Tashkent, Uzbekistan (UzDaily.uz) — The Asian Development Bank (ADB) and Uzbekistan have signed a US$200 million loan agreement to modernise the country’s electricity distribution networks. The funding will support infrastructure upgrades, reduce electricity losses and improve the reliability of power supplies amid rising demand.
The agreement was signed in Bangkok on 15 October by ADB President Masato Kanda and Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance, Jamshid Kuchkarov.
The programme предусматривает the modernisation of 60 key distribution substations across the country, as well as the introduction of digital management systems. The infrastructure upgrades are expected to reduce electricity losses, ease transformer overloading and improve the stability of power supplies to households, businesses and public institutions.
According to the ADB, the programme will also help create the conditions needed to connect at least 3.3 GW of new renewable energy capacity. Greenhouse gas emissions are expected to fall by nearly 23,000 tonnes of carbon dioxide equivalent annually.
The need for modernisation stems from economic growth, urban expansion and rising electricity consumption. Outdated equipment and overloaded networks make it harder to ensure reliable power supplies and connect new renewable energy facilities.
In addition to equipment upgrades, the programme will strengthen the operational capacity of Uzbekistan National Electric Networks JSC, improve management and financial controls, and enhance staff skills. Particular attention will be given to employee training and increasing women’s participation in the energy sector.
The project will be the first ADB energy initiative in Uzbekistan implemented under the ADB–World Bank Full Mutual Reliance Framework (FMRF). It will also be the country’s first results-based financing programme in the energy sector.
The ADB is the project’s lead lender. Later in October, the World Bank plans to present a proposal for an additional US$100 million in financing to its Board of Executive Directors.
The new programme builds on the ADB’s long-standing support for Uzbekistan’s energy sector. Since 2010, the bank has provided the country with more than US$3.4 billion in financing and guarantees for the sector.
The project aligns with the Uzbekistan 2030 strategy’s goals for renewable energy development and improved energy efficiency, as well as the ADB’s country partnership strategy for Uzbekistan for 2024–2028.
