According to the ADB, the loan will be issued from the bank’s ordinary resources at the volume of US$18 million and Asian Development Fund – 132 million.

The project cost is US$288 million. Uzbekenergo state joint stock company will also invest US$138 million to the project.

The project will erect new high-voltage transmission assets to secure the power supply to Fergana Valley and implement institutional changes in the power utility company, Uzbekenergo.

The project envisages construction of 500 kV overhead transmission line of approximately 175 km between Novo Angren Thermal Power Plant (TPP) and Namangan Substation and rerouting of 220 kV overhead transmission lines of approximately 32 km between Kuzyl-Ravat-Sardor and Sardor-Crystal and Namangan Substation.

It is also planned to construct 500 kV/220 kV Namangan Substation and reconstruct outdoor switchgear 500 kV at the Novo Angren TPP.

The project will increase energy security through the diversification and expansion of energy supply routes. It will improve power supply reliability in the country and, in particular, the Namangan, Fergana and Andijan provinces, reduce transmission losses, and improve operational efficiency of the power sector.