AIIB approves US$107 mln loan for Bash II wind farm

Tashkent, Uzbekistan (UzDaily.com) — The Asian Infrastructure Investment Bank (AIIB) has signed a US$107 million loan agreement with ACWA Power to finance the construction of the Bash II wind power plant in Uzbekistan.

ACWA Power is a private company specializing in water desalination, a leader in the energy transition, and one of the pioneers in large-scale green hydrogen production.

The project is located in the Gijduvan district of Bukhara region and will add 300 megawatts of renewable energy capacity, contributing to the expansion of green power generation and diversification of Uzbekistan’s energy mix. Once operational, the plant is expected to generate about 943 gigawatt-hours of electricity annually, avoid approximately 475,000 tonnes of CO2 emissions, and supply power to more than 336,000 households. The project complements the nearby Bash I wind farm and forms part of a broader renewable energy cluster in the region.

“AIIB’s investment in the Bash II wind power project reflects our commitment to supporting Uzbekistan’s transition to a more sustainable and diversified energy system,” said Konstantin Limitovskiy, Chief Investment Officer at AIIB for the Public Sector (Region 2) and Project and Corporate Finance Clients (Global). “By mobilizing private capital and partnering with experienced developers such as ACWA Power, the project contributes to scaling up renewable energy capacity, strengthening energy security, and delivering long-term climate benefits.”

The project aligns with AIIB’s priorities of developing green and technology-enabled infrastructure and mobilizing private capital. It also supports Uzbekistan’s goal of increasing the share of renewable energy in its energy mix to 40% by 2030.

“Bash II marks an important step in expanding ACWA Power’s partnership with Uzbekistan and advancing its energy transition ambitions,” said Abdulhamid Al-Muhaideb, Chief Financial Officer of ACWA Power. “By growing our project portfolio in the country, we demonstrate that well-structured public-private partnerships can effectively mobilize capital and deliver reliable, competitive, and environmentally sustainable power generation at scale. We remain committed to supporting Uzbekistan in achieving its 2030 energy targets.”

The investment is backed 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, underscoring strong investor confidence in the country’s renewable energy program.

Since 2019, AIIB and ACWA Power have been developing cooperation in Uzbekistan’s energy sector, channeling around US$440 million into projects spanning renewable and conventional energy. These investments aim to enhance energy supply reliability and support the gradual transition to a lower-carbon energy system.

Earlier, the Asian Development Bank and ACWA Power also signed a US$116 million financing agreement for the construction of the same 300 MW Bash II wind farm in Bukhara region.