BAKU, Azerbaijan, Sept. 28
By Klavdiya Romakayeva - Trend:
The Asian Development Bank (ADB) approved a $200 million policy-based loan to strengthen Uzbekistan’s power sector by improving its financial sustainability and ensuring adequate investment in critical infrastructure, Trend reports with reference to the ADB press service.
The power sector reform program will provide budget support and targeted policy actions aimed at restructuring the power sector to enable competition and create a conducive environment for private investment. The program will also streamline sector oversight to ensure fair and transparent competition and consumer protection.
“As a first of its kind in Uzbekistan’s energy sector, this policy-based loan will be critical to support complex reforms and deepen private investment. By encouraging private sector participation, the program will support the government’s ultimate objectives of creating jobs and improving the quality of life,” said ADB Energy Specialist Seung Duck Kim.
Uzbekistan has initiated structural and policy measures to improve oversight in the power sector and financial sustainability. It has also moved towards reducing greenhouse gas emissions in the electricity supply chain and improving energy efficiency by upgrading regulatory standards and adopting a district heating efficiency improvement program.
ADB’s program supports these reforms, with the goal of increasing private sector participation in power generation to at least 15 percent in capacity terms and improving revenue collection to 99 percent by 2023.
The program was jointly developed with the Agence Française de Developpement, which will provide co-financing of a €150 million loan (around $169 million).
The program also benefits from close development partner coordination and harmonized technical assistance support from ADB, the European Bank for Reconstruction and Development, and the World Bank.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, from 31 members at its establishment in 1966, ADB has grown to encompass 68 members, of which 49 are from within Asia and the Pacific and 19 outside.
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