World Bank allocates $100 million loan to modernize Uzbekistan’s power grids

According to available information, Regional Electric Grids JSC (REG JSC) will contribute an additional $50 million from its own funds to implement the program. 

The World Bank notes that Uzbekistan’s energy sector is facing significant commercial losses, including debt for services rendered, rendering it financially unsustainable and exerting serious pressure on the state budget. 

To strengthen financial sustainability, operational and financial models within the distribution system are being reformed. The goal is to increase profitability and attract private investment into the energy infrastructure sector.

"The financing provided by the World Bank will help support the implementation of Uzbekistan’s national program for the modernization and expansion of its power distribution infrastructure through 2030. It is estimated that the total investment required for this program will amount to around $3 billion.

We hope other international partners and private investors will follow our lead and support REG JSC’s efforts in developing the country’s energy sector," stated Tatiana Proskuryakova, World Bank Country Director for Central Asia.

Under the jointly funded $150 million program, the following initiatives will be undertaken:

• Construction and modernization of 6,000 km of low-voltage electricity distribution lines;
   
• Replacement and installation of 1,200 distribution transformers with a combined capacity of 250 megavolt-amperes (MVA);
   
• Installation of 150,000 smart meters to help reduce commercial losses in REG JSC’s distribution networks;
   
• Installation of 4,000 data concentrators to enable the automation and digitalization of distribution network operations, transforming them into a modern and efficient system.