In 2024, the European Bank for Reconstruction and Development (EBRD) invested a record €938 million ($960 million) in Uzbekistan, signing 34 projects, reports Gazeta.uz.
Uzbekistan once again became the leading recipient of EBRD financing in Central Asia, with 55% of the bank’s investments directed toward supporting green economy projects. Together with €383 million attracted from co-financing organizations, this helped bring over €1.3 billion into the country’s economy.
The EBRD specifically supported the creation of the first renewable hydrogen production facility in Central Asia, providing a $65 million financing package to a joint venture between ACWA Power and Uzkimyosanoat. This is expected to help decarbonize Uzbekistan’s fertilizer production sector.
The EBRD also arranged an A/B loan of $226 million for the development, design, construction, and operation of a 200 MW solar photovoltaic power plant and a 501 MWh battery energy storage system in the Tashkent region. This is one of the largest projects of its kind financed by the EBRD in its areas of operation.
A sovereign loan of $66.4 million from the EBRD to the company "National Electric Networks of Uzbekistan" will support the construction of a 230 km, 500 kV transmission line in the Navoi region. This project aims to eliminate network bottlenecks, reduce power outages, and facilitate the integration of renewable energy sources.
An EBRD sovereign loan of $238 million will help restore a key transport highway and build a bridge over the Amu Darya River in the Khorezm region, contributing to the development of sustainable transport infrastructure in Central Asia.
The country’s financial sector attracted over €300 million from the EBRD through trade finance limits and loans to local financial institutions. The EBRD offered credit lines and risk-sharing agreements for Hamkorbank, Ipoteka Bank, TBC Bank, and Uzbek Leasing International.
"Special attention was given to the development and support of small and medium-sized businesses, including those requiring energy efficiency improvements, as well as businesses owned and operated by youth and women. Throughout the year, the EBRD also increased its equity investment in TBC Uzbekistan, the country’s first digital bank," the bank emphasized.
The EBRD and the Uzbek government also agreed to cooperate in preparing for the privatization of Asakabank, one of the country’s largest state-owned lenders.
In 2024, the EBRD’s small business advisory program in Uzbekistan launched 60 consulting projects, expanding support for SMEs. Half of these projects involved women entrepreneurs, and over 40% were based in rural areas. More than 80,000 entrepreneurs across the country received specialized training, networking opportunities, online seminars, and knowledge-sharing events.
Throughout 2024, the EBRD also actively engaged in consultations with Uzbek authorities, contributing to the adoption of several key legal acts, including laws on privatization, the electricity market, and subsoil use.
As of the first nine months of last year, Uzbekistan’s external debt—including public and private debt - reached $60.2 billion. Since the beginning of the year, the figure increased by $7.2 billion. Public external debt accounts for approximately $32.5 billion, while corporate (private) debt stands at $27.7 billion.
CentralasianLIGHT.org
January 17, 2025