The Asian Infrastructure Investment Bank (AIIB) has approved a $100 million loan for the Saudi energy company ACWA Power for the construction of a thermal power plant (TPP) in the Syrdarya region.
The loan is allocated for the construction of a 1,500 MW thermal power plant with combined cycle gas turbines.
This is the first non-sovereign financing project for AIIB in Uzbekistan aimed at developing the high-performance gas power plant industry in that country.
An investment agreement for the construction of a new thermal power plant and an agreement on the purchase of electricity from this TPP for 25 years was signed between ACWA Power, as a private energy producer, and the Uzbek side on March 5, 2020.
The total cost of the project is $1.2 billion, of which $747 million are loans provided by the international development bank and foreign private commercial banks.
The European Bank for Reconstruction and Development, the International Development Fund of the Organization of the Petroleum Exporting Countries (OPEC), the German Investment Corporation (DEG), Standard Chartered Bank (UK), Natixis (France), Societe Generale (France) and Bank of China are among the creditors.
The term of the loan agreements is 18 years and the construction work will be carried out during the first 3 years.