Uzbekistan to borrow $200 million from ADB to modernise electricity grids

The Asian Development Bank (ADB) has signed a $200 million loan agreement with Uzbekistan to modernise its electricity grids, the bank's press service reported. The deal was signed on October 15 in Bangkok, Thailand, by ADB President Masato Kanda and Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov.

The funds will go to modernising the power distribution system, reducing grid losses and improving the reliability of electricity supply. Under the programme, 60 distribution substations across Uzbekistan will be rebuilt and modernised, and digital grid management systems will be introduced. The works are expected to ease transformer overloads, allow at least 3.3 gigawatts of renewable energy to connect to the grid, and cut greenhouse gas emissions by about 23,000 tonnes of carbon dioxide equivalent a year.

The ADB says economic growth, urban expansion and rising household electricity use are increasing grid loads, while ageing infrastructure and power losses make stable supply harder. The World Bank's management is expected to submit an additional $100 million proposal to its Board of Directors by the end of October. The ADB says it has provided more than $3.4 billion in financing and guarantees to Uzbekistan's energy sector since 2010.