AIIB Backs New Wind Power Project in Uzbekistan with $107 Million Loan
The Asian Infrastructure Investment Bank (AIIB) has signed a $107 million loan agreement with Saudi-based company ACWA Power to support the construction of the Bash 2 wind power plant in Uzbekistan. The project will be located in the Gijduvan district of the Bukhara region and is expected to have a capacity of 300 megawatts. Once completed, the facility will generate around 943 gigawatt-hours of electricity annually, enough to supply more than 336,000 households. It is also projected to reduce carbon dioxide emissions by approximately 475,000 tons per year. The Bash 2 project builds on the earlier Bash 1 wind development and forms part of a broader renewable energy cluster in the region. It aligns with Uzbekistan’s strategy to expand clean energy production and diversify its energy mix, with a national target of increasing the share of renewables to 40% by 2030. “AIIB’s investment in the Bash 2 wind power plant reflects our commitment to supporting Uzbekistan’s transition toward a more sustainable and diversified energy system,” said Konstantin Limitovskiy, Chief Investment Officer at AIIB. He noted that cooperation with private developers such as ACWA Power helps mobilize capital and strengthen energy security while delivering long-term environmental benefits. ACWA Power also emphasized the significance of the project within its growing partnership with Uzbekistan. “Bash 2 represents a meaningful step forward in ACWA’s expanding partnership with Uzbekistan and the delivery of its energy transition ambitions,” said Abdulhameed AlMuhaidib, the company’s Chief Financial Officer. He added that the project demonstrates the effectiveness of public-private partnerships in delivering large-scale clean energy solutions. The investment is supported by a long-term power purchase agreement with the National Electric Grid of Uzbekistan and is co-financed by the Asian Development Bank and Standard Chartered Bank. This financing structure highlights continued investor confidence in Uzbekistan’s renewable energy sector. Since 2019, AIIB and ACWA Power have jointly invested approximately $440 million in Uzbekistan’s energy sector, covering both renewable and conventional power generation projects. The latest agreement comes amid broader efforts by Uzbekistan to strengthen energy cooperation with international partners. As previously reported by The Times of Central Asia, the government has expanded collaboration with Saudi companies, including ACWA Power, through a series of joint projects. During a high-level meeting with Saudi investors, four wind power plants with a combined capacity of 752 megawatts were connected to the national grid, while construction began on additional projects totaling 2.3 gigawatts. At the same time, infrastructure development has continued, including work on a 1,790-kilometer high-voltage transmission line designed to improve electricity distribution across several regions of the country.
