Islamic Development Bank to provide more than $200 million to Uzbekistan for two projects

The Islamic Development Bank has approved several loans for projects in Uzbekistan and other developing countries.

The bank’s management agreed to allocate $100.87 million for the project of a new combined cycle thermal power plant in Surkhandarya. Its implementation is expected to help replace obsolete generating facilities with more efficient units.

The IDB also intends to give Uzbekistan a loan of $106.7 million to finance infrastructure projects. Its goal is to improve the accessibility of local producers to markets, as well as to increase opportunities for tourism.

Uzbekistan has been cooperating with the IDB for a long time. As part of the partnership in 2018-2021, the bank pledged to provide loans of $1.3 billion for the implementation of several projects.

The priority of the parties is the development of rural settlements and the modernization of medical facilities. For example, in 2021, the bank entered into an agreement to issue $200 million to improve infrastructure in villages, and in 2022 it began a new phase of the project for $256 million.

In addition, Uzbekistan and the IDB announced the creation of a $500 million fund to support businesses, youth, women, and rural residents.