The European Bank for Reconstruction and Development (EBRD) has pledged up to $250 million (€240 million) in a sovereign loan to support Uzbekistan’s ambitious efforts to modernize its aging irrigation infrastructure. The funding will enable the country’s Ministry of Water Resources to upgrade 110 pumping stations across 10 regions, significantly improving the efficiency and sustainability of Uzbekistan’s irrigation system.
As part of the modernization drive, obsolete pumps will be replaced with advanced, energy-efficient models, aiming to reduce electricity consumption by approximately 251,000 megawatt-hours (MWh) annually. This upgrade is projected to lower CO₂ equivalent emissions by more than 117,000 tonnes per year—a major step toward greener agricultural practices.
Beyond pump replacement, the loan will also finance refurbishment of associated infrastructure and the installation of rooftop solar panels at pumping stations to further reduce environmental impact and promote renewable energy integration.
Irrigation is essential to Uzbekistan’s agriculture sector, which depends heavily on artificial watering due to the country’s arid climate and limited rainfall. The EBRD’s investment supports a wider national irrigation modernization programme, which targets a 25% cut in electricity consumption across the irrigation network. The programme also aims to implement water-saving technologies that will eventually cover nearly 50% of the country’s irrigated land.
Since beginning its operations in Uzbekistan, the EBRD has invested €5.6 billion in 181 projects, with a strong focus on private sector development. Over the past five years, Uzbekistan has become the largest recipient of EBRD funding in Central Asia.
Looking ahead, Uzbekistan is preparing to attract an additional €1.1 billion in funding in 2025, with a significant share earmarked for private sector growth and green infrastructure development.