Uzbekistan has once again solidified its status as the primary recipient of funding from the European Bank for Reconstruction and Development (EBRD) in Central Asia, marking the fourth consecutive year of leading the region with a substantial inflow of over €700mn ($760mn) in 2023.
The EBRD's investment has been pivotal in steering Uzbekistan's development toward sustainability and innovation. Financing a total of 27 projects, the funds were strategically allocated across various sectors, emphasizing renewable energy, sustainable infrastructure, and private enterprises. Notably, 69%of the projects were in the private sector, with almost 70% focusing on environmentally friendly, green initiatives.
The EBRD's commitment to fostering inclusive growth and employment opportunities was evident in the deployment of funds toward creating a conducive environment for entrepreneurs and the integration of climate-resilient technologies.
"Our funds were used to create inclusive employment opportunities as well as to promote good entrepreneurial initiative and for the deployment of climate-resilient technologies," EBRD shared.
Continuing their drive for sustainability, the EBRD rolled out flagship programs such as the Green Economy Financing Facility and Green Cities. These initiatives not only promote innovative, green solutions but also address pressing environmental challenges, encouraging investments in municipal infrastructure. A significant milestone in this endeavor was the inclusion of Samarkand, Uzbekistan's major municipality, as the first city in the country to join the Green Cities program. Samarkand's commitment to sustainability includes plans to introduce ecologically friendly electric buses, aligning with the broader green vision.
Recognizing the importance of empowering the youth, the EBRD launched a seven-year Youth in Business program to address the challenges of youth entrepreneurship and employment in Central Asia and Uzbekistan.
Renewable energy and low-carbon technologies received a substantial boost as the EBRD financed the construction of three greenfield solar power plants with a total installed capacity of nearly 900 MW, developed by Masdar. Further contributing to Uzbekistan's commitment to clean energy, funds were allocated to ACWA Power Wind Karatau for the construction of a 100MW wind power plant in the Republic of Karakalpakstan.
In an effort to enhance sustainability and water management, a sovereign loan was granted to modernize 118 pumping stations across the Fergana Valley, a densely populated region crucial for agriculture.
The EBRD's collaboration with local financial intermediaries like SQB, Hamkorbank, and Ipak Yuli Bank showcased its dedication to supporting small and medium enterprises (SMEs) and promoting green lending within the financial sector.
The pinnacle of the year was the 32nd Annual Meeting and Business Forum hosted in Samarkand, marking the largest gathering of its kind in Central Asia for over a decade. The event brought together government officials, financial and corporate executives, entrepreneurs, civil society representatives, and media from around the world, celebrating the collaborative efforts toward sustainable development and economic prosperity in Uzbekistan.
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