Kyrgyz President Almazbek Atambayev has approved the denunciation of the agreement with Russia on the construction and operation of Kambarata HPP-1 and Upper Naryn cascade, which was approved by Parliament on Wednesday, the press service of the head of state.
On termination of the agreement the Kyrgyz Ministry of Foreign Affairs shall notify the government of Russia. Kyrgyz President signed laws will come into force after 15 days from the date of publication.
Recall that in December 2015, Almazbek Atambayev said that Kyrgyzstan is considering the possibility of refusing to cooperate with Russia on the Upper Naryn cascade and Kambarata-1, as well as the search for new investors because of the difficulties experienced by the Russian economy. Kyrgyz President said that he had found a mutual understanding with the Russian leadership on this issue.
In Kyrgyzstan, the government, in turn, said that one of the reasons for the denunciation of the agreement with Russia is the absence of decisions on the funding of projects, as well as the Russian side proposed a serious rise in the cost of credit, which are mout be attracted for the construction of hydroelectric power plants. According to members of the government, increasing the rates on loans makes the construction of unprofitable.
It was originally planned that the hydroelectric power plant in the year will produce 4.4 billion kilowatt-hours of electricity. The construction cost is estimated at $ 2 billion. According to experts, "Kambarata-1" should be recouped in 15 years. Under the contract in this period should be subject to control Russia, and after the HPP will pay off, Kyrgyzstan and Russia will have equal shares in the company's management.