The funding will be used to provide access to safely managed water in Bukhara Region in the country
AIIB offers $385m loan to improve water access in Uzbekistan. (Credit: Pixabay/S. Hermann & F. Richter)
The Asian Infrastructure Investment Bank (AIIB) has agreed to provide $385m loan to improve water access in Uzbekistan.
The funding will be used to provide access to safely managed water and sanitation services as well as strengthen the operational performance of water utility in Bukhara Region in country.
The Uzbekistan’s government has identified Bukhara Region as a priority area to develop water and sanitation infrastructure along with tourism.
The country has committed to increase the regional access to water supply which currently at 54% and sewage services that is currently at 34% to 100%.
Around 1.15 million residents are expected to be benefited through the project
AIIB Investment Operations vice president Konstantin Limitovskiy said: “These investments will improve regional access to safe drinking water and sanitation as well as support the Government of Uzbekistan in addressing its critical financing gap in water supply and sanitation services.
“The project is AIIB’s first loan in the water sector in Uzbekistan and in the Central Asia Region. It is also aligned with AIIB’s key priority of promoting sustainable infrastructure.”
Approximately 1.15 million residents are expected to be benefited through the Bukhara Region Water Supply and Sewerage Project, which will support priority investments in water supply infrastructure and sewage infrastructure.
The bank said that the investments are expected to reduce water-related diseases, lower coping costs, increase operational efficiency and improve water service quality and quantity.
The funding will also be used to finance the project management and provide support to assist the implementation agency to ensure seamless coordination, efficiency and compliance with bank’s relevant safeguards policies.