60 substations to be upgraded
The Electricity Distribution Systems Modernization Program will finance the modernization and digitalization of 60 key substations across Uzbekistan to improve the efficiency and reliability of electricity supplies to households and businesses.
By 2031, the program is expected to reduce annual electricity losses at the upgraded substations by 20,000 megawatt-hours and enable the integration of at least 3.3 gigawatts of renewable energy capacity into the grid. It is also projected to prevent annual greenhouse gas emissions equivalent to nearly 23,000 tonnes of carbon dioxide.
The program will be implemented by National Electric Grids of Uzbekistan. Alongside infrastructure upgrades, it will strengthen the company's institutional capacity and operational efficiency through improvements to financial management, cybersecurity and compliance with environmental and social standards. It will also promote gender equality in employment.
$371 million in total funding
The World Bank is financing the program jointly with the Asian Development Bank (ADB) under the Full Mutual Reliance Framework (FMRF). The arrangement allows the two institutions to use a common approach to project preparation and implementation oversight, reducing transaction costs and avoiding duplicated procedures for the Uzbek government.
The ADB approved a $200 million loan for the program on September 30, 2026. Together with the World Bank's $100 million loan and a $71 million contribution from Uzbekistan's state budget, this brings the total financing to $371 million.
