The Asian Infrastructure Investment Bank (AIIB) has announced a substantial investment of $670mn to bolster Uzbekistan's ongoing reform initiatives, aimed at propelling the nation towards a more inclusive and resilient market economy.
The funding, approved by the AIIB, is set to aid Uzbekistan in implementing crucial reforms across various sectors. The Ministry of Economy and Finance of Uzbekistan will serve as the borrower for this project. The reforms will primarily focus on three key areas: the establishment of robust markets, the enhancement of fiscal risk management, and the promotion of social inclusion and green resilience.
This transformative endeavor encompasses a spectrum of sectoral reforms spanning energy, agriculture, rail, and chemicals. The overarching goal is to cultivate markets that yield positive environmental outcomes, fortify fiscal management, and extend social protection to vulnerable segments of society, thereby fostering environmental resilience.
Konstantin Limitovskiy, Vice President of Investment Operations at AIIB, expressed the institution's enthusiasm in continuing support for Uzbekistan's transition. He emphasized the significance of fortifying social protection systems and climate risk mitigation efforts, which are pivotal for amplifying the efficacy of social assistance programs and steering Uzbekistan toward a sustainable, green economy.
“We are delighted to continue to support Uzbekistan as it transitions to a resilient market economy. Supporting the consolidation of social protection systems and supporting efforts to mitigate climate risks will enhance the effectiveness of social assistance programs and facilitate Uzbekistan’s transition to a green economy. This aligns with AIIB’s mission of Financing Infrastructure for Tomorrow that supports long-term sustainable development,” Konstantin Limitovskiy noted.
Emil Zalinyan, Project Team Leader and Infrastructure Economist at AIIB underscored the timeliness of the reforms in addressing the formidable developmental hurdles confronting Uzbekistan. Zalinyan stressed that these reforms are instrumental in steering the country towards post-pandemic recovery while concurrently fortifying its resilience against prevalent downside risks.
The project receives backing under the COVID-19 Crisis Recovery Facility and is co-financed in collaboration with the World Bank under its Development Policy Financing Policy. Implementation of the project will be spearheaded by the Uzbek Ministry of Economy and Finance, which will oversee program execution and coordinate with relevant government agencies involved in the initiative.
AIIB, a multilateral development bank dedicated to financing sustainable infrastructure, commenced its operations in Beijing in January 2016. With 109 approved members worldwide and a capitalization of $100bn, AIIB prioritizes investments in infrastructure that are environmentally sustainable, technologically advanced, and foster regional connectivity.
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