Uzbekistan is advancing its efforts to modernize irrigation infrastructure with the second phase of its Water Supply - Energy Efficiency project. The European Bank for Reconstruction and Development (EBRD) to provide a $250mn sovereign loan, which will be disbursed in tranches, to support the modernization of 110 pumping stations across 10 regions.
This initiative builds on the first phase, which was launched in February 2023 and focused on upgrading 118 stations in the Fergana Valley.
The project aims to strengthen Uzbekistan’s climate resilience by improving the energy efficiency of irrigation systems and ensuring a more sustainable water supply for agriculture. With a total project cost of $287.1mn, the initiative will reduce greenhouse gas emissions and support the country’s transition to a more resource-efficient economy.
By modernizing irrigation infrastructure, the project is expected to enhance agricultural productivity and create greater economic opportunities for farmers. The 100% Green Economy Transition (GET) share highlights its strong environmental focus, with significant energy savings and reduced water losses.
While categorized as Environmental Category B, the project includes measures to manage potential risks, such as hazardous waste generation and land use concerns. The Ministry of Water Resources will implement an Environmental and Social Action Plan (ESAP) to ensure compliance with environmental regulations and improve waste management practices.
Additionally, specific biodiversity protection measures will be applied to a pumping station located near the Ugam-Chatkal State National Nature Park to prevent environmental disruptions.
The EBRD’s involvement will help bridge funding gaps while supporting Uzbekistan’s long-term irrigation sector reform. A Project Implementation Support consultant will oversee the execution of environmental and social measures, while the EBRD will monitor compliance through annual reports and site visits.
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