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Ihlas Holding’s strategic subsidiary, Orta Asya Investment Holding, has signed the final agreements with the Kyrgyz Ministry of Energy for energy investments worth up to $10 billion, including a “20-year operation and purchase guarantee.”
With a total installed capacity of 2,217 megawatts (MWs), the Kazarman and Kokomeren hydroelectric power plant projects, which will change the balance in Central Asia, will also meet the energy needs of the Zangezur, Belt and Road, and Middle Corridor.
Orta Asya Investment Holding, a strategic subsidiary of Ihlas Holding, has reached another critical milestone for energy investments in Kyrgyzstan with an economic potential of up to $10 billion. Kyrgyz Minister of Energy Taalaybek Ibrayev and Chairman of the Board of Orta Asya Investment Holding Ahmet Mucahid Oren signed contracts for the Kazarman hydroelectric power plant with a capacity of 912 MW and the Kokomeren hydroelectric power plant with a capacity of 1,305 MW.
At the Turkic States Organization Summit held in Bishkek last November, the initial agreements for the projects were signed in the presence of the Turkish President Recep Tayyip Erdogan and the Kyrgyz President Sadyr Japarov. The newly signed final contract includes, in addition to the 20-year operation rights of the two plants, a state purchase guarantee for the electricity produced and provisions for international arbitration. At the signing ceremony held at the Kyrgyz Ministry of Energy, the strong support of the governments of Türkiye and Kyrgyzstan for the realization of the project was reaffirmed.
Speaking at the signing ceremony, Kyrgyz Minister of Energy Taalaybek Ibrayev expressed his satisfaction with Orta Asya Investment Holding’s conduct of investment processes in a transparent and internationally compliant manner. He stated that in the past, the country had experienced serious energy shortages, which were overcome thanks to reforms and investments during President Japarov’s term, and emphasized that a completely different process would begin in the country with the new projects.
Ihlas Holding and Orta Asya Investment Holding Chairman of the Board Ahmet Mucahid Oren stated that Türkiye, which experienced similar difficulties in the past, is in a completely different position today.
Highlighting Ihlas Holding’s experience, Oren said: “In the 1990s, we also participated in tenders for electricity distribution. We won the tender for a large region. Then the government fell, and the project was left unfinished. Back then, electricity loss rates exceeded 50%. Then, the distribution works were privatized. High-voltage lines were renewed, infrastructure was rebuilt, and now the loss rate is at very low levels. Therefore, with what we learned from these experiences, we want to not only build a project but also establish a model infrastructure for its management.”
The agreements, signed under the build-operate-transfer model after reaching consensus on financing and investment terms, include exceptional investor-friendly guarantees. The electricity produced will be purchased by the state over the long term at a foreign currency-based tariff. In addition, privileges such as customs and tax exemptions make the project attractive.
With the signing of the final agreements, the two major projects that gained momentum are of great importance for Kyrgyzstan’s energy independence. The Kazarman and Kokomeren hydroelectric projects will not only produce electricity but also make Kyrgyzstan a key player in energy corridors stretching from China to Pakistan and from Kazakhstan to Uzbekistan.
These investments by Orta Asya Investment Holding will also be critically important for the Zangezur Corridor, the Middle Corridor, and China’s Belt and Road Initiative, shaped by the grand vision of the Turkic world. Strengthening the energy infrastructure in Orta Asya will allow transportation and energy corridors to complement each other. This new bridge, established under Türkiye’s leadership, is seen as part of the vision of connecting the energy flow in Asia to Europe through Türkiye.
As one of Kyrgyzstan’s most important investors, Orta Asya Investment Holding strengthened its technical and financial competence during the project partnership process by collaborating with the world’s leading energy companies.
In particular, memorandums of understanding signed with energy giant PowerChina International Group, with a turnover of $96 billion, and Kazakhstan-based SemArco LLP, bring global-scale expertise and capital support to the project. Thanks to this strong cooperation, project financing is expected to be completed in a short time with a consortium of international funds.
It was noted that advanced-level negotiations are ongoing with leading development banks and investment funds, and there is intense demand for the project from around the world.
Türkiye’s Ambassador to Bishkek Mekin Mustafa Kemal Okem visited Ahmet Mucahid Oren, who was in Kyrgyzstan for the signing ceremony, at the Orta Asya Investment Holding headquarters and received information on the current status of the projects. Okem conveyed that they would provide all kinds of support for investments of critical importance for the region and emphasized that Türkiye’s interest in Kyrgyzstan under the roof of the Turkic States Organization will continue to increase.
Under the protocol signed in Bishkek, Orta Asya Investment Holding will undertake social responsibility projects in the region for the next five years. Within the program, monthly education and care support of $150 will be provided to 1,000 orphans and children who have lost one or both parents each month.
One percent of the electricity produced from the hydroelectric power plants (approximately $3 million annually) will be allocated free of charge to the local population. Technical infrastructure and training support amounting to $3.2 million annually will be provided to the Kyrgyz Ministry of Energy and public institutions.
Drawing attention to Ihlas Holding’s sensitivity in social assistance, Ahmet Mucahid Oren said: “The foundation of Ihlas is Türkiye newspaper, established in 1970. The Ihlas Foundation also started operating in 1976. For nearly 50 years, this foundation has been building student dormitories in many parts of Türkiye, Asia, and Africa, educating young people. With our schools and foundation, we serve more than 50,000 students. We will show the same sensitivity here. The social aid package we signed, along with the energy agreements, will be nothing compared to what we will do in the future. We also want to establish an academy to train people for the energy sector.”
Another good news that Ahmet Mucahid Oren gave to Kyrgyzstan was the establishment of a neonatal unit. Noting that Türkiye Hospital, one of the most important health institutions in Türkiye and Istanbul, operates under Ihlas Holding, Oren said: “We have growth plans in health investments. Kyrgyzstan is our brotherly country. We are now a Kyrgyz company. We are aware that there is a need for neonatal and child care units here. Regarding this matter, on behalf of myself and my wife, Aslihan Oren, we have decided to donate a child care unit with 15 incubators and necessary equipment. We will supply them as soon as possible and ensure the establishment of the neonatal unit. At the same time, we will send 3-4 specialist nurses and authorized colleagues to make preparations for the training of our brothers and sisters here and the operation of the unit. I would also like to state this as our family contribution, desire, and commitment.”
Kyrgyz Minister of Energy Ibrayev expressed his thanks to Oren for his sensitivity regarding support and social responsibility projects.
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