World Bank sanctions $143M loan for improved energy efficiency in Uzbekistan

By Pranali Mehta  | Date: 2022-06-28

World Bank sanctions $143M loan for improved energy efficiency in Uzbekistan

The Board of Executive Directors of the World Bank have approved a concessional credit worth $143 million for Uzbekistan. The funding will reportedly support a project which aims to enhance the regulatory and institutional framework in the buildings sector and improvise the energy efficiency of public buildings for luring investments in clean energy.

As per credible sources, the International Development Association (IDA), a member of the World Bank Group, is providing concessional financing to Uzbekistan’s Government at a very less rate of interest with a 30-year repayment period, along with a 5-year grace period.

Reportedly, the building sector in Uzbekistan accounts for 50% of the entire final energy consumption, while the transport and industry sectors stand at 20% and 22% respectively.

In the public buildings sector, heating is accountable for 84% of energy consumption in pre-schools, 70% in regional hospitals, 97% in public schools, and 88% in rural clinics.

For the uninitiated, majority of the public buildings were constructed in the 1970s-80s with very less consideration given to energy efficiency. As a result, the buildings are poorly insulated, employ old water heating systems and boilers that have increased energy intensity, and function below the thermal comfort standards.

It has been reported that the World Bank conducted a study in 2021 which stated that the yearly energy savings potential from the increased efficiency of energy in public schools, pre-schools, and health care facilities sums up to over 7,000 GWh (electricity: over 240GWh and thermal: nearly 6810GWh).

As per claims, the Ministry of Energy of Uzbekistan and its IESF (Intersectoral Energy Savings Fund), which was created in 2020 to fund activities that improve energy efficiency in social, industrial, and residential sectors, will be implementing the project activities.

The project will further help the IESF in financing activities that enhance the energy efficiency in buildings under Ministry of Public Education, Ministry of Preschool Education, and Ministry of Health, situated in the urban and rural areas in the country.

Source Credits: - https://akipress.com/news:672693:World_Bank_approves_$143_million_concessional_loan_for_improving_energy_efficiency_of_public_buildings_in_Uzbekistan/

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Pranali Mehta     aeresearch.net

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta has dutifully walked down the slated path and worked in the chemicals industry for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience...

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