Uzbekistan is launching a new mechanism for financing gas infrastructure repairs, which should simultaneously reduce gas losses and create a permanent source of funds for system modernization. According to the Ministry of Economy and Finance, more than 1,000 leak sites have been identified in the country, due to which up to 35 million cubic meters of gas can be lost annually – a volume comparable to the annual consumption of 12,500 households.

The World Bank has provided a grant of $10.6 million for the project. The money will primarily be used to find and eliminate leaks. After repairs, an independent verifier will measure the actual volume of gas saved. Its cost will be credited to a separate account and then used to finance new repair work.

By 2029, the project should prevent the loss of 47.5 thousand metric tons of gas annually and save about $18 million. As a result, more resources will remain for the population and enterprises, and the repair of the gas system can be partially financed by the savings already achieved.

$9.6 million is provided for loss reduction, and another $500 thousand will be allocated for the development of a monitoring and reporting system and the work of a project team with the involvement of foreign experts. Coordination will be carried out by an interdepartmental group with the participation of the Ministry of Economy and Finance, the Ministry of Energy, and Uztransgaz.