The World Bank has approved a $100 million loan to Uzbekistan to modernize distribution power grids. The project provides for the upgrading of 60 key substations across the country, reducing electricity losses, and improving supply reliability. The total budget for the program is $371 million: in addition to World Bank funds, it will include a $200 million loan from the Asian Development Bank and $71 million from Uzbekistan's state budget.
By 2031, the modernization is expected to achieve an annual reduction in electricity losses of 20,000 MWh and greenhouse gas emissions of nearly 23,000 tons in CO₂ equivalent. The upgraded infrastructure will also enable the connection of at least 3.3 GW of renewable energy capacity. According to World Bank estimates, over the five years following the commissioning of the modernized facilities, the program will help create approximately 11,700 additional quality jobs.
The project is being implemented by JSC National Electric Grids of Uzbekistan. In addition to replacing and upgrading equipment, the project includes the digitalization of infrastructure, strengthening cybersecurity, and improving the company's financial management. The program will support the country's plans to increase installed renewable energy capacity to 25 GW by 2030. The World Bank and the ADB will coordinate the preparation and supervision of the project under a mutual reliance mechanism designed to reduce administrative costs and avoid duplication of procedures.