Washington, D.C., October 18, 2019 – Uzbekistan
is advancing quickly to diversify its energy matrix and meet its target
to develop up to 5 gigawatts of solar power by 2030. Today Uzbekistan signed
a mandate with IFC, a member of the World Bank Group, to develop up to
900 megawatts of solar power through public-private partnerships (PPPs).
The signing follows the announcement
of the winning bidder in the country’s first solar PPP
for 100 megawatts earlier this month, which achieved a highly competitive
tariff of just 2.7 US cents per kilowatt hour.
In the coming months, Uzbekistan will launch
a PPP tender for two solar projects of up to 200 megawatts each, followed
by another round for the remaining 500 megawatts.
“The first solar PPP has set a benchmark
for solar prices in our country. We are confident that with the help of
IFC we can replicate this success in the next rounds and again attract
high-quality private players to develop and finance these projects,” said
Shukhrat Vafaev, Deputy Minister of Investment and Foreign Trade, World
Bank Group Alternate Governor.
As transaction adviser, IFC helped the Ministry
of Investment and Foreign Trade and the Ministry of Energy to design and
tender the first PPP, which attracted eleven prequalified bidders and five
competitive bids. This robust investor interest was groundbreaking in a
country where the energy sector was traditionally state-run. At the same
time, the World Bank has been working closely with the Government on key
policy issues in the energy sector such as tariff reform, renewable energy
development and investment planning.
“We are proud to support the positive momentum
for private sector led growth in Uzbekistan – I am pleased to see the
government moving quickly to tender another 900MW of solar power, which
will help attract close to a billion dollars of private investment and
generate reliable and clean energy for the country’s people,” said Georgina
Baker, IFC Vice President, Latin American and the Caribbean and Europe
and Central Asia. “The announcement of the two additional PPP projects
immediately after the success of the first solar tender is a testament
to Uzbekistan’s commitment to embrace the private sector.”
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme
poverty and boost shared prosperity. It consists of five institutions:
the World Bank, including the International Bank for Reconstruction and
Development (IBRD) and the International Development Association (IDA);
the International Finance Corporation (IFC); the Multilateral Investment
Guarantee Agency (MIGA), and the International Centre for Settlement of
Investment Disputes (ICSID). Working together in more than 100 countries,
these institutions provide financing, advice, and other solutions that
enable countries to address the most urgent challenges of development.
For more information, please visit www.worldbank.org,
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
where they are needed most. In fiscal year 2019, we delivered more than
$19 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org.