JSC Uzbekhydroenergo’s $60 M loan from Asian Development Bank
Uzbekistan, Tashkent: JSC Uzbekhydroenergo, Uzbekistan’s hydropower producer and developer, has signed a 25-year loan agreement, worth $60 M, with the Asian Development Bank (ADB).
The loan will support construction of three new hydropower plants and implementation of 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.
It follows the recent announcement of a new 20-year, €55.8 M loan from the French Development Agency to support investment projects in Uzbekistan’s hydropower sector.
Loan proceeds will be allocated as follows: $23.6 M for procurement of machinery and equipment and $21.6 M for construction and installation works; remaining proceeds will be used to manage the project and cover pre-project costs, create a high-voltage network, and finance the selection of general contractor through a tender organized with the ADB.
Three new hydropower plants (HPP) will be built on the Aksu River, as part of the ADB’s Sustainable Hydropower Project. Total installed capacity will be 24 MW, comprising Tamshush HPP (10.3 MW), Chappasuy HPP (7.5 MW), and Rabat HPP (6.2 MW).
Abdugani Sanginov, Chairman of the Board of JSC Uzbekhydroenergo, said, “With the support of international partners such as the Asian Development Bank, we are making great strides towards our ambitious renewable energy goals for 2030 and meeting the ever-increasing demands for energy.”
The new HPP projects, which are scheduled for commissioning in 2022, will add 97.5 million kWh of cheap and environmentally friendly electricity production, annually. They will create over 40 jobs, increase hydropower’s share in the country’s energy balance, save fuel resources and meet the growing demand for electricity.
The projects complement Uzbekhydronergo’s ‘Project Factory’ initiative, which is already underway and promoting the development and implementation of new investment projects based on modern technologies. The initiative comprises 23 projects with projected capacity of 907.5 MW, worth $1.37 B. By the end of 2020, it is expected that seven projects with additional capacity of 118.3 MW will have been commissioned.
Source: Trade Financial Global