The project aims to support the country’s recovery from the pandemic and "make its cities more livable, inclusive, and climate-resilient."

S&P said that several risks to the recovery remained relevant, including if pandemic consequences linger, persistent inflation and higher interest rates, a change in current commodity price trends, and geopolitical tensions.

The construction of new, high-efficiency gas power stations, which would replace older and less efficient assets, is an important modernization step that complements the early growth of renewable energy.

Uzbekistan’s second largest bank, Uzpromstroybank, also known as SQB (Sanoatqurilishbank), has signed loan agreements for a total of 160.7 million euros with major German banks.

Uzbekistan’s state-owned oil and gas company Uzbekneftegaz will issue an international bond worth up to $700 million to diversify foreign financial sources and transform the country’s energy system.

Earlier this week, the central bank kept the refinancing rate unchanged at 7.25 percent to control rising inflation.