Uzbekistan, EBRD mull current state, prospects for cooperation

By Azernews

By Kamila Aliyeva

Uzbekistan and the European Bank for Reconstruction and Development (EBRD) discussed the current state and prospects for cooperation.

A meeting with the delegation of the EBRD was held at the Uzbek Finance Ministry on September 27.

It was emphasized that cooperation between Uzbekistan and the EBRD is developing. In particular, on March 16, 2017 and August 1, 2018, Uzbek President Shavkat Mirziyoyev received President of the European Bank for Reconstruction and Development Suma Chakrabarti. He noted with satisfaction the high pace of mutually beneficial cooperation between Uzbekistan and the EBRD.

As a result of this high-level dialogue, the bank’s office resumed its activities in Tashkent in November 2017. Currently, it is planned to create branches in the regions of Uzbekistan. Over the past period, the bank has allocated more than $ 190 million of credit lines to finance projects aimed at developing entrepreneurship in the country.

At the same time, EBRD experts actively participated in the development of new procedures aimed at increasing the efficiency of preparing and implementing investment projects in Uzbekistan with the participation of foreign financial institutions.

The memorandum on cooperation and the agreement on the implementation of the project of technical assistance in the field of nature protection were signed between Uzbekistan and the EBRD.

During the meeting, the parties discussed issues of further development of cooperation. In particular, in cooperation with the European Bank for Reconstruction and Development (EBRD), issues of strengthening the legislative framework, introducing public-private partnership mechanisms and developing a roadmap for research aimed at adapting to the national legislation of Uzbekistan were discussed. They also exchanged views on improving the mechanisms of public-private partnership.

The EBRD is the largest institutional investor in Central Asia, with close to 11.6 billion euros ($12.3 billion) committed to projects in a variety of sectors, from infrastructure to agriculture, with a focus on private sector development. It has successful experience of bringing innovation to Uzbekistan’s pharmaceutical sector through direct and indirect lending and a number of consultancy projects, which helped companies improve operational and financial management and obtain ISO 9001 and Good Manufacturing Practice (GMP) certificates.

The bank has to date invested 897 million euros in Uzbekistan. Its current portfolio of projects in the country is 76 million euros.

The EBRD aims to identify potential new projects in areas set out in a memorandum of understanding signed with the government authorities in March 2017.

The EBRD’s work in the country will focus in the short term on advice and financing for small and medium-sized enterprises, a trade finance programme to support cross-border trade and cooperation, and measures to improve the investment climate and competitiveness of the Uzbek economy, including through attracting foreign direct investment that will result in the transfer of technology and know-how.

Currently, the bank together with the involved ministries and departments of Uzbekistan is in the process of development a draft of the EBRD country program for Uzbekistan, which will further expand the bank's interaction with the Central Asian nation.