Riyadh-based ACWA Power has reached a financial close for the development, construction and operation of the 1500MW Sirdarya Combined Cycle Gas-Turbine power plant in Uzbekistan. A syndicate of seven international lenders will provide US$750 million in senior debt for the US$1 billion project, the company says.

The mandated lead entities were the European Bank for Reconstruction and Development, German Investment Corporation (DEG), Bank of China, Standard Chartered, Natixis, Societe Generale, and the OPEC Fund for International Development.

The commercial banks are providing funding on the back of a Multilateral Investment Guarantee Agency (MIGA) cover. World Bank unit MIGA's guarantees protect investments against non-commercial risks and can help investors obtain access to funding sources with improved financial terms and conditions.

The project will provide cleaner, more efficient and cost-competitive gas power that can be used across industries in Uzbekistan. Upon completion, it is expected to meet 15% of power demand in Uzbekistan.

DEG, a subsidiary of KfW Group, is a development finance institution with more than half a century of experience in cooperation with the private sector. Its current portfolio amounts to around 9 billion euros (US$10.7 billion), financing investments in around 80 countries.