The Ministry of Energy of Uzbekistan has signed a 20-year loan agreement, worth €55.8 million, with the French Development Agency (FDA) to finance a series of projects in Uzbekistan’s hydropower sector.
Out of the funds, €46.5 million will contribute to a €52.5 million project to build a small hydropower plant in Tashkent and assist construction of two further small hydropower plants in the Southern Fergana Canal. The remaining €9.3 million will be used to help fund a €33.95 million safety project at the Charvak hydropower plant.
Once completed, these projects will produce 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.
The FDA part-financed projects are part of an ongoing initiative by state hydropower producer and developer JSC Uzbekhydroenergo, – called “Project Factory” – to promote the development and implementation of new investment projects based on modern technologies. Twenty-three projects with projected capacity of 907.5MW, worth $1.37 billion, 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
Uzbekistan has an ambitious national energy strategy to generate a quarter of all electricity from renewable sources by 2030, including 3.8 GW of hydro energy. Several ongoing investment projects are being implemented in the country, including both construction of new hydropower plants and modernisation of existing facilities.
With the support of international partners such as the FDA, Uzbekistan is making great strides towards meeting these energy goals. The Ministry of Energy would like to place on record its thanks to the FDA for their support and their public vote of confidence in its ongoing efforts to reform and modernise the country’s energy sector.