Teshabaev said these projects directed at developing of the infrastructure and installation of new capacities at the electricity producing plants.

He added that the two projects will be financed due to credit of the Islamic Development Bank (IDB) at the volume of US$145 million and the own resources of Uzbekenergo. It is expected that IDB will open financing in 2009.

Uzbekenergo chief said the realization of the projects will allow to expand opportunities of Uzbek energy system on transport and export of electricity to neighboring countries and ensure reliable supply to southern parts of Uzbekistan.

Teshabaev said the company plans to realize US$125 million project at Tashkent heating and power plant to construct gas-turbine unit. The project will be financed due to loan of Japan Bank for International Cooperation (JBIC) for US$90 million and own resources of the Uzbek company. It is expected that the credit agreement will be signed in the last quarter of 2008.

The company also plans to install cryogenic gas expansion machines and generator set at Talimarjan and Syrdarya heating and power station. The capacity of which will be 10 megawatt with the cost of US$50 million each.

He said currently the company is elaborating source of financing and the realization of the project will be started in the second half of 2009.

Uzbekenergo developed programme on development and reconstruction of generating capacities till 2010, which envisages attraction of the foreign direct investments for US$1 billion.

Currently, Uzbekistan has 42 generating capacities, including 11 heating stations with the capacity of 9.87 megawatt and 31 hydroelectric power stations with the capacity 56-57 billion kilowatt-hour.

Uzbek State Statistics Committee said the electricity production in Uzbekistan increased by 3.6% year-on-year in 2006 to 49.318 billion kilowatt-hour. The country plans to decrease electricity production by 2.6% to 48.046 billion kilowatt-hour due to modernization of some generating capacities.