TASHKENT

The Islamic Development Bank (IsDB) and the OPEC Fund for International Development are set to provide a $275 million loan to help Uzbekistan with the implementation of a project on sustainable rural development.

The IsDB has agreed to provide $200 million, while OPEC will allocate $75 million from its Fund for International Development, according to the decree signed by President Shavkat Mirziyoyev .

Uzbekistan’s Economic Development Ministry has been designated as the executive body responsible for the timely implementation and coordination of the project, as well as the targeted and effective use of the loans.

The United Nations Development Program (UNDP) office in Uzbekistan will act as a partner of the responsible government executive body and has allocated grant funds in the amount of $3 million, the decree said.

The project will cover 20 districts in Karakalpakstan, Bukhara, Navoi and Khorezm regions of the populous Central Asian nation with an aim to upgrade the architectural appearance of rural settlements, integrated development of the regions, construction of road and transport infrastructure, engineering and communication networks, as well as social facilities.

Uzbekistan’s own contribution to the project would amount to $60 million, according to the decree.

Earlier this month, Uzbekistan hosted the 46th annual meeting of the IsDB Board of Governors and on the sidelines of the meeting, they have agreed to establish a new Fund for Expanding Economic Opportunities to support projects aimed at reducing poverty and developing entrepreneurship in Uzbekistan.

At the initial stage of forming the Fund, Uzbekistan’s government will contribute $35 million, the IsDB $20 million, and the remaining $45 million will mainly be raised from various Saudi investors. Following the successful launch of the pilot phase, the initial fund size of $100 million is to be gradually increased to $500 million, officials said.