Uzbekistan, Tashkent, May 24 / Trend D.Azizov /
Uzbekistan and the Asian Development Bank (ADB) have signed a loan agreement worth $220 million to provide for the construction of the national highway in Uzbekistan, the ADB office in Tashkent told Trend on Friday.
As previously reported, the ADB board of directors approved a loan for the project in December last year.
This is the second tranche allocated under the multi-tranche financing programme worth $500 million for the construction of national highways approved by the bank in August 2011 as part of the Central Asia Regional Economic Cooperation (CAREC) Programme entitled 'Regional Roads Development II'.
The ADB funds will be used for the reconstruction of individual sections of the Tashkent-Osh highway (A-373) with a total length of 75 kilometres with the replacement of the two-lane asphalt surface to a four-lane concrete one.
The loan is granted out of the ordinary resources of the bank for 25 years, including a five-year grace period at a standard preferential bank rate based on LIBOR.
As reported, in the framework of this programme, the bank's funds, allocated in three instalments during 2011-2013, will be used for the reconstruction of individual sections of Guzar-Bukhara-Nukus-Beynau (A-380) and Tashkent - Osh (A-373) roads to a total length about 230 kilometres.
The first tranche of $130 million was granted in 2011 for 24 years including a four-year grace period. This was directed for the reconstruction of the A-373 road at the Kamchik pass at a length of 74 kilometres.
As reported, in April 2010, ADB approved the provision to the Uzbek government of a debt package to the sum of $600 million for the construction of the national highway.
ADB funds are being allocated for the reconstruction of individual sections of the Guzar-Bukhara-Nukus-Beynau (A-380) and Tashkent-Andijan (A-373) roads with a total length of 450 kilometres.
Uzbekistan joined the ADB in 1995. During this time, the bank has approved loans for about 40 joint projects in education and health care, modernisation of generating the capacity and energy infrastructure, rail and road infrastructure, public utilities, agriculture and financial sector with a total project cost of about $9 billion with a share of ADB financing being about $4 billion.
