Uzbekistan to attract IDB loan for modernisation of irrigation systems

Business Materials 16 August 2012 16:22 (UTC +04:00)

Uzbekistan, Tashkent, Aug.16 /Trend D.Azizov/

Uzbekistan plans to attract an Islamic Development Bank (IDB) loan to the sum of $60 million for the modernisation of irrigation systems in the Khorezm region (north-west), a source in government circles told Trend on Thursday.

He noted that at the present time, the government of Uzbekistan has reached a preliminary agreement with the management of IDB on a joint project for the modernisation of irrigation canals of Tashsakinsk system.

Under the agreement, the Uzbek side will complete the development and coordination of the project's feasibility study by the end of August in order to submit the project to the IDB board of directors for consideration in September.

The project worth $90.3 million provides an uninterrupted supply of water to irrigated land with total area of ​​26 hectares. It is expected that the IDB loan will be granted for a term of 20 years, including a four-year grace period under istisna.

In June 2011 the IDB and the Uzbek government signed a cooperation programme for 2011-2013, envisaging the allocation of loans totalling $655.5 million.

These funds will be spent to implement 11 projects in infrastructure development such as health, education and private business, worth about $1 billion.

Uzbekistan joined the IDB in 2003. During this time the bank allocated about $300 million for the country to implement 15 projects in the field of health, education, agriculture, energy, transport and support for private entrepreneurship.