EBRD Lends to Uzbek Power Plant

The European Bank for Reconstruction and Development (EBRD) has allocated $240mn to the construction of a gas-fired power plant in Uzbekistan, expected to operate in 2022, it said January 14.

Power supply in south Uzbekistan will be significantly improved thanks to the construction of the additional generation capacity at the existing Talimarjan power plant (TPP) with the help of an up to $240mn sovereign loan to state Uzbekenergo.

The funding will allow the state-run Uzbekenergo to finance the installation of at least 900-MW combined-cycle gas turbines (CCGT) and related infrastructure. The project will be co-financed with the Asian Development Bank (ADB) and the Uzbek Fund for Reconstruction and Development (UFRD).

The EBRD says that the project will be highly efficient and reliable. “This is particularly important for Uzbekistan, the most populated state in central Asia. Currently, energy losses of up to 20% are experienced due to unreliable power supply and obsolete facilities across the country,” it said.

The new high-efficiency CCGT design will help reduce carbon intensity to around 350 kg CO2/MWh, which is about half the current average across the power sector in Uzbekistan.

According to the latest official statistics, Uzbekistan generated 60.7 TWh in 2017, 2.9% more than the previous year, of which 66.4% came from gas-fired PPPs.

The project will be the largest EBRD investment in Uzbekistan to date, which cumulatively stands at €1.3bn ($1.5bn) through 70 projects, the bank said. 

There is no official figure for the cost, but a same-scale CCGT was constructed in Talimarjan during 2013-2016, costing $1.28bn. Uzbekistan then had attracted $350mn from ADB, $300mn from Japan International Co-operation Agency and about $250mn from the Uzbekistan Fund for Reconstruction & Development.