...

Uzbekistan approves investment agreements on construction of wind farms in Bukhara region

Oil&Gas Materials 25 February 2021 16:24
Uzbekistan approves investment agreements on construction of wind farms in Bukhara region

BAKU, Azerbaijan, Feb. 25

By Klavdiya Romakayeva - Trend:

The President of Uzbekistan approved decrees dated February 23 on investment agreements on the construction of two wind farms with a capacity of 500 MW will be in the Peshkun and Gijduvan districts of the Bukhara region, Trend reports referring to Norma information and legal portal.

It is reported that construction agreements were signed on January 24 between the government of Uzbekistan, the Saudi company ACWA Power, which acts as an investor, and the project companies established by it - ACWA Power Dzhankeldy Wind in the Peshkun region and ACWA Power Bash Wind in the Gijduvan region.

According to the investment agreements, ACWA Power and the project companies have committed to design, finance, build and operate wind farms throughout the investment period.

In addition, the attraction of direct foreign investments in the amount of $650 million according to preliminary calculations for each investment project is carried out with the assumption of risks.

Also, the agreements were approved on the purchase of electrical energy, signed as a result of direct negotiations between National Electric Grids of Uzbekistan JSC and project companies.

Thus, the project companies undertake the obligation of guaranteed sale of the generated electricity to a single buyer represented by National Electric Grids of Uzbekistan JSC and also provide bank guarantees for the proper fulfillment of their obligations during the construction period in the amount of $18 million.

ACWA Power and Design Companies carry out the construction of overhead power lines and other electrical structures to connect wind farms to the unified electricity network, while National Electric Grids of Uzbekistan JSC covers the costs of these works for 10 years based on monthly payments.

Moreover, the National Electric Grids of Uzbekistan JSC undertakes the obligation of guaranteed purchase of electricity for 25 years and pay for it in national currency.

For the period of validity of investment agreements and agreements on the purchase of electricity, there will be a fixed tariff for its purchase, denominated in foreign currency.

---

Follow the author on Twitter: @romakayeva

Tags:
Latest

Latest