The event included the signature of the Credit Facility Agreement for the sanitation programme, for an amount of €105 million, as well as the Grant Facility Agreement on Livestock Development for an amount of €7.6 million. Both projects are supported by AFD and the European Union, through its Investment Facility for Central Asia.Timur Ishmetov, minister of Finance of Uzbekistan, Aurelia Bouchez, ambassador of France and Philippe Orliange, AFD director for Western Balkans, Middle East and Asia attended the ceremony.
Philippe Orliange said: “AFD has been working hand in hand with Uzbek authorities and with the European Union for a few years in Uzbekistan. The impacts of their joint projects are starting to be seen and they strengthen our positive cooperation for the years to come. Both objectives to protect the environment and promote economic activities of breeders are consistent and well-aligned.”
Construction, rehabilitation and extension of centralized sanitation systems
The objective of the sanitation project in the cities of Karmana, Kitob and Shakhrisabz is to ensure integrated water resource management adapted to climate change, with benefits for the environment and the health of population.
It will include a works component, with the implementation of a centralized wastewater collection and treatment system, as well as a capacity-building program to support the sector’s stakeholders to ensure the sustainability of the infrastructures built.
Only 15 % of the Uzbek population currently has access to a sewerage system. The project will address the need to strengthen infrastructures of remote cities of Uzbekistan, develop a global and integrated management of the country's scarce water resources and act for public health, against the development of pandemics. Nearly 170,000 people will have access to sanitation services and water quality will be ensured for three rivers flowing through the target communities.
Fostering inclusive and green investment in the livestock sector
The government of the Republic of Uzbekistan and AFD also signed the Grant Facility Agreement of the livestock project within the framework of the International investment forum, following the signature of a €100 million loan for livestock support in June 2021. This grant from the European Union complements the loan.
Together, they aim to finance the agricultural stakeholders thanks to a range of investment instruments encouraging climate benefits, and the inclusion of small farmers, with a particular focus on women and young people. The project will contribute to structural change in the agricultural economy by fostering a new model for livestock development based on the growth potential of small producers, who are more flexible and able to adopt climate-resilient practices.
The EU grant will cover the technical assistance program for participating financial institutions and other institutions involved in the livestock sector. The EU funding will also be used to finance the investment grant designed for smallholders that should stimulate their access to credit.
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