Tashkent, Uzbekistan (UzDaily.com) -- Resolution of the President “On measures to implement the Development of Rural Entrepreneurship - Phase 2” project with the participation of the International Bank for Reconstruction and Development and the International Development Association was adopted.

On 22 March 2022, the Board of Directors of the World Bank to finance the Project approved the allocation of borrowed funds by the International Bank for Reconstruction and Development in the amount of US$180 million for a period of 25 years, including a grace period of 5 years, as well as by the International Development Association (IDA) in the amount of US$20 million for a period of 30 years, including a grace period of 5 years.

The total cost of the Project is the equivalent of US$246.8 million, of which the contribution of Uzbekistan in the form of tax and customs benefits is US$3 million, the share of the Project participants (beneficiaries) is the equivalent of US$43.8 million.

The project is being implemented for 5 years (2022-2026) in Karakalpakstan, Bukhara, Jizzakh, Navoi, Kashkadarya, Samarkand, Syrdarya, Surkhandarya, Tashkent and Khorezm regions.

During the implementation of the Project, goods (services) purchased are exempt from customs duty, value added tax is paid from the State budget (except for taxes related to goods (services) purchased under financing through a credit line and small grants).

The Agency for the Work of the Mahallabay and the Development of Entrepreneurship has been identified as the responsible body for the timely and full implementation, coordination, monitoring and reporting of the Project.

The project is being implemented in order to develop production, provide services, create new and expand the potential of existing enterprises and improve the access of small businesses to financial and non-financial services in rural areas, as well as the wide involvement of rural youth and women in business.