The European Bank for Reconstruction and Development (EBRD) is lending $17.5 million to Uzbek cable manufacturer Techno Cable Group to boost production of electrical cables used in power grids and renewable energy projects, according to an EBRD. The loan will help TCG expand capacity and buy specialized equipment for making copper and aluminum electrical cables. The company currently produces over 3,000 types of electrical cable products and wants to ramp up production to meet growing demand from Uzbekistan’s push to modernize its power infrastructure. The funding should increase copper wire manufacturing capacity by 160% and aluminum wire production by 230%. TCG also plans to start exporting to markets including the European Union.
Uzbekistan has been scrambling to upgrade its electrical grid and build more renewable energy capacity as the country tries to reduce its carbon footprint. The government’s “Uzbekistan 2030” strategy aims to triple domestic copper production, which requires more electrical cables to connect new power plants and transmission lines. TCG makes the cables that carry electricity from solar farms and wind turbines to homes and businesses.
The loan will also fund TCG’s digital transformation, including better accounting systems and streamlined business operations. The company will launch internship programs with two local universities to train more cable manufacturing technicians. EBRD is providing extra technical cooperation money to help TCG implement an enterprise resource planning system.
The investment fits EBRD’s broader strategy of supporting Uzbekistan’s transition to cleaner energy and modernizing its industrial base. More locally-made cables should reduce import costs and speed up grid expansion projects across the country.
EBRD has put almost €5.33 billion into Uzbekistan through 186 projects, making it the top recipient of the bank’s funding in Central Asia for five straight years.
