Tashkent, Uzbekistan, April 21
By Demir Azizov- Trend:
The government of Uzbekistan has signed three loan agreements in the first quarter of 2014, which envisage attraction of $151 million worth of funds from international financial institutions.
The report of the Uzbek Finance Ministry said that in particular, Uzbekistan and the Asian Development Bank signed a loan agreement for $69 million on the "Solid waste management" project.
The project worth $76.2 million aims at improving the collection, transportation and disposal of solid household waste, as well as improving the sanitation conditions of Tashkent and the Tashkent region.
The loan is allocated for the period of 20 years, including a five-year exemption period.
Furthermore, Uzbekistan and ADB signed a loan agreement for the project of reconstruction of sewerage systems of Fergana and Marghilan cities, worth $42 million.
The credit is allocated by the Asian Development Fund and is the fourth, the last tranche of the debt package of ADB in the amount of $300 million approved by the bank in September 2009.
The funds of the fourth tranche will be used to modernize the water supply system of Fergana and Marghilan.
The total cost of the program is $375 million, including the Uzbek government's allocation of $75 million for its implementation. The implementation of the project is scheduled at the end of 2018.
In 2009-2011, ADB within the project to improve rural water supply in 11 regions of Uzbekistan, provided the government with three tranches amounting to $258 million.
In the first quarter of 2014, the Uzbek government has also attracted $40 million of additional funds of the International Development Association (IDA, included in the World Bank Group) within the framework of the "Agricultural Entrepsises Support Project Phase II".
The funds have been allocated to finance the farmers and growing of their working capital through local financial institutions.
Additional credit is granted for 25 years with five-year exemption period, at an interest rate of 1.25 percent per annum.
In 2001, the World Bank provided a loan to Uzbekistan in the amount of $36 million to support agricultural enterprises.
For the same purposes, in 2008 the bank allocated $67.96 million from IDA funds, for a 40-year period, including a 10-year exemption period at a rate of 0.75 percent per annum.
Uzbekistan became a member of ADB in 1995 and World Bank in 1992. ADB has provided Uzbekistan the loans over $5 billion to implement more than 40 projects with a total value of $14.5 billion during this time.
The World Bank has provided Uzbekistan with loans amounting about $2 billion for projects in the areas of privatization, financial sector development, modernization of agriculture, electrical energy, improvement of social infrastructure, health and education.
Translated by S.I.
Edited by S.I.