Kyrgyzstan, Türkiye Ink Major $10 Billion Energy and Development Deal

Kyrgyzstan and Türkiye have signed a landmark $10 billion investment agreement.

The agreement was finalized between Orta Asya Investment Holding, a subsidiary of Ihlas Holding, and Kyrgyzstan’s Ministry of Energy, The Caspian Post reports via Turkiye gazetesi.

It includes a 20-year guarantee for the operation and purchase of electricity linked to major energy investments.

Energy Minister Taalaibek Ibrayev and Ihlas Holding Chairman Ahmet Mücahid Ören signed contracts to build two large hydroelectric power plants: Kazarman with a capacity of 912 megawatts and Kokomeran with 1,305 megawatts. Together, these plants will have an installed capacity of 2,217 megawatts, a development expected to significantly alter the energy landscape in Central Asia.

Under the build-operate-transfer (BOT) model, Türkiye will operate the plants for 20 years, with guaranteed state purchase of the produced electricity. The contract also includes provisions for international arbitration, ensuring investor protections. Kyrgyzstan will pay for the electricity in foreign currency.

This agreement follows the framework signed during Turkish President Recep Tayyip Erdoğan’s visit to Kyrgyzstan on November 5, 2024, which laid the foundation for the hydroelectric projects.

Beyond energy, the investment holding will implement social responsibility initiatives over the next five years. These include monthly $150 support for education and care for 1,000 orphaned children, and providing 1 per cent of the electricity generated-approximately $3 million annually-free to local communities. Additionally, the Ministry of Energy and related state agencies will receive $3.2 million annually in technical and educational support.

In a related development, Ören announced plans to establish a neonatal department in Kyrgyzstan. Highlighting that Türkiye Hospital in Istanbul, one of Türkiye’s premier medical institutions, is part of Ihlas Holding, Ören said, “Kyrgyzstan is our brotherly nation, and now we are a Kyrgyz company. We recognize the urgent need for neonatal and pediatric care. My wife Aslıhan and I will donate 15 incubators and all necessary equipment. We will ensure swift delivery and create the neonatal department. We will also send 3-4 experienced nurses and colleagues to train local staff.”