Thursday, 25, July, 2024

On March 25, the government of Uzbekistan, with the support of IFC, entered into a public-private partnership agreement for the construction of a new thermal power plant (TPP) in the Syrdarya province, was told in the press service of the International Finance Corporation (IFC).

National Electric Networks and the Ministry of Investment and Foreign Trade of Uzbekistan have signed project agreements for a period of 25 years with a consortium of the French Électricité De France (EDF), Qatari Nebras Power, Japanese Sojitz Corporation and Kyuden International.

The consortium that won the international tender in November 2021 will be responsible for the construction and operation of the 1.6 GW combined cycle power plant, which is expected to become one of the most efficient thermal power plants in the country.

The TPP is expected to be completed in January 2026, the Ministry of Energy reported. The size of investments for the project is estimated at $1.2 billion.

According to the document, the new TPP will produce 12 billion kWh annually, with the efficiency at above 60%, which will help save 1.1 BCM of natural gas per year.

IFC partnered with the Global Infrastructure Facility (GIF) to facilitate a competitive international tender for the project. GIF is a G20 initiative of the World Bank supporting quality sustainable infrastructure solutions in developing countries.

“Uzbekistan’s power generation is now dominated by natural gas, and the inefficient, aging infrastructure of thermal power plants is nearing the end of its resource life,” IFC said in a statement.

The new combined cycle power plant is expected to be nearly twice as efficient as the outdated plants, helping to make more efficient use of natural gas and reduce CO2 emissions, as well as integrate renewable energy sources.

“The project will help solve the key problems facing the energy sector of Uzbekistan,” said Deputy Prime Minister, Minister of Investment and Foreign Trade of Uzbekistan Sardor Umurzakov. “It will help to improve the stability of electricity supply, and modern technologies will ensure the efficient use of natural gas and water.”

Stephanie von Friedeburg, IFC Senior Vice President of Operations, said: “Demand for electricity in Uzbekistan is growing, and a stable energy supply is essential for sustainable, inclusive growth. This project is part of IFC's efforts to support reforms by the government of Uzbekistan to modernize the energy sector, including the replacement of old and inefficient power plants. By encouraging private sector investment in new, more efficient power generation, Uzbekistan is helping to both reduce greenhouse gas emissions and meet growing demand for electricity.”

GIF's support included conducting a feasibility study of the project and support in the implementation of the transaction until the commercial closure of the project. GIF has also used its network of advisory partners to promote investment opportunities and raise awareness among potential developers and lenders.

“Uzbekistan is a strategically important country for GIF and we have established longstanding relationships in many sectors, from energy and airports to roads and solid waste. We are pleased to collaborate on this project to support the energy transformation of the country. The successful implementation of this project further confirms our commitment to invest in sustainable infrastructure and mobilize private capital in the country,” said Jason Zhengrong Lu, Head of GIF.

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