Uzbekistan, World Bank sign loan agreements for $300 million

Finance Minister of Uzbekistan Jamshid Kuchkarov and World Bank Vice President for Europe and Central Asia Cyril Muller signed two loan agreements totaling $300 million. Hideki Mori, the head of the WB Office in Uzbekistan, reported about it on his Twitter.

The documents were inked in the framework of the IMF Spring Meetings of the Boards of Governors and the World Bank Group (WBG) in Washington.

Funds will be directed to two projects. The first involves the allocation of $100 million from the International Bank for Reconstruction and Development for the development of infrastructure in the cities of Chartak, Kagan and Yangiyul with a population of 165 thousand people.

According to the World Bank, the project should strengthen the institutional capacity of central and local authorities in the field of urban management, urban infrastructure, the provision of municipal services to the population, the development of urban transport systems, etc.

The second project is designed to improve business activity in the Fergana region. To this end, the Board of Directors of the WB approved the allocation of a loan in the amount of $200 million for lending to small and medium-sized enterprises.

The project will provide technical assistance and loans in Andijan, Fergana and Namangan regions. Enterprises in rural areas will be assisted in setting up value chains and expanding access to markets in urban areas of the region, in other economic centers of Uzbekistan and Central Asia.