Kyrgyzstan: Russia Pushing to Get Dam Money Back
No sooner had Kyrgyzstan’s parliament canceled deals with Russian companies to build two major hydropower plant in January, talk began of having to pay money back.
With more than six months having elapsed since that decision, Russia is now raising the issue anew, demanding the return of $37 million its companies sunk into the projects, RFE/RL has reported.
The deal agreed between Kyrgyzstan and Russia on construction of the Upper Naryn cascade and Kambarata-1 hydropower projects, which were to be built by RusHydro and Inter RAO UES, respectively, officially expired on August 9.
Kyrgyzstan has, on paper at least, been candid about its obligations since day one. In January, deputy Economy Minister Nurlan Sadykov said that $37 million spent on a worker dormitory, cement production facility and other items would be reimbursed.
There was one catch though.
Sadykov added that money would be returned only once Kyrgyzstan had found new investors for the projects in question.
“Kyrgyzstan has fully abided by the obligations placed upon it by the project [agreement],” he said.
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