The European Bank for Reconstruction and Development approved a $47.1 million sovereign loan to the state-owned National Electric Networks of Uzbekistan (NENU).

The funds will be used to finance the construction of a new transmission line between the villages of Sarimai and Dzhankeldy in Khorezm and Bukhara regions. The new line will connect two wind farms under construction with a total installed capacity of up to 1 GW to the national power grid.

The expansion of the grid will further integrate renewable energy sources into Uzbekistan's overall power system. It will help balance the load on existing transmission lines and solve the problem of power supply bottlenecks in the north and southwest of the country. 

The project will also increase the capacity of the power system and help reduce grid losses. This is especially important for Uzbekistan's growing industry and its growing population, which require an increasingly sustainable power supply.

"Uzbekistan is not only the most populous state in Central Asia, but also the fastest growing economy in the region, which needs sustainable infrastructure solutions. Our bank is ready to support this growth by financing such projects", said Jurgen Rigterink, First Vice President of EBRD.

Let us remind that so far the EBRD has invested over 3.6 billion euros in 113 projects in Uzbekistan.