Uzbekistan : Distribution Network Digital Transformation and Resiliency Project

Sovereign Project | 56231-001

Distribution Network Digital Transformation and Resiliency project aims to rehabilitate medium voltage distribution substations and associated overhead lines across the country and modernize the distribution system operations. The project is aligned with the following impact: social and economic development through provision of green infrastructure services achieved. The project outcome: distribution grid operation reliability and efficiency improved--will be achieved through the following outputs:

Output 1: Distribution substations modernized and digitalized;

Output 2: Women's energy-based livelihoods improved; and

Output 3: Institutional capacity for sustainability and climate resilience enhanced.

Project Details

Project Name Distribution Network Digital Transformation and Resiliency Project
Project Number 56231-001
Country / Economy Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4347-UZB: Distribution Network Digital Transformation and Resiliency Project
Ordinary capital resources US$ 200.00 million
Loan 8455-UZB: Distribution Network Digital Transformation and Resiliency Project
Agence Francaise de Developpement US$ 75.00 million
TA 10149-UZB: Preparing and Implementing Gender-Inclusive Projects in Central and West Asia Subproject 11: Enhancing Women's Energy-Based Livelihoods
Technical Assistance Special Fund US$ 250,000.00
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Effective gender mainstreaming
Description

Distribution Network Digital Transformation and Resiliency project aims to rehabilitate medium voltage distribution substations and associated overhead lines across the country and modernize the distribution system operations. The project is aligned with the following impact: social and economic development through provision of green infrastructure services achieved. The project outcome: distribution grid operation reliability and efficiency improved--will be achieved through the following outputs:

Output 1: Distribution substations modernized and digitalized;

Output 2: Women's energy-based livelihoods improved; and

Output 3: Institutional capacity for sustainability and climate resilience enhanced.

Project Rationale and Linkage to Country/Regional Strategy

The electricity demand is expected to double by 2030 from its annual power consumption of 67 terawatt-hours in 2019. To meet the rapidly growing power demand, the government targets to install additional 17 gigawatts (GW) capacity to the existing available capacity of 12.9 GW. This significant addition to the generation capacity should be paced with the enhancement of the transmission and distribution network to ensure the generated electricity, especially from renewable energy resources, is delivered to the end users without interruption. It would take about $10 billion in investments to expand, enhance, and modernize the distribution network by 2030. However, the adequate investment in modernizing the distribution network has been slow because of limited access to the capital market and long-term financing.

Uzbekistan's distribution system comprises more than 260,000 kilometers of 0.4-kilovolt (kV) to 110 kV networks, 1,655 substations, and more than 86,000 transformer points, providing electricity to 7.6 million residential and industrial consumers. More than 50% of distribution lines have been in operation for over 30 years, and 30% of substation transformers require urgent replacement. The aging distribution system has developed serious problems, such as overloads, voltage drops related to increased load demand, and increasingly frequent blackouts. Besides, technical losses in the distribution system remain high, estimated at 13% of the total power generation, resulting in inefficiency and offsetting the government's continued efforts to reduce energy intensity and greenhouse gas emissions.

Uzbekistan's household electrification rate is nearly 100%, but an aging and overloaded electricity system has caused a sustained supply reliability issue, especially in rural areas. Uzbekistan's aging and dilapidated infrastructure in the power supply chain increasingly results in system inefficiencies, unreliable electricity supply, and uneven access to electricity across provinces, constraining economic development, dampening business confidence, and contributing to widening disparities. Power outages continue to occur, even in urban areas, and are particularly severe in rural areas during the winter seasons. With rising summer temperatures, Uzbekistan has begun to experience electricity supply disruption in the hottest months, in addition to the traditional blackout season of winter. Building up resiliency in the transmission and distribution is crucial to adapt to climate change in parallel with improving supply reliability.

The project is aligned with ADB's country partnership strategy for Uzbekistan, 2019-2023, notably in supporting the move toward a vibrant and inclusive market economy, modernizing energy infrastructure, and increasing energy efficiency. It is consistent with the operational priorities (OPs) of Strategy 2030, primarily (i) OP2 on accelerating progress in gender equality; (ii) OP3 on tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; and (iii) OP6 on strengthening governance and institutional capacity. The project is also aligned with ADB's Energy Policy (2021) and the Paris Agreement by integrating climate resilience into the energy infrastructure project, and contributing to GHG reduction and transitioning toward a low-carbon economy.

Impact

Social and economic development through provision of green infrastructure services achieved

Project Outcome
Description of Outcome

Distribution grid operation reliability and efficiency improved

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Distribution substations modernized and digitalized

Women's energy-based livelihoods improved

Institutional capacity for sustainability and climate resilience enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Kim, Seung Duck
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Joint-Stock Company Regional Electrical Power Networks
Timetable
Concept Clearance 06 Feb 2023
Fact Finding 13 Mar 2023 to 19 Mar 2023
MRM 13 Jul 2023
Approval 19 Sep 2023
Last Review Mission -
Last PDS Update 19 Sep 2023

Loan 4347-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Sep 2023 17 Nov 2023 30 Nov 2023 30 Sep 2028 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 277.20 Cumulative Contract Awards
ADB 200.00 17 Oct 2023 0.00 0.00 0%
Counterpart 77.20 Cumulative Disbursements
Cofinancing 0.00 17 Oct 2023 0.00 0.00 0%

Loan 8455-UZB

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 75.00 - 0.00 0.00 %

TA 10149-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Sep 2023 17 Oct 2023 17 Oct 2023 30 Nov 2024 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
250,000.00 0.00 0.00 0.00 0.00 0.00 250,000.00 17 Oct 2023 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Tenders

Tender Title Type Status Posting Date Deadline
Gender Consulting Firm Firm - Consulting Active
56231-UZB: Distribution Network Digital Transformation and Resiliency Project [OCB/EPC-002] Invitation for Bids Closed
56231-001 UZB: Distribution Network Digital Transformation and Resiliency Project [Corrigendum] Invitation for Bids Closed
56231-UZB: Distribution Network Digital Transformation and Resiliency Project [OCB/EPC-001] Invitation for Bids Closed
Project Management and Supervision Consultant Firm - Consulting Closed
56231-UZB: Distribution Network Digital Transformation and Resiliency Project Advance Notice Active

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Distribution Network Digital Transformation and Resiliency Project: Procurement Plan Procurement Plans Sep 2023