Republic of Uzbekistan / Loan Insurance for Syrdarya 2 CCGT Project
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) decided to provide insurance for loans extended by commercial financial institutions to ENERSOK Foreign Enterprise LLC (the Project Company) invested by Sojitz Corporation and Kyushu Electric Power Co., Inc. with their partner Électricité de France S.A.(EDF) and Nebras Power Q.P.S.C.
The Project Company will build, own and operate the 1,574 megawatt a natural gas-fired combined cycle power plant project and located in the Syrdarya region, approximately 150 km south of Tashkent, the Republic of Uzbekistan (Uzbekistan). The power generated will be sold to the JSC National Electricity Grid of Uzbekistan (NEGU) under a 25-year Power Purchase Agreement (PPA) and the Ministry of Uzbekistan has issued a guarantee for the PPA.
Of the joint project financing procured by the Project Company from International Finance Corporation (IFC), Japan Bank for International Cooperation (JBIC), Mizuho Bank, Ltd. (Mizuho), Sumitomo Mitsui Banking Corporation (SMBC), and the Societe Generale Tokyo Branch, NEXI provides cover for loan extended by the commercial banks, as well as for the interest rate swap agreement guaranteed by Mizuho and SMBC. In September 2020, NEXI signed a memorandum of understanding (MOU)1with IFC to enhance cooperation between the two organizations. This is the second co-financing with IFC since the signing of the MOU. This is also a project which NEXI provides the Swap Transaction Insurance2.
In the“Concept Note for ensuring electricity supply in Uzbekistan in 2020-2030（2020）“and “A Carbon-Neutral Electricity Sector in Uzbekistan”, the Government of Uzbekistan endorses achieving carbon neutrality by 2050 and continue development of more efficient, low-carbon power-generation infrastructure, giving priority to the modernization of existing gas-fired power plants. Supporting the project is in line with the Government of Uzbekistan’s energy policy.
Contact
Power Group, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7340
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1 NEXI News Release, September 17, 2020
MOU on Cooperation between NEXI and IFC｜Topics｜NEXI Nippon Export and Investment Insurance -
2 NEXI cover losses incurred by financial institutions due to non-payment including of settlement money resulting from the cancellation of swap transactions.
https://www.nexi.go.jp/corporate/booklet/pdf/annual2021-e.pdf(page 9)