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Japan to allocate loan to Uzbekistan's electricity industry

12 November 2014 10:48 (UTC+04:00)
Japan to allocate loan to Uzbekistan's electricity industry

By Aynur Jafarova

Japan will allocate a loan worth 86.839 billion yen (about $760 million) to projects in the electric power industry of Uzbekistan, Japanese embassy in Uzbekistan said.

The relative documents on the implementation of three projects were signed in Tashkent on November 10 by Deputy Foreign Minister of Japan Kentaro Sonoura and Uzbek Minister of Foreign Economic Relations, Investments and Trade Elyor Ganiyev.

The largest loan - over $700 million will be allocated to the construction of Turakurgan thermal power plant in Uzbekistan’s Namangan region.

Uzbekistan is planning to construct a new thermal power plant in the Namangan region with a capacity of 900 MW in 2014-2017.

It is expected that the construction of the thermal power plant equipped with two power units each with 450 MW, will begin in 2014 and be completed by 2018.

The first power unit is scheduled to be commissioned in 2016, and the second one in 2017.

According to preliminary data, the total cost of the construction will stand at over $1 billion.

The project will be financed by a loan from the Japan International Cooperation Agency (JICA), Uzbek Fund for Reconstruction and Development and own funds of Uzbekenergo.

The implementation of such a strategic project will not only meet the electricity demands of Ferghana, Namangan and Andijan regions, but also play a significant role in the future development of the entire Ferghana valley.

Currently, electricity is supplied to the region mainly from the central part of Uzbekistan through the power line of 500 kV Novo-Angren thermal power plant - Uzbekistanskaya substation.

Before the launch of this power transmission line, the Ferghana valley was almost fully supplied with electricity from the grid of Kyrgyzstan.

Currently, the installed capacity of power plants of Uzbekistan is 12.8 million kW. The major part of electricity - up to 90 percent – is produced at 10 thermal power plants with total installed capacity of 10.6 million kW.

Uzbekistan increased its electricity production by 3.2 percent in 2013 compared to 2012.

Japan is one of Uzbekistan's key economic partners. The trade turnover between the two countries exceeded $215 million in 2013. The funds provided by Japan to Uzbekistan amounts to $2.32 billion. Some 11 joint Uzbek-Japanese companies have been established and some 14 offices of Japanese companies are accredited in Uzbekistan.

Thanks to Japan's financial and technical assistance, a number of socially significant and infrastructure projects in the health, education, energy, transport, telecommunications and other sectors are being implemented in Uzbekistan.

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