Project Description
On May 10, 2021, the Multilateral Investment Guarantee Agency (MIGA) has issued guarantees that will support design, construction, operation and maintenance of a combined cycle single fuel (gas) (“CCGT”) power generating facility with the net installed capacity of 1.5 GW in Sirdarya region of Uzbekistan (“Project”).
The guarantees issued to Standard Chartered Bank (United Kingdom), Natixis (France), Societe Generale (France) and Bank of China Limited, Beijing branch (China) covering their non-shareholder loans to the Project and to J.P. Morgan Securities plc (England and Wales) Natixis (France), Societe Generale (France) and Bank of China Limited, Beijing branch (China) covering their interest rate swaps to the Project. [1]
The guarantees were issued for a period of 18 years and provide protection against the risks of transfer restriction, expropriation, war and civil disturbance and breach of contract. The total amount of guarantees was US$638.2 million for non-shareholder loans and US$69.4 million for interest rate swaps.
Environmental Categorization
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
Development Impact
The Project will: (i) increase consumer access, by way of increasing generation capacity via a modern, efficient, and reliable plant, given existing electricity shortfalls reflecting aging infrastructure and low efficiency rates on the existing plants; (ii) help the operationalization and development of the broader energy reform plan, by way of contributing to 9% of the required additional capacity by 2030; and (iii) adopt cutting-edge CCGT technology.
[1] MIGA issued Contracts of Guarantee for swaps on September 15, 2021.
