Turkmenistan’s National Power Grid Strengthening Project gets ADB backing

Asian Development Bank (ADB) has signed a $500 million loan for the government of Turkmenistan’s National Power Grid Strengthening Project (NPGSP). The loan will finance construction of around 1,100km 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 NPGSP will also improve the project and financial management capacity of Turkmenenergo, the power utility of Turkmenistan, particularly in incorporating good practices on evaluation, investment decision-making, as well as higher safeguard requirements. 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.