The government of Uzbekistan has finalised a public-private partnership agreement for a new thermal power plant in the Syrdarya region, which will help modernise the country’s power sector, reduce costs, and cut carbon emissions.
Uzbekistan’s JSC National Electric Grid and Ministry of Investments and Foreign Trade signed the 25-year project agreement with a consortium comprising Électricité de France (EDF), Nebras Power Sojitz Corporation and Kyuden International.
The consortium will be responsible for building and operating the 1,600-megawatt combined cycle gas-turbine power plant, which is expected to be one of the most efficient thermal power plants in the country.
Uzbekistan’s electricity generation is currently dominated by gas, with ageing and inefficient thermal plants near the end of their operating life.
The new plant is expected to be almost twice as efficient as older models, helping to decrease gas consumption, reduce the country’s carbon footprint, and support the integration of renewable energy.
“The project will help resolve key issues in Uzbekistan’s energy generation sector,” Deputy prime minister Sardor Umurzakov said.
“Firstly, the project will increase the stability of energy generation and supply,” he added. “Secondly, modern technology will ensure the efficient use of natural gas and water.”
He said successful implementation of the project would provide additional confidence for potential investors to invest in Uzbekistan’s energy sector.”
Separately, the European Bank for Reconstruction and Development said it would provide a new permanent $210 million trade finance facility to four Uzbek banks – Asakabank, Ipoteka Bank, NBU and UzPSB – to support private exporters and importers.
Private domestic businesses, including small and medium-sized enterprises (SMEs), in Uzbekistan will be better able to import necessary goods, services and equipment and export their products following the deal.
“The importance of trade has grown immensely in these turbulent times,” EBRD president Odile Renaud-Basso said.
“We are supporting Uzbek importers and importers by opening new permanent limits to our partner-banks, which will reach out to businesses across the country,” she added.
- George Russell