Tashkent, Uzbekistan (UzDaily.com) — The Abu Dhabi sovereign investment fund Mubadala and the national energy company TAQA have finalized the acquisition of stakes in the Talimarjan Thermal Power Plant (TPP), Gulf Business reports.

A special project company, Talimarjan Power Plant 1, was established to facilitate the privatization. Mubadala and TAQA each hold 40% ownership, while the remaining 20% belongs to the Uzbek side through the Talimarjan TPP Joint Stock Company. The same share distribution applies to the operator company, Talimarjan Operations & Maintenance.

The deal was signed in September 2022. The UAE investors committed to investing US$240 million in the development of the power plant and to repaying approximately US$700 million of the company’s debt. Additionally, a 25-year electricity supply agreement was signed with the state company Uzenergosotish.

The publication emphasizes that this transaction marks a deepening of the strategic energy partnership between Uzbekistan and the UAE.

TAQA’s Investment Director, Frank Possmeyer, noted that the project will become a key component in Uzbekistan’s energy privatization process. He added that TAQA’s expertise in low-carbon generation and water-saving technologies will be applied to meet the country’s growing electricity demand.

It is also reported that in November 2022, Uzbekistan signed agreements with the Spanish company INTECSA and Japanese Mitsubishi for the construction of two new combined-cycle gas turbine units with a total capacity of 900 MW at the Talimarjan TPP. Construction began in July 2023, with the total project cost amounting to US$771.8 million.