World Bank and ADB to allocate over $300 million for modernization of power grids in Uzbekistan
The funds will be used to improve the efficiency and reliability of the electricity distribution system
The Board of Executive Directors of the World Bank has approved a $100 million loan to enhance the efficiency and reliability of Uzbekistan's electricity distribution system.
Taking into account the previously approved loan from the Asian Development Bank ($200 million) and the contribution from the republic's government ($71 million), the total program budget will amount to $371 million. The implementation of the project has been entrusted to the Joint-Stock Company 'National Electric Grids of Uzbekistan'.
Key goals and indicators of the program: - Modernization of facilities. The program covers the digitalization and upgrading of 60 key substations across the country to reduce losses and accidents. - Green energy. The project will enable the integration of at least 3.3 GW of renewable energy capacity into the grid (as part of Uzbekistan's goal to achieve 25 GW of renewable energy by 2030). - Ecology and savings. By 2031, annual electricity losses will be reduced by 20,000 MWh, and CO₂ emissions will decrease by nearly 23,000 tons per year. - Jobs. Within five years after the commissioning of the modernized infrastructure, it is planned to create approximately 11,700 quality jobs.
Funding is provided by the WB and ADB under the Full Mutual Reliance Framework (FMRF), which will simplify oversight procedures and reduce transaction costs for the government.
'A reliable, digitized power grid capable of integrating energy from renewable sources is crucial for the development of Uzbekistan's economy and improving the well-being of millions of families,' said Najy Benhassine, World Bank Regional Director for Central Asia.
