IDB to Finance Hydropower and Grid Modernization in Kyrgyzstan

The Islamic Development Bank (IDB) has expressed its commitment to financing the construction of new hydroelectric power stations and the modernization of electrical grids in Kyrgyzstan. Minister of Energy Altynbek Rysbekov and the head of the IDB regional hub, Hammad Hundal, met to discuss the prospects of joint projects amid a growing regional demand for generating capacity and large–scale infrastructure upgrades.

Existing cooperation between the parties includes the IDB’s participation in the CASA–1000 cross–border energy project and the funding of domestic infrastructure, such as the 220 kV Tamga–Karakol power transmission line. Bishkek now seeks to expand this partnership by shifting the primary focus toward power generation.

The Kyrgyz government intends to transition from maintaining current partnership levels to launching new construction initiatives. Priority areas include the development of hydroelectric plants, the reconstruction of existing stations, the installation of power transmission lines, and the digitalization of the energy sector – objectives that require the attraction of significant external capital.

The financial institution confirmed its readiness to invest in the national energy sector, noting an interest in establishing a sustainable power system and evaluating projects aimed at increasing hydropower potential. The negotiations concluded with an agreement to continue efforts toward enhancing the reliability of energy supplies throughout the region.