IFC - International Finance Corporation

01/18/2023 | Press release | Distributed by Public on 01/18/2023 00:08

IFC to Help Kyrgyz Republic Develop Renewable Energy through Public-Private Partnership

Bishkek, Kyrgyz Republic, January 18, 2023-IFC and the government of the Kyrgyz Republic announced a partnership under the World Bank Group's Scaling Solar program to develop up to 100-150 megawatts of grid-connected solar power, diversifying the country's energy mix and increasing its renewable power capacity to meet the growing domestic and regional demand.

IFC will advise the Kyrgyz Ministry of Energy and the Ministry of Economy and Commerce on structuring a public-private partnership (PPP) to mobilize private sector experience and capital to construct and operate a pilot solar plant. The project will be structured under the WBG Scaling Solar program-a one-stop shop that helps governments procure and develop privately funded solar projects to produce electricity at competitive tariffs.

"Developing renewable energy in the Kyrgyz Republic is crucial to diversify our power supply," said Taalaibek Ibraev, Minister of Energy. "The project will bring private investment to develop solar photovoltaic plants that will not only improve the supply, but also create a transparent mechanism to attract more private sector investment in the country, which could be successfully replicated in other sectors."

The Kyrgyz Republic is endowed with abundant and largely untapped renewable resources, providing a viable and competitive solution to meet its growing demand while expanding its power mix. With an estimated solar power potential of 650 GW, the opportunities are significant, which is why the government aims to develop the renewable energy sector, thereby supporting the country's climate action goals.

"Ramping up the country's energy production capacity in a sustainable and cost-efficient manner is essential to boosting economic growth and improving living standards in the Kyrgyz Republic. IFC is pleased to support this pilot project and is committed to crowd in private investment to help unlock and scale up renewable energy in the Kyrgyz Republic, thereby helping to provide clean and reliable energy to its citizens," said Muneer Ferozie, IFC's Regional Manager and Head of PPP Transaction Advisory for Middle East, Central Asia, Turkey, Pakistan and Afghanistan (MCT), region.

As an advisor, IFC helps governments conduct detailed project studies, assess structuring options that best meet public needs and are attractive for investors. IFC assists governments in running an open and competitive tender to identify a qualified private partner. IFC's advisory support is completed once project agreements are signed between the public and private partners.

The initiative is part of a broader IFC efforts to support private sector development in the Kyrgyz Republic and drive economic growth in the Kyrgyz Republic. IFC has been also supporting the government of the Kyrgyz Republic to assist it in designing a competitive tender for a PPP with an established airport operator to invest in the infrastructure of Manas International Airport.

The Scaling Solar program has been a strong success and delivered competitive tariffs. Uzbekistan, Senegal, and Zambia have already successfully commissioned plants under Scaling Solar, and more projects are at different stage of development in a number of countries, including Côte d'Ivoire, Niger, and Togo. Globally, in 2021, IFC delivered 32 percent in own-account climate finance and mobilized $3.6 billion for climate. Through these investments, IFC has developed expertise in key climate markets including solar, hydropower, wind, energy storage, green buildings, and waste-to-energy.

About IFC
IFC-a member of the World Bank Group-is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.

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