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Signing of the “Energy Climate” Policy Based Loan between the Government of the Republic of Uzbekistan and AFD
On the 24th of August 2020, The Republic of Uzbekistan and Agence Française de Développement (AFD) have signed an “Energy Climate” Policy Based Loan in co-financing with the Asian Development Bank (ADB) for an amount of 150 MEUR.
The Public Based Loan aims at supporting the reforms undertaken by the Government in the power sector, with the overarching goal of accompanying the country’s transition towards a low-carbon economy. Based on four major reform pillars: power sector restructuring, improved financial sustainability, power sector decarbonization and increased demand-side energy efficiency, it will participate to create an environment conducive to private investment and the emergence of solar and wind projects.
It is the first step of a comprehensive power sector reform program designed in close cooperation with ADB which will provide co-financing of 200 MUSD Loan, and is in continuity with the technical and financial support provided by ADB, the World Bank and the European Bank for Reconstruction and Development to the Government of Uzbekistan.
The Public Policy Loan will be an opportunity to engage in a meaningful policy dialogue on key topics such as the impact of power sector tariff reforms on the most vulnerable populations and resilience to Climate change through a dedicated Technical Assistance program, in line with AFD commitments to be 100% compatible with the Paris Agreement.