Uzbekistan Signs Milestone Agreements With ACWA Power

Deals worth over US$2 billion to strengthen Uzbekistan's energy industry

Tashkent, Uzbekistan /PRNewswire/ - The Ministry of Energy of Uzbekistan is pleased to announce the signing of three new strategic agreements, worth over US2 billion, with the Saudi Arabian utility developer ACWA Power to amplify power generation and develop technical expertise.

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

As Uzbekistan fast tracks its ambitious energy diversification strategy, the 1500 MW CCGT power plant is set to contribute materially. 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% - saving almost twice the natural gas currently used for electricity production.

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.

The agreements reflect Uzbekistan's growing role in the global energy market, its commitment to energy security and use of the very latest technologies. It also demonstrates Uzbekistan is becoming an attractive destination for foreign investors.

Alisher Sultanov, Minister of Energy of Uzbekistan said:
"These newly agreed power projects represents a historic milestone for Uzbekistan and supports our mission to strengthen energy security through self-sufficient power sources. ACWA Power's focus on smart, energy efficient technologies will provide more than 2000 MW of added power and enable us to achieve a more sustainable, secure and affordable energy ecosystem for our country."

Mohammad Abunayyan, Chairman of ACWA Power, said:
"ACWA Power is on a dynamic growth path and our priority has been to expand and extend our geographic footprint in Central Asia. The market has an economically vibrant landscape that favours private investment and power sector fortification and this is where we can make a great contribution. ACWA Power has an impressive track record in helping emerging markets and communities drive progress by providing access to affordable electricity. We are honoured to have been given the opportunity to utilise our energy expertise to unlock the tremendous growth potential of Uzbekistan's power sector.

"Our partnership will create new opportunities for national and community development and help build a sustainable future for all the people of this great country."

About ACWA Power

• 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)
• ACWA Power's mission is to reliably deliver electricity and desalinated water at a low cost, thereby contributing effectively to the sustainable, social and economic development of communities and countries. ACWA Power is committed to the values of Safety, People and Performance in operating its business across all geographies. For more info, please visit www.acwapower.com