Project description

This disclosure covers an application by Standard Chartered Bank, UK and other commercial lenders currently in the process of being identified (collectively, the “Lenders”), for their non-shareholder loans and interest rate swaps to the FE ACWA Power Dzhankeldy Wind LLC (the “Project Enterprise”), wholly owned by ACWA Power of Saudi Arabia (ACWA) for the development of a wind power project in Uzbekistan (the “Project”). The Lenders are seeking guarantees of up to US$ 332.5 million against the risks of Breach of Contract, Transfer Restriction, Expropriation and War and Civil Disturbance for a period of up to 20 years.

The Project involves the design, construction, operation, and maintenance of Dzhankeldy 500 MW greenfield wind farm in Peshku district, Bukhara region. The Project also includes construction of purchaser electrical facilities (128.5 km 500 kV overhead transmission line to connect the Dzhankeldy wind farm to Bash wind farm) and common electrical facilities shared with Bash wind farm (switchyard with transformers, 500/220 kV pooling station).  The Bash wind farm is also being considered for a MIGA Guarantee. Disclosure of the Bash wind farm project can be found here . The power generated by the Project will be sold to the state-owned JSC National Electric Grid of Uzbekistan (NEGU) under a 25-year Power Purchase Agreement (PPA).

Environmental Categorization

The Project is Category A under MIGA Policy on Environmental and Social Sustainability (2013). Click here  to view the Environmental and Social Review Summary.

Development Impact

The Project is expected to: (i) add green electricity capacity into the grid to meet expected growth in demand; (ii) reinforce the relevance of renewable sources within sustainability objectives to meet climate action goals; and (iii) signal Uzbekistan as a viable destination for foreign investors in support of the country’s objective to modernize its economy, including in power generation.