Saudi Arabian ACWA Power has announced the financial close for the construction of a new thermal power plant (TPP) in Uzbekistan's Syrdarya region, the Uzbek Energy Ministry said on March 15.

The investment agreement for the construction of a new 1,500 MW TPP and the purchase of electricity for 25 years was signed between ACWA Power and the Uzbek side on March 5.

The total cost of the project is $1.2bn, of which $747mn is made up of loans provided by the International Development Bank (IDB) and foreign private commercial banks.

Among the creditors are the European Bank for Reconstruction and Development (EBRD), 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 the Bank of China.

The term of the loan agreements is 18 years.

“The signing of loan agreements is one of the defining stages for the construction of the power plant. Its successful completion means a high level of confidence in investments in Uzbekistan not only from private energy producers, but also from international financial institutions and international private commercial banks”, the energy ministry said in a statement.

“The ministry will continue to work on raising similar large-scale direct private investments, which are carried out without state guarantees, that is, without increasing the country's external debt”, it added.