The European Union sealed deals worth over €2 billion to build major hydropower plants across Central Asia, with Kyrgyzstan’s Kambarata-1 project taking center stage, officials announced at the Global Gateway Forum in Brussels.
The European Union (EU), European Investment Bank (EIB), and European Bank for Reconstruction and Development (EBRD) signed memoranda of understanding with Kyrgyzstan, Kazakhstan, and Uzbekistan during the October 9-10 summit. The financing package includes €900 million in EU and EIB commitments plus up to €1.3 billion from EBRD for the Kambarata-1 megaproject. A feasibility study co-funded by the EU and implemented by the World Bank was also unveiled. The investments aim to boost energy and water security while creating economic opportunities for local communities across the region.
Central Asia has struggled with aging Soviet-era power infrastructure and water management disputes between upstream and downstream countries. Kyrgyzstan and Tajikistan control most of the region’s water sources through their mountain rivers, while Kazakhstan and Uzbekistan need reliable electricity and irrigation for their agricultural sectors. The Kambarata-1 plant could help resolve some of these tensions by providing clean electricity that can be traded regionally. Water disputes have occasionally sparked conflicts between neighbors who depend on shared river systems for survival.
European Commissioner for International Partnerships Jozef Síkela said during his recent mission to the region he “learned the importance of water for the stability of the whole region.” He noted that smart hydropower investments can improve access to reliable electricity while supporting sustainable agriculture and protecting people’s health. EIB Vice-President Kyriacos Kakouris called the Kambarata-1 project “instrumental in expanding renewable electricity trade in the region.” EBRD President Odile Renaud-Basso described it as “a flagship regional project for Central Asia” that improves energy and water security.
The deals represent a Team Europe approach bringing together EU institutions, member states, and private sector partners to tackle regional challenges. The cooperation falls under the Team Europe Initiative on Water, Energy and Climate Change, which aims to improve regional coordination on water management while developing hydropower potential. Forum participants also discussed plans for the Rogun hydropower plant, another major regional project. The EU wants to help Central Asian countries move toward cleaner energy while building stronger economic ties with Europe.
These investments come as Central Asian governments look for alternatives to Russian energy dependence and seek to modernize their economies. The region sits between major powers including Russia, China, and Iran, making European investment particularly valuable for diversification. Hydropower offers a way to tap into abundant water resources from mountain glaciers and rivers while providing clean electricity for growing populations and industries.
