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Uzbekistan : UZBEKISTAN secured about $410m funds from WORLD BANK to back water & agricultural projects

June 19, 2014

The World Bank has revealed in an announcement on Thursday that the executive directors of the bank have offered their clearance to the funding proposal worth about $410 million for Uzbekistan to help the country in its projects for horticulture development and enhancement of the South Karakalpakstan water infrastructure.

Both these projects are component of the country partnership strategy of the World Bank.

The two projects are intended to facilitate Uzbekistan to expand its agriculture to high value crops, increase agricultural output, plus boost infrastructure capacity and strengthen competitive capabilities.

The World Bank s Regional Director (Central Asia) - Saroj Kumar Jha revealed, Having more jobs and better paying jobs is critically important for the well-being of people living in the rural areas of Uzbekistan.

The bank official added, The new Horticulture Development project will help create much-needed jobs by improving access to technologies, knowledge and markets, strengthening technical and managerial capacity in the farming and agri-business sectors and introducing new financial products in the financial sector.

Uzbekistan will be given a $150 million loan for developing its horticulture industry. It will also get around $243 million loan from the International Development Association (IDA) and another $18 million credit for the development of the water infrastructure of the country.

Kumar Jha stated, Better water management and irrigation will lead to increased farm productivity and climate resilience, and thus help farmers in South Karakalpakstan build their assets and improve their living standards.

He added, We estimate that 41,000 water users will be provided with new or improved irrigation and drainage services under this project. The project will bring other remarkable results as well improved irrigation efficiency will lead to net water savings of 10 million cubic meters per year, and reduced energy costs will result in as much as $2.39 million savings per year.

In 1992, Uzbekistan acquired the membership of the World Bank, and since then, the global donor has delivered financial support of over $1.4 billion to the country.

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Source: TendersInfo (India)

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