The agreement was signed in Bangkok on October 15 by ADB President Masato Kanda and Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov.
The program will upgrade 60 key substations across the country’s distribution network and introduce digital management systems. The improvements are expected to reduce electricity losses, ease transformer overloads and stabilize power supplies to households, businesses and public institutions.
According to the ADB, the project will also help create the conditions needed to connect at least 3.3 GW of new renewable energy capacity to the grid. It is expected to cut greenhouse gas emissions by nearly 23,000 metric tons of carbon dioxide equivalent annually.
Upgrading an aging electricity network
Uzbekistan’s growing economy, expanding cities and rising electricity consumption have increased pressure on its distribution infrastructure. Aging equipment and overloaded networks make it harder to maintain reliable supplies and connect new renewable energy facilities.
Alongside equipment upgrades, the program will strengthen the operational capacity of JSC National Electric Grids of Uzbekistan, improve management and financial controls, and provide additional training for staff. It will also focus on workforce development and expanding women’s participation in the energy sector.
The project is the first energy initiative in Uzbekistan to be implemented under the ADB–World Bank Full Mutual Reliance Framework (FMRF). It is also the country’s first results-based financing program in the energy sector.
The ADB is the project’s lead lender. The World Bank plans to submit a proposal for an additional $100 million in financing to its Board of Executive Directors later in October.
The initiative builds on the ADB’s longstanding support for Uzbekistan’s energy sector. Since 2010, the bank has provided more than $3.4 billion in financing and guarantees for the sector.
The project supports the goals of Uzbekistan’s national development strategy, Uzbekistan – 2030, on renewable energy development and energy efficiency, as well as the ADB’s country partnership strategy for Uzbekistan for 2024–2028.
