22:17 / 30.07.2021
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Russia’s VEB.RF to provide €146 million loans for improving water system in Uzbekistan

President Shavkat Mirziyoyev has signed the decree “On measures to implement projects to modernize 95 pumping stations in Bukhara, Navoi, Kashkadarya, Samarkand and Surkhandarya regions with the participation of the Russian State Development Corporation VEB.RF”.

The modernization will save energy for pumping stations, as well as ensure a stable water supply for irrigated land in five regions.

VEB.RF has developed a feasibility study for three investment projects totaling €213.5 million. Of these, €146 million – a loan from VEB.RF, €67.5 million – a contribution of Uzbekistan, including €33.7 million – in the form of VAT coverage from the republican budget and exemption from customs duties.

The Ministry of Water Resources is the executive body responsible for the implementation of projects and the targeted use of the loan.

The interest rate for refinancing a loan from VEB is 2% per annum, the term for obtaining a loan is two years, and the loan repayment period is 10 years.

General contractors for project implementation will be determined on the basis of a tender. They will purchase pumps, electric motors, equipment and electrical devices at the expense of the loan:

  • from Russian manufacturers – 70%;
  • from domestic producers – 30%.

In Uzbekistan, with the participation of VEB.RF and the Russian Export Center, 15 projects are being implemented with a total cost of 63 billion rubles ($84 million).

Another 19 projects worth 542 billion rubles are under consideration.

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