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Kambarata HHP-1 Agreement Ratified by Kyrgyz Parliament

Thursday 24 January 2013

BISHKEK (Tazabek, 24.kg) – Kyrgyzstan ratifies agreement with Russia on construction of Kambarata HHP-1.

Jogorku Kenesh, the unicameral Parliament of Kyrgyzstan, has approved the draft law On ratification of the agreement among the Government of Kyrgyzstan and the Government of the Russian Federation on construction and operation of Upper Naryn cascade of the hydropower plants and the agreement between Kyrgyzstan and Russia on construction and operation of the Kambarata HPP-1, signed on in Bishkek September 20, 2012

In September 2012 Russia and Kyrgyzstan signed a bilateral agreement on construction and operation of Kambarata HPP-1 and Upper Naryn cascade. Electricity generated at Kambarata HPP-1 can be used both to meet the demand in Kyrgyzstan and for exports to neighbouring countries.

However, not all members of parliament approved this agreement. Last December, MP Zhyldyzkan Zholdosheva declared at a parliamentary session that “Kyrgyzstan’s interests are neglected in agreement with Russia on construction of Kambarata-1 and North Naryn chain of power plants.”

According to her, before signing the agreement, opinions of seismologists, hydraulic engineers, and ecologists are needed. She believes:

“The agreement provides equal participatory share: Russia will provide with money, and Kyrgyzstan will grant water right and royalty. But the agreement says shareholders of Kambaratinskaya GES-1 CJSC will brig their shares as grant to the financing organization. That’s the problem: it’s like all shares will pass into the ownership of Russia. Also, the document says decisions by the board and council are made by the majority. At the same time it’s reported chairman of the board of directors and the management will be elected by the Russian party, which is unfair. It turns out there is a preponderance of votes in the council and the board,”

As the MP noted, the agreement stipulates in the case Kyrgyzstan doesn’t start implementation of the project, then it’s delegated to Russia. “We must prevent any force majeure by the Kyrgyz party. Over the period to maturity, Kyrgyzstan is exempting Russia from land and property taxes. However, the construction may ruin our roads and negatively impact the ecology which will provoke discontent among Kyrgyz citizens. Therefore, since placed in service, CJSC should pay land taxes at least and aid the local public. Besides, the agreement says Kyrgyzstan is pledging 25% of shares to Russia for the payments period. In addition, the investment payments period is not clear which is infringing the interests of our country,” Zhyldyzkan Zholdoheva added.

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