RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of March 5, 2024 No. PP-117

About measures for implementation of the investment project "Construction of Windfarm Capacity of 500 MW and Overhead Power Transmission Lines in Kungradsky District of the Republic of Karakalpakstan (Kungrad Wind 4)"

For the purpose of stable providing with energy resources the population and industries of economy, reducing consumption of natural gas in case of power generation, and also active attraction of direct foreign investments in expansion of scale of use of renewable energy resources:

1. Take into consideration that:

a) the ACWA Power Company company (Saudi Arabia) (further - the Investor) within the investment project "Construction of Windfarm Capacity of 500 MW and Overhead Power Transmission Lines in Kungradsky District of the Republic of Karakalpakstan (Kungrad Wind 4)" (further - the Investment project) founds ACWA Power KRPK Wind LLC (further - the Project company);

b) between the Government of the Republic of Uzbekistan on behalf of the Ministry of investments, the industry and trade, the Investor and the Project company signed on November 27, 2023 the investment agreement (further - the Investment agreement) providing implementation by the Investor and the Project company:

designings, financings, construction and operation of windfarm capacity of 500 MW in Kungradsky district of the Republic of Karakalpakstan throughout the entire period of implementation of the Investment project;

attraction of direct foreign investments in the amount of on predesigns of only 682 million US dollars with acceptance on possible risks;

c) as a result of direct negotiations between JSC Natsionalnye elektricheskiye seti Uzbekistana and the Project company the Purchase agreement of electrical energy (further - the Agreement) on November 27, 2023 is signed according to which:

The project company assumes obligation of the guaranteed sale of the made electrical energy of JSC Natsionalnye elektricheskiye seti Uzbekistana;

The project company provides guarantee of the first-class foreign bank in the amount of 18 million US dollars as ensuring proper execution of the obligations in the period of construction;

The project company within the Investment project assumes obligation on construction of overhead power transmission lines for connection of windfarm to single electrical power network, after commissioning - their transfer to JSC Natsionalnye elektricheskiye seti Uzbekistana;

the expenses spent for the overhead power transmission lines constructed by the Project company become covered by JSC Natsionalnye elektricheskiye seti Uzbekistana on the basis of monthly payments within 10 years;

JSC Natsionalnye elektricheskiye seti Uzbekistana assumes obligation of the guaranteed purchase of electrical energy within 25 years.

2. Within implementation of the Investment project:

approve the Investment agreement signed between the Government of the Republic of Uzbekistan on behalf of the Ministry of investments, the industry and trade, the Investor and the Project company;

approve the Agreement signed between JSC Natsionalnye elektricheskiye seti Uzbekistana and the Project company.

3. Provide to the Ministry of investments, industry and trade, to the Department of Energy and JSC Natsionalnye elektricheskiye seti Uzbekistana it is right on the conclusion of agreements on direct assignment of rights of the Project company and the Investor to other creditors who are taking part in financing of the Investment project, in case of non-execution of agreement obligations by the Project company, signed within implementation of the Investment project.

4. Resolve JSC Natsionalnye elektricheskiye seti Uzbekistana:

attraction together with the Project company of the international independent engineering companies and other consultants for implementation of the Investment project according to the procedures determined in the Agreement with the conclusion of direct agreements;

opening of the confirmed in foreign currency and renewable letter of credit of foreign bank for benefit of the Project company as ensuring obligation fulfillment on purchase by the made Project company of electrical energy for three months.

5. Authorize the Minister of Economy and Finance to sign on behalf of the Government of the Republic of Uzbekistan the agreement with the foreign bank opening the letter of credit on compensation of its expenses in the form acceptable for the Government of the Republic of Uzbekistan, in case of obligation fulfillment of JSC Natsionalnye elektricheskiye seti Uzbekistana before the foreign bank opening the letter of credit under guarantee of Asian Development Bank, World Bank or European Bank for Reconstruction and Development.

6. Provide to the Project company within implementation of the Investment project after payment of all taxes and fees the following rights within financing of the Investment project:

open bank accounts in foreign banks abroad for receipt of the credits, obtaining and use of foreign currency cash (including credit receipts in foreign currency);

to directly make payments to foreign contract organizations, suppliers or foreign creditors outside the Republic of Uzbekistan without carrying out such payments through bank accounts in the Republic of Uzbekistan.

7. To Council of Ministers of the Republic of Karakalpakstan:

together with the Department of Energy, the Ministry of investments, the industry and trade, the Ministry of Agriculture and the Project company in a month within implementation of the Investment project to choose the parcels of land in the territory of Kungradsky district of the Republic of Karakalpakstan for construction of windfarm, overhead power transmission lines and constructions of electroinfrastructure, to bring amendments in borders of the chosen parcels of land and to make the relevant proposal in Government commission on consideration of questions of change of categories of land fund of lands of agricultural purpose and forest fund;

allocate to the Department of Energy the chosen parcels of land on the right of permanent use based on the project documentation submitted by the Project company.

Provide to Department of Energy transfer to lease of the Project company of the above-stated parcels of land for the period equal to the term of implementation of the Investment project.

At the same time to equate the amount of the rent for the parcels of land paid by the Project company to the size of the land tax.

8. Determine that within the Investment project:

The Department of Energy is exempted from compensation of losses of agricultural production (compensation payments) for use of lands of agricultural purpose;

regulations and rules of accomplishment of the construction and land works connected with construction of windfarm and also designings of the bases of buildings and constructions are regulated by international standards according to Agreement provisions;

payments on the expenses spent for purchase of the electric power and construction of overhead power transmission lines are performed in national currency on the flat fare denominated in foreign currency.

9. According to requests of the Project company within implementation of the Investment project:

To the Ministry of Foreign Affairs - to provide execution in accordance with the established procedure of entrance visas to the involved foreign specialists, if necessary - at the International airport "Tashkent" of Islam Karimov;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info