On 28 September the Asian Development Bank (ADB) approved a USD 200 million policy-based loan to Uzbekistan. The loan will be used for strengthening Uzbekistan’s power sector by improving its financial sustainability and ensuring adequate investment in critical infrastructure. This policy-based loan became the first of its kind in Uzbekistan’s energy sector.
ADB Energy Specialist emphasized that reforms to accelerate the development of modern and reliable energy infrastructure, as a matter of course, will involve a clean energy transition. This measure, at the same time, will put greenhouse gas emissions into structural decline.
ADB’s program supports these reforms, with the goal of increasing private sector participation in power generation to at least 15% in capacity terms and improving revenue collection to 99% by 2023.
The program was jointly developed with the French Development Agency, which will provide co-financing of a EUR 150 million loan (around USD 169 million). In addition, ADB, the European Bank for Reconstruction and Development, and the World Bank will provide harmonized technical assistance support to this program.