ACWA Power announces the signing of three new strategic agreements, potentially worth up to US2.5 billion, with The Ministry of Energy of Uzbekistan to amplify power generation and develop technical expertise.
The agreements include:
- A 25-year Power Purchase Agreement (PPA) and Investment Agreement – with a total investment value of US$1.2 billion – for the development/construction/operation of a 1500 MW Combined Cycle Gas-Turbine (CCGT) power plant
- An Implementation Agreement worth US$550 million-US$1.1 billion for the building of wind power plants with a capacity of 500-1000 MW
- A Memorandum of Understanding (MOU) for the development of a training centre to enhance technical skills of Uzbek students and professionals
The 1500 MW CCGT power plant shall contribute to Uzbekistan’s fast track ambitious plan to attract foreign direct investment in essential key sectors and the implementation of its energy diversification strategy. The project will be located in Shirin City in the Sirdarya region and will be developed as a ‘Build, Own, Operate, Transfer’ projects. ACWA Power will take the lead in constructing, engineering, operating and maintaining the plant.
The project has an estimated aggregate worth of US$1.2 billion. The PPA has a 25-year duration, with JSC National Electric Grids of Uzbekistan acting as the sole off-taker. The CCGT plant’s efficiency rate will be in excess of 60% – saving almost twice the natural gas currently used for electricity production. The Investment Agreement for this project is signed with the Ministry of Investment and Foreign Trade.
An implementation agreement worth US$550 million-US$1.1 billion has also been signed with the Ministry of Energy to utilise Uzbekistan’s natural renewable energy sources. The agreement envisages the development, financing, construction, operation and maintenance of a 500-1000 MW wind farm.
The third agreement is an MoU between the Ministry of Energy of Uzbekistan, Air Products & Chemicals and ACWA Power. This agreement entails training programs to bolster the technical expertise of students and professionals at one or more colleges in Uzbekistan. It will equip potential talent with the tools and knowledge to gradually support a local supply chain for the utilities and chemicals sectors in Uzbekistan.
The agreements reflect Uzbekistan’s growing role in the global energy market, its commitment to energy security and use of the latest technologies. It also demonstrates Uzbekistan is becoming an attractive destination for foreign investors.
Source: http://bit.ly/2TZcnhR
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