The Asian Development Bank (ADB) and Uzbekistan have signed a $200 million loan agreement to modernise the country’s electricity distribution networks. The funding will support power grid modernisation, reduce electricity losses and improve supply reliability amid rising demand. The programme aims to strengthen existing electricity infrastructure while preparing the network to accommodate additional renewable energy capacity.
Loan Agreement Signed in Bangkok
The agreement was signed in Bangkok on 15th October 2026 by ADB President Masato Kanda and Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance, Jamshid Kuchkarov.
Infrastructure Upgrades and Renewable Energy Integration
The programme will upgrade 60 electricity substations across the country and introduce digital management systems. These improvements are expected to reduce power losses, ease transformer overloading and stabilise electricity supplies to consumers and public institutions.
The programme is also expected to enable the connection of at least 3.3 gigawatts (GW) of new renewable energy capacity and cut annual greenhouse gas emissions by nearly 23,000 tonnes of carbon dioxide equivalent.
Strengthening Operational Capacity and Workforce Skills
The initiative will strengthen the operational capacity of Uzbekistan National Electric Networks JSC, improve management and financial controls, and develop staff skills. It prioritises employee training and greater participation by women in the energy sector. These measures are intended to support the effective operation and long-term management of the upgraded electricity infrastructure.
First Results-Based Energy Financing Programme
The project will be Uzbekistan’s first ADB energy initiative under the ADB-World Bank Full Mutual Reliance Framework (FMRF) and the country’s first results-based financing programme in the energy sector. ADB will serve as the lead lender.
Later in October 2026, the World Bank plans to submit a proposal for an additional $100 million to its Board of Executive Directors, potentially bringing further financing to the programme.
ADB’s Broader Support for Uzbekistan’s Energy Sector
The project builds on ADB’s broader support for Uzbekistan’s energy sector. Since 2010, the bank has provided more than $3.4 billion in financing and guarantees.
The initiative aligns with Uzbekistan’s Uzbekistan 2030 strategy on renewable energy development and energy efficiency, as well as ADB’s 2024–2028 country partnership strategy.