The Uzbek Ambassador to Kuwait, Bahromjon Aloev met with the Regional Manager for Central Asia and Europe of the Kuwait Fund for Arab Economic Development (KFAED), Fawaz Al-Adsani on Thursday, the Uzbek Ministry of Foreign Affairs said.
The parties discussed the ways to further advance financial and technical cooperation between Uzbekistan and the KFAED.
Fawaz al-Adsani, praising the current state and prospects for cooperation between the two parties, expressed appreciation for the effective joint work with the Embassy.
“Uzbekistan, thanks to its sustainable economy and creditworthiness, is one of the reliable partners of the Kuwaiti Fund.”Beween 1997 to 2018, the KFAED has provided US$ 183.164 million worth of soft loans for 9 social projects and grants for US$ 2.456 million to prepare a feasibility study for 5 projects in Uzbekistan. These funds were used for improving water supply, restoring the irrigation network and drainage system, equipping district and city hospitals of the Republican specialized center for cardiac surgery, developing utility infrastructure in rural areas and reconstructing roads, and others with modern medical equipment.”
Fawaz al-Adesani noted that on March 10, 2019, in line with the Memorandum of Understanding between the Government of Uzbekistan and the KFAED, on granting soft loans in 2017-2019, the Fund’s Board of Directors approved the allocation of the second tranche of US$ 30 million for soft loans. These loans will be used to finance infrastructure projects included in the Program for the construction of standardized housing in rural areas in Uzbekistan, which will be implemented in the Republic of Karakalpakstan, Kashkadarya, Samarkand, Surkhandarya, Fergana and Tashkent provinces.
Experts of the Kuwaiti Fund are currently preparing a visit to Uzbekistan to identify projects and prepare a draft loan agreement, which is planned to be signed in the second half of this year.
The loan agreement on the provision as per the said Memorandum of the first tranche of soft loans worth of US$ 30 million was signed on January 30, 2018 in Tashkent and is being successfully implemented.
On November 29, 2018, the KFAED Board of Directors also approved a decision on the allocation of a grant in the amount of US$ 500,000. for the preparation of a feasibility study of two projects - “Improving the water supply system in the Kagan city and Kagan district of the Bukhara provinces” and “Improving the drinking water supply system in the Sherabad district of the Surkhandarya province”.
Following the talks, an agreement was reached to commence joint efforts to prepare the next Memorandum of Understanding between the Government of Uzbekistan and the KFAED on the provision of soft loans in 2020-2022 to finance social projects in Uzbekistan.