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.