BAKU, Azerbaijan, Nov. 12
By Fakhri Vakilov-Trend:
European Bank for Reconstruction and Development (EBRD) is ready to provide assistance and all kinds of support for the development of Uzbekistan’s road and transport sector, including through the use of public-private partnership (PPP) mechanisms, Trend reports citing Uzbek media.
Director of Sustainable Infrastructure Policy and Project Preparation at EBRD Matthew Jordan Tank made this announcement during a meeting at Uzbekistan’s Agency for PPP Development.
EBRD representatives spoke about international experience in developing sustainable infrastructure and provided information on ongoing PPP projects in the field of energy, transport and health.
During the meeting, representatives of EBRD discussed a number of issues regarding the need to analyze the country's transport potential and develop a road economy strategy and a master plan for the transport sector for the period 2020-2030. In addition, special attention was paid to the development of alternative methods of financing transport, including road infrastructure.
Recently, due to large investments in the road sector, the quality of the road has improved significantly. However, highways with a length of 70,000 kilometers need substantial repair.
A key motivation for using PPPs in the transport sector is that, given the right conditions, PPPs can mobilize additional sources of financing for infrastructure.
PPP also provides the opportunity to receive long-term benefits in terms of increasing efficiency and effectiveness by improving the quality level and providing services.
With regard to highways, this is usually achieved by improving access reliability and / or reducing travel time and operating costs for cars.
Last year, the EBRD Board of Directors approved a new strategy for Uzbekistan, which defines the bank's priorities for the next five years. The strategy recognizes the need to strengthen the country's democratic institutions, expand the role of civil society, provide greater freedom to the media and promote women's entrepreneurship.
Following the adoption of a new country strategy for Uzbekistan, in 2018, EBRD signed 12 projects worth almost €400 million, a record level of business for the Bank in the country in a single year. Significant investments were made in the municipal and power infrastructure sectors, including the rehabilitation of water and wastewater infrastructure in the Fergana Valley, as well as in banking and industry. This year, EBRD has already invested almost €250 million into the national economy.
To date, EBRD has invested €1.3 billion through 70 projects in the economy of Uzbekistan. Support of small businesses is particularly important as the country moves to reform its economy and strengthen its private sector.
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