Japan approves nearly $230 million in loans to support energy efficiency in Uzbekistan

The loan agreements were formalized in Tashkent during an exchange of notes ceremony, where the documents were signed by the Ambassador of Japan to Uzbekistan, Hirata Kenji, and the Deputy Prime Minister – Minister of Economy and Finance of Uzbekistan, Jamshid Kuchkarov.

The first initiative focuses on improving energy efficiency in public buildings, supported by a loan of up to 21.79 billion yen, which is roughly $136 million. The second project targets energy-efficiency upgrades in the industrial sector, backed by a loan of up to 14.97 billion yen, or about $93.4 million.

Both financial packages are provided for a 25-year term, which includes a 7-year grace period. The interest rate is set at 2.4% for the main loan component and 0.8% for associated consulting services.

Through this partnership, Uzbekistan will introduce energy-saving equipment and advanced green technologies into public and industrial facilities. The upgrades are expected to reduce energy consumption and improve energy efficiency across public and industrial facilities