ACWA Power signs milestone agreements with Ministry of Energy of Uzbekistan
- Deals worth up to US$2.5 billion to strengthen Uzbekistan’s energy security signed
Tashkent, Uzbekistan, March 8, 2020: 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.
“Our collaboration with ACWA Power will enable the government to benefit from the strong private sector participation which we believe is vital for Uzbekistan’s ongoing transformation and growth. We look forward to working with ACWA Power and building on this partnership in the future”, Aripov elaborated.
"With our proven track record as a global leader in the sectors of power generation and water desalination, with in-depth knowledge and expertise, we are proud to have been granted this opportunity to build strategic partnerships with the Uzbek government. Our partnership will deepen the friendly economic relations between the Kingdom of Saudi Arabia and the Republic of Uzbekistan, and will allow us to utilize our capabilities to unlock the tremendous growth potential of the energy sector in Uzbekistan", Abunayyan added.
Abunayyan noted that the signing of the three agreements with the Uzbek government highlights the pivotal role of the Saudi private sector in the Saudi economy and in fortifying the base of Saudi investments abroad as well as fruitful economic relations between Saudi Arabia and friendly countries.
Abunayyan concluded that the agreements inked with the Uzbek government will contribute to creating job opportunities, developing community and achieving a sustainable future for the country.