Tashkent, Uzbekistan (UzDaily.com) -- On 25 March 2022, the Government of the Republic of Uzbekistan and the French Development Agency (AFD) signed two agreements on joint work on the development of water supply infrastructure in Navoi, Kitob and Shakhrisabz and inclusive and climate investment financing in the livestock sector. 

The signing of the agreements will contribute to the implementation of Uzbekistan’s strategy for a greener and more equitable growth and was organized as part of the Tashkent International Investment Forum.

As part of the event, an Agreement on loan financing of a sanitation program in the amount of 105 million euros, as well as an Agreement on grant financing for the development of animal husbandry in the amount of 7.6 million euros were signed. Both projects are supported by the AFD and the European Union through its Investment Fund for Central Asia. The ceremony was attended by Mr. Timur Ishmetov, Minister of Finance of Uzbekistan, Ms. Aurelia Bouchez, Ambassador of France, and Mr. Philippe Orliange, AFD Director for the Western Balkans, Middle East and Asia.

Philippe Orliange said: “AFD has been working in Uzbekistan for several years, hand in hand with the Uzbek authorities and the European Union. The results of their joint projects are starting to show and they strengthen our positive cooperation for the coming years. Both goals are to protect the environment and promote the economic activity of livestock farmers are consistent and well-coordinated."

The goal of the sewerage project in the cities of Karmana, Kitob and Shakhrisabz is to provide integrated water resource management adapted to climate change, with benefits for the environment and public health.

It will include a work component to introduce a centralized wastewater collection and treatment system, as well as a capacity building program to support sector stakeholders to ensure the sustainability of the built infrastructures.

Currently, only 15% of the population of Uzbekistan has access to the sewerage system. The project will focus on strengthening the infrastructure of remote cities of Uzbekistan, developing global and integrated management of the country’s scarce water resources and acting in the interests of public health, against the development of pandemics. Nearly 170,000 people will have access to sanitation and hygiene services, and water quality will be ensured for the three rivers that flow through the targeted communities.

The Government of the Republic of Uzbekistan and the AFD also signed an Agreement on grant financing for a livestock project within the framework of the International Investment Forum, after signing a loan of 100 million euros to support livestock in June 2021. This grant from the European Union complements the loan.

Together, they aim to fund agricultural stakeholders through a range of investment instruments that promote climate benefits and smallholder engagement, with a particular focus on women and youth. The project will promote structural change in the agricultural economy by promoting a new livestock development model based on the growth potential of small-scale producers that are more flexible and able to adopt climate-resilient practices.

The EU grant will cover a technical assistance program for participating financial institutions and other institutions involved in the livestock sector. The EU funds will also be used to fund an investment grant for smallholders to encourage them to access credit.