Uzbekistan to borrow $250 million to modernize irrigation system

A sovereign loan of up to $250 million will be provided to modernize 110 irrigation pumping stations across Uzbekistan. This agreement was signed on June 12 between the European Bank for Reconstruction and Development (EBRD) and the Republic of Uzbekistan during the Tashkent International Investment Forum.

According to the agreement, the project will cover 10 regions and support the implementation of the National Program for the Modernization of Uzbekistan’s Irrigation System. As a result, the country is expected to save 251,000 megawatt-hours of electricity annually and reduce carbon dioxide emissions by more than 117,000 tons. The project will also include upgrades to supporting infrastructure, such as installing solar panels on the roofs of pumping stations.

Currently, the EBRD's investment portfolio in Uzbekistan includes 181 projects with a total value of 5.6 billion euros. Most of these investments are directed toward private sector development. For the past five years, Uzbekistan has been the largest recipient of EBRD investments in Central Asia.

It is worth noting that the World Bank’s Board of Executive Directors previously approved a concessional loan of \$200 million to Uzbekistan for a separate project to modernize irrigation and drainage infrastructure and improve irrigation services for farmers.