Tashkent, Uzbekistan (UzDaily.com) –– A 100-megawatt photovoltaic power plant (FES) will be built in Samarkand region. The corresponding decree of the head of state was adopted on 13 May 2020.

The document approved an investment agreement concluded on 13 September 2019 between the government of Uzbekistan represented by the Ministry of Investments and Foreign Trade, the French company Total Eren SA and an enterprise with foreign investments in the form of LLC Tutly Solar.

The investment agreement envisages the obligations of the investor and the design company for the design, financing, construction and operation for 25 years of a solar power station in Samarkand region with a capacity of 100 MW.

The Agreement on the purchase of electricity, signed on 13 September 2019 between JSC National Electric Networks of Uzbekistan and the Project Company, was also approved.

National Electric Networks of Uzbekistan JSC, within the framework of the Electricity Purchase Agreement, will conclude an agreement with the project company on the transfer of the customer’s connection means, will take ownership of the increasing substation of the FES from the Project company after its commissioning and evaluation of an independent international consultant, will reimburse the confirmed expenses of the project with a single payment of the company, will ensure the construction of the associated infrastructure of the FES, will open a confirmed renewable letter of credit in foreign currency in to the project company to cover a three-month purchase of electric energy generated by the FES.

Within the framework of the investment project, the project company has the right to open bank accounts abroad in foreign banks for lending, receiving and using funds in foreign currency on such accounts (including also the receipt of credit funds in foreign currency), directly make payments to foreign contractors, suppliers or foreign creditors outside of Uzbekistan without making such payments through bank accounts in Uzbekistan.

The Resolution established that in relation to the volume of electricity sold within the framework of the investment project, the exemption from value added tax provided for by the Presidential Decree of May 5, 2015 does not apply.

The document contains a number of instructions given to the relevant ministries for the implementation of this investment project.