Korea Energy Agency Wins Contract for Uzbekistan Old Power Plant Modernization Project

View of Mubarek Old Power Plant, Uzbekistan

[Asia Economy Reporter Kwon Haeyoung] The Korea Energy Agency is set to modernize the Mubarek aging power plant in Uzbekistan.

On the 29th, the Energy Agency announced that it had reached an agreement with the Uzbek side on key core matters before the contract signing to enable domestic companies to participate in the Mubarek power plant modernization project.

According to the agreement, the Uzbek government will be obligated to purchase the electricity produced through the modernization of the Mubarek power plant for 25 years and will supply the fuel necessary for power generation free of charge.

Through this contract, the Energy Agency secured exclusive business development rights for Uzbekistan's power generation projects. By discovering exemplary economic cooperation projects between the two countries, the special strategic partnership was further strengthened. Additionally, by having the public sector lead the cooperative projects first, private companies were naturally encouraged to participate, enhancing the project's credibility. In particular, the improved trust between the governments and companies of both countries is expected to aid Korean companies' entry into Uzbekistan.

The Energy Agency has been operating an 'overseas expansion platform' business that connects domestic energy companies with government agencies of various countries, with the Mubarek power plant modernization being its first project. The project gained momentum after the telephone summit between the presidents of the two countries in October last year, where President Moon Jae-in requested cooperation to have Korean companies participate in the Mubarek power plant modernization project to create a model case of economic cooperation, to which Uzbek President Mirziyoyev responded positively.

Kim Changseop, Director of the Energy Agency, stated, "This contract signing is the fruit of the friendship that the two governments have steadily built over time," adding, "Since this achievement was made by overcoming the major obstacle of COVID-19, we will spare no effort to provide active and speedy support so that cooperation in the energy sector between the two countries bears fruit."

This content was produced with the assistance of AI translation services.