According to information, in January 2016, Kyrgyzstan unilaterally denounced the agreements, citing the lack of decisions on financing the specified projects. Additionally, the conditions proposed by the Russian side regarding the increased cost of loans for the construction of the HPPs did not satisfy the Kyrgyz side.
At that time, RusHydro's investments amounted to 37 million dollars, and the company demanded their return by appealing to the arbitration court in The Hague. The international court ruled in favor of the company and confirmed the accrual of interest.
After that, President Sadyr Japarov announced the dispatch of a delegation headed by Daniyar Amangeldiev to Moscow to discuss ways to resolve the arising debt issue.
The Upper Naryn Cascade HPP project includes the construction of hydroelectric power stations in the upper reaches of the Naryn River, near the city of Naryn in Kyrgyzstan. It was planned to build four HPPs: Akbulun HPP, Naryn HPP-1, Naryn HPP-2, and Naryn HPP-3, using a dam-derivation scheme with small reservoirs.
The planned capacity of the cascade was to be 237.7 MW, with an average annual output of 942.4 million kWh. Construction work was carried out from 2013 to 2015 under an intergovernmental agreement between Kyrgyzstan and Russia.
The first hydro unit was planned to be launched in 2016, and the completion of construction was scheduled for 2019. Currently, the Russian company RusHydro, which owns 50% of the shares of the joint venture with Kyrgyzstan, is considering the possibility of selling this non-core asset.
The company intends to recover its investments of 37 million dollars; however, no buyer has yet been found for this long-term construction project.
