A Saudi Arabian firm will modernize the heat supply system in Nukus, Republic of Karakalpakstan, under a newly signed public-private partnership (PPP) agreement.
The deal, signed on November 18 during an international roundtable in Tashkent on “Mobilizing private capital through public-private partnerships,” involves Issiqlikta'minoti and Saudi Tabreed District Cooling Company. The project will upgrade the RK-1 boiler house in Nukus using advanced trigeneration technologies, producing 21.5 MW of electricity and 61.5 MW of thermal energy.
Ilhom Turaev, Chairman of the Board of Issiqlikta'minoti JSC, said the project marks the first large-scale implementation of a public-private partnership in Nukus for thermal energy provision.
“This is the first step to provide the city of Nukus with thermal energy through a PPP. A cogeneration unit will be installed to simultaneously generate electricity and heat. The project cost is $25mn. After the system is launched, the state will purchase electricity and heat from the investor under an off-take agreement. Thermal energy will be provided to residents at preferential rates. The project has a three-year implementation period, and our aim is to ensure stable thermal energy supply for the people of Nukus,” Turaev said.
Once operational, the system will provide centralized heating to 511 apartment buildings, covering more than 20,000 apartments, as well as 182 social facilities. The modernization is expected to save 6mn cubic meters of natural gas and 1.8 billion soums of electricity annually.
