South Korea issue loans for Uzbekistan
By Aynur Jafarova
South Korean Economic Development Cooperation Fund (EDCF) will allocate $250 million to finance the investment projects in Uzbekistan.
The relevant agreement was signed during South Korean President
Park Geun-hye's visit to Uzbekistan on June 17.
The document specifies the procedure for obtaining EDCF loans,
issued for 2014 - 2017 to finance the projects in education,
health, information and communication technologies, the development
of energy efficient technologies, using alternative energy sources
and other areas.
Also, the sides signed an intergovernmental framework agreement on
grant aid. The document is aimed to establish the general terms and
conditions for the development of cooperation between the parties
through the Korea International Cooperation Agency (KOICA).
South Korea is one of the largest investment partners of
Uzbekistan. The total volume of Korean investments drawn into the
economy of Uzbekistan since 1991 exceeded $6 billion.
The total amount of grant aid to Uzbekistan through KOICA in 1995-2013 exceeded $ 55 million. These funds were spent for the implementation of projects in such areas as health, education, information technologies, utilities, agriculture, water management, and energy.
Also, the Export-Import Bank of Korea will allocate a loan worth $100 million to the Uzbek National Bank for Foreign Economic Activity to finance investment projects implemented by small businesses and private entrepreneurship.
Uzbek President Islam Karimov and his South Korean counterpart also signed a joint declaration on the further development and deepening of the strategic partnership between the two countries.
The document contains provisions envisaging assisting implementation of joint investment projects with participation of leading Korean companies, including the construction of Ustyurt Gas Chemical Complex at Surgil field.
It is planned to implement projects on wide usage and implementation of information and communication technologies in various fields of the economy. The establishment of the Innovative Textile Technology Center in Tashkent is scheduled in the field of cooperation for the production of finished textile products.
To date, Uzbekistan and South Korea have signed over 300 bilateral documents. The trade turnover between the two countries amounted to $2.12 billion in 2013. The total amount of investments attracted from South Korea in the Uzbek economy in the independence years exceeded $6 billion. Currently, some 412 enterprises with South Korean investments operate in Uzbekistan.