EBRD allocates $47.1m to develop Uzbekistan's energy system

The Ministry of Investments and Foreign Trade hosted a meeting with the delegation of the European Bank for Reconstruction and Development (EBRD) led by First Vice-President of EBRD Jürgen Rigterink, during which a loan and project agreement was signed on the project of new power transmission line, part of National Electric Networks of Uzbekistan JSC (NENU).

During the meeting it was noted that in recent years Uzbekistan has significantly expanded investment cooperation with a number of international financial institutions. Among them, the European Bank for Reconstruction and Development (EBRD) takes one of the leading positions. To date, EBRD has invested over 3.6 billion euros in 113 projects in Uzbekistan.

It was announced that the Bank's financial support to JSC National Electric Networks of Uzbekistan in the amount of $47.1 million to finance the project for construction of a new power line between Sarimay and Jankeldi villages in Khorezm and Bukhara regions, is aimed at increasing capacity and reliability of national electricity networks of the country.

The new line will connect two wind farms under development, with a total installed capacity of up to 1 GW, to the national grid. The project is supported by the Early Transition Fund and the Special Shareholder Fund. This grid expansion will further integrate renewable energy into the Uzbek energy system.

As EBRD First Vice President Jürgen Rigterink noted, "Uzbekistan is not only the most populous country in Central Asia, but also the fastest growing economy in the region, which needs sustainable infrastructure solutions. Our Bank is ready to support this growth by financing such projects".