The Asian Development Bank (ADB) and Uzbekistan have signed a $200mn loan agreement to modernize the country's electricity distribution networks, reduce energy losses and improve the reliability of electricity supplies, according to the bank's press service. The agreement was signed on October 15 in Bangkok, Thailand, by ADB President Masatsugu Asakawa and Uzbekistan's Deputy Prime Minister and Minister of Economy and Finance, Jamshid Kuchkarov.
Under the program, 60 electricity distribution substations across Uzbekistan will be reconstructed and modernized. The project also includes the introduction of digital systems to improve electricity network management and operational efficiency. The modernization is expected to reduce excessive loads on transformers and support the integration of at least 3.3 gigawatts of renewable energy capacity into Uzbekistan's electricity grid.
According to the ADB, the measures are also projected to reduce greenhouse gas emissions by approximately 23,000 tons of carbon dioxide equivalent annually. The ADB noted that Uzbekistan's economic development, urban expansion and increasing household electricity consumption have placed additional pressure on the country's power distribution networks.
Aging infrastructure and electricity losses continue to affect the stability and reliability of electricity supplies, highlighting the need for network modernization. The project is being implemented through a mutual trust mechanism between the ADB and the World Bank, with the ADB acting as the lead lender.
The World Bank's management is expected to submit a proposal to its Board of Directors by the end of October 2026 for an additional $100mn in financing. According to the ADB, the bank has provided more than $3.4bn in financing and guarantees to Uzbekistan's energy sector since 2010.
The agreement comes as Uzbekistan's public debt reached $48.3bn as of July 1, 2026, including $40.7bn in external debt. According to the Ministry of Economy and Finance, $8.2bn of the country's external public debt consists of loans obtained from the Asian Development Bank.