Press Releases
Exchanges of Notes Concerning Yen Loans to the Republic of Uzbekistan
for Contributing to Stabilizing Electric Power Supply and Improving Energy Efficiency and to Enhancing Export Capability and Promoting Employment in the Agricultural Sector
1. On December 19, Mr. FUJIYAMA Yoshinori, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Uzbekistan, and Mr. Sardor Umurzakov, Minister of Investments and Foreign Trade of the Republic of Uzbekistan, exchanged notes in Tokyo on three Yen Loan Projects.
2. Overview of the Yen Loan Projects
(1) Navoi Thermal Power Station Modernization Project (Phase 2) (loan provision of up to 128.246 billion yen)
This project is to maintain gas turbine combined cycle thermal power generation systems with high power generation efficiency and associated systems at the Navoi Thermal Power Station. This is expected to increase power supply and reduce fuel consumption, thereby contribute to stabilizing power supply and improving energy efficiency in the Republic of Uzbekistan.
(2) Electric Power Sector Capacity Development Project (Phase 2) (loan provision of up to 36.621 billion yen)
This project is to replace equipment, supply spare parts, and develop human resources for existing thermal power stations in the Republic of Uzbekistan. This is expected to help develop the capacity for establishing a mid to long-term operation and maintenance system for the Uzbek electric power sector’s thermal power generation component, thereby contribute to stabilizing power supply and improving energy efficiency in the Republic of Uzbekistan.
(3) Horticulture Value Chain Promotion Project (loan provision of up to 23.023 billion yen)
This project is to provide two-step loans to farmers engaged in the production and processing of horticulture and to related companies, as well as provide supports for capacity enhancement of participating financial institutions and farm management supports to end users. This is expected to improve access to financing and strengthen the horticulture value chain, thereby enhance export capability and promote employment to contribute to developing the agricultural sector.
3. Loan Terms of Each Project
(1) For project (1) in 2. above (Navoi Thermal Power Station Modernization Project (Phase 2))
| i. Interest rate | : | 0.50% per annum |
| ii. Repayment period | : | 30 years (including a 10-year grace period) |
| iii. Procurement terms | : | General untied |
(2) For project (2) in 2. above (Electric Power Sector Capacity Development Project (Phase 2))
| i. Interest rate | : | 1.15% per annum |
| ii. Repayment period | : | 30 years (including a 10-year grace period) |
| iii. Procurement terms | : | General untied |
(3) For project (3) in 2. above (Horticulture Value Chain Promotion Project)
| i. Interest rate | : | 1.00% per annum |
| ii. Repayment period | : | 25 years (including a 7-year grace period) |
| iii. Procurement terms | : | General untied |
[Reference]Japan-Uzbekistan Relations (Basic Data)
The Republic of Uzbekistan has an area of approximately 450,000 square kilometers (about 1.2 times that of Japan), a population of approximately 32.4 million (2018, United Nations Population Fund), and a per capita Gross National Income (GNI) of 2,020 U.S. dollars (2018, World Bank).