EBRD to allocate $ 600 mln to Uzbekistan
By Kamila Aliyeva
The European Bank for Reconstruction and Development (EBRD) plans to allocate $600 million for the implementation of various projects in Uzbekistan in the coming months, Uzbek media outlets reported.
The talks between the President of Uzbekistan Shavkat Mirziyoyev and the head of the European Bank for Reconstruction and Development Suma Chakrabarti, who was on a two-day visit to Tashkent on July 31-August 1, were held.
Since last March, the EBRD has provided Uzbekistan with credit lines worth over $ 190 million to finance projects to support entrepreneurship in the country.
“Currently, the prospective projects in the field of rural infrastructure and housing construction, modernization of energy facilities and utilities, business support and other areas worth over $ 1 billion are under consideration. Of these, in the coming months, it is planned to approve projects worth up to $ 600 million. The work on the EBRD's strategy on cooperation with Uzbekistan is being finalized, the adoption of which is scheduled for September this year,” the press service of the Uzbek head of state said.
In addition, since November last year in Tashkent, the representative office of the bank resumed its activities; it is also planned to establish its branches in the regions of the country.
EBRD experts took an active part in developing a new order aimed at improving the efficiency of preparation and implementation of investment projects in the country with the participation of international financial institutions. Joint work is also being done on a long-term program for reforming the energy sector and development of renewable energy in Uzbekistan.
During the meeting, issues of further expansion of mutually beneficial cooperation and its filling with new programs and projects were discussed, primarily in the areas of support and development of reform strategies for key industries, enterprise pre-privatization preparation, the introduction of public-private partnership mechanisms, integrated development of regions, in the economy of the republic.
As part of his visit, Chakrabarti also met with Uzbek Deputy Prime Minister, Chairman of the Board of Uzbekneftegaz JSC Alisher Sultanov.
Thus, the EBRD plans to take part in financing the program of technical re-equipment, modernization and development of Uzbekistan's gas transportation system.
“It was agreed to provide proposals for the implementation of the program by the bank in the near future, including determining the preliminary amount of financing and indicative conditions,” the Uzbekneftegaz press service noted.
The EBRD head also pointed out that President Shavkat Mirziyoyev is carrying out large-scale reforms, including in domestic and foreign policy, economy and other spheres.
He stressed that the visit to the country will help the bank prepare its new medium-term strategy in Uzbekistan, aimed at supporting the attracting of new EBRD investments to the country and carrying out key reforms by the government.
The EBRD is the largest institutional investor in Central Asia, with close to 11.6 billion euros ($12.3 billion) committed to projects in a variety of sectors, from infrastructure to agriculture, with a focus on private sector development. It has successful experience of bringing innovation to Uzbekistan’s pharmaceutical sector through direct and indirect lending and a number of consultancy projects, which helped companies improve operational and financial management and obtain ISO 9001 and Good Manufacturing Practice (GMP) certificates.
The bank has to date invested 897 million euros in Uzbekistan. Its current portfolio of projects in the country is 76 million euros.
The EBRD aims to identify potential new projects in areas set out in a memorandum of understanding signed with the government authorities in March 2017.
The EBRD’s work in the country will focus in the short term on advice and financing for small and medium-sized enterprises, a trade finance programme to support cross-border trade and cooperation, and measures to improve the investment climate and competitiveness of the Uzbek economy, including through attracting foreign direct investment that will result in the transfer of technology and know-how.
Currently, the bank together with the involved ministries and departments of Uzbekistan is in the process of development a draft of the EBRD country program for Uzbekistan, which will further expand the bank's interaction with the Central Asian nation.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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