Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) has extended a US$250 million loan to Uzbekistan for the large-scale modernization of its irrigation system. The financing will be directed to the Ministry of Water Resources to upgrade 110 pumping stations across the country.

The project will span 10 regions and includes the installation of energy-efficient pumps, which are expected to save approximately 251,000 MWh of electricity annually. The modernization efforts will also reduce carbon dioxide emissions by over 117,000 tons per year.

The EBRD funds will also support the reconstruction of related infrastructure, including the installation of solar panels at selected facilities.

This initiative is especially relevant for Uzbekistan, whose economy heavily depends on irrigated agriculture in an arid climate.

The project is part of a national program aimed at modernizing irrigation systems to cut energy consumption in the sector by 25%. The program also envisions the introduction of water-saving technologies on nearly half of the country’s irrigated lands.

This investment reaffirms Uzbekistan’s status as a priority partner for the EBRD in Central Asia. Over the past five years, the Bank has invested €5.6 billion in the Uzbek economy through 181 projects, with a strong focus on private sector development.