The US $40mn deal will see the construction, operations and maintenance of two wind farms and the development of transmission infrastructure
The OPEC Fund for International Development (OPEC Fund) and Saudi-based utility project developer Acwa Power have entered into two loan agreements worth US $20mn each. The financing deal will enable the development of two wind power plants in Uzbekistan.
The new facilities will contribute to the country’s renewable energy generation capacity, while also reducing greenhouse gas emissions and diversifying the country’s energy mix, the statement explained.
The funds will support the construction and operation of the 500MW Dzhankeldy wind farm and the 500MW Bash wind power plant, and will take shape in the country’s Bukhara region.
OPEC Fund Director-General Dr Abdulhamid Alkhalifa said, “Increasing private sector participation is key to support Uzbekistan’s ambitious energy transition. We are happy to cooperate with the authorities as well as with our development and private sector partners on energy sector projects that will boost the share of renewables in energy generation and provide reliable and affordable clean energy.”
In mid June 2020, the OPEC Fund unveiled a landmark logistics plan for Oman.
The loan agreement for the Dzhankeldy wind farm will support the development of the plant’s infrastructure including its construction, operation, and maintenance, as well as the development of 128km of transmission infrastructure.
As per the OPEC Fund, the Dzhankeldy plant is expected to generate 1,550GWh of electricity annually, while the Bash plant will generate in excess of 1,650GWh of electricity annually, and will include the construction and installation of 160km of transmission infrastructure.
Together, the two plants are expected to reduce CO2 emissions by 1.8 billion tonnes, the statement pointed out.
The financing for both projects was provided through a consortium of international lenders, with the European Bank for Reconstruction and Development (EBRD) serving as the technical bank, and Standard Chartered Bank acting as the documentation bank, according to Dr Alkhalifa.
In early January 2023, the Ducab Group said it was supplying 633km of cabling for an Egyptian windfarm.
The consortium also includes the French development financier Proparco, Germany’s development bank Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the Industrial and Commercial Bank of China, and the Asian Development Bank (ADB), he concluded.