Tashkent, Uzbekistan (UzDaily.uz) — The World Bank has approved a US$100 million loan to Uzbekistan to modernise its electricity distribution system. The programme will upgrade 60 key substations across the country to improve power supply reliability, reduce electricity losses and expand the grid’s capacity to integrate renewable energy sources, the World Bank’s press service said.
According to the bank, the programme is expected to help create around 11,700 additional quality jobs within five years of the upgraded facilities becoming operational.
By 2031, annual electricity losses at the modernised substations are expected to fall by 20,000 MWh. The upgraded infrastructure will also enable the integration of at least 3.3 GW of renewable energy capacity into the power grid. The programme is expected to reduce greenhouse gas emissions by nearly 23,000 tonnes of CO₂ equivalent annually.
The total budget for the Electricity Distribution Systems Modernisation Programme is US$371 million. In addition to the World Bank loan approved on 27 October, the funding includes a US$200 million loan from the Asian Development Bank (ADB), approved on 30 September, and US$71 million from Uzbekistan’s state budget.
The two international financial institutions are financing the programme under the Full Mutual Reliance Framework (FMRF). The arrangement provides for a coordinated approach to project preparation and implementation oversight, helping reduce administrative costs and avoid duplication of procedures.
The programme supports Uzbekistan’s plans to increase installed renewable energy capacity to 25 GW by 2030. Achieving this target will require upgrades to the electricity grid, much of which was built several decades ago. Ageing networks and overloaded substations cause power losses and supply disruptions affecting households, businesses and public facilities.
National Electric Grids of Uzbekistan JSC will implement the programme. In addition to technical upgrades at substations, the project will digitalise infrastructure and strengthen the company’s institutional capacity.
Planned measures include improving financial management systems, strengthening cybersecurity, enhancing compliance with environmental and social standards, and promoting gender equality in employment.
“Reliable electricity supply is essential for people’s daily lives and economic activity,” said Najy Benhassine, the World Bank’s Regional Director for Central Asia.
He said cooperation with the ADB would help modernise Uzbekistan’s energy infrastructure, improve resource efficiency and create conditions for further economic growth.
