The European Bank for Reconstruction and Development (EBRD) has announced that it invested almost $900 million (€839 million) in 26 projects in Uzbekistan, making it the leading recipient of its funding in Central Asia for the third year running.
EBRD held that most of the investments were made in sectors like renewable energy and banking. The previous record for the bank’s annual investment in the country was $690 million set in 2021.
Aligning For Green Transition
EBRD said that it continues to work on the improvement of the investment climate in Uzbekistan by facilitating the first plenary session of the Foreign Investors’ Council, which will serve as a platform for dialogue between foreign investors and the authorities fostering reforms.
EBRD also claims to have fully aligned with the Paris Agreement at the start of 2023 and continued to provide support for Uzbekistan’s green transition. The bank arranged two syndicated loans collectively worth $520 million to help construct and put into operation two wind power plants with a total installed capacity of 1 GW in the Bukhara region.
EBRD held that this financing is bank’s largest renewable energy project to date across its regions.
EBRD also organised a financing package of $74 million for the development, construction and operation of a 500 MW greenfield wind power plant in the Navoi region of Uzbekistan. This was the first project in Central Asia to use the Identiflight able to detect and monitor species at risk of collision and trigger an automatic curtailment of selected turbines.
The EBRD and Uzbekistan agreed to jointly develop a national methane emissions programme, which will become a key planning tool for achieving the Global Methane Pledge (GMP) objective of reducing methane emissions by 30 per cent by 2030. Last year Uzbekistan became only the second country in Central Asia to join the GMP.
EBRD extended long-term sovereign loans too that collectively worth up to $120 million for the regional utility companies responsible for solid waste management in Khorezm and Karakalpakstan. The project will contribute to Uzbekistan’s decarbonisation efforts in line with the Paris Agreement and support the national solid waste management strategy.
A financial package of US$ 10 million provided by the EBRD to Ipak Yuli Bank will improve access to green technologies for local households and SMEs and promote women’s entrepreneurship.