The power plant currently generates 40% of the country’s electricity supply as well as regulates power frequency for Central Asia.

ADB principal energy specialist Jim Liston said: "Power systems at Toktogul are now over 30 years old, critical components are failing, and system losses are mounting.

"A total failure of this hydroelectric plant would be catastrophic both for the domestic market and stability of the Central Asia power system so an overhaul is critically important."

The ADB’s assistance package, which includes a loan of $65.5m and a grant of $44.5m, will be used to replace two of the four existing generator and turbine units, and associated equipment and structures at Open Joint-Stock Company Electric Power Plants (EPP)-operated Toktogul power plant.

In addition to enhancing unit power output from the existing 300MW to 360MW, the upgraded project will increase unit efficiency by 2.5% points as well as improve the availability of generated power to 95% from the current 80% at the facility.

The project, which is a part of the government’s efforts to improve finances, governance and management of the power sector, will also help increase domestic power supplies from 9,000GWh in 2014 to 11,400GWh in 2025.

Scheduled to be completed by the end December 2021, the power plant’s full overhaul will be carried out in three phases, while the current second phase will be conducted over seven years.