Uzbekistan : Preparing the Energy Sector Projects

Sovereign Project | 57063-001

The transaction technical assistance (TA) facility will provide project preparation support, capacity building, and policy advice to a series of ensuing projects, comprising: (i) Power Sector Reform Program, Subprogram 2 ($200 million); (ii) Distribution Network Modernization Project, Phase 2 ($150 million); and (iii) Transmission Network Improvement Project, Phase 2 ($100 million). All ensuing projects are among the Government of Uzbekistan's priorities for energy sector development under Uzbekistan's 2030 strategy. These projects will require similar preparation, due diligence, design and readiness activities, and this F-TRTA will reduce transaction costs through minimizing the need for stand-alone transaction technical assistance. Capacity building of the counterpart government agencies and policy advice support provided to

the government under this F-TRTA is essential for sustainability of all these projects.

Project Details

Project Name
Preparing the Energy Sector Projects
Project Number
57063-001
Country / Economy
  • Uzbekistan
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 10100-UZB: Preparing the Energy Sector Projects
Source Amount
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.00 million
TA 10100-UZB: Preparing the Energy Sector Projects
Source Amount
Technical Assistance Special Fund US$ 1.20 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector
  • Energy / Electricity transmission and distribution - Energy sector development and institutional reform

Gender
No gender elements
Description

The transaction technical assistance (TA) facility will provide project preparation support, capacity building, and policy advice to a series of ensuing projects, comprising: (i) Power Sector Reform Program, Subprogram 2 ($200 million); (ii) Distribution Network Modernization Project, Phase 2 ($150 million); and (iii) Transmission Network Improvement Project, Phase 2 ($100 million). All ensuing projects are among the Government of Uzbekistan's priorities for energy sector development under Uzbekistan's 2030 strategy. These projects will require similar preparation, due diligence, design and readiness activities, and this F-TRTA will reduce transaction costs through minimizing the need for stand-alone transaction technical assistance. Capacity building of the counterpart government agencies and policy advice support provided to

the government under this F-TRTA is essential for sustainability of all these projects.

Project Rationale and Linkage to Country/Regional Strategy
Uzbekistan is one of the fastest-growing economies in Central Asia. It grew rapidly at an average rate of 8% over the past decade, effectively lifting a significant portion of its population out of poverty. Demand for electricity in Uzbekistan has increased with an upsurge starting in 2010 driven by industrial and residential sectors, but an aging electricity infrastructure with low level of digitalization and automation, and insufficient capital investment have widened the supply-demand gap, resulted in electricity network reliability issues and high system inefficiencies, which dampen the economic development and business confidence. The obsolete energy transmission and distribution system has developed serious problems overtime, such as increasingly frequent electricity blackouts and weak electricity supply reliability, especially during peak demand in the winter, adversely affecting the quality of life of people and provision of essential social services, while exacerbating urban-rural disparities. Similarly, most power generation assets, which are primarily fossil-fuel based, are 40 years to 50 years old, operating beyond their useful life, and require replacement and/or rehabilitation. Government has made strategic decisions to increase its renewable energy share in the energy mix, which requires substantial network improvement and modernization for the transmission and distribution companies to be able to deliver the clean energy generated from these new renewable energy plants. In parallel, power outages continue to occur, even in urban areas, and are particularly severe in rural areas during the winter season with last winter witnessing the worst crises due to extreme weather conditions. Addressing these issues requires large investments in transmission, distribution networks as well as in developing clean energy resources, which is not easy in a cash constraint sector with lacking key regulatory reforms.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Tareen, Adnan
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Asian Development Bank

Timetable

Concept Clearance
-
Fact Finding
-
MRM
-
Approval
09 Aug 2023
Last Review Mission
-
Last PDS Update
03 May 2023

Funding

TA 10100-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Apr 2023 13 May 2023 13 May 2023 31 Dec 2025 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
1,200,000.00 1,000,000.00 0.00 0.00 0.00 0.00 2,200,000.00
Cumulative Disbursements
Date Amount
04 Jul 2024 261,349.16

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.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Preparing the Energy Sector Projects: Technical Assistance Report Technical Assistance Reports Apr 2023

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.

None currently available.


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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Gender Specialist Individual - Consulting Closed
Environmental Safeguards - International Individual - Consulting Closed
Environmental Safeguards - National Individual - Consulting Closed
Capacity Building Expert Individual - Consulting Closed
Social Safeguards - National Individual - Consulting Closed
Social Safeguards - International Individual - Consulting Closed
Transmission Engineer - International Individual - Consulting Closed
Environment Expert Individual - Consulting Closed
Environment Specialist Individual - Consulting Closed
Policy Advisor Individual - Consulting Closed
Energy Sector Reform Expert Individual - Consulting Closed
Energy Sector Expert Individual - Consulting Closed
Project Coordination Expert Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.