The project was planned to start even before the COVID-19 pandemic. The loan will be repaid by 2039.
Shavkat Mirziyoyev approved the attraction of a loan from the UAE for the modernization of the road and water supply network in Samarkand. The document is published on Lex.uz.
The lender is the Abu Dhabi Development Fund. The project will be implemented in accordance with the investment agreement signed during the president’s visit to the UAE in 2019. It was supposed to start in the autumn of the same year.
The loan amount will be 1.1019 billion dirhams ($300 million). Money is issued at 2.5% per annum, for 17 years with a 4-year grace period.
Payments for the modernization of the water pipeline will be made from the funds of Samarkand Suv Taminoti JSC and the regional budget. The money spent on roads will be returned directly from the state budget.
Goods and equipment imported under the project to Uzbekistan are exempt from customs duties. In addition, the state compensates the participating companies for the amounts of VAT paid by them - $42.76 million is allocated for this.
In addition to the infrastructure loan, in 2019 Uzbekistan and the UAE agreed to jointly finance the construction of a hotel and a shopping center in Samarkand. The estimated cost of the project is $100 million.