World Bank transfers first tranche of funds for iCRAFT project in Uzbekistan

Uzbekistan Materials 20 June 2024 05:30 (UTC +04:00)
Kamol Ismailov
Kamol Ismailov
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TASHKENT, Uzbekistan, June 12. The World Bank has transferred the first tranche of funds in the amount of $7.5 million for the iCRAFT project in Uzbekistan, Trend reports.

According to Uzbekistan’s Ministry of Economy and Finance, the funds will be implemented for financing the reforms, including the mitigation of the impact of the energy tariffs’ reform and the financial support of vulnerable layers of the population within the scope of the Emission Reductions Payment Agreement (ERPA) component.

The first tranche is a grant to reduce greenhouse gas emissions that will be returned to Uzbekistan as a simulation for international trade of greenhouse gases.

Meanwhile, the application of the innovative carbon resources for energy reforms project (iCRAFT) in Uzbekistan is being implemented with the support of the World Bank, according to the presidential resolution of Uzbekistan dated August 8, 2023.

The iCRAFT project is the first global initiative in the world to support reforms in the field of energy implemented in Uzbekistan with the participation of the World Bank, aimed at reducing greenhouse gas emissions and starting to trade some of them on international markets.

Moreover, the amount of approved funding from international financial institutions and development agencies in the Eurasian region for Uzbekistan amounted to $3.2 billion in 2023.