Through the combined efforts of Japanese firms Sumitomo Corporation and Mitsubishi Hitachi Power Systems along with the Turkish Ronesans Holding, a gas-turbine power plant with a capacity of 432 megawatts will be established in the Charjew District of the Lebap region in Turkmenistan.

Back in 2015, during Japanese President Shinzo Abe’s visit to Turkmenistan, he signed the necessary contracts with Turkmenenergo (State Electric Power Corporation) for the project. Turkmenenergo is, therefore, functioning in the capacity of a customer in the deal. From a financial point of view, matters will be directly handled by the Japanese Bank for International Cooperation and indirectly the State Bank for Foreign Economic Affairs of Turkmenistan. The indirect involvement is because the former has entered a loan agreement with the latter.

Plans for the establishment of the plant include its size coming up to 4 hectares (possibly more). Mitsubishi Hitachi Power Systems will be providing three gas turbine units with a capacity of 144 megawatts each. An administrative building is also included in the plans; it will serve as a hub for gas distribution, engineering and technical communications. The plant is scheduled for commission in 2018.

Both Japan and Turkey are strong trading allies of Turkmenistan with a good business track record. In the case of Turkey, there is a healthy system of trade between the two. Turkey imports products related to textile and energy (among others), while it exports a diverse range of products including but not limited to metals, household goods, and food products.

As for Japan, the record shows that there is a positive and cooperative relationship between the two as they have come together to complete construction projects in the past, such as the industrial complexes built in the Balkan region of Turkmenistan.

Economically speaking, the Turkmenistan electric industry is among its strongest sectors. Its electric industry is geared to provide power to satisfy local needs such as the requirements of industries, agriculture and social sector. However, it’s also something of an export. Both Iran and Afghanistan are paying Turkmenistan for its electricity. The addition of this new plan will no doubt be beneficial to both, especially Afghanistan.