Islamic Development Bank to allocate funds for development of oncology services in Uzbekistan

As Norma reports, on September 4, 2021, Uzbekistan and the Islamic Development Bank (IDB) signed a loan agreement totaling $ 80 million for a period of 20 years with a 5-year grace period to finance the project “Modernization of oncology facilities in Uzbekistan (Phase II)”.

As part of the second phase of the project in 2022-2026, construction, reconstruction and modernization of oncology facilities, procurement of more than 110 types of medical and diagnostic equipment, radical capacity building of oncology services, training and other activities are being carried out. 

According to the document:

•  The Ministry of Health is the executive body responsible for the timely implementation and coordination of the project, as well as the targeted and effective use of IDB debt;
•  Uzmedimpeks LLC under the Ministry of Health is a contractor for contracts under the project;
•  Expenses related to the repayment of IDB loans, including surcharges and interest, other payments will be covered from the budget of the Republic of Uzbekistan.

The document also confirmed the following:

•  The main technical-economic indicators of the project “Modernization of oncology facilities in Uzbekistan (Phase II)”;
•  Forecast schedule of repayment of loans of the Islamic Development Bank, including additional payment (surcharge) and interest on the project “Modernization of oncology facilities in Uzbekistan (Phase II)”;
•  Distribution of borrowed funds under the project “Modernization of oncology facilities in Uzbekistan (Phase II)”.

VAT payable on goods (services) purchased and imported under the project is paid from the state budget. In this case, the funds saved as a result of the application of tax and customs benefits or paid from the budget will be taken into account as a contribution of Uzbekistan to the project.