EBRD approves new strategy for Uzbekistan
By Abdul Kerimkhanov
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a new strategy for Uzbekistan, which defines the priorities of the bank in the country for the next five years.
The strategy reflects the recent changes in the political and macroeconomic environment of the country and is aimed at creating an open, integrated and export-oriented economy.
The new stage of the bank’s interaction with the country is dictated by a large-scale reform program launched by the government at the end of 2016 aimed at moving towards a more open, integrated market economic model, improving international relations, strengthening the rule of law and judicial independence, achieving currency regulation liberalization.
Reducing the state’s presence in the economy, improving the business environment and promoting foreign direct investment are among the top priorities of the Uzbek authorities.
The new EBRD strategy for Uzbekistan recognizes the need to strengthen the country's democratic institutions, expand the role of civil society, provide greater freedom to the media and promote women's entrepreneurship. The Bank will also continue to monitor progress in the elimination of forced labor and child labor in sectors such as cotton growing.
The bank will attract financial and advisory resources to support small and medium businesses. The EBRD will help develop local capital markets and strengthen national financial institutions. It will provide support before privatization to individual state-owned enterprises and look for ways to improve the investment climate in Uzbekistan.
The EBRD will promote the development of sustainable solutions for the municipal and national infrastructure sectors. This will help stimulate green investments to reduce carbon intensity, channel resources and provide know-how to realize the country's renewable energy potential. Special attention will be paid to energy security, which will include efficient and sustainable production, transmission and distribution of electricity. The Bank will also use its expertise to assist in the reclamation of uranium tailings.
Together with other international financial institutions, the EBRD will work to improve the country's transport infrastructure and ways to promote its commercialization and improve communication with regional networks. It will also stimulate the attraction of private business to the sector. The EBRD will support regional energy cooperation, including networks.
The Trade Facilitation Program (TFP) of the bank will help mobilize the export activity of Uzbek enterprises and financial institutions. The Bank plans to explore opportunities and support investments related to the country's cultural heritage in order to improve the appropriate infrastructure and tourism potential.
Between 1992 and 2010, the EBRD invested 894 million euros in 54 projects in Uzbekistan. By the end of 2017, the bank signed the first six new documents with the country since 2010, worth more than 153 million euros.
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