Mulalak hydroelectric power station will be built on the Piskem River. According to Farrukh Nurullayev, Deputy Chairman of the Board of Uzbekhydroenergo, the project is being implemented through loans from the Bank of China. The contractor organization will also be from China. After all, this was the demand of the Chinese authorities in the relevant agreements, he added.
8.2 billion kWh of power was generated in Uzbekistan in 2024 by hydroelectric power stations. The proceeds from its sale surpassed 4 trillion soums. In total, power production increased by 20% compared to 2023. The increase is due to the fact that the number of hydroelectric power stations operating under the management of Uzbekhydroenergo has reached 77. This was announced by company officials at a press conference held at the Information and Mass Communications Agency Thursday.
“There is a presidential decree No. 332. According to it, a feasibility study will be developed for projects implemented by all organizations with a state share of 50 percent or more. According to this decree, it is now mandatory to undergo an examination by the Expertise Center under the Ministry of Economy and Finance. If a positive conclusion is given , it will be submitted to the government for approval, and a separate decision will be made for their implementation,” said Farrukh Nurullayev, Deputy Chairman of Uzbekhydroenergo.
He underscored that the Piskem and Chotkal hydroelectric power plant project in the Tashkent province had undergone an examination and government and presidential resolutions have been adopted. The matturity period for investments in these projects has been taken into account. However, Nurullayev did not disclose the sources of financing.
“I would like to say one thing: a separate decision will not be made on projects for which the sources of financing are not clear. Recently, a government resolution was issued on the construction of a large Mulalak hydroelectric power station on the Piskem River. The expert examination and agreement processes for this project have been fully conducted. The sources of financing have been identified. The implementation of this project will now begin,” says Farrukh Nurullayev.
He added that the Mulalak hydroelectric power station project would be financed by the Bank of China. Currently, the process of signing agreements between the Ministry of Finance and the Chinese government has begun. An expert examination will be conducted and a tender will be announced.
“Whether the financing sources are a Chinese bank or other state-owned banks, each lending organization will have its own conditions for determining the contractor. For example, when Chinese banks provide loans, they require that potential contracting organizations in their territory be identified on a tender basis. Other banks have the same requirement. To date, no contracting organization has been identified for the Mulalak hydroelectric power station. We have just moved to this stage,” the deputy chairman of the board of directors emphasized.
Farrukh Nurullaev also touched upon the cost of 1 kWh of power generated at hydroelectric power stations. According to him, currently, taking into account the total costs, the price of 1 kWh is 185 soums. This amount may change annually depending on new projects and the costs of their implementation.
