World Bank grants Uzbekistan $10.6 mln to fix over 1,000 gas leaks
This digest was compiled by AI from multiple sources — links to the originals are below.
The World Bank will provide a $10.6 million grant to Uzbekistan to create a mechanism for eliminating gas leaks, according to a government resolution dated August 18. Surveys supported by the bank identified over 1,000 defective points at Uztransgaz facilities nationwide, with leaked gas estimated at up to 35 million cubic meters. The project runs from 2026 to 2028, with about $9.6 million allocated directly to repairing gas infrastructure.
Key Facts
- The World Bank will allocate a $10.6 million grant to Uzbekistan to create a mechanism for eliminating gas leaks, as stipulated in the Cabinet of Ministers resolution dated August 18.
- Surveys supported by the World Bank identified more than 1,000 defective points at Uztransgaz facilities across the country.
- The volume of leaking gas is estimated at up to 35 million cubic meters.
- About $9.6 million of the grant will be directed to repairing gas infrastructure and reducing existing gas losses, with $500,000 each for monitoring and institutional capacity building.
- By 2029, the project aims to prevent approximately 47,500 tonnes of gas leaks annually, saving about $18 million.
Grant Allocation
The World Bank will provide a $10.6 million grant to Uzbekistan to establish a mechanism for eliminating gas leaks, as set out in the Cabinet of Ministers resolution of August 18. The project is designed for 2026–2028, with about $9.6 million of the grant allocated directly to repairing gas infrastructure and reducing existing gas losses. An additional $500,000 will be directed to strengthening institutional capacity for monitoring and reporting on gas leaks and emissions reduction. Another $500,000 will support the establishment of a project implementation group, engagement of foreign experts, and overall project support.
Financial Mechanism
The resolution establishes a separate financial mechanism to channel economic benefits from eliminating gas leaks back into further reduction of gas losses. Uztransgaz must open a special account in commercial banks to receive grant funds, while World Bank funds will be transferred only to a special foreign currency account. Funds saved from eliminating leaks will be redirected to the gas system, and after repairs, the volume of saved natural gas must undergo independent verification. Based on this data, the financial value of the saved gas will be determined and accumulated in a special escrow account of Uztransgaz. These funds may then be redirected to identify and eliminate new leaks, initially supplementing the World Bank grant.
Projected Impact
By 2029, repair work is planned to prevent approximately 47,500 tonnes of gas leaks per year, with the saved gas delivered to consumers and businesses. The reduction in gas losses is expected to save about $18 million. Without necessary measures, total losses could reach 1.75 billion cubic meters of gas by 2030, equivalent to $228 million in lost revenue.
1 source
World Bank grants Uzbekistan $10.6 mln to fix over 1,000 gas leaks
