RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of February 3, 2022 No. PP-113

About measures for project implementation "Transformation of electric utility sector and steady transmission of electricity" with participation of the World Bank, and also on development and increase in system effectiveness of the high-level power networks of the republic

For the purpose of development of system of the high-level power networks of the republic, increase in its reliability and safety, prevention of system accidents, and also steady providing with electrical energy of industries of economy and the population:

1. Take into consideration that:

a) The Board of Directors of the World Bank approves on June 25, 2021 financing of investment projects at the expense of soft credit in the amount of 330 million US dollars and the credit which is not providing privilege in the amount of 50 million US dollars of International Development Association, soft credit in the amount of 43 million US dollars and grant means in the amount of 4 million US dollars of Green climatic fund of the following components of the "Transformation of Electric Utility Sector and Steady Transmission of Electricity" project (further - projects of the World Bank):

"Implementation of hardware and software system of dispatching management and data collection (SCADA)";

"Upgrade and reconstruction of substations of the high-level power networks with participation of the World Bank (Phase II)";

"Construction of new substation of 500 kV "Ring" and electricity transmission air-lines tension 220, 500 kV";

"Implementation of the Automated control system for resources (ERP) of JSC Natsionalnye elektricheskiye seti Uzbekistana;

b) On October 6, 2021 the Mandatory letter between JSC Natsionalnye elektricheskiye seti Uzbekistana (further - NESU) and the European Bank for Reconstruction and Development about allocation of corporate credit without the state guarantee for financing of the investment project "Construction of VL of 500 KV of Sarymay (the Khorezm Region) — Dzhangelda (the Bukhara Region) 130 Km Long" is signed.

2. Approve the main technical and economic indicators of the following investment projects aimed at providing stable and steady operation of the Power pool system, reducing the risks connected with human factor in the course of supervisory control, prevention of system accidents and cost reduction on transportation of electrical energy by reducing technology expenses:

"Implementation of hardware and software system of dispatching management and data collection (SCADA)" according to appendix No. 1;

"Upgrade and reconstruction of substations of the high-level power networks with participation of the World Bank (Phase II)" according to appendix No. 2.

At the same time to take into consideration that:

due to implementation of single electric utility system, including the modern, automated system of operational management overflows of electrical energy on power networks, ensure smooth and steady operation of power system;

by replacement physically and the obsolete electric equipment and equipment on 22 substations on new, including installations of 20 sets of new power transformers and autotransformers on 10 substations, increase capacities of substations to 912,7 MBA;

costs for capital repairs of the equipment and decrease in the amount of electric power consumed by transformers are reduced on average on 14, by own needs by 2 million US dollars a year.

3. To provide to the Ministry of Finance together with the Ministry of investments and foreign trade and NESU till March 1, 2022 signing of the loan agreement with the World Bank on financing of the "Transformation of Electric Utility Sector and Steady Transmission of Electricity" project.

4. Authorize the Minister of Finance to sign in accordance with the established procedure on behalf of the Republic of Uzbekistan agreements on loaning up between the Republic of Uzbekistan and NESU on use and timely return of the credits of the international financial institutions.

5. Permit, in coordination with the Ministry of investments and foreign trade, the Ministry of Finance, the Department of Energy and creditors to allocate the saved funds on the loans of the international financial institutions attracted within the projects specified in appendix No. 3, on financing of other investment projects NESU.

6. To Department of Energy in week time to submit for approval in the Cabinet of Ministers of measure for increase in efficiency of investment projects, implementable NESU.

7. To provide to the state committee on ecology and environmental protection in accordance with the established procedure the state environmental assessment of the project documentation and observance of requirements of the legislation on conservation in case of projects implementation.

8. Agree with the offer of the Department of Energy, the Ministry of Finance and Agency on management of the state assets on transfer of the distributing devices of 110 - 500 kV which are at the disposal of the companies of JSC Thermal Power Plants and JSC Uzbekgidroenergo in maintaining NESU on book (residual) value together with established posts specified in appendix No. 4.

At the same time property and property rights of economic societies transferred from one organization to another according to this Item are not the taxation object by all types of the taxation.

To the Cabinet of Ministers in ten-day time to approve "Road map" on implementation of these offers.

9. Confer the personal responsibility on:

the Minister of Energy A. S. Sultanov - for ensuring system control of construction contract works on the project, and also carrying out the regular analysis of the performed works within the project and timely elimination of the revealed shortcomings;

the chairman of JSC Natsionalnye elektricheskiye seti Uzbekistana D. A. Isakulov - for high-quality development of the project documentation, timely and high-quality accomplishment of construction works.

10. Discussion of course of execution of this resolution, implementation of coordination and control of activities of the departments responsible for its execution to assign to the deputy prime minister D. A. Kuchkarov.

Following the results of every quarter to inform the President of the Republic of Uzbekistan on effectiveness of the performed measures.

Appendix № 1

to the Resolution of the President of the Republic of Uzbekistan of February 3, 2022 No. PP-113

Main technical and economic indicators of the investment project "Implementation of Hardware and Software System of Dispatching Management and Data Collection (SCADA)"

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