Legal Alerts: Uzbekistan
THE WORLD BANK HAS APPROVED THE ALLOCATION OF A 380 MILLION USD LOAN FOR THE IMPLEMENTATION OF A LARGE-SCALE INVESTMENT PROJECT TO MODERNISE MAIN SUBSTATIONS AND DIGITALISE THE SYSTEM OF UZBEKISTAN
The Electricity Sector Transformation and Resilient Transmission Project has been approved by the World Bank's Board of Executive Directors. The project will improve the performance of the National Electric Grid of Uzbekistan (NEGU) to ensure reliable energy supplies to millions of households and businesses across the country.
The project will be supported by 380 million USD in credit from the International Development Association (IDA), and a 43 million USD loan from the Green Climate Fund (GCF) under the Sustainable Renewables Risk Mitigation Initiative Facility. The Government of Uzbekistan will receive this financing at very low-interest rates and with the longest repayment period of up to 40 years. The GCF will also provide a 4 million USD grant to cover selected project activities.
The project will help to modernise the outdated energy infrastructure by financing part of the priority investment program of the National Electric Grids. Among other measures, it will include the rehabilitation, modernization and expansion of 22 existing outdated high-voltage substations and the construction of a new 500 kW substation and corresponding power lines in 11 regions of Uzbekistan.
It will introduce modern digital and telecommunications technologies and solutions to improve the monitoring, control and operation of the electricity transmission system. In particular, a new dispatching control and data collection system (SCADA) and an energy management system (EMS) will be installed for the central and regional dispatch centres of the NASU to replace the outdated systems put into operation during the Soviet era.
The loan granted to Uzbekistan is aimed to support the country in its transition to clean energy by improving the capacity of the electricity transmission network to integrate renewable energy produced by the private sector. It will contribute to the implementation of the government's plans to decarbonize the electric power sector. The project will directly support the integration of 1,500 MW of renewable energy into the electricity grid, which will lead to an additional reduction in CO2 emissions. It will also help to mobilize private investment in the country's renewable energy sector.
NEW RESOLUTION ON TRANSFER OF "NATIONAL ELECTRIC GRID OF UZBEKISTAN" ASSETS
The Cabinet of Ministers has adopted Resolution No.382 dated 18.06.2021 "On the organisation of effective use of objects and fixed assets of the electric grid economy of electric power industry organisations".
The Electricity Sector Transformation and Resilient Transmission Project has been approved by the World Bank's Board of Executive Directors. The project will improve the performance of the National Electric Grid of Uzbekistan (NEGU) to ensure reliable energy supplies to millions of households and businesses across the country.
The project will be supported by 380 million USD in credit from the International Development Association (IDA), and a 43 million USD loan from the Green Climate Fund (GCF) under the Sustainable Renewables Risk Mitigation Initiative Facility. The Government of Uzbekistan will receive this financing at very low-interest rates and with the longest repayment period of up to 40 years. The GCF will also provide a 4 million USD grant to cover selected project activities.
The project will help to modernise the outdated energy infrastructure by financing part of the priority investment program of the National Electric Grids. Among other measures, it will include the rehabilitation, modernization and expansion of 22 existing outdated high-voltage substations and the construction of a new 500 kW substation and corresponding power lines in 11 regions of Uzbekistan.
It will introduce modern digital and telecommunications technologies and solutions to improve the monitoring, control and operation of the electricity transmission system. In particular, a new dispatching control and data collection system (SCADA) and an energy management system (EMS) will be installed for the central and regional dispatch centres of the NASU to replace the outdated systems put into operation during the Soviet era.
The loan granted to Uzbekistan is aimed to support the country in its transition to clean energy by improving the capacity of the electricity transmission network to integrate renewable energy produced by the private sector. It will contribute to the implementation of the government's plans to decarbonize the electric power sector. The project will directly support the integration of 1,500 MW of renewable energy into the electricity grid, which will lead to an additional reduction in CO2 emissions. It will also help to mobilize private investment in the country's renewable energy sector.
NEW RESOLUTION ON TRANSFER OF "NATIONAL ELECTRIC GRID OF UZBEKISTAN" ASSETS
The Cabinet of Ministers has adopted Resolution No.382 dated 18.06.2021 "On the organisation of effective use of objects and fixed assets of the electric grid economy of electric power industry organisations".
Masdar CEO noted: "These projects emphasize that Uzbekistan plays a real leading role in clean energy projects in the region and contributes to global actions to combat climate change. This is a vital mission, and we will help you with it."
It should be recalled that an open tender for projects of solar photovoltaic power plants with a capacity of 220 MW in the Kattakurgan district of the Samarkand region and the Gallyaral district of the Jizzakh region was held according to international standards with the technical support of the International Finance Corporation (IFC).
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