Tashkent, Uzbekistan (UzDaily.com) -- Turkish company Нidro Enerji Elektrik Uretim Sanayi A.Ş. will build a gas piston power plant with a capacity of 174 MW in Khorezm region.

President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to organize the construction of a 174 MW gas piston power plant in the Khorezm region”.

The document says that the Government of the Republic of Uzbekistan represented by the Ministry of Investments and Foreign Trade and Нidro Enerji Elektrik Uretim Sanayi A.Ş are planning to implement an investment project for the construction of a gas piston power plant with a capacity of 174 MW in Khorezm region.

In order to implement the investment project, the Turkish investor established Odaş Enerji SA LLC.

The government of Uzbekistan, represented by the Ministry of Investments and Foreign Trade, signed an investment agreement with the investor and the project company on 4 March.

As part of the project, the investor will design, finance, build and operate a 174 MW gas piston power plant in Khorezm region for 25 years.

The investor plans to attract foreign direct investment in the amount of US$105 million with the assumption of possible risks.

Within the framework of the investment project, an Agreement on the purchase of electricity was signed between JSC National Electric Grids of Uzbekistan and the Project Company on 4 March 2021.

According to the document, the project company, as a security for the fulfillment of its obligations at the proper level during the construction period, provides a bank guarantee in the amount of US$1.3 million.

The project company assumed the obligation of guaranteed sale of the generated electricity to a single buyer represented by National Electric Grids of Uzbekistan.

National Electric Grids of Uzbekistan in accordance with the terms of the Agreement on the purchase of electricity undertakes the obligation of guaranteed purchase of electricity and payment for electricity in national currency for 25 years.

National Electric Grids of Uzbekistan, as a security for the fulfillment of its obligations to cover the purchase of electricity, provides the Project Company with a preferential, unconditional, non-reimbursable bank guarantee in foreign currency within three months.