First EIB loans to the Republic of Uzbekistan: support for water infrastructure and energy efficiency

The Republic of Uzbekistan and the European Investment Bank (EIB) are opening a new chapter in their relationship by signing two landmark loans that will be beneficial to both the country and the environment.

A EUR 100m loan will finance water and wastewater projects within the framework of the EU‑sponsored Climate Action and Environment Facility. This operation will help Uzbekistan to better address its high external water resource dependency and the scarcity of locally available freshwater resources. Some 80% of the water used in Uzbekistan originates from neighboring countries.

A second EUR 100m loan, designed as a credit line, will help implement the energy-efficiency investments of small and medium-sized enterprises, mid-cap companies and private sector entities in Uzbekistan. The EIB funding will support the Uzbek Government’s objective to reduce the country’s energy intensity level by at least 50% by 2030, and the industrial sector has a strong potential for improvement in this respect.

Vazil Hudák, EIB Vice-President responsible for Central Asia, commented: “We are delighted that the first EIB loans ever signed in Uzbekistan are being concluded one year after the launch of EIB operations in this country. They will help the local economy and at the same time contribute to mitigating negative climate change impacts. The two loans will help modernize water infrastructure and promote the shift to more efficient and environmental-friendly technologies.”

Both projects are being developed in cooperation with the World Bank and are expected to receive technical assistance support from the Investment Facility for Central Asia, which is managed by the European Commission and supports Central Asian countries in undertaking priority investments contributing to inclusive and sustainable growth.

Original source: EIB
Published on 15 October 2018