ACWA Power, a leading developer, investor and operator of power generation and desalinated water plants in 13 countries, has announced the successful financial closure for the development, construction and operation of the 1500 MW Sirdarya Combined Cycle Gas-Turbine (CCGT) power plant in Uzbekistan.
A syndicate of seven international lenders will provide 4750 million senior debt for the $1 billion project.
The mandated lead entities — including the European Bank for Reconstruction and Development (EBRD), German Investment Corporation (DEG), Standard Chartered, Natixis, Société Générale, the OPEC Fund for International Development, and the Bank of China — helped structure the project finance debt.
The commercial banks are providing funding on the back of a Multilateral Investment Guarantee Agency four-point cover.
The project will provide cleaner, more efficient and cost-competitive gas power that can be utilized across industries in Uzbekistan. Upon completion, it is expected to meet 15 percent of power demand in Uzbekistan and comprise eight percent of all installed power capacity.
The design, operational, and real time monitoring structure of the project is state-of-the-art, engineered by global experts to drive the energy production process round the clock, aiming to create a seamless flow to the national power grid of Uzbekistan through the air-insulated switchyard, while offsetting 2.2 million tonnes of carbon dioxide emissions each year.
Paddy Padmanathan, president and chief executive officer of ACWA Power, said: “The successful financial closure of Sirdarya CCGT in a challenging operating environment validates continued appetite for public-private partnerships and green investments.
“It also reflects the confidence and credibility ACWA Power enjoys amongst the global financial community, which we have worked to cultivate over 17 years of successful operations.
“On the strategic level, this project is yet another example of our commitment to collaborating with governments around the world to satisfy the rising demand for affordable power and water, and we are proud to be supporting Uzbekistan’s decarbonization efforts and energy transition journey.”
Rajit Nanda, chief portfolio management officer and acting CIO of ACWA Power said: “Given the current macroeconomic climate, this announcement reinforces our proven structuring capabilities and the resilience of our long-lasting partnerships.
“We are delighted with the timely signing of a financing package for the Sirdarya CCGT project, which enables us to support the Republic of Uzbekistan in providing cost-effective and energy efficient power solutions for their residing communities.”
Since inception in 2004, ACWA Power has grown rapidly both domestically and internationally in line with its mission to make available electricity and desalinated water in a reliable and responsible manner to support the social development and economic growth of nations.
