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.