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Annual Project Report (APR)

For project:___UZB/03/001 Transfer of Technology for Local Production of Solar Panels for Watereating !"#$%"#&________

Period covered:__11 'uly 31 "ece()er *003__

PROJECT PERFORMANCE CONTRI!TION TO T"E PROJECT OJECTI#E

Project O$jective: To contri)ute to the de+elo,(ent of solar heating ,anel ,roduction in U-)e.istan )yassisting local (anufacturers to access rele+ant uro,ean technology and )y ensuring that these ,anels)eco(e the ,referred ele(ent in the heating syste(s of cities in U-)e.istan

%trate&ic Area o' %upport: The ,roect strategy ai(s to contri)ute to fostering the de+elo,(ent of alargely inde,endent solar ,anel ,roduction industry in U-)e.istan 2hich is sustaina)le and co(,etiti+e inthe (ar.et

The ,roect is focused on t2o strategic directions in de+elo,ing the rene2a)le energy sector in

U-)e.istan

1 Building national and local ca,acity for the i(,le(entation of ,roects addressing thede+elo,(ent of sustaina)le energy sources4 and

* "e(onstrating inno+ati+e a,,roaches 2hich encourage ,ositi+e changes in energysa+ing ,olicies

Project Pro&re: The Proect "ocu(ent and Budget 2as signed )y the Tash.ent 5unici,ality!6ho.i(iyat& and U$"P on 11 'uly *003 and ,roect i(,le(entation started 2ith the recruit(ent of theProect 5anager on #ugust 78 *003 The %nternational su)9contract funded )y the "anish Trust :und andad(inistered )y U$;PS 2as a,,ro+ed 2ith "anish ,ertise for engineering8 design8 installation8 training and

(ar.et strategies de+elo,(ent The first (ission of =#5B;LL !5r :le((ing Ul)erg8 Solar Panel>,ert& too. ,lace fro( Se,te()er **9*?8 *003 The local (anufacturer of solar ,anels as a reci,ient ofthe ne2 technology8 e@ui,(ent and (aterials 2as selected on the )asis of criteria de+elo,ed )y the=#5B;LL The tender docu(entation for the e@ui,(ent 2as ela)orated 2ith in,ut fro( the =#5B;LL8and the international tender ,rocess for ,rocure(ent of the e@ui,(ent and (aterials 2as launched on$o+e()er 308 *003

Annual Output !pdate on output Reaon i' pro&re$elo tar&et

Reco**endation andpropoed action

1 Study8 i(,le(ented8includingreco((endations foro,ti(al set9u, of solar

,anel ,roduction inU-)e.istan

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13 #nalysis of theecological situation andassess(ent of ther(alenergy i(,act on theen+iron(ent underta.en4and ,ro,osal on selection of,otential sites to install solarcollectors de+elo,ed

* :actories ada,ted ande@ui,,ed 2ith functionalasse()ly lines to ,roducesolar ,anels

*1 The o,ti(al si-e of thefactory deter(ined4de+elo,(ent of selectioncriteria and co(,etiti+eselection of local(anufacturers i(,le(ented

** S,ecifications for thee@ui,(ent ,re,ared*3 %nternational tenders,rocess started

*7 :actory layout andnecessary reno+ationsdesigned

* :actory/ies reno+ationi(,le(ented

3 $e2 design of solarheating ,anels

Preli(inary analysis oftechnical ,erfor(ance ofsolar ,anels installed 2ithinTacis de(onstration ,roectat Codni. )oiler houseunderta.en to )e a starting,oint for ne2 design of solar,anels

The other acti+ities ,lannedto achie+e the out,ut 2ill )ei(,le(ented starting fro(the first @uarter *007 2henthe 2inner of the tender 2ill,ro+ide the list of e@ui,(entto )e deli+ered

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PROJECT PERFORMANCE IMP+EMENTATION I%%!E%

