Economy

WB issues $200 million for energy project in Uzbekistan

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The World Bank’s Board of Executive Directors has approved Energy Efficiency Facility for Industrial Enterprises Project – Phase 3 for Uzbekistan, the WB said in a message on Jan.31.

The Project will be financed by a $ 200 million loan from the International Bank for Reconstruction and Development.

Uzbekistan is one of the most energy-intensive economies in the world. Its energy intensity is 35 percent higher than that of neighboring Kazakhstan and three times that of Germany. The country’s industrial sector, which largely utilizes inefficient and obsolete technology in its production processes, accounts for about 40 percent of total energy consumption.

The government aims to reduce the country’s energy intensity by about 50 percent by 2030, and as such, has initiated modernization investment programs that target key energy-consuming sectors.

Hideki Mori, World Bank Country Manager for Uzbekistan said that energy efficiency will help minimize operation and maintenance costs, improve productivity and generate real cash flows. It will also contribute to the mitigation of climate change.

Phases 1 and 2 of the Energy Efficiency Facility for Industrial Enterprises Project, approved in 2010 and 2013 respectively, supported the introduction of dedicated credit lines by participating banks for investment in improving industrial energy efficiency. With a total of US$ 125 million in World Bank financing, these earlier phases of the Project helped 31 large state-owned industrial enterprises – predominantly in the oil, gas, chemical and construction sectors – introduce energy-efficient technologies and practices.

By the end of 2017, these investments had resulted in energy savings equivalent to 360 GWh per year over the lifespans of the modernized equipment or facilities, and more than 580,000 metric tons of CO2 emissions per year would be avoided.

Phase 3 of the Project will continue to finance energy-saving investments in both large industrial enterprises and industrial SMEs, and support energy efficiency capacity development through targeted technical assistance. It is expected that investments under Phase 3 will generate an additional 386 GWh of annual energy savings and help avoid an additional 799,000 metric tons of annual CO2 emissions.

The WB assists Uzbekistan in reaching a wide range of development goals by supporting 16 projects worth US$ 2 billion. These projects support agriculture and water resources management, energy, transport, healthcare, education, urban development, water supply and sanitation.

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