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Back You are here: Home Low-Carbon Energy Efficiency World Bank inks $100 million credit for Uzbekistan’s energy efficiency plans

Energy Efficiency

World Bank inks $100 million credit for Uzbekistan’s energy efficiency plans

World Bank inks $100 million credit for Uzbekistan’s energy efficiency plans
The $100 million-additional financing will help Uzbekistan’s industrial sector become more energy efficient

The World Bank has signed a $100 million credit of additional financing for the Republic of Uzbekistan’s Energy Efficiency Facility for Industrial Enterprises Project.

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Uzbekistan is one of the most energy intensive countries in Eastern Europe and Central Asia, but with the World Bank’s additional financing for the Energy Efficiency Facility for Industrial Enterprises Project, or UZEEF, the country’s industrial sector will be able to reduce power and fuel usage, and greenhouse gas emissions.

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The additional credit, which will be implemented over 5 years and has a 25-year maturity including a 5 years grace period, will be used to co-finance energy efficiency sub-projects in industrial enterprises and ensure the transfer of state-of-the-art technologies. Specifically, the additional credit will be used in two ways: $99 million will be used for credit line to participating banks, and the $1 million for energy efficiency capacity development.

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State-owned banks Asaka Bank and Uzpromstroybank, and private bank Hamkorbank are the financial intermediaries for the project.

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With the UZEEF, the country will be able to take advantage of its huge potential for energy savings, especially in the industrial sector which currently utilizes outdated machinery and equipment. While improving the energy efficiency and reducing the energy consumption of Uzbekistan’s industrial sector will reduce GHG emissions, it will also improve the competitiveness of the country’s economy and free up scarce energy resources.

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“The use of financial intermediaries to promote energy efficiency investments is an approach which has been successfully applied by the World Bank in other countries, including the original UZEEF project in Uzbekistan. The project initiated the development of a new business line by local Uzbek banks targeting energy efficiency investments,” said World Bank Country Manager for Uzbekistan Takuya Kamata.

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The original project finances have an estimated energy savings of more than 50,000 megawatt hours, while the additional financing, which would further enhance and scale up the development of the project by financing more energy efficiency sub-projects, will have a cumulative energy saving potential of 200,000 MWh. – EcoSeed Staff

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