Uzbekistan receives a $10 million loan to develop PPP projects

The European Bank for Reconstruction and Development (EBRD) has loaned Uzbekistan $10 million to create a Fund for the Development of Public-Private Partnership (PPP) Projects.

The money will be used to cover the creation of concept notes, financial models, evaluations, and tender documents for PPP projects.

The fund will be maintained by the EBRD and will be accessible for donations from other donors. The loan for arranging the fund’s activities is awarded at the Euribor rate + 1% and is scheduled to be repaid in 12 years, with a four-year grace period.

The Ministry of Economy and Finance and other agencies will annually compile a list of PPP projects for which the fund will offer financing for consultant services. Each year, the Cabinet of Ministers will approve the list by December 1st.

The formation of the PPP project development fund is anticipated to assist Uzbekistan in attracting greater private investment in infrastructure and other critical areas of the economy.

Public-private partnerships can enhance the efficiency and quality of public services while also contributing to economic growth and job creation.

Public-private partnerships may provide a variety of advantages to both the public and private sectors, such as “assist the public sector and improve the efficiency and quality of public services, attract private investment in infrastructure and other critical areas of the economy, reduce the load on public finances, and share risks with the private sector.”

It can also provide opportunities for the private sector to “invest in long-term infrastructure projects, generate money from the supply of public services, gain access to new markets and technology, and collaborate with the government to deliver public services.”