World Bank to loan Uzbekistan $180 mln for electricity metering systems
TASHKENT. March 29 (Interfax) - The World Bank board on Wednesday approved allocation of a $180 million loan to Uzbekistan for a project to introduce modern electricity metering technology, the World Bank said in a press release.
The aim of the project is to reduce commercial losses at three regional distribution companies.
The World Bank reported that the entire cost of the project is $246.1 million and that will enable distribution companies in three regions in Uzbekistan - Tashkent, Tashkent region and Syrdarya region - to improve their collection of payments for electricity consumed, improving their financial situation and operation efficiency.
The project will see the installation of 1.2 million meters and communication systems as well as introduce new billing solutions.
The project will enable efficient use of electricity by the consumer and provide them exact information about their electricity consumption, the release said.
The project is part of a national program to improve metering of electricity consumption, which the Uzbek government approved in 2009. The program envisages installation of 4.51 million metering devices for consumers in grids of 0.4 kV throughout the country. The government issued a resolution stating that as of January 1 2012 Uzbekenergo should not supply electricity to companies that do not install the relevant metering equipment.
The program aims within 10 years to save 2.75 kilowatt hours of electricity in the residential sector.
The Asian Development Bank in February 2012 allocated a $150 million loan to Uzbekistan to modernize electricity metering systems in the regions in a $200 million program. The loan was allocated for 25 years, including a five-year grace period. It will be used to buy and install 1 million metering devices for consumers in grids 0.4 kV in three regions - Bukhara, Dzhizak and Samarkand.
Uzbekistan became a member of the World Bank in 1992. The Bank has allocated loans to Uzbekistan of around $1.17 billion for projects in privatization, financial sector development, agriculture modernization, electricity, social infrastructure improvements, healthcare and education.
There are 10 World Bank funded projects currently underway in Uzbekistan. Total liabilities on these projects stands at $600 million.