Uzbekistan, Tashkent, August 6 / Trend D. Azizov /
The Uzbek government plans to draw a loan of the Korean Eximbank to the amount of $ 20 million by late 2010 to realize the project to improve drinking water supply in Surkhandarya region in the south, a governmental source said.
The source said that a preliminary agreement on the allocation of credit funds was reached during Uzbek President Islam Karimov's visit to Korea in February 2010.
The preliminary estimated cost of the project is approximately $ 25 million. The general designer of the project of the institute Uzbekkomunalproekt completes its feasibility and cost parameters. Feasibility study is planned to be adopted in November. It is planned to sign a loan agreement with the Korean Eximbank by late 2010.
It was reported that Uzbekistan realizes the state program to improve drinking water supply, calculated for nine years - until 2018. It is planned to fully provide the population with quality drinking water. The total project cost of the program is $375 million. The Uzbek overnment will allocate $75 million for its implementation.
At present, Uzbekistan is implementing several projects in the field of drinking water supply supported by international financial institutions.
In particular, the Asian Development Bank (ADB) has allocated Uzbekistan $253.1-million-loans and $5.1-million-grants envisaging technical assistance for projects in water and sanitation sector.
Moreover, Chinese Eximbank allocated a loan worth $37 million to Uzbekistan in 2006 to improve drinking water supply in two large cities of Uzbekistan - Fergana, Margilan and surrounding areas - worth $ 45 million. The project envisages the "turnkey" construction of the main water line with length of 120 kilometers from the Andijan reservoir and engineering facilities. Executor of the project is China National Chemical Engineering Corporation (CNCEC). WB allocated $ 40 million to improve water supply in Samarkand and Bukhara worth $62.3 million in 2002.
The total amount of loans allocated to Uzbekistan by Korean Eximbank hits over $300 million, including the volume of concessional long-term loans granted for the development of the telecommunications network and equipment for colleges and secondary schools - $120 million.
But total commercial loans, allocated to projects for the development of the automotive industry and support small entrepreneurship is about $ 200 million.