Tashkent, Uzbekistan (UzDaily.com) - On 8 November, an investment agreement was signed in Tashkent between the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan and Masdar (UAE). Masdar invests up to US$100 million in the construction of a photovoltaic plant with a total capacity of 100 MW in Navoi region of the Republic of Uzbekistan.

On 4 October 2019, the Emirate company Masdar was declared the winner of the first open tender in the history of the Republic of Uzbekistan to attract investments in public-private partnerships (PPPs) in solar energy.

Masdar came up with a proposal to supply solar energy for just 2,679 US cents per kilowatt hour, which is one of the lowest tariffs in emerging markets. Masdar will carry out the design, financing, construction and operation of the power plant throughout the project implementation period (25 years).

The start of construction work is expected in the first quarter of 2020 with the commissioning of the power plant by the first quarter of 2021.

The International Finance Corporation (IFC) was involved as a consultant on the transaction, assisting the Ministry of Investment and Foreign Trade in developing relevant documentation and conducting tenders, in which more than 40 companies from different countries participated.

It should be recalled that the Government of Uzbekistan on 18 October in Washington signed a mandate with IFC to develop up to 900 MW of solar energy through public-private partnership (PPP) projects.

“The signing of the investment agreement with Masdar is an event of a historical scale, which is yet another evidence of the irreversibility of the reforms and transformations begun under the leadership of President Sh. Mirziyoyev three years ago. We will continue to be committed to the implementation of such projects in a transparent and competitive manner with the aim of obtaining the most acceptable decisions from the point of view of the interests of Uzbekistan, "said Minister of Investment and Foreign Trade of Uzbekistan S. Umurzakov, sharing his impressions of the ceremony.

In the coming months, tenders are expected to start on the basis of a public-private partnership for two more projects in the field of solar energy with a capacity of up to 200 MW each in Samarkand and Jizzakh regions, followed by an additional round for a capacity of 500 MW. In total, the energy sector will attract about US$1 billion of foreign direct investment.