China Eximbank provides $24.8 million loan for the Dargom Canal Hydroelectric Power Plant Construction Project

In 2019, China Eximbank and the Government of Uzbekistan signed a $24,810,900 loan agreement for the Dargom Canal Hydroelectric Power Plant Construction Project. The loan carries the following borrowing terms: a 20 year maturity, a 5 year grace period, a 2% interest rate, a 0.75% commitment fee, and a 0.75% management fee. The borrower is expected to use the loan proceeds to partially finance the total project (commercial contract) cost of $30 million. Uzbekhydroenergo is expected to provide $5.8 million of counterpart financing. The purpose of the project is to construct the 7.2MW Shaudarskaya small hydroelectric power station and a small, 7.4 MW hydroelectric power station at picket 135 + 50. Both power stations will be located on the Dargom canal in Samarkand region. The two stations, upon completion, are expected to annually generate 37.8 million kWh and 34.3 million kWh, respectively.

Additional details

1. This project is also known as the “Construction of a hydroelectric power station on the Dargom Canal” Project. The Uzbek project title is Строительство Шаударской малой ГЭС на канале Даргом, строительство малой ГЭС на пикете 135+50 канала Даргом в Самаркандской области. 2. The proceeds of the loan may have been on-lent to Uzbekhydroenergo. This issue warrants further investigation.

Number of official sources

5

Number of total sources

11