Masdar achieves financial close on landmark 100 MW Nur Navoi Solar project in Uzbekistan

Masdar, a subsidiary of Mubadala Investment Company and one of the world’s leading renewable energy companies, has achieved financial close of the Nur Navoi Solar Project – Uzbekistan’s first successfully-financed independent power producer (IPP) solar project. 

Loan and guarantee agreements to finance the 100-megawatt photovoltaic plant were signed in a virtual ceremony with representatives from Masdar, Uzbekistan’s Ministry of Investments and Foreign Trade (MIFT), the International Finance Corporation (IFC), Asian Development Bank (ADB), the World Bank Group (WBG) and the European Bank for Reconstruction and Development (EBRD).

The Nur Navoi Solar Project was awarded to Masdar last year under the WBG’s Scaling Solar program, with Masdar tendering the lowest tariff in a competitive auction. In November 2019, Masdar signed a power purchase agreement (PPA) and government support agreement (GSA) with JSC National Electric Grid of Uzbekistan (NEGU) and the Government of the Republic of Uzbekistan to design, finance, build, own and operate the solar plant, located in the Navoi region. 

Masdar established Nur Navoi Solar FE LLC as the local project company to deliver the PV plant, which is scheduled to start operations in the third quarter of 2021. The project company will also operate and maintain the plant for 25 years.

EBRD provides an equity bridge loan of up to US$60 million to Nur Navoi Solar Holding, IFC and the ADB are adding up to US$60 million, and a US$5.1 is provided by the World Bank for the payment obligations of the Uzbekistan government for the project.