of the plant's output (worth about US$3 million annually) to local residents free of charge; At the same time, a vocational training institute will be established, the construction of neonatal departments will be subsidized, and equipment will be provided for 15 wineries. These measures will significantly improve the level of social welfare in the project location.

This cooperation will not only greatly increase Kyrgyzstan's clean energy production capacity, but also strengthen energy connectivity in Central Asia and inject new impetus into regional economic development. After the completion of the project, it is expected to become a key node in the Central Asian energy network, further promoting energy cooperation and trade exchanges between countries along the Belt and Road.(This article is from the official website of Jiandao www.seetao.com it must not be reproduced without permission, otherwise it will be investigated, please indicate Jiandao.com + original link for reprinting) See Dao.com International Column Editor/Gao Xue