The Opec Fund has agreed to fund the development and operation of a power plant in Sirdarya, Uzbekistan, with ACWA Power.

The Opec Fund for International Development has signed a $50 million contract loan agreement with ACWA Power to help in funding the construction and operation of a 1.5 GW combined-cycle gas-turbine power plant in Sirdarya, Uzbekistan.

The new plant, which is built near Tajikistan's border, would work as a substitute to an older, less effective thermal power plant. It will result in lower operating costs and lower pollutant (GHG) emissions.

“We are happy to contribute to Uzbekistan's tremendous efforts to improve and revitalize the country's power production with a stable and efficient infrastructure,” said Dr. Abdulhamid Alkhalifa, Director-General of the Opec Fund.

“Private sector involvement in the energy sector will accelerate to a greater extent through this process, and landmark projects like Sirdarya will open the way by setting examples of successful cooperation between governments, development banks, and the private sector,” he said.

Uzbekistan and the Opec Fund have also been development partners for over twenty years. Till date, the foundation unanimously has allocated financing to a variety of industries. The list includes banking, agriculture, transportation, and education. It is done with an aim to bolster Uzbekistan's development priorities.

The Opec Fund was founded in the year 1976 in the month of January by the 13 member countries of Opec during that period, including the United Arab Emirates. It is a development finance organization that was established to help developing nations to progress their economies.