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Economy 16/11/2019 Uzbekistan, ADB discuss cooperation in energy sector
Uzbekistan, ADB discuss cooperation in energy sector

Tashkent, Uzbekistan (UzDaily.com) - At the Ministry of Energy of the Republic of Uzbekistan on 15 November 2019, a meeting was held with Ashok Bhargava, Director of the Energy Division of the Central and West Asia Department of the Asian Development Bank (ADB). This was reported by the press service of the Ministry of Energy of the Republic of Uzbekistan.

The sides discussed prospects for the development of renewable energy sources, as well as further plans for the development and modernization of transmission networks. In particular, the progress of the project on the construction of high-voltage power lines Surkhan-Puli-Khumri was discussed.

The parties also discussed the possibility of financing on the basis of an ADB loan, measures to implement reforms in the republic’s energy sector.

The Asian Development Bank is actively supporting the development of the fuel and energy sector in Uzbekistan. At the joint initiative of the Government of the country and the Central Asian Regional Economic Cooperation Program - CAREC, created on the initiative of the ADB in 2001, in Tashkent on September 20-21, The Central Asian Energy Investment Forum 2019 and the First Dialogue of Energy Ministers of the CAREC Member Countries took place. Following the results of the Dialogue, the Declaration of Central Asian Ministers of Energy was adopted, which enshrines the common commitment of these countries to develop a common energy strategy for 2030.

Thus, CAREC events clearly demonstrated that achieving energy security in countries, including Uzbekistan, is based on regional integration and energy efficiency.

On 14 November 2019, the CAREC Ministerial Conference began in Tashkent, in which ADB President Takehiko Nakao participated. And here the energy component, its regional spectrum were considered as priority. It is no accident that the message of the President of Uzbekistan Shavkat Mirziyoyev noted: “The stable and sustainable development of the region is inextricably linked with the modernization of the energy infrastructure, the establishment of a single energy market through the implementation of multilateral projects in this area.”

For the development of the fuel and energy complex of Uzbekistan, the international experience of the ADB, expressed in technical support of the reforms, is important. In particular, with the assistance of ADB, an international competition will be organized to select a private investor for a project for the construction, management and ownership of a 100 MW photovoltaic station in Surkhandarya region. The relevant Consulting Services Agreement was signed in August 2019 between the Ministry of Energy, the Public Private Partnership Development Agency (PPP) and ADB.

The announcement of the winner of the tender is expected in June 2020, the start of construction is scheduled for December 2020 and will be completed in a year. In the summer of 2021 it is expected to receive the first power output by the station.

Under the terms of the competition for the project, investors will also have to submit applications for the construction of chemical energy storage batteries to stabilize the network, as well as power distribution in the evening peak hours of consumption. This project will be implemented on the basis of public-private partnership and is the first for Uzbekistan in its direction. The volume of investments will be about 100 million US dollars, which will be paid back to the investor gradually through monthly bills for the actual supply of electric energy.

With the financial support of ADB, the project “Construction of a 220 kV transmission line of the Takhiatash TPP - Khorezm Substation - Sarymay (Khorezm Region)” is also being implemented. The total cost of the project is US$258.5 million, of which ADB loans are US$150 million.

To date, reinforced concrete and metal supports have been installed at the facility, work is underway to complete the first stage of the project by the end of November - the construction of a 220 kV transmission line from Khorezm substation to Sarymay 220 kV substation. In December 2019, it is planned to commission the power line from the Takhiatash TPP to the Khorezm substation.

An agreement was also reached with the Asian Development Bank on the development of projects in the field of modernization of the gas transmission system of Uzbekistan, as well as assistance to ADB in expanding interregional cooperation.

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