ADB approves $150 million loan for water resources management in the Aral Sea basin

In accordance with the agreement dated June 24, 2022, the Asian Development Bank will provide a $150 million loan and a $3 million grant to help improve food and water security in Uzbekistan through better land and water resources management for improved agricultural productivity.

The total cost of the project is $194.9 million, including the contribution of Uzbekistan in the equivalent of $40.2 million, of which $26.6 million is in the form of VAT refunds and exemptions from customs duties at the expense of the republican budget.

During the project implementation period (7 years – from 2022 to 2029), special machinery, mechanisms and technological equipment registered under the "temporary import" customs regime are conditionally exempt from customs duties and taxes. The project is being implemented in the Republic of Karakalpakstan, Bukhara, Surkhandarya and Khorezm regions.

The Ministry of Water Resources is the executive body responsible for the implementation of the project, the targeted and efficient use of credit and grant funds, as well as ensuring the achievement of all targets. The functions of managing and coordinating the program are assigned to the center for the implementation of foreign investment projects in the water sector under the Ministry of Water Resources.