AIIB and Azerbaijan sign agreements worth $1.1 million for green energy projects
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AIIB and Azerbaijan sign agreements worth $1.1 million for green energy projects

The Asian Infrastructure Investment Bank (AIIB), together with the Government of Azerbaijan, has signed two grant agreements totaling $1.1 million USD. The funding was provided through the Multilateral Center for Financial Development (MCDF) and mobilized with the support of AIIB.

These grants are intended to finance the preparation of the 'Caspian Green Energy Corridor' project and the coastal infrastructure required for large-scale offshore wind energy development in the Caspian Sea. These agreements are the first between AIIB and Azerbaijan with MCDF support and cover two areas: the 'Caspian Green Energy Corridor' and 'Coastal Infrastructure for Large-Scale Offshore Wind Energy in Azerbaijan.'

The signing of these agreements opens a new direction of cooperation in project preparation and lays the foundation for future investments in sustainable energy infrastructure and strengthening regional connectivity.

A grant of $1 million will be directed towards financing the first stage of the feasibility study for the 'Caspian Green Energy Corridor' project. This project involves laying an underwater electrical cable spanning 400 kilometers between Azerbaijan and Kazakhstan. Uzbekistan will be able to connect to this corridor through its terrestrial power grids.

The study will assess the technical, economic, financial, environmental, and social viability of the project, as well as examine electricity transmission options and cross-border electricity trade possibilities. The Asian Development Bank (ADB) will provide additional technical assistance of $1 million, increasing the total research support to $2 million. AIIB and ADB will work together on project preparation.

The second grant agreement, valued at $100,000, will support the development of the concept for the coastal infrastructure required for large-scale offshore wind energy development in Azerbaijan. This infrastructure includes port facilities, specialized vessels, substations, and grid connections.

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AIIB and Uzbekistan Expand Investment Cooperation with $5 Billion Program
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AIIB and Uzbekistan Expand Investment Cooperation with $5 Billion Program

The Asian Infrastructure Investment Bank (AIIB) and the Government of Uzbekistan have signed an updated Medium-Term Investment Program (MYRP), which provides for the financing of infrastructure projects worth up to $5 billion between 2026 and 2029.

Furthermore, the parties concluded a grant agreement worth $1.5 million for project preparation aimed at enhancing the resilience of Uzbekistan's power transmission system. These documents were signed during the sidelines of the 11th Annual Meeting of AIIB in Doha.

The updated investment program defines the priority areas of cooperation between the bank and Uzbekistan for the coming years, offering potential financing for infrastructure projects that align with the country's national development priorities.

The documents were signed by Konstantin Limitovsky, Vice President for Investment Operations focusing on the public sector (Region 2) and project and corporate finance for clients in the global region, representing AIIB. Uzbekistan was represented by Shokhruh Gulomov, Deputy Minister of Investment, Industry, and Trade. The signing ceremony was also attended by the Minister of Investment, Industry, and Trade of Uzbekistan and the Governor of the country at AIIB, Laziz Kudratov.

Konstantin Limitovsky noted that Uzbekistan, as one of the founders of AIIB, has always been a reliable partner, and its portfolio of investment projects reflects clear national priorities. He added that the updated program sets the vector for cooperation until 2029, and the signed grant agreement demonstrates how joint work from the outset can contribute to developing high-quality and sustainable projects ready to attract investment.

Laziz Kudratov emphasized that Uzbekistan's dynamic economic development and its growing role in regional trade, energy, and transport links open up new opportunities for international investment interaction. The Minister stated that he highly values Uzbekistan's status as AIIB's largest partner in the region and thanked the bank for its trust. He expressed hope that the updated program will lead to even closer cooperation, attract more private investors, and accelerate the implementation of joint plans by turning them into concrete projects.

In the second agreement, AIIB will provide a grant of $1.5 million for the preparation of the project 'Enhancing the Resilience of Uzbekistan's Power Transmission System.' These funds will be used for technical studies and other preparatory work. The results of this work will serve as the basis for a future investment project aimed at increasing the capacity of the energy grid, improving the reliability of electricity supply, and strengthening infrastructure resilience against the effects of climate change.

The preparatory phase will include developing technical solutions, assessing investment needs and climate risks, and identifying opportunities to connect additional renewable energy capacity. This will prepare the project for further review and potential financing. Special attention will be paid to priority sections of the power transmission infrastructure, including the southern corridor between the regions of Suni and Samarkand, as well as the Fergana Valley.

The work is intended to help identify the most vulnerable parts of the network, increase the reliability of the electricity supply system, and create conditions for integrating growing volumes of electricity generated from renewable sources. Modernizing the energy grid is particularly important in the context of Uzbekistan's energy plans: by 2030, the country plans to increase the share of renewable energy in electricity generation from approximately 30% to 54%. Achieving this goal will require significant expansion and technical modernization of the power transmission network to ensure the system operates reliably as the share of solar and wind generation grows.

The signed documents reflect the development of cooperation between AIIB and Uzbekistan in the field of infrastructure investment. The updated medium-term program establishes promising directions for financing, while the grant agreement creates an opportunity to prepare a specific energy project to a high standard. This approach combines long-term investment planning with preliminary technical preparation of infrastructure initiatives, creating conditions for attracting financing, expanding private sector participation, and implementing projects that align with Uzbekistan's economic development priorities.

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