Uzbekistan, Tashkent, Dec. 2 / corr Trend D.Azizov /
The Asian Development Bank has allocated a $60 million loan for Uzbekistan to strengthen the water supply and sanitation sector, ADB office in Tashkent told Interfax.
ADB President Haruhiko Kuroda and Republic of Uzbek First Deputy Prime Minister and Minister of Finance Rustam Azimov signed on Dec. 1 the loan agreement to support the government's relevant efforts.
ADB will provide a $60 million loan with repayment term of 32 years, including a grace period of eight years with an interest charge of 1% per year, rising to 1.5% for the balance of the term.
The loan will finance improvements to water source and distribution systems in Damkhodja and 11 district centers in Bukhara and Navoi provinces, as well as upgrade wastewater treatment plant and sewerage systems in the capital city of Surkhandarya province. The program will also strengthen water supply and sanitation institutions and support capacity development.
Under the project it is planned to reconstruct the water supply pipeline with the length of 480km by replacing pipes with the diameter of 1,420 mm via the territory of all there regions, to construct water fence devices with the capacity of 600,000 cubic meters a day, to construct two collector reservoirs with the production capacity of 5,000 cubic meters per day and to drill some 80 components of water distribution.
The project will enable to ensure supply additional 350,000 people with qualitative drinkable water in all three regions of the country. The protective measures will provide for maintenance of the existing relief and re-cultivation of soil (presently, water supply pipeline with the capacity of 270,000 cubic enters a day supplies drinkable water to over 1 million people).
The total project costs are estimated at $75 million. The Uzbek government will allocate $15 million to realize it.
The project includes a state program on ensuring centralized water supply to rural areas. Under the program to be implemented through the financial support of international financial institutes it is planned to ensure full water supply of rural areas with drinkable water by 2012 through constructing water supply systems.
The loan, from ADB's concessional Asian Development Fund, is the first tranche of a $300 million multi tranche financing facility (MFF) - ADB's first MFF investment program to Uzbekistan.
The total cost of the program designed for 9 years by 2018 is $375 million, including $75 million to be allocated by the Uzbek government.
ADB has provided $193.1 million in loans and $5.1 million in grants to the sector.
In particular, the ADB allotted to Uzbekistan a $36 million loan for the project worth $65.5 million in 2001 to improve water supply in three regional centers, including Jizak, Gulistan and Karshi, $25 million in 2005 for the project worth $36 million to improve water supply in Navoi and Kashkadarinsk regions.
Both loans were allocated for the term of 32 years, including eight year grace period out of ADB's special fund.
ADB began its operations in the Republic of Uzbekistan in 1995 and established the Uzbekistan Resident Mission in 1997. As of 31 December 2008, the country had received 29 loans worth $1.23 billion. ADB also provided $45.5 million in TA and grant assistance to Uzbekistan.