๐ Tender Overview
Project Name
Power Distribution System Modernization and Digital Transformation Program
Project Number
58309-001
Country / Economy
Uzbekistan
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: Second Distribution Network Digital Transformation and Resiliency Project
Ordinary capital resources US$ 300.00 million
Sector / Subsector
Energy / Electricity transmission and distribution
Gender
Effective gender mainstreaming
Description
The proposed project will build on the ongoing Loan 4347-UZB, by helping rehabilitate additional 40 critical distribution substations in 13 regions across the country, expand power transformation capacity, and modernize and digitalize the distribution system operations. The 40 substations are prioritized based on (i) criticality for system reliability, (ii) number of consumers served, and (iii) operation status and efficiency. Additionally, the proposed project will digitalize the 110 kV to 35 kV substations and deploy a modern distribution supervisory control and data acquisition (SCADA) and other automation systems following the roll out plan prepared under Loan 4347-UZB, which would allow for reduced technical losses and more efficient demand response.
ADB intends to provide financing of $275 million based on the indicative investment program for 2025 agreed between the Government and ADB. REPN's internal resources, totaling $80 million, will cover the costs associated with taxes and duties, financial charges during construction, project management, and related contingencies. The detailed amount will be determined through due diligence during project preparation.
Project Rationale and Linkage to Country/Regional Strategy
Uzbekistan's distribution system comprises more than 260,000 kilometers (km) of 0.4 kilovolt (kV) to 110 kV networks, 1,655 substations, and more than 86,000 transformer points, providing electricity to 7.6 million households and industrial consumers. The distribution system is characterized by outdated infrastructure, with more than 50% of the distribution network operating for over 30 years and 30% of the substation transformers requiring urgent replacement. With the forecasted power demand growth of up to 8% per annum, the aging distribution system has developed serious problems, such as overloads, voltage drops related to increased load demand, excessive reactive power, and increasingly frequent blackouts.
Additionally, significant technical losses, estimated at 13%, in the distribution system remain unresolved, even though Uzbekistan's nationwide advanced metering program and prepaid billing system have effectively reduced commercial losses. Electricity brownouts and blackouts are common, even in cities, and are especially severe in rural areas during the winter months (lasting for days in some villages) affecting essential services such as schools and medical clinics. Women, who are the primary users of electricity in
