Kyrgyzstan Proposes Fivefold Increase in Toktogul Reservoir Compensation

Residents of territories impacted by the construction of the Toktogul Hydroelectric Power Plant and its reservoir in Kyrgyzstan may receive a fivefold increase in compensation payments. A draft law released for public discussion proposes raising annual transfers to the Toktogul District and the village of Zhazykechuu – from 70 million to 358 million soms.

The financial burden for the increased payments will be assumed by JSC Electric Stations. The company will transfer the funds to a special municipal account, incorporating the costs into the production price of electricity from the Toktogul and Tash-Kumyr cascades. According to the initiative, the move will not require additional subsidies from the national budget, and the total compensation will be indexed annually to account for inflation.

The current tariff was established in 2016, and its real economic value has diminished over the past decade due to the rising costs of construction work and materials. Local authorities plan to use the new revenue for infrastructure projects – including the reconstruction of irrigation networks and the provision of clean drinking water to villages.

Primary objectives include the construction of the Kempir-Oldu canal, which has a preliminary budget of 340 million soms. A further 290 million soms is designated for the installation of a water pipeline in the Chon-Kayrak section, while the creation of a reservoir system in Zhazykechuu is estimated to cost 100 million soms.

The construction of the power plant resulted in permanent changes to the regional landscape. The filling of the Toktogul reservoir submerged 33,000 hectares of agricultural land, including 13,400 hectares of irrigated fields. The environmental and social consequences affected 26 settlements, involving the flooding of more than 4,000 homes and the relocation of 18,000 residents to accommodate the power station.