In a move geared towards enhancing water efficiency in agriculture, President Shavkat Mirziyoyev recently reviewed proposals aimed at optimizing water resource utilization in Uzbekistan. Acknowledging the pressing issue of water scarcity, the government is taking proactive measures to revolutionize water management and foster sustainable agricultural practices, govermental portal reported.
Current Water-Saving Initiatives
Challenges and Proposed Solutions
Despite these accomplishments, challenges persist within the current system. District irrigation departments face limitations in managing inter-farm canals, and water delivery services lack effective funding. Additionally, commercial bank loans for installing water-efficient equipment are not proving attractive to farmers.
Taxation Reform and Water Meter Installation
To address the perception that water is free, the government proposes changing the concept by introducing taxes for water delivered to fields. Starting from 2025, a tax coefficient reduction is suggested for farmers installing water meters and using economical technologies, while an increase is proposed for those who do not comply. Simultaneously, fees for water delivery will be eliminated.
Financial Incentives for Water-Saving Technologies
To encourage the adoption of water-saving technologies, a preferential credit line is being established, offering loans at a rate of 14% for five years with a two-year grace period. In the Republic of Karakalpakstan and Khorezm region, this rate will be reduced to 10%. Importantly, farmers won't need property collateral for these loans, and the application process will be streamlined through the "Suvkredit.uz" online system.
Contractor Accountability and Subsidy Streamlining
Contractors involved in implementing water-saving technologies must adhere to stricter obligations, including the construction based on a working project, providing a minimum 2-year warranty, and ensuring at least 5-year service. In terms of subsidies, the government has simplified the process, deciding to pay the entire subsidy amount of UZS 8 mn ($648.12) per hectare in the same year.
President Mirziyoyev has given his approval to these comprehensive proposals and provided directives to ensure the effective implementation of the new system, from its establishment to the end consumer.
President Mirziyoyev's support for water-saving measures signifies Uzbekistan's dedication to sustainable farming, promoting economic sustainability, and environmental robustness. The collaboration with the Saudi Fund for Development (SFD) and the Fund for Reconstruction and Development of Uzbekistan aims to modernize water management facilities, optimize electricity consumption, and improve project efficiency, as stated in the President of Uzbekistan's resolution on Lex.uz.
With a total value of $70.7 mn, the ongoing project has received $34.6 mn in funding, comprising $19.82 mn borrowed from the SFD and $14.78 mn from the Fund for Reconstruction and Development. The Ministry of Water Resources, in conjunction with key ministries and the Kashkadarya regional administration, has proposed utilizing the surplus funds for the modernization of nine pumping units, the acquisition of seven specialized pieces of equipment, and four dredgers.
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