EBRD to Allocate US$25 Million to Modernize Tashkent Pipe Plant

Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) will provide a loan of up to US$25 million to the Tashkent Pipe Plant (TPP), one of the leading private producers of fabricated steel products in the country, to implement an energy efficiency and production capacity modernization program.

The financing will be directed toward replacing and upgrading the drawing mill used in the manufacturing of long steel products, including wire rods. In addition, the enterprise will install energy-efficient equipment in its pipe external insulation workshop, including a medium-frequency induction heating system for metal hardening, forging, and shrink fitting.

The implementation of the project will allow the modernization of long steel product manufacturing and expand the output of insulated large-diameter pipes. The introduction of new technologies is expected to reduce natural gas consumption by 22% annually and achieve electricity savings of up to 35%.

The EBRD notes that the project will contribute to increasing the competitiveness of the enterprise and will allow it to more effectively meet the growing demand for steel products from the construction and infrastructure sectors.

The project is implemented with the support of the Japan-EBRD Cooperation Fund and the EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC) program. The initiative is consistent with the bank's strategy to promote the transition to a green economy by supporting investments in energy-efficient technologies.

According to data from the EBRD, the bank's total volume of investments in the economy of Uzbekistan has reached almost US$6.9 billion across 210 projects. Most of these funds have been directed toward the development of the private sector.

For each of the past six years, Uzbekistan has remained the largest recipient of EBRD funding in Central Asia.