Asian Infrastructure Investment Bank Funds Masdar Solar Projects in Uzbekistan

Apr 10, 2023 11:53 AM ET
  • AIIB tattooed three new project financing loan agreements to finance $83.6 million for Masdar solar projects the Central Asian country.
  • When completed, the projects' combined dimension will certainly reach 897 MW, also making it among the bigger solar PV advancements in the area.

The Asian Infrastructure Investment Bank (AIIB) has actually authorized 3 new project money loan agreements in the aggregate amount of $83.6 million as part of a $396.4 million debt financing to Masdar for the building and construction of three greenfield solar PV nuclear power plant in Samarkand, Djizzakh as well as Surkhandarya regions of Uzbekistan.

Masdar has said that the Asian Advancement Bank, the European Bank for Restoration and Development and also the European Investment Bank are likewise supporting the financing.

According to Masdar, this agreement notes the initial renewable energy project of AIIB as well as second economic sector engagement in Uzbekistan, in accordance with Green Infrastructure thematic concern of AIIB.

These three solar PV plants add to Uzbekistan's National Strategy for the Transition to a Green Economy which aims to install over 7 GW of solar capability by 2030. Masdar pointed out that as soon as finished, the projects' combined dimension will reach 897 MW, additionally making it one of the larger solar PV developments in the area.

The three plants integrated are expected to produce green electrical power to provide over one million households and help reduce exhausts by near one million statistics tonnes of carbon dioxide-equivalent annually on average.

Konstantin Limitovskiy, VP for Investment Operations, AIIB, said, "This has actually ended up being especially prominent in the past winter season when the unexpected decrease in temperatures caused energy as well as electrical power lacks throughout the country. AIIB is devoted to help Uzbekistan build Infrastructure for Tomorrow, including by setting in motion personal capital, to assist the nation's healthy long-term financial advancement, which consequently would certainly boost regional connectivity in Central Asia."

Niall Hannigan, CFO, Masdar, mentioned, "Masdar is already playing a substantial role in supporting the Government of Uzbekistan's ambitious renewable resource purposes, and also we anticipate remaining to grow our portfolio of projects in this key strategic market."

At the UN Climate Change Conference COP27 in Sharm El-Sheikh last year, both AIIB and Masdar likewise signed particular statements to take part in the Energy Transition Accelerator Financing Platform (ETAF), IRENA's worldwide climate finance platform aimed at setting in motion funding to scale up renewable energy project financing in establishing countries by 2030.

AIIB's Operate in Development

These agreements adhere to the recent finalizing of a Joint Declaration for a 2023-2026 project pipe between the Government of Uzbekistan and AIIB. To day, AIIB has actually approved 11 projects in Uzbekistan, totaling up to $2.16 billion across water, power, urban, transport and also healthcare sectors.

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