A month ago, on January 20th, Bishkek decided to denounce the agreements on the construction and exploitation of the Kambaratinskaya Hydroelectric Power Station-1 and the Verkhne-Narynsky Cascade of the HPS. Despite the high importance of the plans of construction and joint exploitation of these facilities, which were required by the Russian-Kyrgyz intergovernmental agreements on September 20th 2012, Moscow considers the projects as economic ones, considering their mutual benefit from their practical implementation.
Since 2012 Moscow and Bishkek have founded joint enterprises, developed technical parameters, launched the process of allocation of lands, and started construction of infrastructural facilities of the initial stage at the Verkhne-Narynsky Cascade of the HPS. However, during the implementation of the agreements the sides faced juridical and financial difficulties. The problems were connected with the global economic crisis, which led to a growth of land prices, and the pace of economic growth decreased. An absence of confirmed demand for electricity power provided by the future power stations worsened the situation.
As a result, further implementation of the two projects became impossible within the signed agreements; in case of involvement of commercial loans, they would have lost their economic sense.
Maria Zakharova, director of the Information and Press Department of the Ministry of Foreign Affairs of the Russian Federation, stated that Moscow and Bishkek have a mutual understanding about the denouncement of the agreements on construction and exploitation of Kambaratinskaya Hydroelectric Power Station-1 and the Verkhne-Narynsky Cascade of the HPS
“Our countries continue to strengthen cooperation in all major destinations. Complete mutual trust at all levels and on all issues has been marked between Moscow and Bishkek in recent years, whether it is the interaction within the EAEU or the implementation of joint projects in various fields. It is also worth mentioning the revitalization of the Russian-Kyrgyz Development Fund and the opening of Russian markets for Kyrgyz products, particularly agricultural products. Also, not least the developed tourism services between the two countries. It can be said that the strategic partnership between the two countries has only been strengthening.
Of course, we appreciate the consistency of Bishkek in this direction. We see Kyrgyzstan as a reliable partner in the Central Asian region, with which we will continue to strengthen cooperation. And all the questions or problems that will arise in front of us will be addressed constructively on the basis of mutual respect,” Zakharova promised.
