Ministry of Investments and Foreign Trade and MASDAR (UAE) signed an investment agreement

Ministry of Investments and Foreign Trade and MASDAR (UAE) signed an investment agreement on November 8 in Tashkent.

Masdar invests up to $100 million in the construction of a photovoltaic plant with a total capacity of 100 MW in the Navoi region of Uzbekistan.

On October 4, 2019, Masdar emirate company was declared the winner of the first open tender in the history of the Republic of Uzbekistan for attracting investments in public-private partnerships (PPPs) in solar energy.

Masdar came up with a proposal to supply solar energy for just 2,679 US cents per kilowatt hour, which is one of the lowest tariffs in emerging markets.

Masdar will carry out the design, financing, construction and operation of the power plant throughout the project implementation period (25 years).

The start of construction work is expected in the first quarter of 2020 with the commissioning of the power plant by the first quarter of 2021.

The International Finance Corporation (IFC) was involved as a consultant on the transaction, assisting the Ministry of Investments and Foreign Trade in developing relevant documentation and conducting tenders, in which more than 40 companies from different countries participated.

It should be recalled that the Government of Uzbekistan signed a mandate with IFC to develop up to 900 MW of solar energy through public-private partnership (PPP) projects on October 18 in Washington.

 “Signing of the investment agreement with “Masdar” company is a historical scale event, which is yet another evidence of the irreversibility of the reforms and transformations which begun three years ago under the leadership of President Sh. Mirziyoyev. We will continue to be committed to the implementation of such projects in a transparent and competitive manner in order to obtain the most acceptable solutions from the point of view of Uzbekistan’s interests, “said Minister of Investment and Foreign Trade of Uzbekistan S. Umurzakov, sharing his impressions of the ceremony.

In nearest future, tenders are expected to start in Samarkand and Jizzakh regions on the basis of a public-private partnership for two more projects in the field of solar energy with a capacity of up to 200 MW each, followed by an additional round for a capacity of 500 MW.

In total, the energy sector will attract about $ 1 billion of Foreign direct investment.

For reference: “Masdar” is a subsidiary of the investment holding company of the Government of Abu Dhabi “Mubadala Investment Company” and one of the leading international companies for the development of renewable energy in the world. The portfolio of implemented investment projects of the company includes more than 4000 MW of installed capacity for generating electricity from renewable sources.