ADB Commits $200 Million to Overhaul Uzbekistan’s Aging Power Grid

ADB President Masato Kanda and Uzbekistan’s Minister of Economy and Finance Jamshid Kuchkarov signed the agreement to launch the Modernization of Electricity Distribution Systems Program. The project focuses on rehabilitating 60 substations and deploying digital management tools to curb chronic power losses caused by overloaded, decades-old equipment. By strengthening the operational backbone of the JSC National Electric Grid of Uzbekistan, the investment aims to stabilize supply for households and businesses while reducing annual greenhouse gas emissions by approximately 23,000 tons of carbon dioxide equivalent.

Beyond hardware upgrades, the program mandates workforce training and institutional reforms, including initiatives to boost female participation in the energy sector. This marks the first energy operation conducted under the ADB–World Bank Full Mutual Reliance Framework, an arrangement designed to slash transaction costs by streamlining due diligence between the two lenders. While the ADB leads the current $200 million injection, the World Bank is expected to seek approval for an additional $100 million in parallel funding later this month. These efforts align with the broader Uzbekistan 2030 Strategy, reinforcing a decade-long partnership that has funneled over $3.4 billion into the country's energy infrastructure since 2010.