ADB lends Uzbekistan another $150 million

The Asian Development Bank will provide a loan of 150 million US dollars to Uzbekistan. This was determined in the decision of the President of Uzbekistan on measures to implement the project “Management of water resources in the Aralboi Basin by climate change” with the participation of the Asian Development Bank” adopted on 27 September this year.

According to the decision and the agreement signed between the Republic of Uzbekistan and the Asian Development Bank on 24 June 2022, a loan of 150 million dollars will be allocated for 25 years, including a 5-year grace period.

The total cost of the project is US$194.9 million, including Uzbekistan’s contribution of US$40.2 million, of which US$26.6 million will be reimbursed from the budget of the republic in the form of VAT refund and exemption from customs duty.

The Asian Development Fund will provide $3 million, the Asian Development Bank High Technology Fund will provide $0.3 million, and farmers will contribute $1.38 million.

During the implementation of the project (7 years – 2022-2029), special machines, mechanisms, and technological equipment, processed in the customs regime «temporary import», will be conditionally exempted from payment of customs duties, and taxes.

The project will be implemented in the Republic of Karakalpakstan, Bukhara, Surkhandarya, and Khorezm oblasts.

The Ministry of Water Management is the executive body responsible for the implementation of the project, the targeted and effective use of credit and grant funds, as well as ensuring the achievement of all targets. The management and coordination of the project is the responsibility of the Centre for Implementation of Projects with Foreign Investments in Water Management under the Ministry of Water Management.

The expenses related to the repayment of the debt of the Asian Development Bank, as well as interest, debt commissions, and other payments, are paid from the budget of the Republic of Uzbekistan.

The document confirmed the following:

    • The main technical and economic indicators of the project «Water management of the Aralboi Basin by climate change», as well as the sub-projects «Jondor» and «Bobotog»;

    •  The projected repayment schedule of the principal and interest on the loan of the Asian Development Bank under the project «Water management in the Aral Gulf basin under conditions of adaptation to climate change».