Uzbekistan and Tajikistan set up an open joint stock company for the construction of hydroelectric power plants

The governments of Tajikistan and Uzbekistan set up  an Open Joint Stock Company for the joint construction of two hydroelectric power plants in the Zarafshan River basin in Tajikistan.

The share of the Tajik side in this Company will be 50% + 1 share, and the Uzbek side - 50% - 1 share, the draft agreement says.

It is expected that the draft agreement will be agreed by the parties and signed in the near future. The parties will determine the organization acting as the parent enterprise of the Society on behalf of the governments of the two countries.

It is planned to involve an independent international consulting company to prepare and conduct a feasibility study and assessment of social and environmental impact. It is acceptable to attract funds from international financial institutions or governmental organizations.

It is expected that all electricity generated by the plants being built will be purchased by the Uzbek party.

Earlier, the Minister of Energy of Uzbekistan Alisher Sultonov in an interview with the Uzbek media said that the construction of these two plants is planned in two stages.

First of all, the Yavan hydroelectric power plant will be built. It will generate 800 mln kWh of electricity per year. The preliminary cost of this plant, with a capacity of 140 MW, is estimated at $ 282 million.

At the second stage, according to the Uzbek minister, the possibility of building the Fondaryo hydropower plant will be studied, which will generate an average of 600 mln kWh of electricity per year. For the construction of this plant, with a capacity of 135 MW, it will be necessary to allocate $ 270 million.