RusHydro reserves the right to initiate an international arbitration with respect to Kyrgyzstan. The company is ready to demand compensation by the Kyrgyz side of all expenses incurred by RusHydro in connection with participation in the Verkhne-Narynsky cascade of HPPs. The Russian energy company said this on Tuesday.
"RusHydro" considers inadmissible accusations of Kyrgyzstan in improper performance of obligations, the company said. RusHydro never made any statement about the intention to stop the construction of the Verkhne-Narynsky cascade of HPPs. Intergovernmental agreement on the construction and operation of the facility was ruptured by Kyrgyzstan unilaterally, the company recalled. Under the terms of the agreement, the funds invested by the Russian company should be returned to it in full, but all negotiations have not yet led to a result acceptable to RusHydro, the report said.
On Monday, Kyrgyz President Almazbek Atambayev said that the new investor of the Verkhne-Narynsky HPP cascade project, the Czech Liglass Trading, under the terms of the agreement, should repay RusHydro debt of $ 37 million, otherwise another investor will find it (Interfax quotation). He also noted that he considers it right to break the agreement with RusHydro, since he was convinced that the Russian company was not going to finish building the Verkhne-Narynsky cascade of HPPs.
The agreement with Russia on the construction of the Verkhne-Narynsky cascade of HPPs and Kambaratinskaya HPP-1, where the Russian side was the only investor, was signed in September 2012. Then it was reported that in total there will be built four hydroelectric power stations with a total installed capacity of at least 191 MW, Will be 1.55 billion kilowatt-hours. The preliminary cost of the project in 2012 was estimated at about $ 425 million. It was expected that for the construction of each station it would take about three years. However, the construction did not begin.
At the beginning of last year, Kyrgyzstan dissolved the agreement with Russia on the construction of this cascade. In the government of Kyrgyzstan, one of the reasons for the decision to denounce the agreement is the lack of decisions on financing projects.