Spain's Fotowatio Renewable Ventures (FRV) will develop the project.
According to Energias Renovables, the new plant, called La Jacinta, will be the first solar photovoltaic (PV) project the IDB has financed in this South American nation.
A FRV statement added that the IDB loan will be used to refinance a debt owed to Norway's DNB Group and Italy's Intesa SanPaolo.
La Jacinta will have an installed capacity of 65 MW and will be located in the north of Uruguay.
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