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 , www.miga.org , and www.ifc.org .
About IFC
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 .
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