The French Development Agency (Agence Française de Développement - AFD) has signed a 55.8 million euro (US$66.9 million) loan agreement to support the construction of small hydroelectric power plants in Uzbekistan's Andijan region, and the modernization of the Charvak hydroelectric power station in the Tashkent region.
According to the Ministry of Energy, 46.5 million euros will be used for the construction of the Paytak small hydroelectric power station in the Andijan region, as well as small hydroelectric power plants 1A and 2A of the South Fergana canal. The total cost of the projects is 52.5 million euros. The new hydroelectric power plants are expected to be operational in 2023. Another 9.3 million euros will be used for a project to improve the safety of the Charvak HPP. Total project cost is 33.95 million euros. The loans have a 20-year tenor.
AFD was authorized to operate in Uzbekistan back in 2011, under a mandate for green and inclusive growth. It opened a regional office in Tashkent in 2015 and launched its first project in the country in 2016.