Friday, November 6, 2015

ADB issues $150 million USD loan to help deliver reliable power in northwestern Uzbekistan

The Asian Development Bank (ADB) has approved a $150 million loan to expand and modernize the high-voltage power grid in the north-western region of Uzbekistan, including the construction of 364 kilometres of new transmission lines and three substations in Karakalpakstan and Khorezm.
Uzbekistan has substantial primary energy resources, with total installed capacity for power generation reaching 13,500 megawatts, of which thermal accounts for 86% and hydro the remaining 14%.

The government has adopted plans to increase energy efficiency, but aging infrastructure results in higher risk of outages, poor service quality, high maintenance costs, and increased transmission losses, all of which constrain economic activity.

To address these problems, the funding will strengthen the regional power transmission network by constructing 364 kilometers of single-circuit 220 kilovolt (kV) overhead transmission lines connecting Takhiatash thermal power plant, Khorezm substation, and Ellikala substation. It will also expand and rehabilitate the existing Khorezm substation, open switchyards in the  Takhiatash thermal power plant, and build a new 500/220 kV substation in Ellikala.

In addition, the project will help state-owned power utility Uzbekenergo boost its own management capacity through much-needed activities such as upgrading system planning and dispatch automation, strengthening assets management, and staff training.

Along with ADB’s loan from ordinary capital resources, the Government of Uzbekistan and Uzbekenergo will provide counterpart support of $105 million. The project will run for nearly 4 years with an expected completion date of end December 2019.


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