The Government of Uzbekistan adopted a resolution “On priority measures on implementation of the project “Modernization of hydro power stations in Uzbekistan” with participation of Islam Development Bank”.

The resolution was adopted for further developing and modernizing generating capacity of energy system of Uzbekistan, ensuring reliable exploitation of Farkhad hydro power station and hydro power station No. 14 of Lower Bozsu hydro power station cascade.

According to the document, Islam Development Bank (IDB) approved allocation of financial resources for US$100 million to implementation of the project. The loan was issued for 16 years with four-year grace period.

Uzbekenergo state joint stock company was entrusted as executive body, which is responsible for targeted use of financial resources of the IDB and effective implementation of the investment project. Expenses related to repayment of IDB resources, other expenses will be conducted due to own resources of Uzbekenergo.

The Government entrusted the chairperson of the Board of Uzbekenergo to sign leasing, agent, service and grant agreements with the IDB on financing investment project on behalf of the Uzbek government.

Uzbekenergo was also entrusted to ensure timely organization of international tenders to determine general contractor of the project. Based on the result of tenders and signing of the contract, Uzbekenergo develop feasibility study of the project and submit it to the government of Uzbekistan.