The World Bank Helps Industrial Enterprises in Uzbekistan Become More Energy Efficient
TASHKENT, August 18, 2011 – The World Bank and the Government of Uzbekistan today signed a US$ 25 million credit agreement for the Energy Efficiency Facility for Industrial Enterprises Project (UZEEF) in the Republic of Uzbekistan. The Project’s objective is to improve energy efficiency in industrial enterprises by energy saving investments.
The Government of Uzbekistan has declared energy savings and efficiency improvements in industrial enterprises as one of its key economic priorities. Improving energy efficiency and reducing energy consumption in the production process will improve Uzbek industries’ overall competitiveness, free up scarce gas resources and reduce greenhouse gas emissions. Two state-owned banks (Asaka Bank and Uzpromstroybank) and a private bank (Hamkorbank) are the financial intermediaries for the Project.
“The potential for energy savings through implementation of energy efficiency measures in industrial enterprises in Uzbekistan is strong,” says Takuya Kamata, the World Bank’s Country Manager for Uzbekistan. “The use of financial intermediaries to promote energy efficiency investments is an approach which has been successfully implemented in other countries. This Project will also help to develop a new business lines by Uzbek banks targeting energy efficiency investments.”
Typical energy efficiency investments involve simple replacements or upgrades of boilers, replacement of outdated equipment and machinery, and the use of waste for heat and other purposes. Energy intensive industries, such as building materials, food processing and the textiles industry are particularly good candidates for energy efficient investments.
The Project will be implemented over five years and the total investment is US$ 34.6 million. The International Development Association of the World Bank Group will provide US$ 25 million credit and Uzbekistan banks and industrial enterprises will co-finance US$ 9.6 million.
Uzbekistan joined the World Bank in 1992. The World Bank’s mission in the country is to improve people’s livelihoods through being a partner in economic reforms, supporting the modernization of the country’s social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan.
Total World Bank’s current active commitments as of August 2011 make about US$ 630 million for 10 projects.