Asian Infrastructure Investment Bank (AIIB) and Islamic Development Bank (IsDB) have jointly announced a significant investment of €325 mn for the construction of a power plant in Surkhandarya, Uzbekistan. The project, which received approval from the AIIB on June 14, aims to enhance the country's electricity production capacity in line with the decarbonization strategy of the Uzbekistani energy sector.
The AIIB has pledged a substantial amount of €225 mn towards the construction of a 1,560 megawatt (MW) steam-gas power plant in the Surkhandarya region. This project, categorized as "A" in terms of significance, has been in development since April 2022 and underwent its most recent assessment on May 17 of this year. The power plant will be located in the Angor district, situated in the northeastern area of the Uchkizil reservoir.
The primary objective of the Surkhandarya power plant project is to bolster the production capacity of highly efficient and sustainable electricity in Uzbekistan. By aligning with the country's decarbonization strategy, the investment aims to support the transition towards cleaner and more environmentally friendly energy sources.
In addition to the AIIB's contribution, the Islamic Development Bank has committed €100 mn towards the same project. Notably, these investments are being made without any state guarantees, signifying the confidence and support of both financial institutions in the economic development and potential of Uzbekistan.
The collaboration between the AIIB and IsDB in financing the Surkhandarya power plant underscores the increasing importance of international cooperation in the advancement of sustainable infrastructure projects. By combining resources and expertise, these multilateral institutions aim to drive economic growth while promoting clean energy solutions in developing nations.
The investment in the Surkhandarya power plant project is expected to yield significant benefits for Uzbekistan. The construction and operation of the power plant will not only contribute to the country's energy security but also create employment opportunities and stimulate local economic growth. Furthermore, the utilization of advanced technology and environmentally friendly practices will help reduce carbon emissions and mitigate the impact of climate change.
Uzbekistan's History with the AIIB
Uzbekistan's relationship with the Asian Infrastructure Investment Bank (AIIB) began in 2016 when the country joined the institution as a founding member. Since then, Uzbekistan has developed a strong and growing partnership with the AIIB. The bank has recognized Uzbekistan's potential for economic growth and has actively supported the country's infrastructure development agenda. The AIIB's investments in Uzbekistan have spanned various sectors, including energy, transportation, and urban development, contributing to economic diversification, job creation, and improved infrastructure networks. Uzbekistan's engagement with the AIIB extends beyond financial cooperation, as the country actively participates in the bank's governance structure, shaping policies and strategies. The AIIB's support has provided Uzbekistan with access to long-term financing, technical expertise, and knowledge sharing, fostering sustainable development and regional cooperation.
Comments (0)