Vladimir Putin signed a federal law on ratification of the Agreement between the Government of the Russian Federation and the Government of the Kyrgyz Republic on the construction and operation of Kambarata-1 and Upper-Naryn cascade hydropower stations.
Federal law passed by the State Duma on 16 April 2013 and approved by the Federation Council on 27 April 2013.
Federal law ratified an agreement between the Government of the Russian Federation and the Government of the Kyrgyz Republic on the construction and operation of Kambarata-1 and Upper-Naryn cascade hydropower stations, signed in Bishkek on 20 September 2012.
The agreement provides for the implementation of the project construction and operation on the territory of the Kyrgyz Republic Kambarata-1 and air lines to ensure the export of electric energy generated by Kambarata-1 in the energy system of neighboring states.
The project is implemented by the existing joint venture — a joint stock company "Kambarata-1" with parity distribution of shares of the authorized organizations of the parties in its authorized capital.
Also, the agreement provides for the implementation of the project construction and operation of four hydroelectric Upper-Naryn cascade of hydropower plants on the territory of the Kyrgyz Republic (Akbulunskaya plant, Naryn HPP-1, Naryn HPP-2 and Naryn HPP-3).
To implement this project authorized organizations of the parties shall establish a joint venture with the parity distribution of the share capital. Russia’s contribution to the authorized organization authorized capital of a private joint stock company "Upper-Naryn hydroelectric power station" will be 50 percent of the cost of the project. Kyrgyz side as a contribution to its authorized organization in the authorized capital of the joint stock company called making the right use of land set aside for the construction of the Upper-Naryn cascade, and other assets, including intangibles, amounting to 50 percent of the cost of the project.
On the payback period for the Russian side secured the strategic and operational management of the project due to the predominance of its representatives on the board of directors and the board of the joint venture. In this case, the Kyrgyz side transfers in trust to the Russian side 25 percent of their shares of the closed joint-stock company "Upper-Naryn hydroelectric power station".