Synergy Consulting, Inc. is pleased to support a consortium of EDF, Nebras Power, Siemens Energy, and QuWatt B.V. in successfully raising ~EUR 1.2 billion in financing and achievement of financial close of a ~1.6 GW CCGT project located in the Surkhandarya region of Uzbekistan.
As the lead transaction and financial advisor, Synergy Consulting provided a full suite of financial advisory services, including overall project management; market sounding to identify potential lenders and equity investors; securing project financing; developing & managing the financial model; negotiation & finalization of project agreements, shareholder agreements & financing documents; and assisting with the placement of long-term hedges.
The project demonstrates Synergy’s strong ability to raise financing for large and complex infrastructure projects. The project faced a significant challenge related to liquidity, primarily due to its large scale and the concurrent financing efforts of three similar CCGT and other infrastructure projects in Uzbekistan. The size and complexity of the project created a competitive financing environment, which impacted the availability of capital.
Despite these hurdles, the project successfully secured competitive financing and became the first deal in Uzbekistan wherein both Islamic and Conventional financing structure has been undertaken, alongside ECA financing.
The financing structure has been designed with four distinct tranches incorporating the following:
- ECA-backed tranche by Societe Generale and KfW IPEX-Bank
- Euler Hermes (Germany)
- Credendo (Belgium)
- DiA-covered tranche by KfW IPEX-Bank
- DFI tranche:
- Asian Infrastructure Investment Bank (AIIB)
- Islamic Corporation for Development of the Private Sector (ICD)
- Islamic Development Bank (IsDB)
- OPEC Fund for International Development (OFID)
A complex hedging strategy for the project was unavoidable because of the diverse range of lender groups. This has added to the challenges in structuring the overall financing and ensuring its alignment with the project’s specific needs.
The project faced numerous other obstacles, including insurability, geopolitics, transport/sanctions, and the gas sector. However, all stakeholders’ unwavering commitment and collaboration led to a successful financial close in Mar’2024 and the first disbursement in Dec’2024, with commissioning scheduled for Q3 2027.
The project aligns with the Government of Uzbekistan’s decommissioning plan for ageing and inefficient thermal IPPs. The project is being developed using HL class turbines (baseload efficiency of >64%) which are future ready and capable of running on a fuel-mix with 50% hydrogen. The power plant is expected to be one of the most advanced and efficient power generation facilities in Central Asia.
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