Recently, China Datang Corporation has experienced significant expansion in its green energy footprint in Uzbekistan. After the first 263MW project was connected to the grid in November last year, Datang has applied for an additional 400 hectares of land, aiming to launch a new round of large-scale new energy development. This move will significantly increase the proportion of clean energy in Ukraine and inject strong impetus into the local economic development.

The government's' door-to-door service 'promotes the implementation of projects

Recently, the Deputy Prime Minister and Minister of Investment and Foreign Trade of Uzbekistan, Jamshid Hojaiev, personally led a working group to visit the Berkabad and Psken districts of Tashkent Oblast. This trip is not a simple inspection, but an on-site office for foreign-funded enterprises. The research team focused on the Datang Buka New Energy Development Project, which has been put into operation with an installed capacity of 263MW and a total investment of 150 million US dollars. It was successfully connected to the grid for power generation in November last year and has become an important support for the local energy structure transformation.

After understanding the progress of the project on site, the working group had in-depth talks with representatives of the investors. Datang immediately submitted an application for new land use, hoping to obtain an additional 400 hectares of land for the launch of a new round of green energy projects. Faced with the urgent needs of enterprises, the government has shown a high degree of cooperation, emphasizing that land allocation needs to be coordinated with power grid access, technical conditions, and other aspects. Relevant departments have been instructed to jointly study and formulate a unified action plan on the spot to ensure the smooth progress of the project.

99.9% of the "green engine" controlled by Chinese capital

According to the information disclosed in the Uzbekistan legal entity registration system, the executing party of this project is Datang Buka New Energy Development Co., Ltd. This company completed registration in April 2024 with a registered capital of up to 814 billion Sums, and its main business is "generating electricity through other types of power stations". It is worth noting that the company's equity structure shows that Datang Overseas Investment Co., Ltd. holds 99.9% of the shares and Datang Overseas (Hong Kong) Co., Ltd. holds 0.1% of the shares, making it a wholly foreign-owned enterprise controlled by Chinese capital.

Behind this capital layout is the strategic cooperation promoted by the high-level of the two countries. The project agreement was approved by Ukrainian President Shavkat Mirziyoyev in May 2024. At the business forum held during the Chinese President's visit to China, Datang Overseas Investment Co., Ltd. officially signed investment documents with the Ministry of Innovation and Development of Uzbekistan and State Grid Corporation of China, providing solid policy guarantees for the implementation of the project.

Dual track system of Sumu settlement and foreign exchange protection

In order to ensure the sustainable operation of the project, the agreement has innovatively designed the financial settlement mechanism. Although the cost of electricity procurement and transmission line construction is settled in local currency, the pricing method is based on foreign currency. This arrangement effectively avoids the risk of exchange rate fluctuations and ensures the stability of investment returns.

More importantly, the agreement allows Chinese companies to open accounts with overseas banks to complete foreign exchange settlements. This clause solves the common problem of capital outflow faced by foreign-funded enterprises in Uzbekistan, providing reassurance for Chinese enterprises such as Datang, and clearing financial barriers for more Chinese capital to enter the Uzbekistan market in the future.Editor/Yang Meiling