PRESS RELEASE January 25, 2018

240,000 People in Cities Across Uzbekistan to Benefit from Improved Heating and Hot Water Services

WASHINGTON, January 25, 2018 – Over 240,000 residents in five cities across Uzbekistan are to benefit from improved efficiency and quality of heating and hot water services, thanks to the District Heating Energy Efficiency Project approved today by the World Bank’s Board of Executive Directors. The Project will be financed by a US$ 140 million credit from the International Development Association

“The World Bank is pleased to support the modernization of the District Heating system,” said Hideki Mori, World Bank Country Manager for Uzbekistan. “These measures will improve the living conditions of hundreds of thousands of people across Uzbekistan.”

Uzbekistan often experiences cold and harsh winters. A stable heat supply is therefore critical for ensuring the well-being of its citizens and for preventing environmental, safety, and health-related hazards.

However, the country’s District Heating sector has suffered from years of neglect and its services have declined, if not vanished, in many cities. Consequently, many households resort to inadequate – unhealthy, unreliable, unsafe, or expensive – heating alternatives, such as coal-burning stoves. Numerous kindergartens and schools in certain areas of the country are cold and cannot provide a suitable environment for children.

In addition, District Heating enterprises that were established during the Soviet period are not operationally viable today for several reasons, including heat tariffs that are below cost-recovery levels, low bill collection rates, high network heat and water losses, poor operational management, and under-investments in the rehabilitation of their main assets.

The District Heating Energy Efficiency Project aims to address all of these challenges by introducing, for the first time, a modern District Heating model for Uzbekistan. The Project will specifically benefit residents living in multi-apartment buildings in the cities of Andijan, Bukhara, Chirchik, Samarkand, and Tashkent, and which are connected to or will be connected to the District Heating service.

Users of public and administrative buildings, including kindergartens, schools, hospitals, and municipality offices, will also experience an improvement in the quality of heating services. The Project will also invest in District Heating infrastructure, enhancing their capacity, and improving the regulatory framework to make selected District Heating companies more viable, efficient, and sustainable.

The electricity distribution subsidiaries of Uzbekenergo, a state-owned energy company, will experience a reduced overloading of their power networks and consequently there will be lower technical losses, fewer breakdowns, and less power outages in the five participating cities. The Project is expected to reduce natural gas and electricity consumption, as well as CO2emissions, in the cities.

The World Bank is helping Uzbekistan to reach a wide range of development goals by supporting 16 projects worth US$ 2 billion. These projects support agriculture and water resources management, energy, transport, healthcare, education, urban development, water supply and sanitation.


The District Heating Energy Efficiency Project was prepared with a US$ 700,000 grant from the Europe and Central Asia Regional Capacity Development (ECAPDEV) Trust Fund (TF). The grant financed a feasibility study, a project investment plan, and bidding documents for the first year of the project's implementation.

ECAPDEV TF is a multi-donor trust fund established in 2012 with an initial contribution of US$ 23 million from the Government of the Russian Federation to support improvements in the quality and speed of project preparation, as well as capacity building for project implementation in the Europe and Central Asia region.


For more information on World Bank activities in Uzbekistan, please visit: www.worldbank.org/uzbekistan

Facebook: www.facebook.com/WorldBankUzbekistan/
Twitter: www.twitter.com/WorldBankECA 
Join the discussion: www.blogs.worldbank.org/europeandcentralasia   


PRESS RELEASE NO: 2018/ECA/62

Contacts

Tashkent
Mirzo Ibragimov
+998 (71) 120-2456
mibragimov@worldbank.org
Washington
Meriem Gray
+1 (202) 473-7870
mgray@worldbank.org
Welcome