On October 27, 2026, the Board of Executive Directors of the World Bank approved a loan of $100 million to Uzbekistan for the modernization of the electricity distribution system. It is expected that within five years after the commissioning of the renovated facilities, the program will also contribute to the creation of about 11,700 additional high-quality jobs.
The program "Modernization of Electric Power Distribution Systems" is aimed at improving the efficiency and reliability of the electric grid infrastructure, as well as expanding opportunities for connecting renewable energy sources and transmitting electricity to consumers.
Expected results by 2031:
reduction of annual electricity losses at upgraded substations by 20,000 MWh;
creating conditions for the integration of at least 3.3 GW of renewable energy capacity into the electric grid;
preventing annual greenhouse gas emissions equivalent to almost 23,000 tons of carbon dioxide.
The total amount of financing is 371 million dollars.
The program is jointly funded by the World Bank, the Asian Development Bank (ADB) and the Government of Uzbekistan.
On September 30, 2026, the ADB approved a loan of $200 million to the country. Taking into account the financing of the World Bank in the amount of $ 100 million and the contribution of the state in the amount of $ 71 million, the total budget of the program will amount to $ 371 million.
Both international financial institutions use a common approach to project preparation and monitoring of its implementation. This will reduce administrative costs and avoid duplication of procedures for the Government of Uzbekistan.
What changes are envisaged?
Uzbekistan intends to increase the installed capacity of renewable energy sources to 25 GW by 2030. To achieve this goal, it is necessary to modernize the power grid, a significant part of which was built several decades ago.
Deterioration of infrastructure and overloading of substations lead to power losses and power outages in residential buildings, businesses, schools and medical institutions. Against the background of economic growth and increased electricity consumption, grid renovation is becoming one of the priorities.
As part of the program, it is planned to modernize and digitalize 60 key substations across the country. This will reduce power losses and improve the reliability of the power supply.
The implementation of the project will be provided by JSC "National Electric Networks of Uzbekistan". In addition to the technical upgrade of the infrastructure, it is planned to strengthen the company's institutional capacity, improve financial management, strengthen cybersecurity and improve the quality of compliance with environmental and social standards. Special attention will be paid to ensuring gender equality in employment.
"Reliable electricity supply is essential for people's daily lives and economic activities. It creates conditions for the creation of jobs, the provision of public services and economic growth," said Naji Benhasin, the World Bank's Regional Director for Central Asia.
According to him, cooperation with the ADB will allow Uzbekistan to modernize key energy infrastructure, use resources more efficiently and expand opportunities for integrating electricity from renewable sources. This will contribute to the development of the economy, improve the welfare of the population and ensure the stable operation of enterprises.
