The Uzbek Electric Networks signed a 10-year take-or-pay electricity supply contract with Da Afghanistan Breshna Sherkat, an energy company, on September 20.
Since 2002, Uzbekistan has been regularly supplying electricity to Afghanistan. If in 2002 Uzbekistan delivered 62 million kWh, then in the year-end Uzbekistan is expected to have exported 2.6 billion kWh, with only one-year supply contracts entered into so far
“The 10-year contract is designed for the year-round electricity supply," said Deputy Minister of Energy of Uzbekistan Sherzod Khodjaev following the deal signing ceremony.
He noted that despite the “take-or-pay” contract formula, the Uzbek authorities accomodated the Afghan colleagues and “significantly softened the terms.”
“Given the difficult situation in Afghanistan, we agreed to have a more flexible supply schedule, so that they don’t keep paying fines,” he added.
Earlier, an official of the Ministry of Energy of Uzbekistan reported that the contract was one of the conditions of the Asian Development Bank (ADB) for the project finance of the construction of a new Surkhan-Pul-e-Khumri power line from Uzbekistan to Afghanistan.
Financing of the US$ 150 million project will be funded by the governments of Afghanistan and Uzbekistan, the latter will provide US$ 45 million.
