Posted by: 14 november, 2024
Tashkent, 13.11.2024 – JSCMB Ipoteka bank is pleased to announce its strategic partnership with ACWA Power Syrdarya (APS) to support the development of a 1,500 MW Combined Cycle Gas Turbine (CCGT) plant in Uzbekistan's Sirdarya region. This collaboration aligns with Uzbekistan's national objectives for energy efficiency and environmental sustainability.
On March 5, 2020, ACWA Power and the National Electric Grid of Uzbekistan (NEGU) formalized a 25-year Power Purchase Agreement (PPA) for the project, with ACWA Power as the primary investor, developer, and operator. NEGU, Uzbekistan’s national off taker, ensures reliable power consumption. The total investment for constructing this high-efficiency plant stands at $1.017 billion.
APS, established on November 28, 2019, in the Boyovut district of the Sirdarya region, is governed by the “Law of the Republic of Uzbekistan on Electricity.” Designed with a capacity of 1,500 MW, this plant will be one of the most efficient in Uzbekistan, achieving a 60.8% efficiency rate. Utilizing advanced technology, it conserves over 40% of natural gas compared to standard plants, contributing to Uzbekistan's sustainable energy goals.
In this partnership, Ipoteka bank has extended a $40 million Working Capital Facility (WCF) to ACWA Power Syrdarya to meet operational needs over a 36-month period, with an optional automatic 12-month extension. This facility, supported by onshore and offshore security agreements, positions Ipoteka Bank as a core partner alongside other senior lenders. Standard Chartered Bank serves as the Security Agent for this initiative. By adopting international best practices, Ipoteka Bank has uniquely succeeded in providing this facility, a significant accomplishment among Uzbek banks traditionally lacking project finance expertise.
"This collaboration reflects our mission to foster impactful, sustainable energy solutions in Uzbekistan," said Irakli Elashvili, Advisor to the Chairman of the Board at Ipoteka bank. "We are proud to stand alongside ACWA Power Syrdarya and contribute to the country’s vision of energy independence and environmental stewardship."
The ACWA Power Syrdarya project is anticipated to reduce carbon emissions by 200,000 cubic meters annually and create over 1,300 jobs for Uzbek citizens. The project also bolsters the local economy by engaging Uzbek companies such as East West Engineering, UzAssystem, and Uzelektroapparat, reinforcing domestic economic resilience.
Senior lenders supporting this partnership include the European Bank for Reconstruction and Development (EBRD), DEG, the OPEC Fund for International Development, the Asian Infrastructure Investment Bank (AIIB), and various commercial banks, ensuring a solid financial foundation and sustainability for the project.
Through this initiative, Ipoteka bank is honored to support Uzbekistan’s journey towards a resilient and sustainable energy future.
