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ACWA Power signed 3 new strategic agreements, potentially worth up to $2.5 billion, with The Ministry of Energy of Uzbekistan to amplify power generation and develop technical expertise.
The first one consists of a 25-year power purchase agreement (PPA) and investment agreement – with a total investment value of $1.2 billion - for the development/construction/operation of a 1500 megawatts (MW) Combined Cycle Gas-Turbine (CCGT) power plant.
The plant will contribute to Uzbekistan’s plan to attract foreign direct investment (FDI) in essential key sectors and the implementation of its energy diversification strategy.
Located in Shirin City in the Sirdarya region, it will be developed as a ‘Build, Own, Operate, Transfer’ basis, where ACWA Power will take the lead in constructing, engineering, operating and maintaining the plant.
JSC National Electric Grids of Uzbekistan will act as the sole off-taker for the plant, whose efficiency rate will be in excess of 60% - saving almost twice the natural gas currently used for electricity production.
The second one is an implementation agreement worth $550 million-$1.1 billion for the building of wind power plants with a capacity of 500-1000 MW.
The third is a memorandum of understanding (MOU) between the Ministry of Energy of Uzbekistan, Air Products & Chemicals, and ACWA Power to develop 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.
"Our partnership will deepen the friendly economic relations between Saudi Arabia and Uzbekistan, and will allow us to utilize our capabilities to unlock the tremendous growth potential of the energy sector in the country,” Mohammad Abunayyan, Chairman of ACWA Power, said.
“The agreements will contribute to creating job opportunities, developing community and achieving a sustainable future for the country,” he added.
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