World Bank to give Uzbekistan $3.5 mln payment guarantee for purchasing electricity from France's Voltalia solar power plant
TASHKENT. Dec 24 (Interfax) - The World Bank has approved financing for Uzbekistan in the form of a $3.5 million payment guarantee for purchasing electricity from a solar power plant being built by the French company Voltalia in the Khorezm region.
"This support will secure the obligations of the state-owned National Electric Grid of Uzbekistan JSC to purchase electricity from a new 100-megawatt (MW) solar power plant to be constructed and operated by Voltalia (France) in the Khorezm region," the World Bank said in a press release.
"The guarantee has also facilitated the mobilization of $80 million in capital investment, including a financing package exceeding $54 million provided by the European Bank for Reconstruction and Development (EBRD), to implement this project," it said.
The solar plant will be commissioned in November 2025. It will generate more than 240 GWh of renewable energy every year. Its operation will make it possible to reduce carbon dioxide emissions by more than 230,000 tonnes per year and provide clean energy to around 60,000 households, the World Bank said.
"The World Bank Group supports Uzbekistan in meeting its energy needs and expanding renewable energy to reach 25 GW of capacity, covering 40% of the country's electricity consumption by 2030 as stated in the state program 'Uzbekistan - 2030,'" World Bank Regional Director for Central Asia Tatiana Proskuryakova was quoted as saying in the press release.
Sarimay Foreign Enterprise LLC, a subsidiary of Voltalia, is implementing the project to build a solar plant in the Khorezm region. It is responsible for developing, financing, constructing and operating the facility. After the plant is commissioned, Sarimay will sell the electricity it produces to the National Electric Grid of Uzbekistan in line with a 25-year agreement.
As reported, the EBRD has organized financing totaling $54.6 million for Voltalia's subsidiary which is implementing a pilot project to construct a 100 MW solar power plant in Uzbekistan.
The Uzbek Energy Ministry at the end of 2022 awarded tenders for the construction of three solar power plants in the country to companies from the UAE, China and France. Masdar of the UAE won a tender for a 250 MW plant in the Bukhara region, the GD Power - Powerchina (China) consortium for a 150 MW plant in the Namangan region and Voltalia for a 100 MW plant in the Khorezm region.
Uzbekistan is one of the biggest recipients of World Bank financing. Its project portfolio currently exceeds $12 billion.