BAKU, Azerbaijan, July 13
By Ilkin Seyfaddini - Trend:
The World Bank has provided $500 million to modernize agriculture in Uzbekistan, Trend reports citing the Ministry of Investment and Foreign Trade of Uzbekistan.
Ceremony of signing a loan agreement with the World Bank totaling $500 million took place in the format of a videoconference on July 11, 2020.
On the Uzbek side, the agreement was signed by Deputy Prime Minister - Minister of Investment and Foreign Trade Sardor Umurzakov, and by the Regional Director for Central Asia Lilia Burunciuc on the World Bank side.
The signing ceremony was also attended by the head of the World Bank Office in Uzbekistan Marсo Mantovanelli, Minister of Agriculture of Uzbekistan Jamshid Khodjaev and other representatives of the Bank and relevant agencies.
The project will be financed by the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) in the amount of $276 million and $224 million, respectively.
“Agriculture is one of the most important sectors of Uzbekistan's economy: the share in GDP is 28 percent, the share of able-bodied population employed in this sector is 27 percent (3.6 million people), and the share of the country's total exports is 10 percent. This sector shows high economic growth, and is also one of the drivers of private sector growth,” the message said.
Due to the project, farmers and representatives of agro-industrial enterprises in all regions of Uzbekistan will have access to modern technologies, technical advice, services to support various stages of production, agrologistics, phytosanitary, as well as to necessary information resources to increase sales.
Also, due to participation of local commercial banks in the project, local producers will have an opportunity to attract long-term credit resources, with the prospect of using them to increase export-oriented value chains, meaning the development of intensive horticulture, creation of greenhouse farms, storage facilities, packaging and processing facilities, as well as the purchase of energy and water-saving technologies and agricultural machinery.
“The project will also contribute to the modernization of agricultural research institutions in Uzbekistan, applied research and the introduction of advanced developments in the industry. Project activities will focus on seed production development, land and water resources management, introduction of region-specific agroecological climate-resilient technologies, and conservation of unique plant genetic materials in Uzbekistan,” the message said.
Today, the Country Program for Uzbekistan, which consists of 23 projects worth $4.4 billion, is its largest operation in the Europe and Central Asia region after Turkey.
The International Bank for Reconstruction and Development (IBRD) is the World Bank's main lending institution and simultaneously a global development organization owned by 189 member countries. As the largest development bank in the world, the IBRD supports the World Bank Group's mission by providing loans, guarantees, risk management products and advisory services. In addition, the Bank coordinates its response to regional and global challenges.
The International Development Association (IDA) is a World Bank-based organization established in 1960 that aims to reduce poverty by providing loans and grants to accelerate economic growth, reduce inequality and improve living conditions.
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