16 October 2019

00:00:00 (GMT+5)

Tashkent +22,5 °C

Energy
2 Okt  2019 105

An agreement on cooperation with the International Finance Corporation for the development of the energy supply sector on the basis of a public-private partnership was signed

In the Ministry of Fnance, IFC - a member of the World Bank Group, signed an agreement today to advise Uzbekistan on the structure and tender of a public-private partnership (PPP) to develop a 1,300 megawatt gas-fired power plant in the Syrdarya region. It was noted that the successful implementation of this public-private partnership will improve the stability of electricity supply and allow for more efficient use of natural gas.

As transaction advisory, IFC will support the government to design a public-private partnership that will attract qualified private sector investors to develop the project and allocate risk appropriately between the public and private sectors.

The government will select an investor for the project through a competitive bidding process that follows best practices.

This public-private partnership is designed to help modernize Uzbekistan's ageing power infrastructure and provide both residents and businesses with a steady supply of electricity. This is key for Uzbekistan, which will see its energy demand grow by up to 50 percent by 2030, according to World Bank Group estimates.

This project is part of a broader effort by IFC to support private sector investments in Uzbekistan’s energy sector.

Uzbekistan, the most populous country in Central Asia, is currently undergoing an unprecedented economic transformation.

IFC is supporting the new government’s reform process through a combination of investments and advisory services in many key areas. IFC currently manages a US$58 million investment portfolio in Uzbekistan with investments mainly in the financial and textile sectors.

IFC’s advisory services provided under six projects designed to assist the country in privatizing SOEs, including two state-owned banks, transforming the cotton sector, developing and diversifying the financial market, promoting energy efficiency in the chemical sector, and piloting PPP transactions in renewables and health sectors. 

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