European Investment Bank (EIB) allocates first loans to Uzbekistan, Uzbek media reported citing to the press service of the EU Delegation in Uzbekistan.
Some 100 million euros will be spent on water and wastewater projects under the EU-funded Climate and Environment Action Fund.
This operation is expected to help Uzbekistan cope better with its high dependence on external water resources and the lack of fresh water. According to the report, about 80 percent of the water used in the country comes from neighboring countries.
Another 100 million euros will be spent on improving the energy efficiency of small and medium-sized enterprises, mid-cap companies and private sector enterprises.
The financing of the EIB will contribute to achieving the government’s goal of reducing the country’s energy intensity by at least 50 percent by 2030. The industrial sector has considerable potential for improving the situation in this area.
“We are very pleased that the first EIB loan agreements ever signed in Uzbekistan is concluded one year after the launch of the EIB operations in Uzbekistan. They will help the local economy and at the same time mitigate the negative effects of climate change. These two loans will provide assistance in the modernization of water infrastructure and will facilitate the transition to more efficient and environmentally friendly technologies,” Vice-President of the EIB responsible for Central Asia Vazil Hudak said.
Both projects are being developed in collaboration with the World Bank and are expected to receive technical support from the Investment Fund for Central Asia, which is managed by the European Commission and provides support to the countries of Central Asia.
