ADB to Finance Major Solar Projects in Central Asia

Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB), in partnership with ACWA Power, Sumitomo Corporation, Chubu Electric Power Co. Inc., and Shikoku Electric Power Co. Inc., has signed a landmark financing package for the construction of two solar power plants with battery energy storage systems (BESS) in Uzbekistan.

The Samarkand 1 and 2 Solar PV and BESS projects will be implemented in the Samarkand and Bukhara regions and are set to become the largest facilities of their kind in Central Asia.

ADB President Masato Kanda stated that the bank is “pleased to support Uzbekistan in executing one of the region’s most significant renewable energy projects.” He emphasized that these solar and battery stations exemplify the power of partnership and innovation, delivering reliable, affordable, and environmentally sustainable energy while reducing emissions. Kanda highlighted that the collaboration showcases a successful combination of technological ambition and financial ingenuity, forming a solid foundation for Central Asia’s transition to clean energy.

The project plans include installing 1,000 megawatts of solar capacity and approximately 1,336 megawatt-hours of energy storage, along with constructing new power transmission lines and two substations to enhance the resilience and connectivity of the national grid. Once operational, the plants will supply clean electricity to around 600,000 households and are expected to reduce annual carbon dioxide emissions by about 1.3 million tons.

ADB has arranged a US$140 million financing package, including US$70 million from its own resources, US$10 million from the Asia Private Sector Infrastructure Development Fund (LEAP 2) managed by ADB, and US$60 million in syndicated loans, with the bank serving as lead lender.

To increase investment attractiveness and mitigate risks, ADB will also provide up to US$85 million in credit guarantees to secure tariff payments. Backed by the Government of Uzbekistan, these guarantees played a key role in mobilizing over US$1.2 billion in private and partner capital.

ADB is coordinating the environmental and social aspects of the projects, ensuring compliance with international standards on environmental protection and community engagement, making this one of the largest clean energy transactions in Central Asia.

Other participants in the financing include the European Bank for Reconstruction and Development, the Islamic Development Bank, and the Japan Bank for International Cooperation. Commercial banks involved under the export and investment insurance coverage of the Japan Bank for NEXI include Standard Chartered Bank, The Norinchukin Bank, Sumitomo Mitsui Banking Corporation, and KfW IPEX-Bank GmbH.

This year marks the 30th anniversary of the partnership between ADB and Uzbekistan. Since joining the bank in 1995, Uzbekistan has received loans, grants, and technical assistance totaling US$14.6 billion.

The LEAP 2 fund, managed by ADB with support from the Japan International Cooperation Agency (JICA), has commitments totaling US$1.5 billion and aims to support sustainable private-sector infrastructure projects that reduce emissions, improve energy efficiency, and expand access to essential services in developing member countries.

Founded in 1966, the Asian Development Bank comprises 69 countries, 50 of which are in the Asia-Pacific region. The bank plays a key role in promoting sustainable, inclusive, and balanced economic growth through innovative financial instruments and strategic partnerships addressing global challenges, infrastructure development, and environmental protection.