ADB, Masdar sign debt package for 100-MW Uzbek solar project

A unit of Abu Dhabi Future Energy Company PJSC, also known as Masdar, has signed loan agreements with the Asian Development Bank (ADB) for up to USD 17.5 million (EUR 14.3m) to back the construction of a 100-MW solar park in Uzbekistan.

Nur Navoi Solar, a company fully owned by Masdar, has proposed to build the photovoltaic (PV) farm near Navoi City, in the Central Asian country’s Navoi region, and sell its output to the National Electric Grid of Uzbekistan under a 25-year power purchase agreement (PPA). Once up and running, the plant will be capable of producing around 258.2 GWh of electricity per year.

The project is the first public private partnership renewable energy scheme in Uzbekistan, the ADB said last week. The loan package by the lender consists of a debt facility from its own account and a concessional finance tranche that is aimed to compensate for the lower-than-expected power tariff for the project. The concessional loan will be extended by the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), which is managed and administered by ADB.

The project will also be financed by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).

To these funds, IFC and the ADB are adding up to USD 60 million. The total amount includes a senior loan of up to USD 20 million from IFC’s own account, up to USD 20 million from Canada-IFC Blended Climate Finance Program and a loan of up to USD 20 million from the ADB.

(USD 1.0 = EUR 0.819)

Choose your newsletter by Renewables Now. Join for free!