Economics & Development

Ratings of Modernization and Upgrade of Transmission Substations Project for Uzbekistan were as follows: outcome was satisfactory, Bank performance was satisfactory, and monitoring and evaluation quality was modest. Some of the lessons learned include: Projects that may appear as straightforward and ‘routine’, such as an electricity infrastructure rehabilitation project, may present unexpected challenges, such as the COVID-19 impact on the Project entity bottom lines, which may be addressed by building greater capacity within the entities to get the needed support from the government; The experience of the pandemic strengthens the case for an emerging market country to have an independent and technically capable regulatory authority rather than having this function delegated to a line ministry such as the MoE in Uzbekistan; Where possible, WB support for specific operations should be complemented by development policy operations and technical assistance; Improving the capacity of countries, including Uzbekistan, to produce and record the data on reliability of power supply to the end users, such as SAIFI (frequency) and the System Average Interruption Duration Index (SAIDI, duration), would go a long way to increase the efficiency and transparency of their electricity sectors; Advance procurement can significantly accelerate project implementation, especially when preparatory activities are well-coordinated and supported by strong government commitment; Early financial and regulatory preparations contribute to smooth disbursement and project continuity, even during crises like the COVID-19 pandemic; In mainstream segments of the energy sector, such as electricity transmission, there is still considerable space for developing countries, including Uzbekistan, to absorb the globally available technologies, such as the GIS for transmission substations; Unbundling the electricity sector into functional entities for separate power sector segments, including transmission, does not disrupt an ongoing WBG investment project, while having substantial benefits for the client country’s economy; Future similar projects’ design may need to incorporate additional measures to enhance awareness of the project’s benefits among potential beneficiaries; and Furthermore, future similar projects may need to incorporate procedures aimed at the creation of jobs specifically for women, ensuring equal opportunities and improving working conditions to facilitate attracting women into the labor force.