Masdar secures $159 million for construction of solar power plant in Bukhara region
The construction of a 250 MW power plant and storage project in Uzbekistan’s Bukhara region is set to move forward with financing from international organizations such as the International Finance Corporation (IFC), Asian Development Bank (ADB), the Netherlands, and Japan.
Masdar, a UAE-based company, secured loans for the photovoltaic power station and battery complex project, with the IFC allocating $53 million towards the initiative. Part of this funding includes $20 million from a joint IFC and Government of Canada program aimed at financing climate protection initiatives. The World Bank is also providing Uzbekistan with a financial guarantee of $12 million to support the project.
To manage risks associated with loan rates, Masdar will receive interest rate swaps from IFC. Vibke Schloemer, IFC’s Director for Turkey and Central Asia, emphasized the project’s significance in ensuring stable electricity supplies and fostering the growth of green energy.
In addition to IFC’s financial support, ADB has agreed to provide Masdar with a loan of $46.5 million, comprising funds from the bank’s ordinary capital resources and the targeted private infrastructure fund for developing Asian countries. The Entrepreneurial Development Bank of the Netherlands (FMO) and the Japan International Cooperation Agency (JICA) are also contributing to the financing of the project, bringing the total funding amount to $159 million.
The construction tender for the solar power plant in the Alat district of Bukhara region was awarded to Masdar in December 2022. Offering the lowest price per kilowatt-hour of energy at 3.044 cents, the project includes a 63 MW (126 MWh) electricity storage system, a 20 kV substation, and 3.1 km of transmission lines for connection to the general grid. Once operational, the solar power plant is expected to provide electricity to approximately 55 thousand households.
