14 December 2022

The EBRD arranged two syndicated loans totaling $520 million for the development of the energy sector in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) has arranged two syndicated loans in the amount of USD 520 million for the construction and commissioning of two wind farms with a total installed capacity of 1 GW in the Bukhara region, the correspondent of “Dunyo” news agency reports.

Each wind farm will produce 500 MW of power.

This financing is the EBRD’s largest renewable energy project in the region to date.

A US$277 million bank loan to the Bash Wind Farm (BES) will consist of a US$150 million ‘A’ loan from the EBRD’s own account and a US$127 million ‘B’ loan to be syndicated commercial lenders. The new wind farm will generate more than 1,650 GWh of electricity per year and help reduce annual CO2 emissions by 930,000 tons.

The US$243 million EBRD loan to Dzhankeldinskaya WPP will consist of US$150 million “A” loan held in the Bank’s account, with the remaining US$93 million syndicated to commercial banks. This power plant will produce more than 1,550 GWh of electricity per year and will help reduce annual carbon dioxide emissions by 890,000 tons.

Bash Wind and Dzhankeldy Wind are specialty engineering companies owned by ACWA Power, an international developer, investor, co-owner and operator of a portfolio of power plants and desalinated water plants.

The two projects will also be co-financed by German development finance organization Deutsche Investitions und Entwicklungsgesellschaft (DEG), French development agency Proparco, Standard Chartered Bank and other banks.

In line with international best practice, the power plants will use Identiflight technology, a high-definition stereo camera (HRSC) system powered by artificial intelligence in the air to monitor and detect species at risk of being hit by wind turbines. The system initiates an automatic shutdown of the selected turbines if a collision is likely.

Uzbekistan’s renewable energy deployment plan aims to generate 12 GW of solar and wind energy by 2030. These projects are an important addition to the EBRD’s renewable energy portfolio in the country and will help Central Asia’s largest economy reach its ambitious target.

The projects contribute to the long-term decarbonization strategy that the EBRD and the government of Uzbekistan have been working on, which will support the plan to achieve a carbon-neutral energy sector by 2050.

To date, the EBRD has invested nearly €3.71 billion in 121 projects in Uzbekistan. Bank financing has helped create 2.85 GW of new renewable capacity in Central Asia.