AKIPRESS.COM - The Asian Development Bank’s (ADB) Board of Directors has approved a $500 million loan to reinforce Turkmenistan’s transmission network, improve the reliability of the country’s power supply, and increase electricity exports to neighboring countries, ADB said in a release.
The National Power Grid Strengthening Project, which is the first project by any international financial institution in the power sector in Turkmenistan, will cover four of the country’s five regions and help establish an interconnected national transmission grid to improve reliability and energy efficiency of the network. It will also boost Turkmenistan’s capacity to trade electricity with Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, and Uzbekistan, and increase the volume of current electricity exports to Afghanistan.
“Turkmenistan has significant potential for increased electricity exports to neighboring countries, which can help propel its economic growth and development prospects,” said ADB Director of the Central and West Asia Department Mr. Ashok Bhargava.
ADB’s $500 million assistance will finance the construction of about 1,100 kilometers (km) of new 110 kilovolt (kV), 220 kV, and 500 kV transmission lines in various areas in Turkmenistan and expand three existing substations. The project will also finance the construction of new substations, including 500 kV substations in Balkan and Dashoguz, as well as 220 kV substations in Ahal, Balkan, and Dashoguz.
The total cost of the project, which is expected to be completed by the end of 2023, is $675 million, with Turkmenenergo contributing $175 million.