$66.2 M loan from the French Development Agency
A 20-year loan agreement worth $66.2 M has been signed by the The Ministry of Energy of Uzbekistan and FDA.
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Uzbekistan, Tashkent: A 20-year loan agreement worth $66.2 M has been signed by the The Ministry of Energy of Uzbekistan and French Development Agency (FDA).
The loan will support the construction and modernisation projects in Uzbekistan’s hydropower sector.
This agreement complements Uzbekistan’s ambitious national energy strategy to generate a quarter of all electricity from renewable sources by 2030, including 3.8 GW of hydro energy. Uzbekistan is implementing several ongoing investment projects to construct new hydropower plants (HPP) and modernise existing ones.
The loan will be split so that $55.2 M (€46.5 M) will contribute to a $62.3 M project to construct a small HPP in Tashkent and assist construction of a small HPP 1A and HPP 2A in the Southern Fergana Canal; the remaining $11 M (€9.3 M) will contribute to a $40.3 M project ‘Safety of HPPs’ to be implemented at the Charvak HPP.
Successful completion of these projects will yield production of additional cheap and environmentally friendly electricity, increase hydropower’s share in the country’s energy balance, save fuel resources and meet the growing demand for electricity.
Feasibility studies for the projects were developed by a consortium of consultants: ISL, IED and R-plus, on behalf of the FDA. Loan contributions will support the purchase and construction of modern technological equipment via a tender process in line with FDA procedures.
The FDA part-financed projects are part of an ongoing initiative by JSC Uzbekhydroenergo, the state hydropower producer and developer, called “Project Factory” promoting the development and implementation of new investment projects based on modern technologies. The total of 23 projects with projected capacity of 907.5 MW, worth $1.37 B are currently underway.
By the end of 2020, it is expected that seven projects with additional capacity of 118.3 MW will have been commissioned.
Source: Minenergy