China to provide Uzbekistan with $ 25 million loan for HPPs construction

By Azernews

By Abdul Kerimkhanov

Uzbekistan plans to build two new small HPPs on the Dargom Canal in the Samarkand region at the expense of China's soft loans, Trend reports with reference to a government decree on April 8.

The aim of the project is to consistently increase the use of renewable energy sources, increase the balance of energy resources and ensure the most complete satisfaction of the needs of the economy and the population of the country for electricity.

New facilities - the Shaudarskaya small HPP and the small HPP at picket 135+50 will be built with preferential loans from the Ministry of Commerce of China. The total cost of projects will exceed $ 30 million. Construction of HPPs is scheduled to be completed at the end of 2021.

Chinese Eximbank will allocate $ 25 million (24.8) for their implementation, and Uzbekgidroenergo - $ 5.8 million at its own expense

After the launch, the capacity of the Shaudarskaya small HPP will be 7.2 MW, and the Small Hydro Power Plant at the picket 135+50 - 7.4 MW. Each year, the first station will produce 37.8 million kWh, and the second - 34.3 million kWh.

Now Uzbekistan’s need for electricity is 69 billion kWh, and about 64 billion kWh are produced. Nearly 86 percent of the energy comes from burning gas and coal, and 14 percent comes from HPPs.

Uzbekistan is the largest electricity producer in Central Asia. Total installed capacity of Uzbekistan’s power plants exceeds 12.4 GW. Twelve thermal power plants, with a combined capacity of over 10.7 GW, and 31 HPPs, with a combined capacity of 1.7 GW, belonging to the Uzbekenergo, the Ministry of Agriculture and Water Resources, the Mining and Metallurgical Company Almalyk and the Uzkhimprom Association, constitute the backbone of the electricity sector.

Today there are more than 430 rivers and other waterways in the country with a total length of about 12,700 kilometers. Every year, about 60 billion kWh are generated in Uzbekistan, of which more than 6.5 billion account for hydroelectric power plants. Existing resources, according to forecasts of experts, in the medium term will allow bringing electricity generation at Uzbek hydropower stations to 27.4 billion kWh per year.

During the latest decade, hydropower energy production has been steadily increasing in the country. It is expected to grow mainly by virtue of the development of mini-hydropower plants with a capacity of 420–440 MW and the modernization of existing HPPs.

Diplomatic relations between Uzbekistan and China were established on January 2, 1992.

The trade turnover between the two countries totalled $ 6.43 billion in 2018. Of this amount, $ 2.869 billion is Uzbek exports, as many as $ 3.559 billion is imports.

China received $ 2.1 billion due to an increase in construction in Uzbekistan. With this money, Uzbekistan has acquired special construction equipment from China. 

Over 1,100 enterprises with Chinese capital are registered in Uzbekistan.