ADB to upgrade Uzbekistan’s Takhiatash thermal power plant
By Aynur Jafarova
The Asian Development Bank (ADB) will upgrade Uzbekistan's Takhiatash Thermal Power Plant (TPP).
A loan worth $300 million is aimed at meeting the rising electricity demand in the west part of the country, ADB said on July 15.
Director of the Energy Division of ADB's Central and West Asia Department Rune Stroem said this loan will help finance modern generating units to increase the reliability of power supply, save energy, and cut greenhouse gas emissions.
"Karakalpakstan and Khorezm regions are expecting electricity demand to grow at double the rate of the forecasted national average. Reliable power supply is essential to meet the residential demand and for future industrial development and growth," Stroem said.
The project envisages the construction of two new energy-efficient combined-cycle gas turbines of up to 280 megawatts each, while decommissioning three existing steam turbine units, with two others to be kept as backup.
Another component will be staff training and other support for the state-owned power utility Uzbekenergo to improve tariff setting and to make the utility more commercially bankable.
Uzbekenergo, with previous support from ADB, has made substantial improvements in financial transparency and introduced advanced electricity metering infrastructure, but it still needs to modernize its management and information and technology systems.
Along with ADB's assistance, the Uzbekistan Fund for Reconstruction and Development will provide a $270 million loan, with Uzbekenergo and the Uzbek government extending a combined $130 million, for a total investment cost of $700 million. The project will run for 6 years with an estimated completion date of end October 2020.
Uzbekistan joined the ADB in August 1995. Currently, the portfolio of cooperation between Uzbekistan and the ADB includes 40 projects worth $14.5 billion.
Uzbekistan and the ADB are jointly implementing the strategically important investment projects and programs such as the construction of two steam gas units with a total capacity of 900 MW at the Talimarjan thermal power plant, a large scale program of road construction and reconstruction, building the Ustyurt Gas Chemical Complex at Surgil deposit and a housing program in rural areas.