BAKU, Azerbaijan, Oct. 15
By Fakhri Vakilov – Trend:
European Bank for Reconstruction and Development (EBRD) will provide a loan for the construction of a 500 kV high-voltage “Sarymay-Zhankeldi” transmission line in Uzbekistan that will help the country to enhance the capacity of the national electric grid, representative of European Bank for Reconstruction and Development (EBRD) told Trend.
According to the spokesperson, the implementation of the project will allow Uzbekistan enabling higher penetration of renewables and ensuring more stable and reliable power supply for consumers across the country as well.
This will be the first corporate loan in the history of Uzbekistan without state guarantees for the implementation of an energy project.
“It would be an important precedent for the energy sector state-owned enterprises in the country, as the ability to attract financing without a sovereign guarantee can considerably expand access to Uzbek capital for the sector,” the representative said.
The EBRD’s spokesperson added that the amount of capital investment needed to upgrade and expand the power sector’s generation and transmission and distribution infrastructure is substantial, so unlocking funding without sovereign recourse would be detrimental in scaling up the much-needed energy infrastructure improvements.
“It is important to note that the non-sovereign structure of the project, still has to undergo due diligence,” the representative stated.
The spokesperson noted that the project will continue the EBRD’s longstanding relationship with National Electric Grid of Uzbekistan JSC and help the Bank deliver on its main objectives under the Uzbekistan Country Strategy for 2018-2023: increasing commercialisation, increasing the use of renewable energy (through the support of grid expansion), and improving quality and connectivity of energy networks.
Lastly, the spokesperson added that EBRD is looking forward to continuing close cooperation with Uzbekistan, including in the power sector with a particular focus on the development of renewable energy and improvement of the transmission grid capacity.
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