Investment in hydropower sector in Uzbekristan is growing
The French Development Agency (FDA) will allocate € 55.8 million of borrowed funds for the development of hydropower sector in Uzbekistan.
The Ministry of Finance of the Republic of Uzbekistan and FDA signed the corresponding agreement on the allocation of a loan for a period of 20 years.
Of the total amount, €46.5 million are aimed at financing the construction of the Paytak SHPP in the Andijan region, as well as SHPPs 1A and 2A of the South Fergana canal (the total cost of these projects is estimated at € 52.5 million). The commissioning of new SHPPs is foreseen in 2023.
The feasibility study of these projects was developed by order of the French Development Agency by "ISL", "IED", "R-plus" of consultants’ consortium. It is planned that the costs of construction and installation works will amount to € 11.1 million and the provision of technological equipment - € 26.9 million.
With the implementation of these projects, it will be possible to generate 51.2 million kWh of clean electricity, create 15 additional jobs, increase the share of hydropower and save fuel resources in the country's energy balance, and meet the growing demand for electricity.
In addition, 9.3 million UZS of the total loan amount will be directed to finance the project to ensure the safety of the Charvak HPP (the total cost of the project is estimated at €33.95 million).
it should be noted that by the decree of the President of the Republic of Uzbekistan dated May 2, 2017, the "Programs of measures for the further development of hydropower sector for 2017-2021" was approved.
JSC “Uzbekgidroenergo”, in accordance with this Program, implements the Project Factory mechanism, aimed at developing new project proposals with a view to their inclusion in the Investment Program.
In particular, this year, using this mechanism, the process of preparing 23 investment projects with a capacity of 907.5 MW with an initial total cost of $ 1.57 billion is underway. Of these, 14 projects with a capacity of 637.25 MW will create new capacities, and within 9 projects (worth $ 190 million), 270.3 MW capacities will be modernized.
To finance these projects, in addition to the funds of the French Development Agency, it is planned to attract $ 60 million from the Asian Development Bank, and € 80 million from the European Bank for Reconstruction and Development, as well as direct investment based on the principles of public-private partnership. This, in turn, will create an opportunity to diversify the sources of funds and technologies involved in investment projects.
This year, within the framework of the Investment Program, part of 19 investment projects are being implemented for about $ 500 million out of a total cost of $ 1,556.2 million, with the involvement of financial institutions from the People's Republic of China and the Russian Federation.
For 7 months of this year, modernization projects have been completed and the 2nd and 3rd SHPPs of the South Fergana Canal with a total capacity of 22.4 MW have been launched.
In addition, work is underway to complete 4 additional projects with a capacity of 95.9 MW, including the construction of the Kamchik HPP and SHPP Zarchob-1, as well as the modernization of two SHPPs.
Thus, the number of launched projects during 2020 will reach 6, capacity of additional facilities built - 118.3 MW, and the number of new jobs created - 100.
Press service of the Ministry of Energy of the Republic of Uzbekistan