The President of Uzbekistan, Shavkat Mirziyoyev, has signed a resolution authorizing the construction of a 550 MW combined-cycle power plant in the Jizzakh region. The project, which is expected to be operational by 2025, will be undertaken by Turkish company Cengiz Enerji San. ve Tic A.Ş., and design company Cenergo. The plant is expected to generate over 4 bn kWh of electricity and save at least 700 mn cubic meters of gas.
The investor and project company are responsible for the design, financing, construction, and operation of the power plant, and are expected to attract $500 mn in foreign direct investment. The project company is also required to provide a $2 mn guarantee to a foreign first-tier bank as a guarantee for the proper fulfilment of its obligations during the construction period.
The state-owned company, National Electric Networks of Uzbekistan, has committed to purchasing the electricity produced by the plant for 25 years. The Ministry of Water Resources, UzGasTrade, Uztransgaz, and National Electric Networks have been instructed to sign contracts for the supply of natural gas and technical water for the power plant.
The Ministry of Economy and Finance has been instructed to allocate funds from the state budget to finance the costs associated with the construction of gas supply infrastructure to ensure a reliable and continuous supply of gas to the power plant.
The project company has been granted the right to open bank accounts in foreign banks to obtain a loan, obtain foreign currency, and use them (including borrowed funds in foreign currency). It will also be able to make payments to foreign contractors, suppliers, or foreign creditors outside Uzbekistan directly, without transferring them through bank accounts in the republic.
In case of non-delivery of gas and technical water, the project company will compensate for the damage, including all types of fines and the amount of lost profits, unless otherwise provided in the contract.
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