Uzbekistan has announced 58 projects worth about $7.6 billion in Karakalpakstan, ranging from wind power and data centers to transport and healthcare.
At a September 18 ceremony, 11 projects worth $592 million were commissioned or launched, while construction began on 47 more with a combined value of $7 billion. The projects are expected to create around 8,000 jobs, according to the presidential press service.
Wind Power Leads Investment Push
Among the largest projects is the 1.5-gigawatt Kungrad Wind Farm, being developed with Saudi Arabia’s ACWA Power. The Uzbek government values the project at $2.6 billion, although ACWA’s own project page puts its cost at just over $3 billion. The development includes extensive new transmission infrastructure and substation upgrades to connect the plant to Uzbekistan’s power grid.
The wind farm will also include a 300-megawatt battery energy storage system. Once completed, it is expected to become one of the largest wind power projects in Central Asia.
ACWA is already operating renewable energy facilities in Karakalpakstan. The Nukus-1 and Nukus-2 projects have a combined wind power capacity of 300 MW, along with 100 MW of battery storage.
According to ACWA Central Asia President Abid Malik, the company’s planned, operational, and under-construction projects in Karakalpakstan represent about 2.3 GW of generation capacity and around $4 billion in investment.
The projects are expected to generate about 8.77 billion kilowatt-hours of electricity annually, enough to cover the energy needs of approximately 2.4 million households, while saving around 2.1 billion cubic meters of natural gas.
“Karakalpakstan is becoming one of the most vital investment destinations for ACWA in Uzbekistan,” Malik told The Times of Central Asia. He said construction of the Kungrad project could create around 4,000 jobs at its peak, while local content could reach approximately $750 million.
ACWA is also supporting workforce development, with 78 students from Karakalpakstan currently studying at Shirin College to prepare for work in the country’s energy sector, Malik said.
The ceremony also marked the launch of two wind power plants with a combined capacity of 300 MW and a 100 MW energy storage system in Karauzyak district.
Health, Digital and Transport Projects
Other projects launched during the visit included the $27 million Sheikh Khalifa Hospital in Nukus, built in cooperation with the United Arab Emirates. The 100-bed facility has created 80 jobs. A Karakalpak Scientific and Practical Medical Academy is also being established for medical training and research.
The first phase of a modular computing center operated by the Chinese company Shanghai LinkWise Data Intelligence was launched in Takhiatash district. The presidential office valued the phase at $150 million. Chinese partners are also involved in projects worth a combined $2.281 billion to “produce digital currency” and establish artificial intelligence data centers in Kungrad and Takhiatash. The presidential statement did not identify the partners or explain what producing digital currency would entail.
Transport infrastructure is another focus. A $20 million project by SAPSAN TRANS NO‘KIS has already delivered 25 buses and electric buses to Nukus, with another 75 electric buses expected by the end of the year. The project is expected to create 200 jobs. Separately, construction has begun on a 92-kilometer section of the A-380 Guzar-Bukhara-Nukus-Beyneu highway under a $233 million project with the Asian Development Bank.
Karakalpakstan’s gross regional product has grown from 8.5 trillion soums, or about $2.9 billion, in 2016 to more than 54 trillion soums, or about $4.6 billion. More than $5 billion in investment has been attracted to the region over the past nine years.
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