Tashkent, Uzbekistan (UzDaily.com) -- The Ministry of Finance of Uzbekistan and the Agence Française de Développement (AFD, French Development Agency) signed a loan agreement worth 55.8 million euros. This was reported by the press service of the Ministry of Energy.

According to the Ministry of Energy, the funds will be used to finance projects for the construction of small hydroelectric power plants in Andijan region and the modernization of the Charvak hydroelectric power station in Tashkent region. The borrowed funds have been allocated for 20 years.

In particular, the funds in the amount of 46.5 million euros will be used for the construction of the Paytak small hydroelectric power station in 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.

A consortium of consultants ISL, IED and R-plus developed feasibility studies for these projects. About 11.1 million euros will be allocated for construction and installation works and 26.9 million euros for the purchase of equipment.

Implementation of investment projects will allow generating 51.2 million kWh of electricity.

Another 9.3 million euros of credit will be used to implement a project to improve the safety of the Charvak HPP. The cost of the project is 33.95 million euros.