Orta Asya Investment Holding Releases Strategic Update Following $6.2 Billion Hydropower Agreement with Kyrgyz Republic

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Chairman of the Board of Directors of Orta Asya Investment Holding (Left) and Minister of Energy of the Kyrgyz Republic (Right)

The Update Highlights Alignment with EU Taxonomy and Global Green Investment Goals
Istanbul/Bishkek - Following the public announcement made on August 11, 2025 by Ihlas Holding regarding two major Investment Agreements signed between Orta Asya Investment Holding and the Government of the Kyrgyz Republic, Orta Asya today issued a strategic update detailing the international relevance and long-term sustainability vision of the landmark hydropower initiative.

The agreements, which encompass the development of six utility-scale hydropower plants across two distinct cascades totaling 2,217 MW in installed capacity, mark one of the most signiicant private-sector energy investments in the region's history, with a total capex of approximately USD 6.3 billion.

In a statement released today, Orta Asya Investment Holding emphasized the project's alignment with the EU Taxonomy for sustainable activities, underlining its eligibility for future green inancing mechanisms and international partnerships.

It is accentuated that the investment is not only seen as the implementation of an infrastructure project, but as a major step toward enabling Central Asia's clean energy transition in line with global sustainability frameworks. The investments are rather construed as a "transformative initiative", in close collaboration with the Kyrgyz government, with a commitment to transparency, international best practices and long-term impact.

Strategic Framework and Green Investment Relevance

Structured under long-term 20-year Power Purchase Agreements (PPAs) with full sovereign guarantees and backed by comprehensive iscal incentives, the projects have been officially recognized by the Kyrgyz Republic as "National Investment Projects", underscoring their critical role in advancing energy security, climate resilience and inclusive economic growth.

Both hydropower clusters are designed in full alignment with the EU Taxonomy, contributing directly to SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). Once operational, the projects are expected to generate over 9 billion kWh annually, displacing an estimated 5.2 million tons of CO2 equivalent emissions per year compared to coal-based generation alternatives.

In addition to stabilizing regional power grids, the hydropower assets will serve as key enablers of cross-border energy cooperation and support the objectives of the EU-Central Asia Global Gateway Strategy, which emphasizes green investment and resilient infrastructure across the region.

Institutional Oversight and Project Management

To ensure disciplined execution, transparency and adherence to international standards from the outset, Orta Asya Investment Holding has appointed Hill International as the independent Project Management Ofice (PMO) for both hydropower cascades.

This early engagement reflects Orta Asya's commitment to institutional-grade governance, with clearly deined oversight structures and quality assurance protocols embedded throughout the project lifecycle. As a globally recognized infrastructure consultancy, Hill International supports the implementation process through integrated planning, performance monitoring and risk management systems, helping to safeguard delivery targets and investor conidence.

Project Breakdown

- Kazarman Hydropower Cascade (Jalal-Abad Region) - 912 MW

- 3 plants: Alabuga (600 MW), Karabulun-1 (149 MW), Karabulun-2 (163 MW)

- Estimated capex: USD 3.0 billion

- 20-year PPA with JSC "National Electric Grid of Kyrgyzstan" (NESK)

- Sovereign guarantees, tax exemptions, and structured IP handover at end of term

- Construction timeline: 6 years post-feasibility

- Kokomeren Hydropower Cascade (Chuy & Naryn Regions) - 1,305 MW

- 3 plants: Karakol (33 MW), Kokomeren-1 (360 MW), Kokomeren-2 (912 MW)

- Estimated capex: USD 3.265 billion

- 20-year PPA with NESK; state-backed offtake guarantee

- Investor protection clauses, arbitration under SIAC, legal framework aligned with Kyrgyz law

- Construction timeline: 6 years post-feasibility

Platform for Institutional Partnerships and Climate Finance

Feasibility studies for both project clusters have already been commenced. As this work progresses, Orta Asya Investment Holding will initiate formal engagement with International Financial Institutions (IFIs) and Development Finance Institutions (DFIs) to explore strategic inancing collaborations.

Parallel outreach to ESG-aligned institutional investors, Export Credit Agencies (ECAs) and Tier-1 EPC contractors and turbine manufacturers is also underway, with the goal of securing partnerships that reflect the project's long-term vision and sustainability goals.

Key project de-risking elements include:

- 20-year sovereign-backed offtake agreements

- Five-year tax exemptions (corporate income tax, import VAT, customs duties)

- International arbitration provisions (SIAC)

- Commitment to local beneits, including 1% free electricity allocation to communities and targeted social investments

About Orta Asya Investment Holding

Orta Asya Investment Holding is a Central Asia-focused energy and infrastructure platform, developing sustainable, high-impact projects in partnership with host governments, multilateral institutions and private-sector investors. The Holding is backed by leading shareholders including Ihlas Holding; and is committed to delivering climate-resilient, economically viable infrastructure across emerging markets.

Contact for Media and Investment Inquiries

Media & Investor Relations Abdullah Tugcu

Member of Board

Orta Asya Investment Holding

abdullah.tugcu@ihlas.com.tr [mailto:abdullah.tugcu@ihlas.com.tr]

+90 212 454 2422

Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
Media Contact
Company Name: Orta Asya Investment Holding
Contact Person: Abdullah Tugcu
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This release was published on openPR.