A project has been outlined in the Khorezm region to build a facility designed to produce electricity from municipal solid waste. The total cost of this facility is 100 million dollars, and the project's implementation was approved by a decree from President Shavkat Mirziyoyev dated September 14.
The investment in the project is being made by the South Korean company Green Hammer Co., Ltd. The plant is designed to process 800 tons of waste daily and generate 71 million kilowatt-hours of electricity. The entire project is planned to be implemented between 2026 and 2028.
To realize this plan, the Korean investor will establish a special foreign project company in Uzbekistan. The investment agreement between Green Hammer and the government of Uzbekistan, represented by the Ministry of Investment, Industry, and Trade, was signed on September 14. Prior to this, on September 11, the investor concluded an agreement with 'Uzenergosotish' to purchase the generated electricity and also agreed with the Waste Management Agency and Circular Economy Development on the supply of necessary municipal solid waste.
Guarantees for the supply of electricity and waste are provided for a period of 30 years. According to the decree, the project company will receive guaranteed electricity sales from 'Uzenergosotish' for three decades, with purchases being made in national currency. Similarly, the Waste Management Agency has committed to supplying the enterprise with the required volume of MSW throughout this 30-year period.
The investor must also provide a guarantee of 7 million dollars in a prime bank to ensure the fulfillment of the project company's obligations during construction. The project company will independently construct the power lines and other necessary infrastructure to connect the station to the general power system. After operation is complete, all facilities will be transferred to the 'National Electric Grids of Uzbekistan'.
The facility will be located in an eco-industrial zone specializing in waste processing and disposal, or on adjacent territory. The Khokimiyat of the Khorezm region was instructed to allocate 15 hectares of land to the Waste Management Agency within one month in the area of the village of 'Yangi Urtobog' in the Urgench district. This plot will be granted for permanent use to create the eco-industrial zone.
The rent for the land plots provided to both the project company and the 'National Electric Grids of Uzbekistan' will be set at the level of the land tax. After paying all relevant taxes and fees, the project company will be able to open accounts in foreign banks, as well as receive and use loans and foreign currency. Furthermore, it is permitted to directly pay the services of foreign contractors, suppliers, and creditors, bypassing bank accounts in Uzbekistan.
A procedure for issuing entry visas and work permits for foreign specialists is provided in accordance with established rules. It should be noted that Uzbekistan plans to launch two out of six waste-to-waste incineration plants by the end of 2026. In parallel, the authorities have presented five additional projects worth 625 million dollars that will deal not only with energy production from waste but also with the recycling of resulting ash.