ISTANBUL

Orta Asya Investment Holding, a subsidiary of Türkiye’s Ihlas Holding, has released details of its investment agreement with the Kyrgyzstan government to construct six hydropower plants with a combined installed capacity of approximately 2,217 megawatts.

The investment, valued at approximately $6.3 billion, will span two separate river basins and is positioned among the largest private sector energy projects in the region, the company said in a statement.

Designed in full compliance with the EU Taxonomy for sustainable activities, the project aims to contribute directly to sustainability, climate resilience and regional energy security goals.

The initiative is described as a transformative long-term effort not only to upgrade Kyrgyzstan’s infrastructure but also to support the global clean energy transition.

A sustainable energy initiative in line with global climate goals

The projects are structured to contribute directly to the UN Sustainable Development Goals 7 (Affordable and Clean Energy) and 13 (Climate Action). Once fully operational, the plants are expected to generate over 9 billion kilowatt-hours of electricity annually and prevent approximately 5.2 million tons of CO2-equivalent emissions compared to coal-based power generation.

In addition to reinforcing the stability of regional power grids, the plants are also set to foster cross-border energy cooperation and align with the EU-Central Asia Global Gateway Strategy, which prioritizes green investment and sustainable infrastructure development.

Supported by the Kyrgyz government under the designation of “National Investment Projects,” the initiative benefits from 20-year power purchase agreements (PPAs) backed by sovereign guarantees as well as various tax exemptions.

The investment also aims to strengthen Kyrgyzstan’s energy supply security, bolster its climate resilience and promote inclusive economic growth.

Project breakdown: Kazarman and Kokomeren

The Kazarman Hydropower Project, located in the Jalal-Abad region, includes the Alabuga (600 MW), Karabulun-1 (149 MW) and Karabulun-2 (163 MW) plants, representing a total investment of $3 billion.

The project is supported by a 20-year PPA with Kyrgyz National Electric Grid JSC (NESK), along with sovereign guarantees, tax incentives and a transfer of ownership upon project completion.

The Kokomeren Hydropower Project, located across the Chuy and Naryn regions, involves the construction of the Karakol (33 MW), Kokomeren-1 (360 MW) and Kokomeren-2 (912 MW) plants with a combined investment of $3.265 billion.

This project is also based on a 20-year PPA with NESK and is governed by investor protection provisions, compliance with Kyrgyz legislation and international arbitration through the Singapore International Arbitration Centre (SIAC).

Construction for both projects is expected to span six years following the completion of feasibility studies.

Corporate governance and international compliance

To ensure transparent and internationally compliant execution, Orta Asya Investment Holding has appointed Hill International as the independent Project Management Office (PMO). Known for its expertise in infrastructure advisory, Hill International will contribute to planning, performance monitoring and risk management to help ensure that project delivery is in line with targets.

Orta Asya Investment Holding is also exploring financing partnerships with International Financial Institutions (IFIs), Development Finance Institutions (DFIs), export credit agencies (ECAs) and institutional investors aligned with Environmental, Social and Governance (ESG) criteria. Discussions with leading Engineering, Procurement and Construction (EPC) contractors and turbine manufacturers are also ongoing.

In addition to the environmental and economic objectives, the projects include local benefit commitments such as the allocation of 1% of electricity output free of charge to surrounding communities and the implementation of dedicated social investment programs.

Orta Asya Investment Holding operates as a sustainable and impact-oriented investment platform focused on energy and infrastructure projects across Central Asia.

The company works in partnership with host governments, multilateral organizations and private investors, leveraging the backing of shareholders such as Ihlas Holding to deliver climate-resilient and economically viable infrastructure in emerging markets.