ADB to support PPP project for the construction of a photovoltaic station
16/08/2019 17:09
ADB to support PPP project for the construction of a photovoltaic station
16/08/2019 17:09
Tashkent, Uzbekistan (UzDaily.com) -- On 16 August 2019, the Ministry of Energy of the Republic of Uzbekistan signed an agreement on the provision of consulting services with the Asian Development Bank on a project to build a number of photovoltaic stations with a total capacity of up to 1000 MW on a public-private partnership (PPP) basis . This was reported by the press service of the Ministry of Energy of Uzbekistan.
The total capacity of photovoltaic stations is up to 1000 MW, the estimated cost of the project is 800 million US dollars.
Sherabad district of Surkhandarya region was chosen as the location for the implementation of the first pilot project for the construction of a photovoltaic station with a capacity of at least 100 MW.
ADB will act as a consultant, organize the preparation of the Project Concept, financial model, project appraisal document (feasibility study), the agreement on the purchase of electric energy (PPA) and will provide a number of other services.
A conference will also be organized among investors, as well as an international tender.
This project will be implemented by the Ministry of Energy with the assistance and coordination of ADB, the Ministry of Investment and Foreign Trade, and the PPP Development Agency. The start of the project is planned in 2021.
Discussion of the project for the construction of a photovoltaic station in Surkhandarya region took place on 18 July during the round table on the topic of reforming the energy sector. The meeting was attended by over 150 representatives of international organizations and large foreign companies.
Experts noted that today in the energy sector, the largest amount of investment must be directed to the construction of new generating capacities. It is planned that new power plants with a total capacity of 15 GW will be built “exclusively” through direct investment in the forecast volume of US$17.3 billion.
It should be underlined that the tender for the construction of a solar photovoltaic station with a capacity of 100 MW in Navoi region, implemented by the International Finance Corporation (IFC), is currently undergoing tender procedures. Over 25 leading foreign companies expressed interest in participating in the tender. The conclusion of the PPP agreement with the winner of the tender is planned before the end of this year.
By 2030, it is planned to implement a number of large PPP projects, where the predominant share falls on renewable energy sources (RES), including the construction in several regions of the republic of photovoltaic stations with a capacity of up to 5 GW and wind power stations with a capacity of 1.7 GW, and also a project for the construction of thermal power plants with a capacity of 2.6 GW in Syrdarya region.
The main part of the costs for the preparation and implementation of these projects is covered by international financial institutions (IFIs), and part of the costs covered by the budget is reimbursed by the winner of the tender.
The tasks for reforming the energy sector are determined by the Decree of the President of the Republic of Uzbekistan from 3 March 2019. Based on these, IFIs provide technical and financial assistance in the practical implementation of such projects, especially in terms of attracting private investment, including through the PPP mechanism.
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