The financing consists of A-Loan of up to $227.75 million and $12.25 million trust loan through IFC’s Managed Co-Lending Portfolio Program
It will help construct and operate a 1 GW solar PV plant + 668 MW BESS in Uzbekistan
The projects will reduce Uzbekistan’s GHG emissions by an estimated 1.3 million tons of CO2 annually
IFC, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has announced a $240 million Islamic Equity Bridge Loan (EBL) financing to Saudi Arabia’s ACWA Power to support the development of the renewable energy sector in Uzbekistan.
IFC’s financing will help construct and operate 2 projects - a 1 GW solar PV plant along with a 668 MW Battery Energy Storage System (BESS), and approximately 500 kilometers of high-voltage transmission lines.
The $240 million financing is structured as an Islamic Finance Murabaha, consisting of an A-Loan of up to $227.75 million and a $12.25 million trust loan through IFC’s Managed Co-Lending Portfolio Program. This funding will support ACWA Power’s equity contributions toward the project’s development over the next 4 years. As a widely used investment tool, this structure helps project developers offer competitive tariffs by optimizing equity returns. It will also enable ACWA Power to attract additional capital and private sector investors, advancing Uzbekistan’s goal of reaching 40% renewable energy generation by 2030.
Uzbekistan's energy intensity is currently 3 times the average level seen across Europe and Central Asia. These projects will support the Uzbekistan government’s commitment to decarbonizing the economy and enhancing infrastructure to boost competitiveness and connectivity and are expected to reduce the country’s GHG emissions by an estimated 1.3 million tons of CO2 annually. On completion, these renewable projects are expected to generate approximately 2,400 GWh of electricity annually.
Speaking about the funding, Chief Financial Officer of ACWA Power Abdulhameed Al Muhaidib said, “We are honored to collaborate with IFC on this transformative project in Uzbekistan, which embodies our shared vision of advancing sustainable energy solutions. This initiative is set to establish a new standard for cross-border ACWA Power recourse funding support, and in turn effectively addressing energy demands while championing environmental sustainability.”
Reacting to this, Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources in the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan, said, “As we deepen our partnership with ACWA Power, we continue to build on our track record of mobilising South-South investments that drive sustainable development in emerging markets while supporting countries like Uzbekistan in their renewable energy journey.”
Since 2011, IFC has maintained a long-standing partnership with ACWA Power, supporting its growth in emerging markets and developing economies. This collaboration has been built on shared commitments to advancing sustainable power and water solutions worldwide. Through this investment for Uzbekistan, IFC is seizing another opportunity to work with ACWA Power, strategically utilizing innovative financial structures to unlock new avenues for collaboration.
Meanwhile, ACWA Power has joined hands with Japan-based global integrated energy trading company Sumitomo Corporation to co-develop what they call as Uzbekistan’s largest renewable energy projects (see ACWA Power & Sumitomo Corporation Partner For Uzbek Projects).