Masdar gets funds from dev banks for 100-MW solar project in Uzbekistan

The European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Asian Development Bank (ADB) have designed a financing package for Abu Dhabi Future Energy Company PJSC, also known as Masdar, to back the construction and operation of a 100-MW solar photovoltaic (PV) plant in Uzbekistan.

The EBRD said it is providing an equity bridge loan of up to USD 60 million (EUR 49.1m) to Nur Navoi Solar Holding, a company fully owned by Masdar.

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.

IFC will also provide up to USD 1 million in interest rate swaps, the EBRD said.

The World Bank will provide a USD-5.1-million payment guarantee for the Uzbekistan government to backstop the payment obligations under the project.

Masdar will build the solar farm in Uzbekistan’s Navoi region. The project is one of the first two privately-owned renewable energy schemes in the country, according to the EBRD.

More companies have expressed interest to join after the country this year announced its goal to install 5 GW of solar and 3 GW of wind power over the next decade.

Just recently, the government of Uzbekistan unveiled the names of shortlisted candidates in tenders seeking to award 600 MW of solar capacity. Besides Masdar, the lists of selected bidders include international power sector players such as Jinko Power Technology Co Ltd (SHA:601778), Japan’s Marubeni Corp (TYO:8002), Total Eren, Norway’s Scatec Solar (FRA:66T), among others.

(USD 1.0 = EUR 0.819)

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