The Ministry of Energy of Uzbekistan has signed three new strategic agreements, worth over $2 billion, with the Saudi Arabian utility developer ACWA Power. The agreements include:
- A 25 year Power Purchase Agreement (PPA) – 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 a wind power plant with a capacity of 500-1000 MW of clean energy
- A Memorandum of Understanding (MOU) for the development of a training centre to enhance technical skills of Uzbek students
The plant will be located in Shirin City in the Syrdarya region and will be developed under the ‘Build, Own, Operate, Transfer’ model. ACWA Power will take the lead in constructing, engineering, operating and maintaining the plant.
Signed with the Ministry of Investments and Foreign Trade of Uzbekistan, and with 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%.
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. ACWA Power will leverage the country’s wind power to generate 500-1000 MW of energy.
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 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.
ACWA Power is a developer, investor and operator of power generation and desalinated water production plants. Currently present in 12 countries in the Middle East, Africa and South East Asia, ACWA Power employs over 3,500 people with about 60percent local employment
ACWA Power’s portfolio includes 56 assets with an investment value of USD 45.5 billion, producing 31 GW of power and 5.2 million m3 /day of desalinated water delivered on a bulk basis to address the needs of state utilities on long-term, off-taker contracts under Public-Private-Partnership model
Registered and established in 2004 in Riyadh, Saudi Arabia, ACWA Power is co-owned by nine Saudi conglomerates, including Vision International Investment Company, Public Investment Fund (PIF), Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group
