The World Bank's Board of Executive Directors approved a $100 million loan to Uzbekistan to improve the efficiency and reliability of its electricity distribution system, Daryo.uz reported.
The initiative is being implemented as part of a joint program with the Asian Development Bank (ADB), which allocated $200 million, and the Government of Uzbekistan ($71 million), bringing the total project budget to $371 million.
The project includes the modernization and digitalization of 60 key substations of JSC National Electric Grids of Uzbekistan. By 2031, the program will reduce electricity losses by 20,000 MWh per year, reduce greenhouse gas emissions by 23,000 tons, integrate 3.3 GW of renewable energy into the national grid, and create approximately 11,700 new jobs.
The World Bank and ADB's systematic engagement in modernizing the electricity sector is critical to Uzbekistan's macroeconomic stability. The country's rapid demographic and industrial growth is placing increased strain on grid infrastructure, while attracting international concessional resources reduces the fiscal burden on the state budget and accelerates the implementation of digital governance standards.
Furthermore, creating the conditions for connecting 3.3 GW of "green" capacity directly contributes to the implementation of the national strategy for transitioning to a low-carbon economy. Institutional strengthening of the National Electric Grids of Uzbekistan and compliance with environmental standards enhance the overall investment attractiveness of the country's energy sector.
CentralasianLIGHT.org
October 28, 2026