Uzbekistan, Tashkent, Feb. 14 / Trend, D. Azizov /
The Islamic Development Bank (IDB) Board of Executive Directors has approved a loan of $36 million for a project to improve the efficiency of Uzbek capital's street lighting, Tashkent office of the IDB told Trend on Thursday.
A Bank representative said that the loan will be allocated under the guarantee of the Uzbek government on an "installment sale" conditions for 15 years, including a three-year grace period. An agency agreement between the IDB and the government will be signed in the second quarter of this year.
The project worth $ 39 million envisages replacing 120,000 units of street lighting fixtures with mercury vapor lamps to energy efficient luminaires with sodium lamps, which will provide annual energy savings in the amount of 22.4 million kWh.
In addition, an automated system for remote control of Tashkent's street lighting system will be installed under the project.
Currently, the total installed capacity of power grids in urban lighting system of Tashkent is 32.6 MW with the actual power consumption reaching 63.5 million kWh annually.
The project implementation is scheduled within 3 years.
Apart from the IDB loan, the project will be financed through the equity of Uzbekenergo state joint stock company.
Uzbekistan joined the IDB in 2003. The IDB is involved in co-financing of projects in the development of healthcare, education, agriculture, irrigation, power, transport, and support to private entrepreneurship.
According to the IDB office, to date the total amount of loans and bank investments in the economy of the country reached $ 800 million.
As reported earlier, a cooperation program for period between 2011 and 2013 provides for the IDB's participation in co-financing of 11 investment projects totaling $ 655.5 million.
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