Chinese Funding for Mulalak Hydropower Plant in Uzbekistan
Major Hydropower Plant Mulalak to be Built on Pskom River, Financed by Chinese Bank
A significant hydropower project, the Mulalak Hydropower Plant, is set to be constructed on the Pskom River in Uzbekistan. According to Farrukh Nurullaev, Deputy Chairman of Uzbekhydroenergo, financing for the project is being obtained through loans from a Chinese bank. Additionally, the contractor for the project is likely to be from China, as stipulated in relevant agreements by Chinese authorities.
In 2024, Uzbekistan generated 8.2 billion kWh of electricity through hydropower plants, leading to revenues exceeding 4 trillion UZS from sales. This represented a 20% increase in electricity production compared to 2023, driven by the expansion of Uzbekhydroenergo’s hydropower plants to 77. These details were disclosed during a press conference held at AIMC on March 27.
Funding for hydropower plants near Charvak was also discussed during the event. Nurullaev explained the processes mandated by Presidential Decree No. 332 for state-owned projects, emphasizing the need for technical and economic feasibility studies, expert reviews, and government approvals before implementation.
Regarding the Mulalak Hydropower Plant project, Nurullaev highlighted that the necessary expert evaluations and agreement processes have been completed, and funding sources have been identified. The project will be financed by a Chinese bank, with agreements between Uzbekistan’s Ministry of Finance and the Chinese government currently being finalized.
Nurullaev further mentioned that financing organizations, including Chinese banks, typically dictate conditions for contractor selection, often requiring tenders among qualified Chinese companies. The contractor for the Mulalak project has yet to be determined as the selection process is still ongoing.
Additionally, Nurullaev addressed the production cost of generating 1 kWh of electricity at hydropower plants, which is currently 185 UZS per kWh. This cost may vary annually based on new projects and implementation expenses.
Officials also outlined hydropower projects planned for 2025 during the press conference, with 15 projects included in the state investment program and over $248 million allocated. These projects aim to increase electricity generation by 10% compared to the previous year.
