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- Financial package of US$ 111 million from EBRD, IFC and ADB to Masdar of Abu Dhabi
- One of the first two privately-owned renewables energy projects in Uzbekistan
- Solar plant with 100 MW capacity, annual reduction of 154,000 tonnes of CO2 emissions
The European Bank for Reconstruction and Development (EBRD) is financing a 100 MW solar photovoltaic plant in the Navoi region of Uzbekistan, one of the first two privately-owned renewable energy projects in the country.
The EBRD is providing an equity bridge loan of up to US$ 60 million to Nur Navoi Solar Holding for the construction and operation of the plant. The loan will allow the project investor Masdar, owned by Mubadala Investment Company, a global investment holding established and fully owned by the Government of Abu Dhabi, to borrow the amount of equity it is putting into the project.
This innovative financial structure is currently not available from international or domestic lenders in Uzbekistan. It will be complemented by a financial package of up to US$51 million arranged by the International Finance Corporation (IFC) and the Asia Development Bank (ADB). It will consist of a senior debt of up to US$26 million from the two multilateral development institutions and up to US$25 million in concessional funding from Canada-IFC Blended Climate Finance Programme and the Canadian Climate Fund for the Private Sector in Asia II under the Clean Energy Financing Partnership Facility managed by the ADB.
Uzbekistan aims to generate 8 MW of solar and wind power by 2030. By financing the Nur Navoi project, the EBRD is also supporting the replacement of Uzbekistan’s ageing power sector infrastructure and the establishment of an effective regulatory framework, which now has paved way for this first competitively tendered renewable energy project in the country. Upon completion, the plan will contribute annual reductions of 154,000 tonnes of CO2 emissions.
To date, the EBRD has invested €1.8 billion through 79 projects in Uzbekistan’s economy.