Uzbekistan's commitment to enhancing its water supply infrastructure is highlighted in a recent development where an allocation of more than $280 mn has been approved to improve the water supply system in the Bukhara region. This significant investment aims to bolster drinking water services and ensure a stable water supply for the residents of the Bukhara region. The funding is largely facilitated through loans from the Asian Infrastructure Investment Bank (AIIB), signifying the government's dedication to infrastructure development and public welfare, Dunyo news agency reported.
AIIB funding
The financing for this ambitious project is predominantly sourced from the Asian Infrastructure Investment Bank (AIIB), which is extending a loan amounting to $248.4 mn. This financial support comes with a 25-year repayment period, which includes a five-year grace period to facilitate the initial stages of project implementation. The AIIB's involvement emphasizes its commitment to investing in vital infrastructure projects that contribute to the socio-economic development of member countries.
National commitment
In exchange for the AIIB loan and in line with the funding agreement, Uzbekistan has assumed specific financial responsibilities. The country will cover the value-added tax associated with the project, amounting to $32.85 mn. Additionally, Uzbekistan has committed to providing customs benefits, further demonstrating its commitment to ensuring the successful execution of the water supply enhancement project.
This recent allocation of funds is not the first instance of investment in the Bukhara water supply system. In 2020, $385 mn was allocated and utilized during the initial stage of the water supply improvement project in the Bukhara region. The continuation of investment underscores the government's strategic approach to incremental progress and sustainable development.
Earlier Daryo mentioned that the Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank (IsDB) have unveiled a substantial €325 mn investment plan for erecting a power facility in Surkhandarya, Uzbekistan. This initiative, granted the AIIB's endorsement on June 14, strives to augment the nation's electricity generation capability, aligning with Uzbekistan's energy sector decarbonization strategy.
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