A new US$ 1.1 billion 1300 MW capacity thermal power plant (TPP) under a public-private partnership (PPP) terms will be erected in the Syrdarya province, with the commissioning of the TPP scheduled in 2022.

Consulting services for the project will be provided by the International Finance Corporation. The relevant agreement between the IFC, the Agency for the Development of Public-Private Partnership under the Ministry of Finance of Uzbekistan and the Ministry of Energy was signed in Tashkent on October 1.

As a transactional adviser, IFC will provide the government with advisory services on structuring and competitive bidding for the PPP project. A private investor will be determined in the bidding process, which will be held “in accordance with best practices”. The tender is scheduled to be announced in January 2020, eith the winner to be announced in the year-end.

“Successful implementation of the PPP project will increase the stability of power supply and allow more efficient use of natural gas,” said Golib Kholzhigitov, head of the PPP Development Agency.

He noted that “the bids will provide transparency standards that should increase investor confidence and serve for the successful implementation of PPP projects in various sectors of the economy in the coming years.”

“Uzbekistan, like many developing countries , has a limited amount of funds that it can spend on much-needed infrastructure projects,” said Wibke Schlemer, IFC district al Director for Europe and Central Asia. “By attracting capital and private sector experience, a country can stimulate the development of large infrastructure projects, which will improve the business environment and improve the quality of life of the population.”