Uzbekistan to cooperate with the Netherlands and Turkey to build power plants in Khorezm and Surkhandarya

The President of Uzbekistan has signed decrees on the construction of power plants in Khorezm and Surkhandarya regions.

According to the first document, Stone City Energy (the Netherlands) is implementing an investment project for the construction and operation for 25 years of a combined cycle power plant with a capacity of 1500-1600 MW in Surkhandarya region worth $1.2 billion.
 
To implement the project, SCE Quvvat LLC (design company) has been established. As security for the fulfillment of the obligations at a proper level during the construction period, the design company is provided with a bank guarantee in the amount of $30 million.
 
According to another document, Hidro Enerji Elektrik Uretim Sanayi A.S. (Republic of Turkey) is implementing an investment project for the construction and operation of a 174 MW gas piston power plant in Khorezm region for 25 years. To implement the project, Odas Enerji SA LLC (design company) has been established. As security for the fulfillment of the obligations at a proper level during the construction period, the company is provided with a $1.3 million bank guarantee.
 
The documents also approved the Agreements on the purchase of electricity, concluded within the framework of investment projects between JSC National Electric Grids of Uzbekistan and project companies, in accordance with which:

- the project companies have undertaken the obligation of guaranteed sale of the generated electricity to a single buyer represented by JSC National Electric Grids of Uzbekistan;

- JSC National Electric Grids of Uzbekistan undertakes the obligation of guaranteed purchase of electricity and payment for it in national currency for 25 years;

- JSC National Electric Grids of Uzbekistan, as a security for the fulfillment of its obligations to cover the purchase of electricity, provides in favor of project companies a preferential, unconditional, non-reimbursable bank guarantee in foreign currency for 3 months.