Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) is increasing the reliability and sustainability of Uzbekistan’s electricity supply by helping to finance the construction of a new high-voltage transmission line connecting the country’s north-western and south-western regions.

The EBRD is issuing a sovereign loan of up to US$ 66.4 million (€63.9 million) to the national power transmission utility, National Electric Grid of Uzbekistan (NEGU), supporting the construction of a 230 km 500 kV transmission line between the settlements of Sarimay in the Khoresm region and Muruntau in the Navoi region.

This project will help to eliminate bottlenecks in the grid and reduce electricity outages, especially during periods of peak demand. It will also facilitate the integration of renewables, in line with the low-carbon pathway for Uzbekistan’s power sector, which was developed with the Bank’s support.

The project is expected to reduce greenhouse gas emissions by 4,143 tonnes per year and reduce its annual electricity losses by 34,636 MWh.

To date, the Bank has invested around €5.3 billion in 171 projects in Uzbekistan.