Tashkent, Uzbekistan, March 25, 2019—IFC,
a member of the World Bank Group, is advising the government of Uzbekistan
on a landmark public-private partnership (PPP) transaction that will lead
to the creation of a 100-megawatt solar plant in Navoi region. This project
will be the first phase of a larger government initiative to generate up
to 1-gigawatt of new solar energy, helping the country reduce dependence
on gas and increase its share of renewable energy in the energy mix.
Uzbekenergo, a state-owned national power
utility, issued the request for qualifications for the project on February
1, 2019, and received submissions from 23 companies from around the world,
including from Europe, Asia, and the Middle East.
“The tremendous interest and sheer number
of companies demonstrate strong investor interest in Uzbekistan. This is
a testimony to the strong commitment by the government of Uzbekistan to
increasing private sector participation in the country through an open,
competitive, and transparent process that is generating confidence in the
country’s infrastructure program and will result in better value for the
country,” said Wiebke Schloemer, IFC Regional Director for Central
Asia and Europe.
As a transaction adviser, IFC is helping
Uzbekenergo and Ministry of Investments and Foreign Trade
design and tender Uzbekistan’s first
competitively tendered solar power project. A lack of competition carries
the risk of higher power tariffs for countries and slower development of
projects. By structuring a transparent and competitive tender, Uzbekenergo
will be assured of getting the most competitive power prices from private
companies, helping set a benchmark for solar power prices in the country.
According to the
World Bank’s Procuring Infrastructure Public-Private Partnerships 2018
Report, while the use of unsolicited
proposals might allow governments to benefit from the knowledge and innovation
of the private sector, they can also create problems by failing to attract
competition, diverting public resources away from strategic government
priorities, and ultimately leading to opportunities for corruption.
“The number of companies interested in Uzbekistan’s
first competitively tendered solar project is a strong indication that
the government’s decision to develop this project in a competitive and
transparent manner has been well received by investors,” said Georgi Petrov,
IFC PPP Regional Manager. “This project is helping lay the foundation
for greater investor confidence and investment in the country.”
As a next step, Uzbekenergo will evaluate
the qualifications of the companies to determine which meet the criteria
set by the government of Uzbekistan for the project and release a shortlist
of companies. The companies that meet the criteria will be notified and
invited to submit bids.
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 in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 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,