Project Number: 46007-002
Loan Numbers: L2917/2918(SF)
December 2013
Cancellation of Loans
Uzbekistan: Namangan 500-Kilovolt Power
Transmission Project
1.
On 11 October 2012, the Board of Directors of the Asian Development Bank (ADB)
approved a loan of SDR86.78 million from its Special Funds resources and a loan of $18 million
from its ordinary capital resources for the Namangan 500-Kilovolt Power Transmission Project
in Uzbekistan.1 The project aimed to improve the reliability of the country’s power supply. Its
expected outcome was an expanded and modernized high-voltage transmission grid providing
adequate and reliable power to Fergana Valley.
2.
The President of Uzbekistan approved the project on 4 October 2011. In November
2012, after ADB Board approval, the President of Uzbekistan issued a decree on Uzbekistan’s
investment program for 2013, which requested the acceleration of the project for completion by
2014. As procurement was advancing, the government asked an ADB consultation mission in
February 2013 to suspend all procurement and consultant recruitment activities for this project
because the government was considering reprioritizing its budget to develop a new 900megawatt thermal power plant at Turagurghon instead of this transmission line. However, the
government did not officially inform ADB about this change.
3.
From March to September 2013, ADB communicated with the government on several
occasions, including through letters and other missions, regarding the signing of the loan
agreements. The final reminder of the 12-month validity of ADB’s approval of the loans was sent
to the government on 9 September 2013. However, the loan agreements remained unsigned on
10 October 2013, and the validity of ADB’s approval automatically lapsed. The government has
not provided any official communication to ADB regarding the project.
4.
Pursuant to ADB’s Project Administration Instructions, the lapse of the validity of loan
approvals for the project is hereby communicated to the Board of Directors.2 The government
has been informed of this lapse and the reallocation of the approved funds to other ADB
projects.
1
2
ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Loans to the
Republic of Uzbekistan for the Namangan 500-Kilovolt Power Transmission Project. Manila.
ADB. 2009. Signing of Loan and Technical Assistance Letter/Agreements. Project Administration Instructions. PAI
1.03 (para. 10). Manila.