Uzbekistan, Russia agree to carry out independent survey on Kambaratinskaya HPP-1 in Kyrgyzstan
TASHKENT. Dec 13 (Interfax) - Uzbekistan and Russia have agreed on an international independent survey on the construction of the Kambaratinskaya HPP-1 in Kyrgyzstan, Uzbekistan's First Deputy Prime Minister Rustam Azimov said at the XIV meeting of the Russia-Uzbek Intergovernmental Economic Cooperation Commission Thursday.
"We are concerned about the agreement signed on September 20 2012 between Russia and Kyrgyzstan about the construction and operation of the Kambaratinskaya HPP-1," Azimov, who is the co-chairman of the intergovernmental commission for Uzbekistan, said.
Russia's decision that an international economic survey of the hydro power plant is needed demonstrates a constructive approach to resolving all water-energy cooperation issues in Central Asia, he said. "We are confident that the protocol signed today, which contains this position, will help toward constructive dialogue on this issue among all the interested parties," he said.
The commission's co-chairman for Russia, Deputy Prime Minister Dmitry Kozak, said "any decision that raises doubts about fairness [in the use] of water resources should be subject to an independent survey so that there is no doubt poisoning relations between countries in the region."
Russia and Kyrgyzstan in September signed a bilateral agreement to build and operate the Kambaratinskaya HPP-1 and the Verkhne-Narynsky cascade HPP.
Russian Energy Minister Alexander Novak told Interfax at the time that an additional agreement would be signed laying down the conditions for either party to withdraw from the deal.
Construction of Kambaratinskaya HPP-1 will cost $2.5 billion, says a draft intergovernmental agreement between Russia and Kyrgyzstan on the construction and operation of the plant. According to a preliminary feasibility study, it will take seven years to complete the 875 megawatt plant. The plant will pay for itself amid a tariff of 9.55 cents per kilowatt-hour in 12 and a half years.
From Russia the project is being implemented by OJSC Inter RAO UES and from Kyrgyzstan by OJSC Power Plants. Each organization will own 50% of the joint company CJSC Kambaratinskaya HPP-1. Third countries can be brought into the project by mutual consent.
Inter RAO will seek funding (at 2.5% per annum in U.S. dollars). During the repayment period the Russian company will handle strategic and operational management of the project through a prevalence of representatives on the joint venture's board of directors.
Kambaratinskaya HPP-1 electricity can be used in Kyrgyzstan and can be exported. High-voltage 500 kV lines will be built to neighboring countries. The agreement also envisages construction and operation of a 500kV high-voltage Datka - Kemin line (in Kyrgystan) and a 500 kV Kemin - Almaty line (from Kyrgyzstan to Kazakhstan). The Kyrgyz company will handle grid funding and construction.
Uzbekistan is concerned about the construction of hydropower facilities in neighboring countries because Uzbek experts reckon it could have a negative impact on the region's water-energy balance.
