Russian company to modernize Farkhad hydroelectric station

Tashkent, Uzbekistan (UzDaily.com) -- The Government of Uzbekistan approved measures to implement the investment project “Modernization of the Farkhad hydroelectric station in the city of Shirin, Syrdarya region”.

The document stated that Uzbekgidroenergo and Power Machines - ZTL, LMZ, Elektrosila, Energomashexport (Russian Federation) signed a contract for the modernization of the Farkhad hydroelectric station on a turnkey basis for a total of 56.52 million euros.

Hydroproject developed a feasibility study of an investment project, which requires investments for 58.27 million euros.

The State Corporation “Bank for Development and Foreign Economic Affairs” of the Russian Federation (Vnesheconombank) and the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) concluded an agreement on opening a credit line.

Vnesheconombank provided a loan of 45.22 million euros to finance the project. The loan is granted for 10 years with a three-year grace period. The interest rate on the loan is 2.35 percent per annum, including the refinancing margin of NBU in the amount of 0.35 percent.

At the same time, Uzbekgidroenergo JSC will direct its own funds in the amount of 13.05 million euros for the implementation of this project.

According to the feasibility study of the project, the power station’s capacity will be 127 MW. The station will produce up to 531.2 million kWh of electricity per year.