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Uzbekistan plans to draw WB loan to improve energy efficiency of enterprises in 2010

Business Materials 10 March 2010 16:46 (UTC +04:00)

Uzbekistan, Tashkent, March 10 / Trend D. Azizov /

The Uzbek government plans to draw a credit line of the World Bank (WB) worth $25 million to improve energy efficiency of industrial enterprises of the republic in 2010, a source in the government of the republic said today.

According to the interlocutor, now an expert group including representatives of concerned departments of Uzbekistan and World Bank staff, have launched the examination of a project aimed at improving the energy efficiency of small and private industrial enterprises.

It is expected that the project will be ready for consideration by the WB Board of Directors by the end of the first six months. The loan agreement will be signed till late 2010.

It is planned that the borrowed funds will be allocated from the International Development Association (IDA, a structural unit of WB) and refinanced via 3 Uzbek banks - Bank "Asaka", Hamkorbank and Uzpromstroybank.

Means of the credit line will be used to purchase technologies and equipment to optimize the production system to reduce power consumption.

In June 2008 the Board of WB Executive Directors adopted a strategy of financial assistance to Uzbekistan in 2008-2010 by reserving about $300 million.

A strategy is a plan for the financial assistance of World Bank Group to 2-3 public investment projects in the field of land reclamation, environmental protection, improving the quality of public services and social protection.

Loans will be given for up to 40 years, including a 10-year grace period, at a rate of 0.75 percent per annum.

Uzbekistan joined the World Bank in 1992. The Bank is supporting the Uzbek government in carrying out structural reforms, including privatization, financial sector development, agricultural modernization, improvement of social infrastructure. Since 1995 the World Bank has provided loans to Uzbekistan and lends worth $ 850 million to implement 17 projects.

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