NEWS AND EVENTS
August 12, 2014
Demand Generates Supply
Uzbekistan continues to carry out projects that modernize the electric energy sector. Asian Development Bank acts as the main investment partner providing significant financial means into various initiatives. This enables the supply of a stable flow of energy in Uzbekistan and other countries of the region.
Experts from the Asian Bank suggest that although the global economy is unstable, the demand for electric energy on our continent is growing rapidly. This increase in demand means that some countries are struggling to begin exploiting newly available power capacities. Estimates show that towards 2035, Asia will account for 56% of raw energy consumption, whereas in 2010 it only reached 34%. The increasing use of renewable energy and efficient energy sources using the latest machinery are forecasted to fulfill the growing needs.
In the coming years Uzbekistan is planning to carry out a number of landmark projects, taking on board some of the leading financial institutions and companies. The 2014 investment program alone will carry out 28 of the largest projects, which will update, restore and create production. Within six months of this year the projects have acquired $247.8m and an estimated 48.5% growth rate in comparison to the year before.
Today the state joint stock company Uzbekenergo is practicing a number of potential investment projects in order to draw in additional quantities of FDI (Foreign Direct Investment), best expertise and high tech machinery. Forecasts suggest that this will secure sustainable and reliable energy sources for consumers and subsequently increase the export potential of the Republic.
One such project began a few days ago. Asian Development Bank has provided Uzbekistan with $300m in credit in order to update the ‘Tahiatash TES’ electric power plant in Karakalpakstan.
“Latest estimates suggest that demand for electricity in Karakalpakstan and Horazm province will double. That is why a stable and reliable source of energy is very important for the regions developing manufacture. This provision of finance will help in building the latest energy blocks that will raise the quality of energy supply and reduce pollution,” notes Rune Stroyem, the energy department director of ABD in Central and Western Asia.
The project will put up two 280 megawatt gas-vapor chambers. Three of the currently operating ones will be decommissioned whilst two will remain in reserve. This will equally be financed by the Fund for Development and Reconstruction of Uzbekistan, channeling $270m, and ‘SJSC Uzbekenergo’ providing an additional $130m. The project is planned to be completed at the end of 2020 and will project a total cost of $700m.
(Source: «Uzbekistan Today» newspaper)