ACWA Power Sign USD 2.5 billion deal with Uzbekistan
The deals include a Power Purchase Agreement (PPA) for 25 years and an Investment Agreement with a total investment amount of USD 1.2 billion.
ACWA Power has declared the signing of three new vital agreements, probably valued up to USD 2.5bn, with Energy Ministry of Uzbekistan to increase power generation and develop technical expertise.
The deal includes a 25-year Power Purchase Agreement (PPA) and Investment Agreement with a total investment value of USD 1.2 billion for the construction/development/operation of a 1500 MW Combined Cycle Gas-Turbine (CCGT) power plant in Uzbekistan. The contract also involves an investment agreement for the development of wind power projects with a potential of 500-1000 MW, worth USD 550 million to USD 1,1 billion. It also involves a Memorandum of Understanding (MOU) to establish a training center to improve the Uzbek student’s and professional’s technical skills.
The CCGT power plant of 1500 MW, would contribute to Uzbekistan’s fast-track ambitious plan to draw foreign direct investment in key strategic sectors and execute its policy for energy diversification.
The project will be located in the Sirdarya area of Shirin City and will be built as’ Build Own, Operate Transfer works. ACWA Power shall take the lead in plant design, development, operation, and maintenance.
The initiative has an approximate USD 1.2 billion value. The PPA has a period of 25 years, with Uzbekistan’s JSC National Electric Grids serving as its primary off-taker. The production levels of the CCGT plant will be more than 60 % saving almost twice the gas now used for electricity generation. For this initiative, the investment agreement is concluded with the Ministry of Investment and Foreign Trade.
An implementation agreement worth US$550 million-USD1.1 billion has also been signed with the Ministry of Energy to utilize Uzbekistan’s natural renewable energy sources. The contract also involves 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 the use of the most advanced technologies. It also represents Uzbekistan becoming an attractive destination for foreign investors.
According to Abdulla Aripov, the Prime Minister of Uzbekistan, Uzbekistan wants the best international talent to help our optimistic energy targets, with infrastructure development essential to our economic progress. We have selected ACWA Power as a collaborator of the government to upgrade Uzbekistan’s energy generation capacity due to its excellent track record of delivering results.
