Mubadala Investment Company, Abu Dhabi’s strategic investment arm, signed an agreement with Uzbekistan’s Ministry of Investment and Foreign Trade and JSC Thermal Power Plants to privatise and develop the country’s Talimarjan Power Complex.
The deal, signed in the Uzbek capital Tashkent, establishes a road map, which includes the acquisition, development, financing and operation of the complex, Mubadala said in a statement on Saturday. There are also plans to expand the complex, which currently produces 1.7 Gigawatts of gas-fired conventional power.
The partnership will "contribute to the growth of the region and help to create expertise in the development of the country's energy industry”, said Sardor Umurzakov, the Uzbekistan Minister of Investments and Foreign Trade. “This success sets a precedent for future private sector participation in the country and sends a positive message to the global investment community.”
The deal marks one of the first privatisations in the conventional power generation sector in Uzbekistan, utilising the independent power producer model.
"We hope this is the first of many partnerships with the republic,” said Khaled Al Qubaisi, chief executive of Aerospace, Renewables & ICT at Mubadala.
Mubadala, during a state visit of Uzbek president Shavkat Mirziyoyev, Mubadala in March last year, signed $10 billion (Dh36.7bn) worth of investment agreements with Uzbekistan across sectors including energy, industry, infrastructure, development and agriculture. Mubadala’s overall $229bn portfolio spans five continents with interests spanning oil and gas technology among other sectors.
In October, Mubadala-owned Masdar won a bid for a $100 million utility-scaled solar planned project in Uzbekistan’s Navoi region. The 100 Megawatt project will be the Central Asian country’s first solar photovoltaic scheme developed under a public-private partnership model.
Uzbekistan, which borders large oil and gas producers Kazakhstan and Turkmenistan, has hydrocarbon reserves but is not a massive operator in the sector. The country has an ambitious plan to develop 5GW of renewable energy by 2030 to diversify its power mix.