Cost of nuclear power plant in Uzbekistan will not exceed $2 billion – Uzatom director

The cost of the small nuclear power plant under construction in Uzbekistan will be less than $2 billion, according to Azim Akhmadkhodjaev, director of the Uzatom agency. He made this statement in an interview with the "Alter Ego" project.  

According to Akhmadkhodjaev, the project’s financing structure is complex, and the final cost has yet to be determined as optimization efforts continue.  

“Why is there no official price yet? The reason is simple – the exact cost of the project is still unknown. The fixed amount is gradually being reduced. So far, project costs have been lowered by $300 million. Our goal is to keep the total cost below $2 billion. I don’t want to name an exact figure, as we are continuously working on optimization and negotiating the prices of each component,” he said.  

He explained that the project follows the Open Book principle, allowing the customer to see all contractor costs related to equipment production. Discussions are underway regarding the procurement of turbines and electrical equipment from Chinese manufacturers that operate under European licenses.  

“This is not just a Chinese product or development; it is equipment manufactured under European licenses. If we purchase it directly from European suppliers, it will be much more efficient and significantly cheaper. That’s why we are constantly working on optimization,” Akhmadkhodjaev added.  

The head of Uzatom noted that approximately $300 million in expenses have already been cut from the project’s total estimated cost.  

He emphasized that the partnership with the Russian company Rosatom is not a typical contractor-customer relationship but a collaborative effort. This approach, he said, will not only help reduce costs but also create opportunities for the future application of these technologies.  

“Since this is an international project, we will procure certain types of equipment from China, securing funds from Chinese sources on preferential terms. Investment companies are also interested in the project and ready to invest, but they will not have ownership of the power plant—only a share of the dividends. The financing structure is highly complex, with only a minimal portion coming from the state budget. The majority of funds will be attracted from foreign sources,” Akhmadkhodjaev stated.  

He also clarified that the project will not rely on Russian loans and that efforts are being made to minimize the financial burden on the state budget by using state guarantees.  

Akhmadkhodjaev stressed that the small nuclear power plant will remain under Uzbekistan’s ownership, with foreign investors only receiving dividends.  

In May 2024, Uzatom and Rosatom signed an agreement for the construction of the nuclear power plant in Uzbekistan. The facility will be based on the Russian RITM-200N reactor, which has a capacity of 55 MW and a service life of up to 60 years.  

The first reactor is expected to be commissioned within five years, with subsequent reactors coming online at six-month intervals. The plant is not anticipated to reach full operational capacity before 2033.  

Uzbekistan plans to form an international consortium for the project, integrating Russian, Chinese, and European technologies. Additionally, discussions are ongoing regarding the procurement of turbines, generators, and cooling systems from international companies.