The Asian Development Bank (ADB) has agreed to lend $60 million to Uzbekistan’s state hydropower producer and developer JSC Uzbekhydroenergo to support implementation of the country’s ambitious national energy strategy to generate a quarter of all electricity from renewable sources by 2030, including 3.8GW of hydro energy.
The loan, agreed on a 25-year term, follows the recent announcement of a new 20-year, €55.8 million loan from the French Development Agency to support investment projects in Uzbekistan’s hydropower sector. The ADB loan will be used towards the construction of three new hydropower plants on the Aksu River, with a total installed capacity of 24MW – the 10.3MW Tamshush project; 7.5MW Chappasuy project; and the 6.2MW Rabat project.
Of the new $60 million from the ADB, $23.6 million will be used for procurement of machinery and equipment, $21.6 million has been allocated for construction and installation works and the 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
“We thank the Asian Development Bank for their continued confidence and support in our ongoing efforts to reform and modernise our energy sector,” commented Abdugani Sanginov, Chairman of the Board of JSC Uzbekhydroenergo. “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.”
Feasibility studies for the new hydropower projects were carried out with the support of international financial institutions and foreign governmental bodies in line with Ministry of Finance and Ministry of Investment and Foreign Trade of Uzbekistan guidelines.
The new hydropower projects, which are scheduled for commissioning in 2022, will add 97.5 million kWh of cheap and 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 billion. By the end of 2020, it is expected that seven projects with additional capacity of 118.3 MW will have been commissioned.