Reading Time: 2 minutes
Saudi-listed ACWA Power, recognized as the world’s largest private water desalination company and a leader in energy transition, has signed a Letter of Interest (LoI) with the Asian Infrastructure Investment Bank (AIIB) to finance the Kungrad 1, 2, and 3 wind power plants in the Karakalpakstan region of Uzbekistan.
The signing ceremony took place during the Ninth Annual Meeting of the AIIB Board of Governors in Samarkand on September 24. It was attended by prominent figures, including Mohammad Abunayyan, Founder and 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 officially signed by Abid Malik, Geo Head for Central Asia at ACWA Power, and Najeeb Haider, Director General of Project and Corporate Finance Clients Department, Global at AIIB.
This agreement signifies a significant advancement in the ongoing collaboration between ACWA Power and AIIB to support Uzbekistan’s energy transition towards renewable sources. The LoI details potential financing for the three wind farms, each with a capacity of 500 MW, through a USD 150 million Equity Bridge Loan (EBL) over a four-year term, backed by ACWA Power’s corporate guarantee.
In his remarks, Mohammad Abunayyan stated, “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 emphasized the project’s importance, saying, “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 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 realize the positive development impacts these projects will have on Uzbekistan’s energy landscape and economic development.”
Uzbekistan aims to produce 40% of its electricity from renewable sources by 2030, targeting a total of 27 GW of renewable energy capacity, including wind and solar PV.
ACWA Power has a strong presence in Uzbekistan, where it is the company’s second-largest market in terms of investments. Its current portfolio in the country includes 11.6 GW of power capacity, of which 10.1 GW is renewable, as well as the Republic’s first green hydrogen project, with an annual capacity of 3,000 tons.
