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Uzbekistan receives almost half billion loan from ADB for energy sector

15 Dec 2017 5:11 PM | Laziz Rasulov (Administrator)

The Board of Directors of the Asian Development Bank (ADB) approved a new loan to Uzbekistan for $450 million.

These funds will be used to install additional generating equipment with a capacity of 850 to 950 MW at the Talimarjan thermal power plant in Kashkadarya region of Uzbekistan. Such attention to the modernization of one of the largest TPPs of the country is explained by the fact that the demand for electricity in the republic is constantly growing.

The project provides for the expansion of the station by installing additional combined cycle gas turbines with generation of heat. The supplier for the new combined cycle generating unit is Japanese Mitsubishi Corporation. The new turbines will also increase the total capacity of the facility up to 2600 MW and raise the heat efficiency from 48 to 52 percent. The project will also reduce the cost of electricity produced at the plant by 30 percent.

In October 2016, the first combined-cycle plant with a capacity of 450 megawatts was put into operation at the Talimarjan thermal power plant, and in February 2017 -- the second one. Their work allowed each year to produce an additional 7 billion kWh of electricity. In August, two more combined cycle facilities with a capacity of 450 megawatts each were launched.

In addition, ADB will provide 2 million dollars for free, which will be used to improve the financial stability of Uzbekenergo and increase the efficiency of the tariff system in the power industry.

The total cost of the project is estimated at more than $860 million. In March 2013, Daewoo and Hyundai companies - the winners of the tender announced by the Uzbekenergo JSC, signed a contract to modernize the Talimarjan thermal power plant.

The sources of financing will be funds attracted from ADB, Japan International Cooperation Agency (JICA), as well as from the Fund for Reconstruction and Development of Uzbekistan.

Uzbekistan is the largest electricity producer in Central Asia. Total installed capacity of Uzbekistan's power plants exceeds 12.4 GW. Twelve thermal power plants, with a combined capacity of over 10.7 GW, and 31 hydro power plants, with a combined capacity of 1.7 GW, belonging to the Uzbekenergo, the Ministry of Agriculture and Water Resources, the Mining and Metallurgical Company Almalyk and the Uzkhimprom Association, constitute the backbone of the electricity sector.

Uzbekistan joined the ADB in August 1995. The ADB program in Uzbekistan has provided loans, grants and technical assistance to grow the country's economy and improve the lives of people, particularly the poor, women, children and other vulnerable groups.