The Abu Dhabi wealth fund manager Mubadala and UAE power giant TAQA signed agreements to invest in the privatisation of two gas-fired power generation plants in the Talimarjan power complex in Uzbekistan.

The agreements will see Mubadala and TAQA each acquire a 40 per cent stake in two gas-fired power plants with a combined capacity of 1.6 gigawatts (GW) and the assumption of associated operations and maintenance activities, the official news agency WAM reported Friday.

The Talimarjan Issiqlik Elektr Stansiyasi JSC (TIES) will retain the remaining 20 per cent stake in each plant.

The agreements were signed by Khaled Abdulla Al Qubaisi, CEO, Real Estate & Infrastructure at Mubadala, Jasim Husain Thabet, TAQA's Group CEO and Managing Director, and Jamshid Khodjaev, Deputy Prime-Minister of the Republic of Uzbekistan and Minister of Investments and Foreign Trade and Yusupov Olim, General Director of Talimarjan TPP.

"As a global and responsible investor, Mubadala is focused on supporting energy transition across the world," said Al Qubaisi. "We are confident our partnership will contribute to Uzbekistan's greater energy stability while preparing for a low carbon future."

The transaction remains subject to the satisfaction of certain conditions precedent, including obtaining any applicable regulatory or other approvals. Completion of this transaction is expected to occur during the second-half of 2023.

"This major investment in a new country is an important step forward in the delivery of the 15GW of new international capacity we announced as part of TAQA's 2030 growth strategy," said Farid Al Awlaqi, Executive Director of Generation at TAQA Group. "The deal also significantly expands our operation and maintenance activity, another key part of our strategy." 

The agreements follow the 2020 agreement with Uzbekistan's Ministry of Investment and Foreign Trade, and JSC Thermal Power Plants of the Republic of Uzbekistan (JSC) relating to the proposed acquisition, development and operation of the Talimarjan Power Complex.