ADB invests $508 million for infrastructure projects in Uzbekistan
Uzbekistan, Tashkent, Feb 16/ Trend D.Azizov
Asian Development Bank (ADB) and Uzbek government have today signed four loan agreements worth $508 million for the projects in energy, water supply, housing construction and transport, ADB office in Uzbekistan reported on Thursday.
The documents were signed during the visit of ADB president Haruhiko Kuroda to Uzbekistan.
In particular, the loan agreement amounting to $ 200 million for housing projects in rural areas was signed. These funds are the first tranche of funding program worth $500 million which was approved by the ADB Board of Directors in September, 2011.
A loan worth $150 million is allocated to purchase and install one million of electric meters in consumer networks of 0.4 kV in three areas of the country: Bukhara, Jizzakh and Samarkand.
A loan worth $100 million is allocated for the electrification of the "Marokand-Karshi" railway in the south of the country.
A loan worth $58 million is allocated to implement a program to improve water supply in different regions of the country. These funds are the third tranche of ADB loan package worth $300 million, approved by the bank in September 2009.
The funds of the third tranche will be used in modernizing water supply in Jizzakh and Khorezm regions, the autonomous republic of Karakalpakstan, as well as in the reconstruction of water supply systems of Andizhan.
The credit for housing construction was allocated from ordinary resources of the bank for a term of 18 years, including a three-year grace period. The funds for metering devices and electrification were allocated for a term of 25 years, including five-year grace period under the standard preferential rate of the bank, based on LIBOR rate, ADB reported. The ADB credit for water supply for a term of 32 years, including an eight-year grace period was allocated.
Uzbekistan is ADB member since 1995. Since 1995, ADB has allocated more than $2 billion to Uzbekistan for projects in the spheres of education, agriculture, upgrading transport infrastructure and energy sector.