ADB, Uzbekistan Sign $200M Deal To Upgrade Power Grid

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 15. The Asian Development Bank (ADB) and Uzbekistan have signed a $200 million loan agreement to modernize the country's electricity distribution system, including upgrades to 60 substations and the introduction of digital technologies to reduce power losses and improve grid reliability, during a meeting on October 15 in Bangkok.

This was reflected in a post by Masato Kanda on his LinkedIn account. The agreement was signed by ADB President Masato Kanda and Uzbekistan's Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov on the sidelines of the International Monetary Fund and World Bank Group Annual Meetings in Bangkok on October 12-18.

"I was pleased to meet Uzbekistan Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov today on the sidelines of the IMF-World Bank Annual Meetings in Bangkok. I was gratified to hear his appreciation for ADB's speed and responsiveness, in a partnership that ranges from schools to irrigation," Kanda said.

The project aims to strengthen Uzbekistan's power distribution network as economic growth drives electricity demand and the government pursues ambitious development targets.

Under the project, 60 electricity distribution substations will be upgraded, while digital systems will be introduced to reduce technical losses, improve the reliability of electricity supplies and support the integration of more renewable energy into the grid.

Kanda said he had discussed the partnership with Kuchkarov and noted the Uzbek official's appreciation for ADB's responsiveness and speed in delivering support across sectors ranging from education to irrigation.

The project is ADB's first energy investment under the Full Mutual Reliance Framework with the World Bank. The framework allows the institutions to rely on each other's due diligence and implementation arrangements, helping reduce duplicated work and transaction costs and improve the efficiency of development financing.

The investment is expected to support the modernization of Uzbekistan's electricity infrastructure and strengthen the network's capacity to accommodate growing demand and renewable energy generation.

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