WASHINGTON, October 27, 2026—The World Bank Board of Executive Directors today approved a $100 million loan that will help Uzbekistan increase the efficiency and reliability of its electricity distribution system and enable an estimated 11,700 more and better jobs during the five years following commissioning of the modernized energy infrastructure facilities.
The Modernization of Electricity Distribution Systems Program will achieve this by easing the limits on the amount of renewable electricity the network can absorb and deliver to households and businesses. By 2031, the program is expected to cut electricity losses in renovated substations by 20,000 megawatt-hours (MWh) a year, help enable at least 3.3 gigawatts (GW) of renewable energy, and avoid nearly 23,000 tons of CO₂ equivalent in emissions each year.
The World Bank Group is co-financing the program with the Asian Development Bank (ADB) under the two institutions’ global Full Mutual Reliance Framework (FMRF). Under this framework, the two institutions work with one joint approach to prepare and oversee the program, thus reducing transaction costs and procedural duplication for the government.
The ADB approved its $200 million loan with the Government of Uzbekistan on September 30, 2026. Together with the $100 million loan from the World Bank Group and a $71 million own budget contribution from the Government of Uzbekistan, the total program financing amounts to $371 million.
Uzbekistan aims to produce 25 gigawatts (GW) of renewable energy by 2030, which will require a stronger and smarter electricity grid. Much of the electricity distribution network was built decades ago and many grid substations are overloaded, which can lead to energy losses and disruptions affecting households, businesses, schools, and health clinics. With rapid economic growth increasing the demand for electricity, modernizing the network is a priority.
The program will be implemented by the Joint-Stock Company National Electric Grid of Uzbekistan (NEGU) and will address these challenges through investments into modernization and digitalization of 60 key substations nationwide to reduce energy losses and increase the reliability of electricity supply. It will also strengthen NEGU’s capacity and operations, including its financial systems, cybersecurity, environmental and social standards, and gender equality in employment within the company.
“Reliable electricity is essential for households and economic activity. It is a foundation for jobs, public services, and economic growth,” said Najy Benhassine, World Bank Division Director for Central Asia. “By joining forces with the ADB, we are not only helping Uzbekistan modernize the backbone of its electricity system, we are doing so more efficiently and with greater impact. A reliable, digitalized, and renewable-ready grid is fundamental to Uzbekistan’s economic future, and to the millions of families and businesses that depend on it every day.”
