China Energy Construction Group Completes Financing for Uzbekistan 1GW Photovoltaic Project
On April 25, 2025, China Energy Construction Group’s subsidiary successfully completed the signing of the syndicate financing agreement and the activation of the export credit insurance policy for the Uzbekistan 1GW photovoltaic power generation project. This project marks a significant milestone as it is the first overseas renewable energy financing project fully covered by China Export & Credit Insurance Corporation (Sinosure) and fully financed by Chinese banks, with financing denominated in RMB.
The total loan amount for the Uzbekistan 1GW photovoltaic power generation project is approximately <b>3.3 billion RMB</b>. The financing banks involved in this syndicate include China Construction Bank, Bank of China, Export-Import Bank of China, and Minsheng Bank. Notably, the project utilizes a non-recourse financing model, which means that, aside from the usual asset and equity pledges, the investors did not provide any financial guarantees.
In addition, Sinosure has issued a medium to long-term export buyer's credit insurance to the financing banks, with both political and commercial risk compensation ratios reaching <b>95%</b>. This insurance plays a crucial role in enhancing the creditworthiness needed for the project’s bank loans.
The Uzbekistan 1GW photovoltaic power generation project consists of <b>500 megawatts</b> in Bukhara Province and <b>500 megawatts</b> in Kashkadarya Province. It is the first large-scale renewable energy project constructed by Chinese enterprises in Central Asia following the inaugural China-Central Asia Summit in 2023. Additionally, it stands as the largest photovoltaic project by Chinese companies in Central Asia under the Belt and Road Initiative framework. The project has received high praise from the President of Uzbekistan and has been designated as a "benchmark new energy project."
Full capacity grid connection is expected to be achieved by the end of June 2024, with an average annual electricity generation of approximately <b>2.4 billion kWh</b>. During the construction and operational phases, the project will provide over <b>1,600 jobs</b> locally and is projected to generate about <b>140 million USD</b> in tax revenue. This project is significant for driving the transformation of Uzbekistan's energy structure and contributing to the rapid socio-economic development of the local area.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/china-energy-engineering-secures-financing-for-1gw-solar-power-project-in-uzbekistan/
