DUSHANBE, August 13, 2009, Asia-Plus — Malaysian energy company, Energy Industry Co, intends to invest €5 million to €20 million in construction of small and medium-sized hydroelectric power plans in Tajikistan, according to press service of the State Committee for Investments and State-owned Property (GosKomInvest).
The preliminary agreement on this subject was reached here Wednesday (August 12) at a meeting of A. Rahmonov, the first deputy head of the GosKomInvest, with Idris Mehdizade, manager of Energy Industry Co.
Besides, the sides also discussed issues related to construction of a bio-waste power plant in Tajikistan.
The Malaysian company expressed readiness to construct a 20MW power plant in Tajikistan in two years. It will be a BOT (Build-Operate-Transfer) project.
Build-Operate-Transfer (BOT) is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project.
Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment.
