Azernews.Az

By Aynur Jafarova

The World Bank and Uzbekistan have signed two loan agreements worth $414 million.

The agreements were signed by World Bank's Regional Director for Central Asia Saroj Kumar Jha and Uzbek First Deputy Prime Minister and Finance Minister Rustam Azimov in Urgench, the administrative center of Uzbekistan's Khorezm region during an international conference called "Development of cooperation in the Aral Sea Basin to mitigate environmental catastrophe consequences."

The World Bank has allocated $264 million for the water management improvement project in South Karakalpakstan worth $337.4 million. Around $242.5 million was allocated from the International Development Association, part of the World Bank in the form of an interest-free loan for 25 years with a grace period of five years.

The rest worth $18.29 million was allocated from the structural unit of the bank - the International Bank for Reconstruction and Development (IBRD) for a period of 25 years with a five-year grace period at an interest rate based on LIBOR rate.

By this project, the farmers' dependence on the project area for using energy-intensive pumping stations will be removed.

As a result, the annual saving of water resources will hit about 10 million cubic meters. The project would be accomplished by 2021.

The IBRD issued the second loan worth $150 million for the horticulture development project worth $183.3 million.

The loan will be allocated for 25 years with a five-year grace period at an interest rate based on a LIBOR rate. The project offers a massive support for the development of small and medium agricultural enterprises in Uzbekistan.

Besides the loan agreements, Saroj Kumar Jha and Rustam Azimov signed an agreement on the allocation of grant funds worth $49.9 million for the development of school and pre-school education.

Uzbekistan joined the World Bank in 1992. The bank's activity in the country is aimed at improving people's livelihood through support for economic reforms, modernization of the infrastructure and social sectors and providing the Uzbek government and people with knowledge and experience.