ADB issues $120M to improve water supply in Uzbekistan

15 November 2016 10:40 (UTC+04:00)

The Asian Development Bank (ADB) has approved a $120-million loan to improve access to safe, reliable, sustainable and affordable water supply services for over 260,000 inhabitants in the Kibray and Zangiota districts of Uzbekistan’s Tashkent province, the Bank reported.

The ADB loan will be allocated for eight years at the rate of 2 percent per year, including a five-year grace period. It is expected that a loan agreement will be signed until the end of the first quarter of 2017.

“Much of the water supply infrastructure in Tashkent has deteriorated and needs extensive rehabilitation, resulting in unreliable services, leakage losses, and high water pollution risk,” said Hao Zhang, ADB’s principal urban development specialist with the Central and West Asia Department. “The project will significantly reduce time and money spent by households and businesses to access water and brings about improved living standards, especially in rural settlements.”

The project will revitalize the Kadirya regional water supply system by upgrading existing water supply networks, providing potable water treatment services, rehabilitating water distribution network and improving the financial, operational and system management of the Tashkent Provincial Suvokova for Kibray and Zangiota district branches.

Located adjacent to the Uzbek capital, Kibray and Zangiota contribute substantially to the province’s economic growth and strengthen its urban–rural linkages. Both districts have considerable expansion potential in the agro-industrial and textile industries. Zangiota is also identified as a possible location for a future special industrial zone.

The ADB office in Tashkent told Trend that the project’s total cost is $143 million. Along with the ADB loans, the Uzbek government and local beneficiaries will also allocate $23 million for the project’s implementation. The project will be implemented until 2023.

Since Uzbekistan joined ADB in 1995, the country has received $5.1 billion in loans and $64.9 million in technical assistance grants.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration.

Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members – 48 from the region. In 2015, ADB assistance totaled $27.2 billion, including co-financing of $10.7 billion.

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