A new Presidential Decree No. PP-113 dated 3 February 2022 “On Measures to Implement the Project on “Electricity Sector Transformation and Sustainable Electricity Transmission” with the participation of the World Bank, as well as on “Development and Efficiency Improvement of the Transmission Grid System of the Republic” was adopted.

The document was adopted to develop the transmission grid system, improve its reliability and safety, prevent accidents, and ensure sustainable electricity supply to sectors of the economy and the population.

On 25 June 2021, the World Bank agreed to finance investment projects with:

1) a concessional loan of USD330 million;

2) a non-concessional loan of USD50 million from the International Development Association;

3) a concessional loan of USD43 million;

4) grant funds of USD4 million from the Green Climate Fund for the following components of the Project on “Electricity Sector Transformation and Sustainable Electricity Transmission”.

The Decree approves:

1.    the main technical and economic indicators of the following investment projects:

  • introduction of a supervisory control and data acquisition (SCADA) software and hardware complex;
  • modernisation and reconstruction of transmission grid system with the participation of the World Bank (Stage II);

2.    a list of loans from international financial institutions attracted to finance investment projects of National Power Grid of Uzbekistan JSC and for which savings are expected.

At the same time, it should be taken into account that:

  • By introducing a unified power system, including a modern automated system for operational control of power flows through power grids, uninterrupted and stable operation of the power system is ensured;
  • Due to replacement of old electrical equipment and equipment at 22 substations with new equipment, including installation of 20 sets of new power transformers and autotransformers at 10 substations, the capacity of the substations was increased to 912.7 MW;
  • Costs of equipment overhaul and reduction of electricity consumed by transformers for own needs are reduced by an average of USD14.2 million per year.

On 6 October 2021, a letter of mandate was signed between National Power Grid of Uzbekistan JSC and the European Bank for Reconstruction and Development to provide a corporate loan without a state guarantee to finance the investment project “Construction of 500 kW Sarymai (Khorezm region) - Jangeldy (Bukhara region)” with a length of 130 km.

The 110-500 kW distribution facilities at the disposal of Thermal Power Plants JSC and Uzbekhydroenergo JSC will be transferred to the management of National Grid at balance (residual) value along with the staff units. At the same time, the property rights of business entities transferred from one entity to another are not subject to taxation on all types of taxes.

Project Project power Name of the IFI Loan agreement
Date and number Total cost Expected cost savings
1. Construction of a 220 kW Kabarete 500 kW transmission line 177 km long from the Navoi TPP to the 220 kW Besopan switchyard. 220 kW
177 km
EBRD 20.11.2019
80.285 25.4*
2. Construction of a 500/220 kW Muruntau substation with two 3x167 MVA autotransformers. 500/220 kW
3x167 MBA
EBRD 08.10.2018
82.5 29.3*
3. Restoration of the 500 kW Guzar-Regal (L-507) high-voltage transmission line in the territory of the Republic and Construction of a 220 kW overhead line and 220 kW Zafarabod substation at the Syrdarya TPP. 550 kW
64 km
220 kW
2x140 km
ADB 12.11.2015
150 31.8
4. Modernisation and reconstruction of transmission substations with the World Bank (Phase I);   WB 20.09.2017 150 25

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.