ASIATODAY.ID, TASHKENT — The Asian Development Bank (ADB), together with ACWA Power Company, Sumitomo Corporation, Chubu Electric Power Co. Inc., and Shikoku Electric Power Co. Inc., has signed a landmark financing package to build two utility-scale solar power plants with battery energy storage systems (BESS) in Uzbekistan.
The Samarkand 1 and 2 Solar PV and BESS Projects will be developed across the Samarkand and Bukhara regions of the country.
“ADB is pleased to support Uzbekistan in advancing one of the most significant renewable energy initiatives in Central Asia,” said ADB President Masato Kanda on October 29, 2025.
“These solar and battery plants demonstrate the power of partnership and innovation, delivering reliable, affordable, and sustainable energy while cutting emissions. By combining technical ambition with financial ingenuity, the collaboration sets a strong precedent for Central Asia’s clean energy transition.”
The projects will add 1,000 megawatts (MW) of solar capacity and about 1,336 megawatt-hours (MWh) of BESS. They will also include transmission lines and two new substations to strengthen grid stability and connectivity. Once operational, the projects are expected to supply clean electricity to around 600,000 households and offset about 1.3 million tons of carbon dioxide emissions annually.
ADB arranged a $140 million financing package, comprising $70 million from its ordinary capital resources, $10 million from the ADB-administered Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and $60 million in syndicated loans with ADB as the lender of record.
To further enhance bankability and reduce risk, ADB will also provide up to $85 million in credit guarantees that backstop the off-taker’s tariff payment obligations. These guarantees, backed by the Government of Uzbekistan, were instrumental in mobilizing more than $1.2 billion in total private and partner capital for the projects.
ADB is serving as the environmental and social coordinator for the projects, helping ensure that the power plants meet the highest standards of environmental protection and community engagement. Together with its financing and risk mitigation measures, ADB’s involvement is expected to unlock over $1.2 billion in climate-aligned investment, making it one of the largest clean energy transactions in the region.
International partners in the financing consortium include the European Bank for Reconstruction and Development, Islamic Development Bank, and Japan Bank for International Cooperation. Commercial banks participating under Japan’s Nippon Export and Investment Insurance (NEXI) cover 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 the Republic of Uzbekistan. Since joining ADB in 1995, Uzbekistan has received public sector loans, grants, and technical assistance totaling $14.6 billion.
LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency (JICA). It supports sustainable private sector infrastructure projects that cut emissions, improve energy efficiency, and expand access to essential services in ADB’s developing member countries. (AT Network)
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