Uzbekistan launches project on photovoltaic plant building

Oil&Gas Materials 16 April 2020 18:36 (UTC +04:00)
Uzbekistan launches project on photovoltaic plant building

By Ilkin Seyfaddini – Trend:

BAKU, Azerbaijan, Apr. 16:

The tender selection of the investor for implementation of the pilot project on design, financing, construction and operation of a photovoltaic plant with a total capacity of 100 MW in Navoi region has been completed, Trend reports with reference to the Uzbek media.

The tender was held on procedures of the World Bank Group. The winner was Abu Dhabi Future Energy Company PJSC - Masdar from the UAE.

The Ministry of Investment and Foreign Trade signed an investment agreement with it, and the National Electricity Networks of Uzbekistan signed an agreement on the purchase of electricity.

To implement the investment project in Uzbekistan,a Nur Navoi Solar LLC project company, which acts on behalf of the investor, was established. Within the framework of the project, it is allowed to open bank accounts in foreign banks abroad for lending, receiving and using funds in foreign currency, to make direct payments to foreign contractors, suppliers or foreign creditors outside Uzbekistan without making them through bank accounts in the country.

The investor undertook to sell the generated electricity at a fixed tariff - $2.679 per 1 kWh, to a single purchaser - JSC National Electric Networks of Uzbekistan. Payment should be made in local currency.

Also, the Arab company should build and transfer to JSC National Electric Grids of Uzbekistan non-repayable increasing substations of FES after its commissioning.

The obligations of the investor and the project company are secured by a bank guarantee in the amount of $20 million. National Power Grids of Uzbekistan will open a confirmed renewable credit line in foreign currency to cover 6 months of electricity purchase.