The Asian Development Bank (ADB) has agreed to provide a $110m loan for a 100-megawatt solar power plant in Samarkand, Uzbekistan.
The new plant, which will use modern photovoltaic technology, will help Uzbekistan government to expand the use of renewable energy in its power mix.
By 2013, the government intends to generate around 21% of all its energy needs from renewable sources such as solar.
The project will provide training and other support to the state joint stock company Uzbekenergo, to raise its capacity to manage the plant and other solar facilities.
The assistance for ADB will come from its Asian Development Fund, while counterpart financing of $200m will be extended by Uzbekistan’s Fund for reconstruction and development and by Uzbekenergo.
The new project, which is slated to complete by March 2019, is expected to run for about five years.
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By GlobalDataADB president Takehiko Nakao said the project will be the largest of its kind in Central Asia and one of the largest in the world.
"Uzbekistan has a large land mass, plenty of sunshine, and the highly skilled and educated human resources needed to become a major player in solar energy development in this region," Nakao added.
In Uzbekistan, nearly 90% power is generated from fossil fuel-based plants, which need major investments to replace or upgrade.
