Uzbekistan receives US$60 million for three hydropower plants.

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The state of Uzbekistan has recently received a US$60 million loan from the Asian Development Bank (ADB)  for the construction of three hydropower plants. Uzbekhydroenergo the state’s hydropower producer and developer, on September 8 announced it has signed a 25-year loan agreement. The loan will support the implementation of Uzbekistan’s rigorous 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 million loans from the French Development Agency to support investment projects in Uzbekistan’s hydropower sector. 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.

Three new hydropower plants (HPP) will be built on the Aksu River, as part of the ADB’s Sustainable Hydropower Project. The total installed capacity will be 24 MW, comprising; Tamshush HPP (10.3 MW), Chappasuy HPP (7.5 MW), and the Rabat HPP (6.2 MW). US$$23.6 million will be used for the procurement of machinery and equipment and US$21.6 million for construction and installation works.

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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 a projected capacity of 907.5 MW, worth $1.37 billion. By the end of 2020, it is expected that seven projects with an additional capacity of 118.3 MW will have been commissioned. Feasibility studies for the new HPP projects were carried out with the support of international financial institutions and foreign governmental bodies in line with the Ministry of Finance and Ministry of Investment and Foreign Trade of Uzbekistan guidelines.