ADB and Uzbekistan Sign $200 Million Loan to Modernize Power Grid

The Asian Development Bank (ADB) and the Government of Uzbekistan signed a $200 million loan agreement in Bangkok on 15 October 2026 to modernize the country’s electricity distribution system, according to an ADB announcement. The agreement was signed by ADB President Masato Kanda and Uzbekistan Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov.

The Modernization of Electricity Distribution Systems Program aims to upgrade 60 critical electricity distribution substations across Uzbekistan and implement digital systems to improve network management. It marks ADB's first energy project under the ADB–World Bank Full Mutual Reliance Framework and its initial results-based lending operation within Uzbekistan's energy sector.

According to the ADB, the initiative is designed to address challenges from aging infrastructure, power losses, and overloaded equipment as energy demand rises across Uzbekistan. The program will also focus on strengthening the operational capabilities, technical skills, management, and financial controls of JSC National Electric Grid of Uzbekistan, as well as promoting workforce training and women's participation in the energy sector.

The planned investments are expected to reduce power losses, support the integration of at least 3.3 gigawatts of renewable energy capacity, and lower greenhouse gas emissions by nearly 23,000 tons of carbon dioxide equivalent annually.

ADB is serving as the lead lender for the program. Under the mutual reliance framework, which allows ADB and the World Bank to share due diligence and implementation arrangements, World Bank management is scheduled to seek board approval for an additional $100 million in financing later this month.

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