World Bank to allocate $10.6 mln grant to Uzbekistan for project to eliminate gas leaks in gas transmission system
TASHKENT. March 16 (Interfax) - The World Bank has approved the provision of a $10.6 million grant to Uzbekistan aimed at reducing gas leaks in pipelines, the World Bank said in a press release.
The funds will be directed "to help Uzbekistan reduce leaks in its aging gas transmission system and recover valuable gas to power households and industry, boosting energy security, state revenues, and job creation," the World Bank said.
Uzbekistan's gas transmission network has become worn out over time due to insufficient investment in maintenance and repair, leading to gas leaks and financial losses, it said. Without the necessary work, total losses could reach 1.75 billion cubic meters of gas by 2030, equivalent to $228 million in lost revenue.
"A more efficient gas transmission network will turn waste into value, freeing up more domestically produced and affordable energy for people and businesses in Uzbekistan. Reducing losses in the gas network will provide substantial savings and economic gains," World Bank Division Director for Central Asia Najy Benhassine was quoted as saying.
The Uzbekistan Gas Leak Repair Facility Project, financed by grant funds from the World Bank's Global Flaring and Methane Reduction (GFMR) Trust Fund, will help establish processes for identifying and eliminating most leaks in the gas transmission networks managed by the state company JSC Uztransgaz.
As part of the project, repair work will be carried out to prevent the leakage of around 47,500 metric tonnes of gas annually by 2029. Reducing losses will provide financial savings of approximately $18 million. A significant portion of these funds will be directed towards implementing long-term measures for leak detection and elimination.
The project provides for investment in the acquisition of modern equipment and training for personnel of JSC Uztransgaz. The company will also be assisted in implementing international standards for methane emission reporting and measurement.
Uzbekistan is one of the largest beneficiaries of the World Bank, with its project portfolio currently exceeding $14 billion.
