EBRD invests record 0.9 bln euros in Uzbekistan in 2024
TASHKENT. Jan 17 (Interfax) - The European Bank for Reconstruction and Development (EBRD) invested a record 938 million euros ($960 million) in Uzbekistan in 2024, approving 34 projects for the country, the bank said in a press release.
"Uzbekistan once again became the leading recipient of EBRD financing in Central Asia, with 55% of the bank's investments directed towards supporting green economy projects. Along with 383 million euros raised from co-financing organizations, this helped attract over 1.3 billion euros to the country's economy," it said.
In particular, the EBRD supported the creation of Central Asia's first renewable hydrogen production facilities, providing a financing package of $65 million to the joint venture between ACWA Power (Saudi Arabia) and JSC Uzkimyosanoat, which consolidates Uzbek chemical industry enterprises. This will help decarbonize the country's fertilizer production sector in the country, it said.
The EBRD also organized a $226 million loan for the development, design, construction and operation of a 200 MW solar photovoltaic power plant and a 501 MWh battery energy storage system (BESS) in the Tashkent region. To date, this is one of the largest BESS projects funded by the EBRD in the countries where it operates.
In addition, a $66.4 million loan from the EBRD to the National Electric Grid of Uzbekistan will support the construction of a 230 km, 500 kV transmission line in the Navoi region. This project will help eliminate bottlenecks in the network and reduce power outages, it said.
Another EBRD loan of $238 million will help restore an important transportation route and build a bridge across the Amu Darya river in the Khorezm region, thereby contributing to the development of sustainable transport links in Central Asia.
Uzbekistan's financial sector attracted over 300 million euros from the EBRD through trade financing limits and loans to local financial institutions, the bank said. The EBRD has provided credit lines and risk-sharing agreements to Uzbek creditors such as Hamkorbank, Ipoteka Bank and TBC Bank Uzbek Leasing International. Special attention was given to the development and support of small and medium-sized enterprises, as well as businesses owned and managed by young people and women. Over the past year, the EBRD also increased its investments in the equity of TBC Uzbekistan, the country's first digital bank.
"The EBRD and the Uzbek government also agreed to work together on the privatization of one of the country's largest state-owned creditors, Asakabank," it said.
The EBRD actively participated in consultations with the country's authorities throughout 2024, which contributed to the adoption of several legal acts, such as laws on privatization, the electricity market and subsoil use, it said.
Uzbekistan joined the EBRD in 1992. However, by 2009 relations between the parties were virtually frozen. At that time, the bank announced its refusal to lend to the Uzbek government in response to the slow pace of market reforms. Cooperation was resumed in 2017 with the election of Shavkat Mirziyoyev as Uzbek president.
To date, the EBRD has invested around 5.3 billion euros in 171 projects in Uzbekistan.