Tashkent, Uzbekistan, Nov.19
By Demir Azizov- Trend:
Uzbek President Islam Karimov approved priority measures on the construction of Turakurgan thermal power plant (TPP) in Namangan district (Fergana Valley, east of Uzbekistan), worth $1 billion.
It was earlier reported that Uzbekistan plans to construct a new TPP in Namangan district with the capacity of 900 megawatt in 2014-2017.
planned that the construction of the TPP, equipped with two power units with capacity of 450 megawatt each, will start in 2014 and will be finished by early 2018.
The project is planned to be financed with the loan of Japan International Cooperation Agency (JICA), Uzbek Reconstruction and Development Fund and equity of Uzbekenergo State JSC.
In early November 2014, the government of Uzbekistan and JICA signed a loan agreement under which JICA will provide a preferential long-term loan of 71.8 billion Japanese yen ($704 million) for the construction of TPP, for a period of 40 years, including a 10-year grace period, at a rate of 0, 3 percent per annum.
In accordance with the decree of the president of Uzbekistan, the executing agency for the project is Uzbekenergo State JSC. The company is also responsible for the proper and effective use of loan proceeds, Uzbekenergo will carry out the costs associated with the repayment of the loan and payment of interest and commission at its own expense.
National Bank for Foreign Economic Activity of Uzbekistan has been appointed the financial agent on loan service.
Construction of Turakurgan TPP will provide an annual production of 6.8 billion kilowatt-hours of electricity, which will meet the growing demand for it in the Fergana Valley.
The implementation of this strategic project will not only ensure the needs in electricity supply of the country's Andijan, Namangan and Fergana provinces, but play an important role in the future development of the whole region of the Fergana Valley.
Currently, the electricity supply in the region is carried out from the central part of Uzbekistan through the power transmission line of 500 kV. Before the commissioning of the power transmission lines in 2008, the Fergana Valley was almost entirely supplied with electricity from Kyrgyzstan.
Currently, the installed capacity of power stations of Uzbekistan amounts to 12.8 million kilowatts, according to Uzbekenergo.
The major share of electricity, up to 90 percent, is produced by 10 thermal power plants of the company with total installed capacity of 10.6 million kilowatts.