Official says new investor to redeem Kyrgyzstan’s debt to RusHydro

BISHKEK, Apr 12 (PRIME) -- A new investor will redeem Kyrgyzstan’s U.S. $37 million debt to Russian hydropower giant RusHydro, Kyrgyz Prime Minister Mukhammedaliy Abylgaziyev said at a government meeting on Friday.

“The issue of redemption of the $37 million spent by RusHydro will be solved after new investors come,” he said, adding that the government had already held negotiations with RusHydro on the matter.

“Since the contract was terminated, the Russian company filed a suit to an international arbitration court. We’ve decided to look for investors together,” he said.

In 2012, Russia and Kyrgyzstan signed an agreement on construction of the Verkhne-Narynsky hydropower complex consisting of four plants. In 2016, the Kyrgyz government cancelled the agreement unilaterally, while RusHydro had already invested $37 million of own funds.

In July 2017, the then-Prime Minister of Kyrgyzstan Sooronbay Jeenbekov signed an agreement with Czech company Liglass Trading CZ to restart construction of the Verkhne-Narynsky cascade. Under the deal, Liglass Trading CZ was to repay a $37 million debt to RusHydro, but failed to do so on time. Kyrgyzstan terminated the agreement in October 2017.

In October 2018, RusHydro has filed a suit with the Permanent Court of Arbitration in the Hague against Kyrgyzstan seeking compensation of its losses.

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