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RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of December 10, 2021 No. PP-44

About additional measures for further development of hydropower

For the purpose of further expansion of scope of use of the available hydropower potential of natural and artificial water currents and renewable energy resources of the country in production of electricity, and also creating favorable conditions for attraction to the sphere of private investments and development on this basis of capacities in production of new environmentally friendly energy:

1. Determine the main important directions of further development of hydropower and rational use of the available hydropower potential of the republic:

finishing in 2030 capacity of hydroelectric power stations of the republic to 3 416 MW by consecutive acceleration of creation of new capacities and step-by-step upgrade of the operating production capacities due to wide use of environmentally friendly power sources in electric power industry;

broad attraction of private sector and population to production of electrical energy with use of natural water currents, their state support and stimulation, ensuring the guaranteed connection them to single electric utility system, creation of system of the guaranteed purchase of the made electrical energy.

2. Approve developed by the Department of Energy, the Ministry of Economic Development and reducings poverty, the Ministry of water economy, the State committee of geology and to mineral resources, the Center of hydrometeorological service, JSC Uzbekgidroenergo and other interested ministries and departments the Program of additional measures for further development of hydropower for 2021 - 2030 (further - the Program) including:

Target parameters of further development of hydropower and increase in level of use of hydropower potential for 2021 - 2030 according to appendix No. 1;

The list of the investment projects included in the Investing program of the Republic of Uzbekistan for 2021 - 2023 and realized in 2022 - 2026 according to appendix No. 2;

The list of the investment projects directed to increase in level of use of the available hydropower potential, creation new and upgrade of the operating capacities of hydroelectric power stations for 2024 - 2030 according to appendix No. 3;

The list of the projects offering construction of small hydroelectric power stations with participation of private sector according to appendix No. 4;

The list of the equipment, component parts and the spare parts necessary for construction and operation of the small hydroelectric power stations offered to localization on the basis of cooperation in 2022 - 2025 according to appendix No. 5.

Authorize the Cabinet of Ministers to make, if necessary, corrections, amendments and changes to appendices No. No. 2 - 4 to this resolution with preserving general parameters and indicators of the Program.

3. Take into consideration that:

financial statements of JSC Uzbekgidroenergo for 2018 - 2020 are prepared on the basis of International accounting standards (IFRS), under financial statements for 2019-2020 the positive decisions of the international consulting organization "PwC" (Pricewaterhouse Coopers) are received;

the international rating agency "Fitch Ratings" in 2020 assigns the international credit rating "In +" ("Positive") which in October, 2021 is raised to the BB-level ("Stable");

for the purpose of financial improvement, increase in operating efficiency, development of medium-term and long-term development strategies of JSC Uzbekgidroenergo the international consulting company "McKinsey&Ñompany" is attracted.

4. JSC Uzbekgidroenergo together with the Ministry of Finance, the Department of Energy and the Ministry of Economic Development and reducings poverty in two-month time to introduce in the Cabinet of Ministers "Road map" on further increase in operating efficiency and implementation of modern corporate management methods in JSC Uzbekgidroenergo on the basis of the concluding observation of the international consulting company "McKinsey&Ñompany".

5. To Department of Energy proceeding from foreign experience to submit within three-months term within the Cabinet of Ministers of the offer on modification and the amendments in the legislation providing:

inclusion of hydroelectric power stations installed capacity to 0,5 of MW in classification of microhydroelectric power stations, hydroelectric power stations installed capacity to 5 MW - small, hydroelectric power stations installed capacity to 30 MW - averages, hydroelectric power stations installed capacity more than 30 MW - large and determination of data of hydroelectric power stations renewable energy resources;

construction of micro and small hydroelectric power stations (without providing construction of water-collecting constructions) private investors (initiators) who showed initiative on the basis of public-private partnership and the market principles.

6. Determine that:

a) since January 1, 2022 the electrical energy made by hydroelectric power stations as a part of JSC Uzbekgidroenergo is bought including tax on value added by body which by the nature of the activities is authorized by the state to conduct function (power) the guaranteed procurement of electrical energy, at:

the hydroelectric power stations working at waterways - in the amount of 70 percent of the rate established for the II tariff customer group;

the regulating hydroelectric power stations connected with the mode of electric utility system regulated by the dispatcher - in the amount of 100 percent of the rate established for the II tariff customer group;

pumped storage power plants - in the amount of 150 percent of the rate established for the II tariff customer group;

b) the guaranteed purchase by body which by the nature of the activities is authorized by the state to conduct function (power) procurement of electrical energy, excesses of the electrical energy made for own needs at the new solar, wind and biogas power plants put into operation (except for capacities of industrial scale of 1 MW and more) and hydroelectric power stations by installed capacity to 5 MW, is performed in the amount of 80 percent of the rate established for the II tariff customer group;

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