ACWA Power and Asian Infrastructure Investment Bank Partner to Finance Kungrad Wind Projects in Uzbekistan
Saudi-listed ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, has signed a Letter of Interest (LoI) with the Asian Infrastructure Investment Bank (AIIB), for the financing of the Kungrad 1, 2 and 3 wind power plants in the Karakalpakstan region of Uzbekistan.
The signing took place during the Ninth Annual Meeting of the AIIB Board of Governors in Samarkand on the 24th of September, in the presence of Mohammad Abunayyan, Founder & Chairman of the Board of Directors of ACWA Power, and Mr. Jin Liqun, President and Chair of the Board of Directors of AIIB. The LoI was signed by Abid Malik, Geo Head for Central Asia at ACWA Power, and Najeeb Haider, Director General, Project and Corporate Finance Clients Department, Global at AIIB.
The agreement marks a major progress in the ongoing efforts by ACWA Power and AIIB to support the Republic of Uzbekistan’s energy transition to renewable energy projects and in turn, clean energy sources. The LoI outlines the potential financing of the three wind farms in Kungrad with a 500MW capacity each, through a USD 150 million Equity Bridge Loan (EBL) for a four-year tenor and backstopped by ACWA Power’s corporate guarantee.
Commenting on the collaboration,Mohammad Abunayyan, Founder & Chairman of the Board of Directors of ACWA Power, said: “This announcement marks an important step forward in our commitment to delivering clean, reliable and affordable energy in Uzbekistan. The Kungrad wind projects are expected to significantly contribute to Uzbekistan’s renewable energy goals, and we look forward to working with our long-standing partner AIIB to bring this vision to life.”
Jin Liqun, President of Asian Infrastructure Investment Bank (AIIB), said: “The Kungrad wind projects represent a pivotal step towards our shared vision of a greener future for Uzbekistan. By enhancing energy efficiency and transitioning to renewable energy resources, these climate mitigation projects support Uzbekistan’s ambitious renewable energy targets and align with AIIB’s commitment to sustainable infrastructure. We look forward to partnering with ACWA Power to realise the positive development impacts these projects will have on Uzbekistan’s energy landscape and economic development.”
By 2030, Uzbekistan is aiming to produce 40% of its electricity from renewables. This will include 27GW of renewable energy capacity, including wind power and solar PV sources.
Uzbekistan is ACWA Power’s second-largest market in terms of investments, underscoring the company’s long-standing commitment to the country. The company’s current portfolio in Uzbekistan now comprises 11.6GW of power, of which 10.1GW is renewable, as well as the Republic’s first green hydrogen project, with a capacity of 3,000 tons per year.
