Tashkent, Uzbekistan (UzDaily.com) - The energy sector has become one of the most important sectors of the Uzbek economy in which fundamental reforms are being implemented. This is far from accidental, taking into account the key importance of stable power supply for enterprises and households and the number of complaints about this sector from both the producers of goods and services, and ordinary citizens of our country.

To solve the problems that have accumulated in the energy sector, with the assistance of international experts, Uzbekistan has developed and is implementing a comprehensive program of transformations, the purpose of which is to create an effective, reliable, economical energy supply system for the population and enterprises.

Among the key objectives of the reforms is the expansion of investments in modernization and the creation of new generating capacities to meet the growing needs of the economy for reliable electricity supply. Traditionally, financing in this area was carried out through government borrowing. However, the state’s ability to increase public external debt is not unlimited. In this regard, the Government of Uzbekistan is deliberately working to attract foreign direct investment to the sector.

The first of these investors is the emirate company Mubadala, which plans to acquire a stake in Talimarjan TPP JSC for its further modernization and development.

To date, the Talimarjan Thermal Power Plant’s generating capacity includes a steam unit with a capacity of 800 MW, and two units of modern combined-cycle plants with a total capacity of 900 MW. It is planned to install additional high-tech combined-cycle generating units with a capacity of at least 900 MW, which will require investments of about 1 billion US dollars.

In order to provide conditions for financing these investments through foreign direct investment from Mubadala, the largest investment company of the United Arab Emirates, a joint venture project is being worked out, in which Uzbekistan will contribute in the form of a part of the ownership interest in Talimarjan TPP JSC. Mubadala will make its contribution in the form of cash based on a market valuation of the assets of Talimarjan TPP JSC, carried out according to international standards.

Along with the intention to invest in the expansion of the Talimarjan TPP, the Emirate company agreed to transfer to the joint venture the obligation to service the current debt of the Talimarjan TPP for foreign loans previously raised for the construction of two combined cycle plants, thereby reducing the debt burden of the state company.

The creation of the first joint venture with a reputable partner with rich experience in managing investments in the energy sector far beyond the UAE will allow us to attract the most advanced international experience in managing the plant, increase the efficiency of electricity generation, reduce the loss of natural gas and electricity and reduce the cost of its production.

The partners in the joint venture intend to create a modern training system for the power plant and organize continuous training for specialists and workers of the power plant, taking into account that with the expansion of its capacity, the need for qualified human resources will increase.

In general, Mubadala’s large-scale investments in the republic’s electricity sector will be the first step of the emirate’s company in Uzbekistan. The successful implementation of this project will allow Mubadala to confidently expand its investments in other sectors of our country’s economy, contributing to the creation of modern high-paying jobs, accelerating economic growth and entering Uzbekistan with its products and services to new foreign markets.

In addition, Mubadal’s intention to invest in Uzbekistan plays the role of an important signal from the international institutional investor, which by its example proves that in Uzbekistan, thanks to the reforms of recent years, a favorable investment climate has been created and aging has opened up key sectors of the economy for foreign investors, which were previously dominated by inefficient state monopolies.

With the expansion of the share of private and foreign investors in the energy sector, the role of state regulation of the industry is growing significantly, primarily based on the interests of consumers.

In this regard, the very first step of the current transformations in the energy sector was the creation of the Ministry of Energy, endowed with the authority and responsibility to regulate this most important sector of the economy in the interests of the state and its citizens.