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Uzbekistan to receive $30 million loan from Kuwait

18 March 2019 [16:00] - TODAY.AZ

By Azernews

By Abdul Kerimkhanov

Today, Uzbekistan together with the KFAED has implemented several large projects, aimed at improving the water supply to the population, transport infrastructure and the development of the medical care sector in the country.

The Board of Directors of the Kuwait Fund for Arab Economic Development (KFAED) has approved the allocation of a preferential credit line for $ 30 million to Uzbekistan, reports.

This became known after the talks of the KFAED regional manager for Central Asia and Europe, Fawaz al-Adsani, and the ambassador of Uzbekistan in Kuwait, Bakhromjon Aloev.

Fawaz al-Adsani noted that in accordance with the Memorandum of Understanding between the Government of Uzbekistan and the KFAED, about the provision of concessional loans in 2017-2019, the Fund’s Board of Directors approved the allocation of the second tranche of concessional loans worth $ 30 million on March 10, 2019.

"These loans will be used to finance infrastructure projects included in the Program for the construction of individual housing in rural areas in Uzbekistan. They will be implemented in the Republic of Karakalpakstan, Kashkadarya, Samarkand, Surkhandarya, Fergana and Tashkent regions," the press service of the Foreign Ministry said.

Experts of the Kuwaiti Fund are currently preparing a visit to Uzbekistan to identify projects and prepare a draft loan agreement, which is planned to be signed in the second half of this year.

In addition, following the negotiations, the parties reached an agreement to start joint work on the preparation of the next Memorandum of Understanding between the Uzbek government and the KFAED on the provision of soft loans in 2020-2022 to finance social projects in Uzbekistan.

"Thanks to its sustainable economy and creditworthiness, Uzbekistan is one of the reliable partners of the Kuwait Fund. In the period from 1997 to 2018, the KFAED allocated concessional loans of $ 183.1 million for the implementation of nine social projects and grants of $ 2.4 million for preparing a feasibility study for five projects," said Fawaz al-Adsani.

As he noted, they were used in such areas as improving water supply, restoring the irrigation network and drainage system, equipping regional medical centers of the Republican specialized center for cardiac surgery with modern medical equipment, developing engineering infrastructure in rural areas and reconstructing roads and others.

In January 2018, the parties signed a loan agreement, under which the KFAED allocated the first tranche of soft loans for $ 30 million.

At the end of November 2018, the KFAED Board of Directors approved a decision to allocate a grant of $500,000 to prepare a feasibility study of two projects - “Improving the water supply system in Kagan and Kagan district of the Bukhara region” and “Improving the drinking water supply system in Sherabad district Surkhandarya region."

Diplomatic relations between Uzbekistan and Kuwait were established on July 8, 1994.

The official visit of the President of Uzbekistan Islam Karimov to Kuwait in January 2004, gave a significant impetus to the development of relations between the two countries. During the visit, the legal basis was created for the further strengthening of bilateral relations.

In July 2008, the Emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, made an official visit to the Republic of Uzbekistan, during which the parties signed a number of documents to strengthen Uzbek-Kuwaiti relations and enhance trade, economic and investment cooperation.


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