Tashkent, Uzbekistan, October 4, 2019 – Uzbekistan announced today the winning bidder for the country's first competitively-tendered solar power public-private partnership. This announcement opens new markets for private investment and makes progress towards the country’s goal to increase use of renewable energy. This PPP, tendered under the World Bank Group’s Scaling Solar program, will soon add 100 MW of clean, renewable energy to the country’s energy mix.
On Friday, Shukhrat Vafaev, Deputy Minister of Investment and Foreign Trade, Chairman of the Tender Committee, announced the winner of the program’s competitive auction to develop a utility-scale solar plant located in the Navoi region in central Uzbekistan. Masdar Clean Energy of United Arab Emirates was awarded the project with a bid to supply solar power at just 2.7 US cents per kilowatt hour, one of the lowest tariffs seen in emerging markets.
“The project is part of an effort by the Government of Uzbekistan to develop up to 5 gigawatts of solar power by 2030 to diversify the country’s energy mix,” said Deputy Minister Vafaev. “By structuring a transparent and competitive tender, we are assured of getting the most competitive power prices from private investors, helping to set a benchmark for solar power tariffs in the country.”
Djamshid Kuchkarov, Deputy Prime Minister and Minister of Finance, also announced that given the successful outcome of the first tender, the Government of Uzbekistan would soon be launching another tender for an additional PPP for 400MW of solar power, followed by one more PPP for 500 MW.
As transaction adviser, IFC helped the Ministry of Investment and Foreign Trade and the Ministry of Energy to design and tender the PPP, which attracted eleven prequalified bidders and five competitive bids. This robust investor interest is 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.
“We are proud to open new markets for solar power in Uzbekistan with the country’s first open tender public-private partnership that will supply renewable energy to the Uzbek people at competitive prices,” said Wiebke Schloemer, IFC Director for Europe and Central Asia. “This PPP success sets a precedent for future private sector participation in the country and sends a positive message to the global investment community.”
The project is being implemented with support from the Austrian Ministry of Finance and Switzerland’s State Secretariat for Economic Affairs (SECO) as well as the Government of the Netherlands.
About Scaling Solar
Scaling Solar is a World Bank Group solution that makes it easier for governments to quickly procure and develop large-scale solar projects with private financing. It includes a ‘one-stop shop package of technical assistance, templated documents, pre-approved financing, insurance products, and guarantees. Scaling Solar has financing support from the Private Infrastructure Development Group, the UK's Department for International Development, U.S. International Agency for Development’s Power Africa, the Ministry of Foreign Affairs of the Netherlands, and the Ministry of Foreign Affairs of Denmark. For more information, please visit www.scalingsolar.org .
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 , www.miga.org , and www.ifc.org .
Stay Connected
Contacts
Stay Informed
Sign up to have customizable news & updates sent to you.