1 The (ain challenge faced )y the ,roect is that ,ractical a,,lication of solar collectors to )e,roduced that can de(onstrate the ad+antages of solar energy use ha+e to )e carefully consideredThe .ey o)ecti+e is to de(onstrate that solar ,anel syste(s allo2 sa+ing of natural gas 2hile,ro+iding the custo(ers 2ith hot 2ater8 es,ecially in su((er ,eriod The Proect 2ould need to

su,,ort installation of solar ,anels on those sites8 2here they can de(onstrate an efficient o,erationfro( econo(ic8 technical and energy sa+ings ,oint of +ie28 and 2here they can contri)ute toi(,ro+ing li+ing conditions8 and address issues related to cli(ate change8 locali-ed ,ollution8increased energy de(and and e+entual fossil9fuel de,letion To sol+e the ,ro)le(8 the ,roecti(,le(ented and ,lans to underta.e the follo2ing acti+ities

# highly @ualified national e>,ert 2as hired to underta.e an assess(ent of the findings and results of

,re+ious solar energy ,roects in colla)oration 2ith =#5B;LLEs Solar Panel S,ecialist4 on the )asisof this assess(ent8 reco((endations on ,otential sites for installation of solar ,anels 2ill )ede+elo,ed4

# ,ro,osal for a ,roect that can )e i(,le(ented to de(onstrate an efficient o,eration of the solar

collectors8 to )e ,roduced and su)(itted to U$"P (anage(ent and U$"P n+iron(entProgra((e

* The other challenge faced )y the ,roect is lac. of funds8 necessary for ,urchase of local(aterials for (anufacturing of 700(* of solar ,anels ;riginally a s(all a(ount of funds for ,urchaseof local (aterials 2as allocated in the ,roect )udget8 as it 2as en+isaged that additional funds 2ould)e allocated )y the local ,artner (anufacturer The F:;T;$G Plant8 selected as a local (anufacturerfor solar ,anels8 infor(ed that it 2as not in a ,osition to contri)ute local (aterials to the ,roduction8according to the local ta> legislation8 ta> is ,aid on the turn9o+er of an enter,rise8 and therefore allcosts ha+e to )e reco+ered fro( sales #ccording to U$"PEs rules8 the solar ,anels ,roduced usingthe e@ui,(ent and (aterial granted8 cannot )e sold at ,rofit The U-)e. ,artners re@uested U$"P toallocate additional funds for ,urchase of local (aterials4 ho2e+er8 U$"P considered that the local,artners ha+e to co+er this shortage of funds as their contri)ution to this ,roect To sol+e the ,ro)le(8the ,roect i(,le(ented and ,lans to underta.e the follo2ing acti+ities

The ,roect and Tash.ent 5unici,ality (et the 'S< F:;T;$G ,lant (anage(ent to consider and

discuss all ,ossi)le 2ays of colla)oration to resol+e the issue related to the lac. of funds for ,urchaseof local (aterials and installation 2or.s in Codni. testing solar field

The Tash.ent 5unici,ality considered its ca,acities for ti(ely in+est(ents into the a)o+e ,roect and

included the funds re@uired to install solar ,anels in Codni. testing field into the *007 )udget of theTash.ent 5unici,ality +ia the Tash.ent Territorial

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and agreed 2ith the Ao+ern(ent as 2ell as clearly indicated in the ,roect docu(ent to a+oid anydis,utes and (isunderstandings during the ,roect i(,le(entation ,eriod

Both ,ositi+e and negati+e e>,erience gained during the ,roect i(,le(entation should )e carefullystudied and ta.en into consideration during the lifeti(e of the ,roect

* The ,roects dealing 2ith the industrial acti+ities should in+ol+e not only the central go+ern(ent

institutions )ut also regional and local authorities as 2ell as s(all and (ediu( si-e ,ri+ate co(,anies82hich @uite often de(onstrate stronger interest and fle>i)ility