World Bank approves $380 M for power grid in Uzbekistan
Uzbekistan, Tashkent: The World Bank has approved a $380 M loan for the implementation of an investment project by the National Electric Grid of Uzbekistan.
Image source: Ministry of Energy of the Republic of Uzbekistan
Uzbekistan, Tashkent: The World Bank has approved a $380 M loan for the implementation of an investment project by the National Electric Grid of Uzbekistan.
The Electricity Sector Transformation and Resilient Transmission Project has been approved by the World Bank’s Board of Executive Directors. The project will improve the performance of the National Electric Grid of Uzbekistan (NEGU) to ensure reliable energy supply to millions of households and businesses across the country.
The project will be supported by $380 M in credit from the International Development Association and a $43 M loan from the Green Climate Fund (GCF) under the Sustainable Renewables Risk Mitigation Initiative Facility. The Government of Uzbekistan will receive this financing at very low-interest rates and with the longest repayment period of up to 40 years. The GCF will also provide a $4 M grant to cover selected project activities.
In Uzbekistan, electricity demand is expected to grow to over 100 TWh by 2030, a significant increase from 61 TWh in 2018. The country has more than 250,000 km of electricity transmission and distribution lines, most of which were built during the Soviet period and are now past their useful economic life. The obsolete infrastructure results in high electricity losses, estimated at 20 % of net generation, and frequent power outages undermining economic activities and the well-being of citizens across the country.
“This new transformational project supports the Government’s goal of removing barriers to the effective operation and growth of the electricity sector. It will create the conditions for transforming the NEGU into a modern and commercially run company and modernizing the national power transmission system. These measures will ensure reliable electricity supply for approximately 32 million consumers and, importantly, enable the grid integration of new large-scale renewable energy generation projects,” said Marco Mantovanelli, World Bank Country Manager for Uzbekistan.
Source: Ministry of Energy of the Republic of Uzbekistan
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