A meeting in Jeddah on Wednesday between the Saudi-Uzbek Business council saw the nation agree and sign over 10 investment agreements ranging from more than SR45 billion.
The agreements, which span several industries, include several contracts between both the Uzbek Ministry of Energy, the Department of Investment and Foreign Trade, and ACWA Power, a company that develops, finances, co-owns, and operates a variety of energy generation and desalination facilities.
According to the Saudi Ministry of Investment Khalid Al-Falih, "almost 10 agreements were inked between both the Kingdom and Uzbekistan in numerous industries, with a worth surpassing SR45 billion."
ACWA Power stated that it would agree to a deal of $2.4 billion with Uzbekistan's authorities for a 1500 MW wind plan.
The plant, built in Karakalpakstan, Uzbekistan, aims to supply energy to 1.65 million homes and reduce carbon dioxide emissions by 2.4 million tonnes annually.
The initiative is anticipated to reach a fiscal closure by the end of 2023 and is said to be functional by the first quarter of 2026.
Al-Falih emphasized the significance of a straight import and export link between Saudi Arabia and Uzbekistan during his remarks at the council's fourth meeting, noting that the majority of commerce between the two nations currently occurs via Turkey and the United Arab Emirates.
According to him, Uzbekistan is a significant participant in the fields of agriculture, property investment, tourism, and human resource management.
"We aim to elevate this partnership to a crucial one for Saudi Arabia. We are available to help. Al-Falih said that we were there to help.
Al-Falih continued by saying that the presence of ACWA Power has elevated the ties between Kingdom and Uzbekistan.
He continued by saying that ACWA Power is a company looking to the future and that Uzbekistan is a nation full of prospects.
At the beginning of 2022, bilateral commerce between the Kingdom and the Republic of Uzbekistan increased significantly from the previous year, when it barely topped $17 million, to reach $95 million. A joint press release predicts that the value will increase quickly by the end of 2022. In the wake of the epidemic, the figures take on importance.
In fact, during the past five years, there has been a rise from nine to 38 Uzbek businesses using Saudi money. 39 of them are partnerships, with the remaining 19 being sole proprietorships. The Kingdom has grown to be one of the most prominent international investors in power generation and a central green power project developer in Uzbekistan.
The 100MW Nokus wind farm initiative is the initial renewable energy venture to be undertaken in collaboration with Uzbekistan's public and commercial industries. ACWA Power also inked a deal to create it.
The energy-generating business also secured a $108 million wind deal after putting out the lowest pricing in Uzbekistan—2.56 cents per kilowatt-hour.
The report claims that these initiatives would help Uzbekistan reach its national objective of increasing its renewable energy generating potential to 30% by 2030. Additionally, the Saudi Fund for Reconstruction has provided finance for other programs in Uzbekistan, along with the $30 million Samarkand-Gozar Construction project.