Uzbekistan bags $400m funding to strengthen energy, financial markets

One of the goals is to invite more power sector investors.

The Asian Development Bank (ADB) has granted Uzbekistan two policy-based loans totaling $400m that will support reforms that aim to boost the country’s efforts in enhancing its power and financial sectors.

In a statement, the ADB said $300m from subprogram 2 of the Power Sector Reform Programme will be allocated for policy actions aimed at improving the power sector’s structure, legal and regulatory framework, and governance to encourage private sector investment and promote financial sustainability. 

The ADB said the programme specifically supports reforms that focus on carbon intensity reduction and energy efficiency improvement. These include actions to develop the electricity market, and establishment of an independent energy regulator to promote competition and ensure transparency.

Meanwhile, the remaining $100m loan for subprogram 2 of the Financial Markets Development Programme will support regulatory and institutional reforms on improving market facilitation to streamline financial transactions and services as well as increasing supply and demand measures to grow Uzbekistan’s capital and money markets. 

Some of the initiatives supported by the programme are the delegation of all capital market regulatory responsibilities to a dedicated regulator, a proposed law consolidating all capital market-related regulations, and publishing integrated market data online to promote transparency and access.