Construction of a 65 MW solar photovoltaic (PV) plant in Uruguay is set to go ahead after the project reached financial close.

Solar power developer Fotowatio Renewable Ventures (FRV) has secured $70 million in funds from Norwegian bank DNB Group as well as Spanish bank Santander. It will build the La Jacinta plant in conjunction with OHL Group in Salto Department, northwest Uruguay.

FRV has signed a 30-year power purchase agreement with Uruguayan utility UTE for the first 50 MW of the project. The agreement is the first ever PPA for a solar plant in the country.

The project was awarded to FRV as part of a large-scale renewable energy tender held in Uruguay in 2013. It is scheduled to start operating in May 2015.